Legislation Detail
SB 269 PUBLIC FINANCE ACCOUNTABILITY ACT
Actions: [6] SCC/SHPAC/SFC-SCC
Scheduled: Not Scheduled
Senate Bill 269 (SB 269): This legislation act focuses on ensuring accountability and transparency in the management of public finances, particularly in the context of capital expenditures and grants awarded by state agencies in New Mexico.Legislation Overview:
Senate Bill 269 (SB 269): Section 1: Short Title • The act is titled the "Public Finance Accountability Act." Section 2: Definitions • Defines terms used in the Act, including "annual audit," "department," "grant," "grant agreement," "grantee," and "state agency." Section 3: Public Finance Accountability Fund • Establishes the "public finance accountability fund" in the state treasury, administered by the office of the state auditor. • Specifies the sources of the fund, including appropriations, gifts, grants, and donations. • States that the fund is appropriated to the office of the state auditor to assist grantees in complying with the Audit Act. Section 4: Funding Criteria • Outlines criteria for a grantee to be eligible for a grant. • Requires grantees to have a public record of their annual audit, address weaknesses or deficiencies identified in audits, and comply with financial reporting requirements. • The Department of Finance and Administration (the department) is tasked with establishing these funding criteria. Section 5: Grant Management and Oversight Requirements • Requires state agencies to ensure compliance with applicable laws regarding the sale, lease, or license of capital assets acquired with capital outlay appropriations. • Mandates independent confirmation of compliance if no oversight agency approval is required. • Specifies the use of a capital outlay grant agreement template and field audits of capital outlay projects. Section 6: Duties of the Department • Assigns responsibilities to the department to implement funding criteria and grant management requirements. • Instructs the department to develop grant agreement templates, criteria for deviations, and to monitor and enforce compliance. Section 7: Appropriation • Appropriates one million dollars from the general fund to the public finance accountability fund for fiscal year 2025 to support financial reporting for grantees not in compliance with the Audit Act. • Any unexpended balance at the end of fiscal year 2025 will revert to the general fund. Section 8: Effective Date • Establishes the effective date of the provisions as July 1, 2024.