Pub. 11 2014 Issue 1

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S Spring • 2014 7 Bills, Resolutions and Memorials Enacted by Legislature Issues monitored by NMBA: House Joint Resolution 16 – Land Grant Permanent Fund (Maestas). The resolution proposes an amendment to Article XII, Section 7 of the constitution, to require the State Investment Council (SIC) to invest and manage the Land Grant Permanent Fund (LGPF) in accordance with the Uniform Pru- dent Investor Act. The proposed amendment would also delete the provision that no more than 15 percent of the book value of the fund may be invested in international securities at any one time. The SIC is required to diversify its investments, and since the Council has reached its 15 percent international cap, the constitution restricts the SIC’s fulfillment of prudent investment standards. The SIC indicated that diversification of assets is a critical component of risk control in portfolio construction and the LGPF portfolio could be better diversified with increased access to the international investment markets. SIC lags most peer funds in this regard, with the majority of institutional investors allocating more than 15 percent of their portfolios internationally. This resolution will be put before the voters on the November general election ballot. House Bill 14 – Gross Receipts Tax Deduction for Aircraft Maintenance and Parts (White). The bill pro- vides a gross receipts tax deduction from selling aircraft parts or maintenance services for aircraft or aircraft parts. The proponents of the law suggest that the deduction will encour- age aircraft maintenance to be done in New Mexico and not in surrounding jurisdictions not subject to gross receipts taxation. Signed by Governor. House Bill 185 – Commercial Real Estate Broker Lien Act (Maestas). The bill creates the Commercial Real Estate Broker Lien Act to permit a broker to place a lien upon commercial real estate or any interest in commercial real estate in the amount that the broker is due for licensed services con- nected with the leasing of the commercial real estate, including brokerage fees and consulting fees if the broker is entitled to a stated fee or commission. This bill provides that a lien must be recorded in the county clerk’s office inwhich the commercial real estate is located and must be filed within ninety days following the date on which payment was due. The broker must also mail a copy of the notice of lien by certified mail to the last known address of the owner of the commercial real estate or the owners authorized agent within ten days of recording the notice of lien. Within two years of recording the notice of lien, a broker must bring suit to enforce the lien in the district court in the county where the commercial real estate is located. Failure to do so shall extinguish the lien. Signed by Governor. Senate Bill 110 – Real Estate Appraisers Act (Rue). The bill amends the Real Estate Appraisers Act by including new definitions, clarifying definitions, and creating new criteria for the qualifications of an appraisal all in an effort to be consistent with the requirement of Title XI of Financial Institutions Reform, Recovery, and Enforcement Act. If the bill had not passed, both the board and licensed appraisers would have faced consequenc - es. The state would not have been in federal compliance with Title XI FIRREA, and Dodd-Frank Act. Current licensees would have lost the ability to perform federal related transactions if federal regulators took formal action. Signed by Governor. Senate Bill 106 and 156 (Leavell/C. Sanchez). The substitute bill would extend net operating loss carryovers in- curred fromnet income reported for corporate income tax (CIT) purposes from the current five-year period following the year of loss to 20-years following the year of loss for taxable years beginning after January 1, 2013. The bill would also extend net operating loss carryovers incurred fromnet income reported for personal income tax (PIT) purposes from the current five-year period following the year of loss to 20-years for taxable years beginning after January 1, 2013. For both CIT and PIT tax years beginning before January 1, 2013, NOLs not recovered after five years would be extinguished. The bill will have little fiscal im - pact until at least fiscal year 2018, but would serve to make New Mexico’s personal and corporate income tax NOL rules conform n  continued on page 9