Pub. 13 2016 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 • 2016 9 SB 146: Scrivener’s Affidavit (Griggs). The bill authorizes the use of a “scrivener’s affidavit” to correct a drafting or clerical error in an instru- ment affecting the title to real prop- erty relating to :1) a legal description; 2) a subdivision name; 3) recording in- formation for a plat; 4) a metes and bounds description, as long as the correction does not add or remove land to the land being described; 5) the spelling of a name; 6) an incorrect or missing middle initial; 7) a grantee’s address if omitted in a deed; or 8) the type or state of domicile of a corpora- tion or other legal entity. SB 155: Uniform Powers of Ap- pointment Act (Wirth). The bill enacts the Uniform Powers of Ap- pointment Act. It codifies the law of powers of appointment used by estate planners to give a third party the au- thority to direct the disposition of a donor’s property to specified eligible recipients. The act was approved by the Uniform Law Commission in July of 2013, by the American Bar Associ- ation in February 2014 and the New Mexico Bankers Association Trust Committee in 2015. It also enacts new and amends other sections of the Uni- form Probate Code pertaining to no- tice, time for presentation of claims, penalty clauses and closing an estate. The act governs the creation, amend- ment, and revocation of powers of ap- pointment. It also addresses the exer- cise of powers by the person holding the power (sometimes referred as the power holder) and the distribution of appointive property; provides rules for disclaimers and releases and for contracts between a power-holder and a permissible beneficiary; and sets out the rights of a power holder’s creditors to access appointive property under certain conditions. SB 211: Film Production Tax Credit Act (Ryan). The bill clarifies the Film Production Tax Credit Act. The bill makes a number non-substan- tive changes to the Tax Administration Act and various sections in the Film Production Tax Credit Act to conform references in the law resulting from amendments made in 2015. The bill also allows a film production compa- ny to assign payment of an authorized television tax credit to a third-party financial institution, much like the assignment of the film production tax credit that was authorized in the 2015 legislation. SB 214: Workers’ Compensa- tion Benefits and Intoxication (Candelaria). The bill provides that indemnity benefits of an intoxicated worker will be reduced between 10 percent and 90 percent based on the degree the worker’s intoxication or influence of drugs contributes to the injury. A reduction in benefits is not allowed if an employer does not have a written drug and alcohol workplace policy. However, a worker will not be entitled to benefits should the worker refuse testing requested by the em- ployer. HB 61: Accounts for Persons with Disabilites Act (Stapleton).  Highlights  continued on page 10 The bill would allow for the creation of savings accounts exempt from means testing for individuals with disabilities under the federal Achieving a Better Life Experience (ABLE) Act of 2014. The intent of the federal law is to allow individuals with disabilities to accumu- late financial resources in excess of the $2,000 limit allowed under feder- al means-tested programs, including the disabilities programs of the United States Social Security Administration. HB 168: Transportation Net- work Company Services Act (Youngblood). The bill creates the Transportation Network Company Services Act in an effort to ensure the safety, reliability, and cost-effective- ness of non-taxicab transportation network company (TNC) services with- in New Mexico. A TNC is defined as an entity licensed pursuant to this act that uses a digital network or software application to connect passengers to the services provided by TNC drivers. HB 250: Uniform Money Ser- vices Act (Cook). The bill enacts the Uniform Money Services Act that sets forth regulation and licensing guidelines for money services. The term “money services” includes mon- ey transmission, check cashing or cur- rency exchange. The money services businesses include companies such as Western Union, MoneyGram and Pay- Pal. Banks are exempt from the provi- sions of the act. HB 280: Rule Against Perpetu- ities-Uniform Trust Decanting Act (Cook). The bill enacts the Uni- form Trust Decanting Act which was approved by the Uniform Law Com- mission in July of 2015 and the New Mexico Bankers Association Trust Committee in 2015. The Act allows a trustee to reform an outdated irrevoca- ble trust document within reasonable limits that insure the trust will achieve the settlor’s original intent. “Decant- ing” is the term used to describe the distribution of assets from one trust into a second trust. The act prevents decanting when it would defeat a char- itable or tax-related purpose of the settlor. It is important to note that only the trustee can decant. A bene- ficiary cannot decant. Moreover, the trustee cannot decant unless the trust instrument already gives the trustee the discretionary power to distribute principal. Before decanting, the trust- ee must give the beneficiaries notice. Top left to right: Paul Dipaola, State Representative Debbie Armstrong and Jon Hitchcock. Bottom left to right: Jay Jenkins, Congresswoman Michelle Lujan Grisham, Joan Gregory (ABA) and John Anderson.