45th legislature - STATE OF NEW MEXICO - second session, 2002

RELATING TO EDUCATION; CREATING THE NEW MEXICO GOVERNMENT EDUCATION FUND; PROVIDING FOR AN ANNUAL DISTRIBUTION FROM OIL AND GAS EMERGENCY SCHOOL TAX REVENUES; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 7-1-6.20 NMSA 1978 (being Laws 1985, Chapter 65, Section 6, as amended) is amended to read:

"7-1-6.20. IDENTIFICATION OF MONEY IN EXTRACTION TAXES SUSPENSE FUND--DISTRIBUTION.--

A. Except as provided in Subsection B of this section, after the necessary disbursements have been made from the extraction taxes suspense fund, the money remaining in the suspense fund as of the last day of the month shall be identified by tax source and distributed or transferred in accordance with the provisions of Sections 7-1-6.21 through

7-1-6.23 and 7-1-6.43 NMSA 1978. After the necessary distributions and transfers, any balance, except for remittances unidentified as to source or disposition, shall be transferred to the general fund.

B. Payments on assessments issued by the department pursuant to the Oil and Gas Conservation Tax Act, the Oil and Gas Emergency School Tax Act, the Oil and Gas Ad Valorem Production Tax Act and the Oil and Gas Severance Tax Act shall be held in the extraction taxes suspense fund until the secretary determines that there is no substantial risk of protest or other litigation, whereupon after the necessary disbursements have been made from the extraction taxes suspense fund, the money remaining in the suspense fund as of the last day of the month attributed to these payments shall be identified by tax source and distributed or transferred in accordance with the provisions of Sections 7-1-6.21 through 7-1-6.23 and 7-1-6.43 NMSA 1978. After the necessary distributions and transfers, any balance, except for remittance unidentified as to source or disposition, shall be transferred to the general fund."

Section 2. A new section of the Tax Administration Act, Section 7-1-6.43 NMSA 1978, is enacted to read:

"7-1-6.43. [NEW MATERIAL] DISTRIBUTION TO NEW MEXICO GOVERNMENT EDUCATION FUND.--An annual distribution pursuant to Section 7-1-6.20 NMSA 1978 shall be made to the New Mexico government education fund in the amount of fifty thousand dollars ($50,000) from the net receipts attributable to the Oil and Gas Emergency School Tax Act."

Section 3. A new section of Chapter 21 NMSA 1978 is enacted to read:

"[NEW MATERIAL] NEW MEXICO GOVERNMENT EDUCATION FUND.--The "New Mexico government education fund" is created in the state treasury. The fund shall consist of distributions of oil and gas emergency school tax revenues and appropriations, gifts, grants and donations. The fund shall be administered by the state department of public education, and money in the fund is appropriated to the department to contract for annual, week-long, high school civics courses focusing on New Mexico state government for boys and girls to be held at varying institutions of higher education around the state. Disbursements of the fund shall be made by warrant of the department of finance and administration pursuant to vouchers signed by the superintendent of public instruction. Any unexpended or unencumbered balance remaining in the fund at the end of any fiscal year shall not revert but shall remain to the credit of the fund."