SENATE BILL 155

55th legislature - STATE OF NEW MEXICO - second session, 2022

INTRODUCED BY

George K. Munoz

AN ACT

RELATING TO STATE FUNDS; CREATING THE ECONOMIC DIVERSIFICATION AND CLIMATE RESILIENCE FUND; TRANSFERRING A PORTION OF THE REMAINING BALANCE OF THE EXTRACTION TAXES SUSPENSE FUND, AFTER NECESSARY DISTRIBUTIONS AND TRANSFERS ARE MADE, TO THE ECONOMIC DIVERSIFICATION AND CLIMATE RESILIENCE FUND.

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

     SECTION 1. A new section of Chapter 6, Article 4 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] ECONOMIC DIVERSIFICATION AND CLIMATE RESILIENCE FUND.--

          A. The "economic diversification and climate resilience fund" is created as a nonreverting fund in the state treasury. The fund consists of distributions, appropriations, gifts, grants and donations to the fund.

          B. Money in the fund is subject to appropriation by the legislature for the following purposes:

                (1) economic development efforts designed to attract investments and job creation from key sectors, including intelligent manufacturing, aerospace, defense, microelectronics, cybersecurity, biosciences, renewable energy and sustainable agriculture;

                (2) workforce training and development;

                (3) public works infrastructure improvements necessary to attract business development and enhance supply chains;

                (4) projects to support conservation, restoration, remediation and improvements of public lands, forests, watersheds, parks and trails; and

                (5) any other efforts to promote long-term economic growth, diversify the state economy or reduce state revenue reliance on fossil fuel development.

          C. Upon request by the legislative finance committee, an agency that receives an appropriation from the fund for economic diversification purposes shall report to the committee the impact to the state of the appropriation."

     SECTION 2. 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 7-1-6.61 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 7-1-6.61 NMSA 1978. After the necessary distributions and transfers, any balance, except for remittance unidentified as to source or disposition, shall be transferred as follows:

                (1) fifty percent to the economic diversification and climate resilience fund; and

                (2) fifty percent to the general fund."

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of Section 2 of this act is July 1, 2022.

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