44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO SMALL CITIES ASSISTANCE; INCREASING THE AMOUNT OF THE MAXIMUM ANNUAL MUNICIPAL DISTRIBUTION TO A QUALIFYING MUNICIPALITY FROM THE SMALL CITIES ASSISTANCE FUND.

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

Section 1. Section 3-37A-3 NMSA 1978 (being Laws 1979, Chapter 284, Section 3, as amended) is amended to read:

"3-37A-3. SMALL CITIES ASSISTANCE FUND--DISTRIBUTION.--

A. The "small cities assistance fund" is created within the state treasury.

B. On January 31 of each year, the local government division of the department of finance and administration shall certify to the taxation and revenue department the population of each municipality in the state.

C. On or before June 10 of each year, the taxation and revenue department shall compute the distribution share of each qualifying municipality. The distribution share shall be an amount equal to the product of the qualifying municipality's population multiplied by the difference between the statewide per capita average and the municipal per capita average less the local tax effort of the qualifying municipality; provided that the distribution share shall not exceed [thirty thousand dollars ($30,000)] sixty thousand dollars ($60,000); and provided that any municipality with a population of less than ten thousand [which] that does not qualify for a distribution or any qualifying municipality [which] that qualifies for a distribution of less than fifteen thousand dollars ($15,000) shall receive a distribution of fifteen thousand dollars ($15,000); and provided further that if the balance in the small cities assistance fund on the preceding May 30 is less than the sum of the distribution shares, [then] the taxation and revenue department shall first reduce the distribution share of each municipality whose distribution share is in excess of fifteen thousand dollars ($15,000) in an amount calculated according to the following formula:

municipal distribution share

    in excess of $15,000      X deficiency in fund sum of municipal distribution

shares in excess of $15,000

so long as no municipality's distribution share is reduced below fifteen thousand dollars ($15,000), and until each municipality's distribution share is reduced to fifteen thousand dollars ($15,000), if necessary; and provided further that if the sum of the distribution shares when each share is reduced to fifteen thousand dollars ($15,000) is still in excess of the balance in the small cities assistance fund on the preceding May 30, [then] the taxation and revenue department shall reduce each municipality's fifteen thousand dollar ($15,000) distribution share by a percentage equal to a percentage computed by dividing the amount by which the fund is insufficient by the sum of all the distribution shares. The taxation and revenue department shall certify the amount of the distribution shares to the state treasurer.

D. The state treasurer shall distribute from the small cities assistance fund on or before June 15 of each year to each qualifying municipality the amount certified by the taxation and revenue department for each qualifying municipality for the period ending May 30 of the preceding year.

E. Immediately after distribution to municipalities from the small cities assistance fund but no later than June 30 of each year, the unexpended or unencumbered balance in the small cities assistance fund remaining after the distribution to the qualifying municipalities shall revert to the general fund.

F. Funds distributed under this section shall be placed in the general fund of the qualifying municipalities receiving distributions."

Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 1999.