AN ACT
RELATING TO TAXATION; INCREASING THE RATE OF THE CIGARETTE
TAX; MODIFYING DISTRIBUTIONS OF CIGARETTE TAX REVENUE; AUTHORIZING THE ISSUANCE
OF REVENUE BONDS; CREATING THE CREDIT ENHANCEMENT ACCOUNT TO FACILITATE THE
ISSUANCE OF REVENUE BONDS; MAKING APPROPRIATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-1-6.11 NMSA 1978 (being Laws 1983,
Chapter 211, Section 16, as amended) is amended to read:
"7-1-6.11. DISTRIBUTIONS OF CIGARETTE TAXES.‑‑
A. A distribution pursuant to Section 7-1-6.1
NMSA 1978 shall be made to the county and municipality recreational fund in an
amount equal to one and thirty-six hundredths percent of the net receipts,
exclusive of penalties and interest, attributable to the cigarette tax.
B. A distribution pursuant to Section 7-1-6.1
NMSA 1978 shall be made to the county and municipal cigarette tax
fund in an amount equal to two and seventy-two hundredths
percent of the net receipts, exclusive of penalties and interest, attributable
to the cigarette tax.
C. A distribution pursuant to Section 7-1-6.1
NMSA 1978 shall be made to the cancer research and treatment center at the
university of New Mexico health sciences center in an amount equal to one and
thirty-six hundredths percent of the net receipts, exclusive of penalties and
interest, attributable to the cigarette tax.
D. A distribution pursuant to Section 7-1-6.1
NMSA 1978 shall be made to the New Mexico finance authority in an amount equal
to two and four-hundredths percent of the net receipts, exclusive of penalties
and interest, attributable to the cigarette tax.
E. A distribution pursuant to Section 7-1-6.1
NMSA 1978 in an amount equal to fourteen and fifty-two hundredths percent of
the net receipts, exclusive of penalties and interest, attributable to the
cigarette tax, shall be made, on behalf of and for the benefit of the
university of New Mexico health sciences center, to the New Mexico finance
authority.
F. A distribution pursuant to Section 7-1-6.1
NMSA 1978 in an amount equal to six and eleven-hundredths percent of the net
receipts, exclusive of penalties and interest, attributable to the cigarette
tax shall be made to the New Mexico finance authority for improvements to
department of health facilities.
G. A distribution pursuant to Section 7-1-6.1
NMSA 1978 in an amount equal to fifteen and ninety-five hundredths percent of
the net receipts, exclusive of penalties and interest, attributable to the
cigarette tax shall be made to the New Mexico finance authority for deposit in
the credit enhancement account created in the authority."
Section 2. Section 7-12-3 NMSA 1978 (being Laws 1971,
Chapter 77, Section 3, as amended) is amended to read:
"7-12-3. EXCISE TAX ON CIGARETTES--RATES.--
A. For the privilege of selling, giving or
consuming cigarettes in New Mexico, there is levied an excise tax at the rate
of four and fifty-five hundredths cents ($.0455) for each cigarette sold, given
or consumed in this state.
B. The tax imposed by this section shall be referred
to as the "cigarette tax"."
Section 3. NEW MEXICO FINANCE AUTHORITY REVENUE
BONDS--PURPOSE--APPROPRIATION.--
A. The New Mexico finance authority may issue
and sell revenue bonds in compliance with the New Mexico Finance Authority Act
for a term not exceeding fifteen years in an amount not exceeding sixty million
dollars ($60,000,000) for the purpose of designing, constructing, equipping and
furnishing additions and improvements to the university of New Mexico hospital
and the cancer research and treatment center at the university of New Mexico
health sciences center.
B. The New Mexico finance authority may issue
and sell revenue bonds authorized by this section when the vice president for
health sciences of the university of New Mexico certifies the need for issuance
of the bonds. The net proceeds from the
sale of the bonds are appropriated to the health sciences center of the
university of New Mexico for the purposes described in Subsection A of this
section.
C. The cigarette tax proceeds distributed to the
New Mexico finance authority pursuant to Subsection E of Section 7-1-6.11 NMSA
1978 shall be pledged irrevocably for the payment of the principal, interest,
premiums and related expenses on the bonds and for payment of the expenses
incurred by the authority related to the issuance, sale and administration of
the bonds.
D. The cigarette tax proceeds distributed to the
New Mexico finance authority pursuant to Subsection E of Section 7-1-6.11 NMSA
1978 shall be deposited each month in a separate fund or account of the
authority. Money in the separate fund or
account in excess of the monthly amount necessary for immediate payment or
designation for payment of principal and interest due on the bonds is
appropriated to the university of New Mexico health sciences center and shall
be transferred each month to the university of New Mexico health sciences
center.
E. Upon payment of all principal, interest and
other expenses or obligations related to the bonds, the New Mexico finance
authority shall certify to the secretary of taxation and revenue that all obligations
for the bonds issued pursuant to this section have been fully discharged and
shall direct the secretary of taxation and revenue and the state treasurer to
cease distributing cigarette tax proceeds to the authority pursuant to
Subsection E of Section 7-1-6.11 NMSA 1978 and to distribute those cigarette
tax proceeds to the general fund.
F. Any law authorizing the imposition,
collection or distribution of the cigarette tax or that affects the cigarette
tax shall not be amended, repealed or otherwise directly or indirectly modified
so as to impair any outstanding revenue bonds that may be secured by a pledge
of those cigarette tax revenues, unless the revenue bonds have been discharged
in full or provisions have been made for a full discharge.
G. The New Mexico finance authority may
additionally secure the revenue bonds issued pursuant to this section by a
pledge of money in the public project revolving fund with a lien priority on
the money in the public project revolving fund as determined by the authority.
Section 4. NEW MEXICO FINANCE AUTHORITY REVENUE
BONDS--DEPARTMENT OF HEALTH FACILITIES--APPROPRIATION.‑-
A. The New Mexico finance authority may issue
and sell revenue bonds in compliance with the New Mexico Finance Authority Act
for projects authorized specifically by law for improvements to department of
health facilities.
B. The New Mexico finance authority may issue
and sell revenue bonds authorized by this section when the secretary of finance
and administration certifies the need for issuance of the bonds. The net proceeds from the sale of the bonds
are appropriated to the capital program fund administered by the property
control division of the general services department for the purposes described
in Subsection A of this section.
C. The cigarette tax proceeds distributed to the
New Mexico finance authority pursuant to Subsection F of Section 7-1-6.11 NMSA
1978 shall be pledged irrevocably for the payment of the principal, interest,
premiums and related expenses on the bonds and for payment of the expenses
incurred by the New Mexico finance authority related to the issuance, sale and
administration of the bonds.
D. The cigarette tax proceeds distributed to the
New Mexico finance authority pursuant to Subsection F of Section 7-1-6.11 NMSA
1978 shall be deposited each month in a separate fund or account of the
authority. Money in the separate fund or
account in excess of the combined total of the principal, interest and other
expenses or obligations related to the bonds coming due in that fiscal year is
appropriated to and shall be transferred to the capital program fund for
capital improvements to department of health facilities recommended by the
secretary of health and approved by the secretary of finance and
administration.
E. Upon payment of all principal, interest and
other expenses or obligations related to the bonds, the New Mexico finance
authority shall certify to the secretary of taxation and revenue that all
obligations for the bonds issued pursuant to this section have been fully
discharged and shall direct the secretary of taxation and revenue and the state
treasurer to cease distributing cigarette tax proceeds to the authority
pursuant to Subsection F of Section 7-1-6.11 NMSA 1978 and to distribute those
cigarette tax proceeds to the general fund.
F. Any law authorizing the imposition,
collection or distribution of the cigarette tax or that affects the cigarette
tax shall not be amended, repealed or otherwise directly or indirectly modified
so as to impair any outstanding revenue bonds that may be secured by a pledge
of those cigarette tax revenues, unless the revenue bonds have been discharged
in full or provisions have been made for a full discharge.
G. The New Mexico finance authority may
additionally secure the revenue bonds issued pursuant to this section by a
pledge of money in the public project revolving fund with a lien priority on
the money in the public project revolving fund as determined by the authority.
Section 5. A new section of the New Mexico Finance
Authority Act is enacted to read:
"CREDIT ENHANCEMENT
ACCOUNT CREATED--USE OF ACCOUNT--RELEASE OF MONEY TO THE GENERAL FUND.--
A. The credit enhancement account is created as
a separate account within the authority for use only as provided in this
section.
B. All cigarette tax proceeds distributed each
month to the authority pursuant to Subsection G of Section 7‑1-6.11 NMSA
1978 shall be deposited in the credit enhancement account.
C. Amounts deposited in the credit enhancement
account may be pledged irrevocably as additional security for the payment of
the principal, interest, premiums and expenses on bonds issued by the authority
for:
(1) designing, constructing, equipping and
furnishing additions and improvements to the university of New Mexico hospital
and the cancer research and treatment center at the university of New Mexico
health sciences center; and
(2) improvements to department of health
facilities.
D. The authority shall determine monthly upon
receipt of cigarette tax proceeds if the individual amounts of cigarette tax
proceeds distributed pursuant to Subsection E or Subsection F, respectively, of
Section 7-1-6.11 NMSA 1978 are sufficient to meet the monthly amount required
for immediate payment or designation for payment of principal, interest,
premiums and expenses on bonds additionally secured by the credit enhancement
account. Any insufficient amount shall
be paid immediately from the credit enhancement account. A payment from the credit enhancement account
shall be reimbursed in succeeding months from the individual amount of
cigarette tax proceeds distributed pursuant to Subsection E or Subsection F, as
applicable, of Section 7-1-6.11 NMSA 1978 in excess of the amount required for
immediate payment or designation for payment of principal, interest, premiums
and expenses on bonds. All money in the
credit enhancement account in excess of the monthly amount required for
immediate payment or designation for payment of principal, interest, premiums
and expenses on bonds shall be transferred monthly by the authority to the
general fund.
E. Upon payment of all principal, interest,
premiums and expenses on bonds additionally secured by a pledge of amounts
deposited in the credit enhancement account, the authority shall certify to the
secretary of taxation and revenue that all obligations for bonds have been
fully discharged and shall direct the secretary of taxation and revenue and the
state treasurer to cease distributing cigarette tax proceeds to the authority
pursuant to Subsection G of Section 7-1-6.11 NMSA 1978 and to distribute those
cigarette tax proceeds to the general fund.
F. Any law authorizing the imposition,
collection or distribution of the cigarette tax or that affects the cigarette
tax shall not be amended, repealed or otherwise directly or indirectly modified
so as to impair any outstanding revenue bonds that may be secured by a pledge
of those cigarette tax proceeds distributed to the credit enhancement account,
unless the revenue bonds have been discharged in full or provisions have been
made for a full discharge."
Section 6. EFFECTIVE DATE.--
A. The effective date of the provisions of
Section 1 of this act is August 1, 2003.
B. The effective date of the provisions of
Sections 2 through 5 of this act is July 1, 2003.