46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO LOW-INCOME HOME ENERGY ASSISTANCE; PROVIDING FOR A DISTRIBUTION FROM THE EXTRACTION TAXES SUSPENSE FUND FOR LOW- INCOME HOME ENERGY ASSISTANCE IF NET RECEIPTS FROM THE OIL AND GAS EMERGENCY SCHOOL TAX EXCEED CERTAIN AMOUNTS; CREATING A FUND; 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 LOW-INCOME HOME ENERGY ASSISTANCE FUND.--

A. A distribution pursuant to Section 7-1-6.20 NMSA 1978 equal to the difference of thirty percent of the amount calculated in Subsection B of this section less the total amount distributed pursuant to this section in the fiscal year to date shall be made to the low-income home energy assistance fund; provided that if the amount to be distributed is less than zero, then no distribution shall be made.

B. The amount used to calculate the distribution pursuant to Subsection A of this section shall equal the net receipts attributable to the tax imposed pursuant to the Oil and Gas Emergency School Tax Act in the current fiscal year to date less the base amount for the current fiscal year. As used in this subsection, "base amount for the current fiscal year" means the net receipts attributable to the tax imposed pursuant to the Oil and Gas Emergency School Tax Act in fiscal year 2000 multiplied by a fraction the denominator of which is the consumer price index for calendar year 1999 for the United States for all items as published by the United States department of labor and the numerator of which is the same index for the calendar year preceding July 1 of the current fiscal year."

Section 3. [NEW MATERIAL] LOW-INCOME HOME ENERGY ASSISTANCE FUND CREATED--APPROPRIATION.--

A. The "low-income home energy assistance fund" is created in the state treasury. The fund shall consist of money appropriated and transferred to the fund and tax revenues distributed to the fund by law. Earnings of the fund shall be credited to the fund. Balances in the fund shall not revert at the end of any fiscal year.

B. Money in the low-income home energy assistance fund is appropriated to the human services department for expenditure for the low-income home energy assistance program. Money in the fund shall be disbursed by warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of human services or his designee.

Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2003.