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

RELATING TO PUBLIC ASSISTANCE; RAISING THE GASOLINE TAX TO PROVIDE FOR MOTOR VEHICLE LIABILITY INSURANCE FOR INDIGENT FAMILIES; ADJUSTING DISTRIBUTION PERCENTAGES; MAKING AN APPROPRIATION.

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

Section 1. Section 7-1-6.1 NMSA 1978 (being Laws 1983, Chapter 211, Section 6, as amended by Laws 1990, Chapter 6, Section 19 and also by Laws 1990, Chapter 86, Section 3) is amended to read:

"7-1-6.1. IDENTIFICATION OF MONEY IN TAX ADMINISTRATION SUSPENSE FUND--DISTRIBUTION.--After the necessary disbursements have been made from the tax administration suspense fund, the money remaining, except for remittances received within the previous sixty days that are unidentified as to source or disposition, 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 7-1-6.2 through 7-1-6.19, 7-1-6.24 through 7-1-6.26, [and] 7-1-6.28 through 7-1-6.40, 7-1-6.42 and 7-1-6.43 NMSA 1978. After the necessary distributions and transfers, any balance shall be distributed to the general fund."

Section 2. Section 7-1-6.7 NMSA 1978 (being Laws 1994, Chapter 5, Section 2, as amended) is amended to read:

"7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to three and fifty-nine hundredths percent of the gross receipts attributable to the sale of fuel specially prepared and sold for use in turboprop or jet-type engines as determined by the department.

B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to [twenty-six] twenty-two hundredths [of one] percent of gasoline taxes, exclusive of penalties and interest, collected pursuant to the Gasoline Tax Act.

C. From July 1, 2002 through June 30, 2007, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to forty-six thousandths of one percent of the net receipts attributable to the gross receipts tax distributable to the general fund."

Section 3. Section 7-1-6.8 NMSA 1978 (being Laws 1983, Chapter 211, Section 13, as amended) is amended to read:

"7-1-6.8. DISTRIBUTION--MOTORBOAT FUEL TAX FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the motorboat fuel tax fund in an amount equal to [thirteen] eleven-hundredths [of one] percent of the net receipts attributable to the gasoline tax."

Section 4. Section 7-1-6.9 NMSA 1978 (being Laws 1991, Chapter 9, Section 11, as amended) is amended to read:

"7-1-6.9. DISTRIBUTION OF GASOLINE TAXES TO MUNICIPALITIES AND COUNTIES.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made in an amount equal to [ten and thirty-eight] eight and eighty-two hundredths percent of the net receipts attributable to the taxes, exclusive of penalties and interest, imposed by the Gasoline Tax Act.

B. [Except as provided in Subsection D of this section] The amount determined in Subsection A of this section shall be distributed as follows:

(1) ninety percent of the amount shall be paid to the treasurers of municipalities and H class counties in the proportion that the taxable motor fuel sales in each of the municipalities and H class counties bears to the aggregate taxable motor fuel sales in all of these municipalities and H class counties; and

(2) ten percent of the amount shall be paid to the treasurers of the counties, including H class counties, in the proportion that the taxable motor fuel sales outside of incorporated municipalities in each of the counties bears to the aggregate taxable motor fuel sales outside of incorporated municipalities in all of the counties.

C. Except as provided in Subsection D of this section, this distribution shall be paid into a separate road fund in the municipal treasury or county road fund for expenditure only for construction, reconstruction, resurfacing or other improvement or maintenance of public roads, streets, alleys or bridges, including right-of-way and materials acquisition. Money distributed pursuant to this section may be used by a municipality or county to provide matching funds for projects subject to cooperative agreements entered into with the state highway and transportation department pursuant to Section 67-3-28 NMSA 1978. Any municipality or H class county that has created or that creates a "street improvement fund" to which gasoline tax revenues or distributions are irrevocably pledged under Sections 3-34-1 through 3-34-4 NMSA 1978 or that has pledged all or a portion of gasoline tax revenues or distributions to the payment of bonds shall receive its proportion of the distribution of revenues under this section impressed with and subject to these pledges.

D. This distribution may be paid into a separate road fund or the general fund of the municipality or county if the municipality has a population less than three thousand or the county has a population less than four thousand."

Section 5. Section 7-1-6.10 NMSA 1978 (being Laws 1983, Chapter 211, Section 15, as amended) is amended to read:

"7-1-6.10. DISTRIBUTIONS--STATE ROAD FUND.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road fund in an amount equal to the net receipts attributable to the taxes, surcharges, penalties and interest imposed pursuant to the Gasoline Tax Act and to the taxes, surtaxes, fees, penalties and interest imposed pursuant to [the Special Fuels Tax Act] the Special Fuels Supplier Tax Act and the Alternative Fuel Tax Act less:

(1) the amount distributed to the state aviation fund pursuant to Subsection B of Section 7-1-6.7 NMSA 1978;

(2) the amount distributed to the motorboat fuel tax fund pursuant to Section 7-1-6.8 NMSA 1978;

(3) the amount distributed to municipalities and counties pursuant to Subsection A of Section 7-1-6.9 NMSA 1978;

(4) the amount distributed to the county government road fund pursuant to Section 7-1-6.19 NMSA 1978;

(5) the amount distributed to the local governments road fund pursuant to Section 7-1-6.39 NMSA 1978;

(6) the amount distributed to the municipalities pursuant to Section 7-1-6.27 NMSA 1978; [and]

(7) the amount distributed to the municipal arterial program of the local governments road fund pursuant to Section 7-1-6.28 NMSA 1978; and

(8) the amount distributed to the motor vehicle insurance fund pursuant to Section 7-1-6.43 NMSA 1978.

B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road fund in an amount equal to the net receipts attributable to the taxes, fees, interest and penalties from the Weight Distance Tax Act."

Section 6. Section 7-1-6.19 NMSA 1978 (being Laws 1991, Chapter 9, Section 15, as amended) is amended to read:

"7-1-6.19. DISTRIBUTION--COUNTY GOVERNMENT ROAD FUND CREATED.--

A. There is created in the state treasury the "county government road fund".

B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the county government road fund in an amount equal to [five and seventy-six hundredths] four and nine-tenths percent of the net receipts attributable to the gasoline tax."

Section 7. Section 7-1-6.27 NMSA 1978 (being Laws 1991, Chapter 9, Section 20, as amended) is amended to read:

"7-1-6.27. DISTRIBUTION--MUNICIPAL ROADS.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to municipalities for the purposes and amounts specified in this section in an aggregate amount equal to [five and seventy-six hundredths] four and nine-tenths percent of the net receipts attributable to the gasoline tax.

B. The distribution authorized in this section shall be used for the following purposes:

(1) reconstructing, resurfacing, maintaining, repairing or otherwise improving existing alleys, streets, roads or bridges, or any combination of the foregoing; or laying off, opening, constructing or otherwise acquiring new alleys, streets, roads or bridges, or any combination of the foregoing; provided that any of the foregoing improvements may include, but are not limited to, the acquisition of rights of way;

(2) to provide matching funds for projects subject to cooperative agreements with the state highway and transportation department pursuant to Section 67-3-28 NMSA 1978; and

(3) for expenses of purchasing, maintaining and operating transit operations and facilities, for the operation of a transit authority established by the Municipal Transit Law and for the operation of a vehicle emission inspection program. A municipality may engage in the business of the transportation of passengers and property within the political subdivision by whatever means the municipality may decide and may acquire cars, trucks, motor buses and other equipment necessary for operating the business. A municipality may acquire land, erect buildings and equip the buildings with all the necessary machinery and facilities for the operation, maintenance, modification, repair and storage of the cars, trucks, motor buses and other equipment needed. A municipality may do all things necessary for the acquisition and the conduct of the business of public transportation.

C. For the purposes of this section:

(1) "computed distribution amount" means the distribution amount calculated for a municipality for a month pursuant to Paragraph (2) of Subsection D of this section prior to any adjustments to the amount due to the provisions of Subsections E and F of this section;

(2) "floor amount" means four hundred seventeen dollars ($417);

(3) "floor municipality" means a municipality whose computed distribution amount is less than the floor amount; and

(4) "full distribution municipality" means a municipality whose population at the last federal decennial census was at least two hundred thousand.

D. Subject to the provisions of Subsections E and F of this section, each municipality shall be distributed a portion of the aggregate amount distributable under this section in an amount equal to the greater of:

(1) the floor amount; or

(2) eighty-five percent of the aggregate amount distributable under this section times a fraction, the numerator of which is the municipality's reported taxable gallons of gasoline for the immediately preceding state fiscal year and the denominator of which is the reported total taxable gallons for all municipalities for the same period.

E. Fifteen percent of the aggregate amount distributable under this section shall be referred to as the "redistribution amount". Beginning in August 1990, and each month thereafter, from the redistribution amount there shall be taken an amount sufficient to increase the computed distribution amount of every floor municipality to the floor amount. In the event that the redistribution amount is insufficient for this purpose, the computed distribution amount for each floor municipality shall be increased by an amount equal to the redistribution amount times a fraction, the numerator of which is the difference between the floor amount and the municipality's computed distribution amount and the denominator of which is the difference between the product of the floor amount multiplied by the number of floor municipalities and the total of the computed distribution amounts for all floor municipalities.

F. If a balance remains after the redistribution amount has been reduced pursuant to Subsection E of this section, there shall be added to the computed distribution amount of each municipality that is neither a full distribution municipality nor a floor municipality an amount that equals the balance of the redistribution amount times a fraction, the numerator of which is the computed distribution amount of the municipality and the denominator of which is the sum of the computed distribution amounts of all municipalities that are neither full distribution municipalities nor floor municipalities."

Section 8. Section 7-1-6.28 NMSA 1978 (being Laws 1991, Chapter 9, Section 22, as amended) is amended to read:

"7-1-6.28. DISTRIBUTION--MUNICIPAL ARTERIAL PROGRAM OF LOCAL GOVERNMENTS ROAD FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the municipal arterial program of the local governments road fund created in Section 67-3-28.2 NMSA 1978 in an amount equal to one and [forty-four] twenty-two hundredths percent of the net receipts attributable to the gasoline tax."

Section 9. 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--MOTOR VEHICLE INSURANCE FUND--GASOLINE TAX.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the motor vehicle insurance fund in an amount equal to fifteen percent of the net receipts attributable to the gasoline tax."

Section 10. Section 7-13-3 NMSA 1978 (being Laws 1971, Chapter 207, Section 3, as amended) is amended to read:

"7-13-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS "GASOLINE TAX".--

A. For the privilege of receiving gasoline in this state, there is imposed an excise tax at a rate provided in Subsection B of this section on each gallon of gasoline

received in New Mexico.

B. The tax imposed by Subsection A of this section shall be [seventeen cents ($.17)] twenty cents ($.20) per gallon received in New Mexico.

C. The tax imposed by this section may be called the "gasoline tax"."

Section 11. A new section of the Public Assistance Act is enacted to read:

"[NEW MATERIAL] MOTOR VEHICLE INSURANCE FUND CREATED--PURPOSE--ADMINISTRATION.--

A. The "motor vehicle insurance fund" is created in the state treasury to be administered by the department. Interest earned on money in the fund shall be credited to the fund. Balances in the fund shall not revert at the end of any fiscal year.

B. All balances in the motor vehicle insurance fund are appropriated to the department for the purpose of providing motor vehicle liability insurance for qualifying adults.

C. A distribution from the gasoline tax shall be deposited in the motor vehicle insurance fund as provided in the Tax Administration Act.

D. Payments from the motor vehicle insurance fund shall be made pursuant to vouchers issued and signed by the secretary or the secretary's designee upon warrants drawn by the secretary of finance and administration."

Section 12. A new section of the Public Assistance Act is enacted to read:

"[NEW MATERIAL] MOTOR VEHICLE INSURANCE PROGRAM--ELIGIBILITY.--

A. The department shall establish a program that shall provide motor vehicle liability insurance for indigent families that meets the minimum requirements of the Mandatory Financial Responsibility Act, as set forth in Section 66-5-208 NMSA 1978.

B. To be eligible to participate in the motor vehicle insurance program, a person must:

(1) be at least eighteen years of age;

(2) reside in New Mexico;

(3) have a family income less than or equal to one hundred fifty percent of the federal poverty guidelines;

(4) have a New Mexico driver's license for at least one year;

(5) not have been convicted of driving under the influence of intoxicating liquor or drugs as described in Section 66-8-102 NMSA 1978;

(6) not have been convicted of reckless driving as described in Section 66-8-113 NMSA 1978;

(7) not have been convicted of a felony; and

(8) not have had a driver's license suspended or revoked within the last five years.

C. As used in this section, "federal poverty guidelines" means the level of income defining poverty by family size as developed annually by the United States department of health and human services and published in the federal register.

D. Only one vehicle per household is eligible for the motor vehicle insurance program.

E. The department shall not allow a person to participate in the motor vehicle insurance program for more than three years."

Section 13. EFFECTIVE DATE.--The effective date of the provisions of Sections 10 through 12 of this act is July 1, 2003. The effective date of the provisions of Sections 1 through 9 of this act is August 1, 2003.