SENATE FINANCE COMMITTEE SUBSTITUTE FOR

SENATE BILL 229

47th legislature - STATE OF NEW MEXICO - second session, 2006

AN ACT

RELATING TO PUBLIC FINANCE; AUTHORIZING THE NEW MEXICO FINANCE AUTHORITY TO ISSUE ADDITIONAL REVENUE BONDS FOR THE REGIONAL CANCER TREATMENT CENTER AT THE GILA REGIONAL MEDICAL CENTER; PROVIDING FOR DISTRIBUTION OF ONE PERCENT OF THE CIGARETTE TAX REVENUES FOR THE RURAL COUNTY CANCER TREATMENT FUND; CREATING THE RURAL COUNTY CANCER TREATMENT FUND; MAKING APPROPRIATIONS.

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

     Section 1. TEMPORARY PROVISION--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 twenty years in an amount not exceeding two million five hundred thousand dollars ($2,500,000) for the purpose of designing, constructing, equipping and furnishing additions and improvements to a regional cancer treatment center at the Gila regional medical center in Grant county and subsequently rural cancer treatment facilities in class B counties.

          B. The authority may issue and sell revenue bonds authorized by this section when the chair of the board of county commissioners of Grant county certifies the need for issuance of the bonds. The net proceeds from the sale of the bonds are appropriated to the local government division of the department of finance and administration for the purposes described in Subsection A of this section.

          C. The cigarette tax proceeds distributed to the authority pursuant to Subsection H 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 authority pursuant to Subsection H of Section 7-1-6.11 NMSA 1978 shall be deposited each month in a separate fund or account of the authority.

          E. Upon payment of all principal, interest and other expenses or obligations related to the bonds, the 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 to cease distributing cigarette tax proceeds to the authority pursuant to Subsection H 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 or reduce debt service coverage for 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 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.

          H. The authority may purchase revenue bonds issued pursuant to this section with money in the public project revolving fund pursuant to the provisions of Section 6-21-6 NMSA 1978.

     Section 2. 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] thirty-five 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] sixty-nine 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] thirty-five 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] two-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] thirty-seven 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] 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 land acquisition and the planning, designing, construction and equipping of department of health facilities or improvements to such facilities.

          G. A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to fifteen and [ninety-five] seventy-nine 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.

          H. A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to one 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 rural county cancer treatment fund, to the New Mexico finance authority."

     Section 3. Section 7-12-7 NMSA 1978 (being Laws 1971, Chapter 77, Section 7, as amended) is amended to read:

     "7-12-7. SALE OF STAMPS--PRICES.--

          A. The department shall sell stamps to any person who sells in New Mexico cigarettes manufactured by that person and to any person who receives on consignment or buys unstamped cigarettes for sale, gift or consumption in New Mexico, provided such persons are registered with the department under the provisions of Section 7-1-12 NMSA 1978. Stamps shall be sold at their face value with the following discounts:

                (1) [four] three percent less than the face value of the first thirty thousand dollars ($30,000) of stamps purchased in one calendar month;

                (2) [three] two percent less than the face value of the second thirty thousand dollars ($30,000) of stamps purchased in one calendar month; and

                (3) [two] one percent less than the face value of all stamps purchased in excess of sixty thousand dollars ($60,000) in one calendar month.

          B. If the face value of stamps sold in a single sale is less than one thousand dollars ($1,000), the discount provided for in this section shall not be allowed.

          C. Payment for stamps shall be made on or before the twenty-fifth day of the month following the month in which the sale of stamps by the department is made."

     Section 4. [NEW MATERIAL] RURAL COUNTY CANCER TREATMENT FUND CREATED--PURPOSE--APPROPRIATION.--The "rural county cancer treatment fund" is created in the New Mexico finance authority. The fund is comprised of appropriations, donations, distributions pursuant to Section 7-1-6.11 NMSA 1978 and money earned from investment of the fund and otherwise accruing to the fund. Money in the fund is appropriated to the New Mexico finance authority to provide a revenue stream to finance the construction of cancer treatment facilities in class B counties. Balances remaining in the fund at the end of a fiscal year shall not revert. The New Mexico finance authority shall administer the fund, and money from the fund may be drawn only on warrants signed by the executive director of the New Mexico finance authority pursuant to vouchers signed by the executive director.

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