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AN ACT

RELATING TO TAXATION; INCREASING THE DISTRIBUTION FROM THE TAX

ADMINISTRATION SUSPENSE FUND TO THE RETIREE HEALTH CARE FUND;

PROVIDING FOR A STUDY OF ISSUES CONCERNING THE RETIREE HEALTH

CARE FUND; MAKING AN APPROPRIATION.

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

Section 1. A new section of the Tax Administration Act

is enacted to read:

"DISTRIBUTION--RETIREE HEALTH CARE FUND.--In addition to

the distribution made pursuant to Section 7-1-6.30 NMSA 1978,

for the period beginning July 1, 2007 and ending June 30,

2010, a distribution pursuant to Section 7-1-6.1 NMSA 1978

shall be made to the retiree health care fund in the amount of

two hundred fifty thousand dollars ($250,000)."

Section 2. RETIREE HEALTH CARE FUND--STUDY--

APPROPRIATION.--

A. The New Mexico legislative council, the

legislative finance committee, the governor and the retiree

health care authority shall jointly appoint a staff working

group to study issues relating to the retiree health care

fund. The working group shall:

(1) taking into account the latest actuarial

study, examine the long-term actuarial trend and condition of

the fund;

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(2) examine the equitable nature of the

current contribution rates between retirees and current

employees;

(3) determine the percent of the fund

balance derived from state sources versus the percent derived

from the sources of political subdivisions, compare those

percentages with the expenditures from the fund for state

retirees versus retirees of the political subdivisions and

study the feasibility of creating two separate programs for

the two classes of retirees;

(4) examine options to improve the actuarial

soundness of the fund;

(5) evaluate the need for, and the

feasability of, securing the fund as an irrevocable trust;

(6) consult with such experts as are

necessary to accomplish its duties; and

(7) report its findings and recommendations

to the governor, the New Mexico legislative council, the

legislative finance committee and the retiree health care

authority no later than December 15, 2007.

B. One hundred thousand dollars ($100,000) is

appropriated from legislative cash balances to the legislative

council service for expenditure in fiscal years 2007 and 2008

for the purposes of performing the study pursuant to

Subsection A of this section. Any unexpended or unencumbered

balance remaining at the end of fiscal year 2008 shall revert

to legislative cash balances.

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