HOUSE BILL 4
53rd legislature - STATE OF NEW MEXICO - first session, 2017
INTRODUCED BY
Patricia A. Lundstrom and George Dodge, Jr.
FOR THE LEGISLATIVE FINANCE COMMITTEE
AN ACT
RELATING TO FISCAL SOLVENCY; REVERTING BALANCES OF THE INSURANCE OPERATIONS FUND, FIRE PROTECTION FUND, FIRE PROTECTION GRANT FUND AND LAW ENFORCEMENT PROTECTION FUND AT THE END OF EACH FISCAL YEAR; REQUIRING PERIODIC ALLOTMENTS DURING A FISCAL YEAR FROM THOSE FUNDS; MAKING NO TRANSFERS FROM THE FIRE PROTECTION FUND TO THE FIRE PROTECTION GRANT FUND FOR FISCAL YEAR 2017 OR 2018.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 29-13-3 NMSA 1978 (being Laws 1983, Chapter 289, Section 3, as amended) is amended to read:
"29-13-3. DISTRIBUTION OF CERTAIN INSURANCE [DIVISION] COLLECTIONS--LAW ENFORCEMENT PROTECTION FUND CREATED.--There is created in the state treasury the "law enforcement protection fund". Ten percent of all money received for fees, licenses, penalties and taxes from life, general casualty and title insurance business pursuant to the New Mexico Insurance Code, except for money received from the health insurance premium surtax imposed by Subsection C of Section 59A-6-2 NMSA 1978, shall be paid monthly to the state treasurer and credited to the fund. On or before June 30 of each year, the state treasurer shall transfer to the general fund any balance in the law enforcement protection fund in excess of one hundred thousand dollars ($100,000) that is not obligated [and that is in excess of the amount certified by the division to be distributed from that fund] for expenses in that current fiscal year."
SECTION 2. Section 29-13-4 NMSA 1978 (being Laws 1993, Chapter 179, Section 6, as amended by Laws 2002, Chapter 78, Section 5 and by Laws 2002, Chapter 92, Section 3) is amended to read:
"29-13-4. DETERMINATION OF NEEDS AND RATE OF DISTRIBUTION.--
A. Annually on or before April 15, the division shall consider and determine the relative needs as requested by tribal, municipal and university police and county sheriff's departments for money in the fund in the succeeding fiscal year pursuant to the provisions of Subsection C of this section.
B. As necessary during the year, the division shall transfer an amount from the law enforcement protection fund to the peace officers', New Mexico mounted patrol members' and reserve police officers' survivors fund that enables the balance of the [peace officers' survivors] latter fund to be maintained at a minimum balance of three hundred fifty thousand dollars ($350,000).
C. The division shall determine the rate of distribution of money [remaining] in the fund to each tribal, municipal and university police and county sheriff's department as follows:
(1) all municipal police and county sheriff's departments shall be rated by class pursuant to this paragraph in accordance with populations established by the most recently completed decennial census; provided that the population of any county shall not include the population of any municipality within that county that has a municipal police department. The rate of distribution to which a municipal police or county sheriff's department is entitled is the following:
CLASS POPULATION AMOUNT
1 0 to 20,000 $20,000
2 20,001 to 160,000 30,000
3 160,001 to 1,280,000 40,000;
(2) university police departments shall be entitled to a rate of distribution of seventeen thousand dollars ($17,000);
(3) tribal police departments shall be entitled, unless allocations are adjusted pursuant to the provisions of Subsection [C] D of this section, to six hundred dollars ($600) for each commissioned peace officer in the tribe. To be counted as a commissioned peace officer for the purposes of this paragraph, a commissioned peace officer shall have been assigned to duty and have worked in New Mexico for no fewer than two hundred days in the calendar year immediately prior to the date of payment. Payments shall be made for only those divisions of the tribal police departments that perform services in New Mexico. [No] A tribal police department shall not be eligible for any disbursement under the fund if commissioned peace officers cite non-Indians into the tribal court for civil or criminal citations; and
(4) municipal and university police and county sheriff's departments shall be entitled, unless allocations are adjusted pursuant to the provisions of Subsection D of this section, to six hundred dollars ($600) for each police officer or sheriff's deputy employed full time [by his department] who has been certified by the New Mexico law enforcement academy as a police officer or has been authorized to act as a New Mexico peace officer pursuant to the provisions of Section 29-1-11 NMSA 1978.
D. After distributions are determined in accordance with Subsection A, Subsection B and Paragraphs (1) and (2) of Subsection C of this section, if the balance in the fund is insufficient to permit the total allocations provided by Paragraphs (3) and (4) of Subsection C of this section, the division shall reduce that allocation to the maximum amount permitted by available money."
SECTION 3. Section 29-13-6 NMSA 1978 (being Laws 1983, Chapter 289, Section 6, as amended by Laws 2002, Chapter 78, Section 6 and by Laws 2002, Chapter 92, Section 4) is amended to read:
"29-13-6. DISTRIBUTION OF LAW ENFORCEMENT PROTECTION FUND.--
A. [Annually on or before July 31] Based on a periodic allotment approved by the division for the current fiscal year, the state treasurer shall distribute from the fund the amounts certified by the division to be distributed to governmental entities and [the transfer shall distribute money from the law enforcement protection fund to] the peace officers', New Mexico mounted patrol members' and reserve police officers' survivors fund as required in Section 29-13-4 NMSA 1978. Payments shall be made [to] by the treasurer [of] to the appropriate governmental entity or fund unless otherwise specified in Subsection C of this section.
B. The state treasurer is authorized to redirect a distribution to the New Mexico finance authority in an amount certified by the division, pursuant to an ordinance or a resolution passed by the municipality or county and a written agreement of the municipality or county and the New Mexico finance authority.
C. [Annually on or before July 31] Based on a periodic allotment approved by the division for the current fiscal year, the state treasurer shall distribute from the money in the fund money certified by the division to be distributed to tribes. Payment shall be made to the chief financial officer of the tribe. If necessary, the fund may be decreased below the level of one hundred thousand dollars ($100,000) to enable payment to the tribes. If insufficient money remains in the fund to fully compensate the tribes, a report shall be made to the [New Mexico office of] Indian affairs department and to an appropriate interim committee of the legislature that reviews issues having impact on tribes by September 1 of the year of the shortfall."
SECTION 4. Section 59A-6-5 NMSA 1978 (being Laws 1984, Chapter 127, Section 105, as amended) is amended to read:
"59A-6-5. DISTRIBUTION OF [DIVISION] OFFICE COLLECTIONS.--
A. All money received by the [division] office of superintendent of insurance for fees, licenses, penalties and taxes shall be paid daily by the superintendent to the state treasurer and credited to the "insurance department suspense fund" except as provided by [(1)] the Law Enforcement Protection Fund Act [and
(2) Section 59A-6-1.1 NMSA 1978].
B. The superintendent may authorize the refund of money erroneously paid as fees, licenses, penalties or taxes from the insurance department suspense fund under request for refund made within three years after the erroneous payment. In the case of premium taxes erroneously paid or overpaid in accordance with law, refund may also be requested as a credit against premium taxes due in any annual or quarterly premium tax return filed within three years of the erroneous or excess payment.
C. If required by a compact to which New Mexico has joined pursuant to law, the superintendent shall authorize the allocation of premiums collected pursuant to Section 59A-14-12 NMSA 1978 to other states that have joined the compact pursuant to an allocation formula agreed upon by the compacting states.
D. The "insurance operations fund" is created in the state treasury. The fund shall consist of the distributions made to it pursuant to Subsection E of this section. The legislature shall annually appropriate from the fund to the division those amounts necessary for the division to carry out its responsibilities pursuant to the Insurance Code and other laws. Any balance in the fund at the end of a fiscal year [greater than one-half of that fiscal year's appropriation] shall revert to the general fund.
E. At the end of every month, after applicable refunds are made pursuant to Subsection B of this section and after any allocations have been made pursuant to Subsection C of this section, the treasurer shall make the following transfers from the balance remaining in the insurance department suspense fund:
(1) to the "fire protection fund", that part of the balance derived from property and vehicle insurance business;
(2) to the insurance operations fund, that part of the balance derived from the fees imposed pursuant to Subsections A and E of Section 59A-6-1 NMSA 1978 other than fees derived from property and vehicle insurance business; and
(3) to the general fund, the balance remaining in the insurance department suspense fund derived from all other kinds of insurance business."
SECTION 5. Section 59A-53-5.2 NMSA 1978 (being Laws 2007, Chapter 152, Section 1, as amended) is amended to read:
"59A-53-5.2. APPROPRIATIONS AND TRANSFERS FROM THE FIRE PROTECTION FUND.--
A. For each fiscal year, the amount to be distributed by the marshal pursuant to Sections 59A-53-4, 59A-53-5 and 59A-53-5.1 NMSA 1978 is appropriated from the fire protection fund to the superintendent for the purpose of making the following distributions:
[B. For the purposes of Subsections C and D of this section, the "remaining balance in the fire protection fund" shall be calculated on June 30 of each year and shall equal the balance of the fund on that date less the sum of]
(1) the total amount to be distributed during the [succeeding] fiscal year pursuant to Sections 59A-53-4, 59A-53-5 and 59A-53-5.1 NMSA 1978; [and]
(2) the total amount of other appropriations from the fire protection fund for the [succeeding] fiscal year;
(3) on June 30, 2017, no distribution shall be made to the fire protection grant fund; and
(4) beginning in fiscal year 2019, periodic allotments not to exceed forty and two-tenths percent of the projected remaining balance in the fire protection fund shall be distributed to the fire protection grant fund.
[C. On the following dates, the following percentages of the remaining balance in the fire protection fund shall be transferred from the fire protection fund to the fire protection grant fund:
(1) on June 30, 2007, six and seven-tenths percent;
(2) on June 30, 2008, thirteen and four-tenths percent;
(3) on June 30, 2009, thirteen and four-tenths percent;
(4) on June 30, 2010, thirteen and four-tenths percent;
(5) on June 30, 2011, thirteen and four-tenths percent;
(6) on June 30, 2012, thirteen and four-tenths percent;
(7) on June 30, 2013, twenty and one-tenth percent;
(8) on June 30, 2014, twenty-six and eight-tenths percent;
(9) on June 30, 2015, thirty-three and five-tenths percent; and
(10) on June 30, 2016, and on each subsequent June 30, forty and two-tenths percent.
D.] B. On June 30 of each year, the remaining balance in the fire protection fund [less the amount to be transferred on that date pursuant to Subsection C of this section] shall be transferred to the general fund."
SECTION 6. Section 59A-53-7 NMSA 1978 (being Laws 1984, Chapter 127, Section 978, as amended) is amended to read:
"59A-53-7. DISTRIBUTION OF FIRE PROTECTION FUND.--
A. [Annually on or before the last day of July] Based on periodic allotments approved by the marshal, the state treasurer shall distribute from the money in the fire protection fund, to each municipality and county fire district, the amount that the marshal or the public regulation commission, as the case may be, has certified to the state treasurer. Payment shall be made to the treasurer of any municipality and to the county treasurer of the county in which any county fire district is located for credit to the county fire district.
B. The state treasurer is authorized to redirect a distribution to the New Mexico finance authority in the amount that the marshal or the public regulation commission, as the case may be, has certified to the state treasurer pursuant to an ordinance or a resolution passed by the municipality or county and a written agreement of the municipality or county in which any county fire district is located and the New Mexico finance authority.
C. In addition to the distributions made pursuant to Subsections A and B of this section, upon certification by the marshal that the balance of the firefighters' survivors fund is less than two hundred fifty thousand dollars ($250,000), the state treasurer shall distribute an amount from the fire protection fund to the firefighters' survivors fund so that the balance of the firefighters' survivors fund equals two hundred fifty thousand dollars ($250,000)."
SECTION 7. Section 59A-53-18 NMSA 1978 (being Laws 2006, Chapter 103, Section 7, as amended) is amended to read:
"59A-53-18. FIRE PROTECTION GRANT FUND--CREATED--USES.--The "fire protection grant fund" is created in the state treasury. The fund shall consist of transfers, distributions, appropriations, gifts, grants, donations and bequests made to the fund. [Income from the fund shall be credited to the fund, and] Money in the fund shall [not] revert [or be transferred to any other] to the general fund at the end of a fiscal year. Money in the fund is appropriated to the fire protection grant council for the purposes of making distributions approved by the council for the critical needs of municipal fire departments and county fire districts. Expenditures from the fund shall be made on warrant of the secretary of finance and administration pursuant to vouchers signed by the marshal."
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