0001| HOUSE BILL 16
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| DONALD L. WHITAKER
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0005|
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0006|
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0007|
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0008| FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE
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0009|
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0010| AN ACT
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0011| RELATING TO SMALL CITIES ASSISTANCE; INCREASING THE ANNUAL
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0012| DISTRIBUTIONS TO QUALIFYING SMALL CITIES FROM THE SMALL CITIES
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0013| ASSISTANCE FUND.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 3-37A-3 NMSA 1978 (being Laws 1979,
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0017| Chapter 284, Section 3, as amended) is amended to read:
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0018| "3-37A-3. SMALL CITIES ASSISTANCE FUND--DISTRIBUTION.--
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0019| A. The "small cities assistance fund" is created
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0020| within the state treasury.
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0021| B. On January 31 of each year, the local government
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0022| division of the department of finance and administration shall
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0023| certify to the taxation and revenue department the population
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0024| of each municipality in the state.
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0025| C. On or before June 10 of each year, the taxation
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0001| and revenue department shall compute the distribution share of
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0002| each qualifying municipality. The distribution share shall be
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0003| an amount equal to the product of the qualifying municipality's
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0004| population multiplied by the difference between the statewide
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0005| per capita average and the municipal per capita average less
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0006| the local tax effort of the qualifying municipality; provided
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0007| that the distribution share shall not exceed [thirty thousand
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dollars ($30,000)] the maximum amount allowed; and provided
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0009| that any municipality with a population of less than ten
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0010| thousand which does not qualify for a distribution or any
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0011| qualifying municipality which qualifies for a distribution of
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0012| less than [fifteen thousand dollars ($15,000)] the minimum
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0013| amount shall receive a distribution of [fifteen thousand
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dollars ($15,000)] the minimum amount; and provided further
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0015| that if the balance in the small cities assistance fund on the
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0016| preceding May 30 is less than the sum of the distribution
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0017| shares, [then] the taxation and revenue department shall
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0018| first reduce the distribution share of each municipality whose
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0019| distribution share is in excess of [fifteen thousand dollars
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($15,000)] the minimum amount in an amount calculated
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0021| according to the following formula:
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0022| municipal distribution share
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0023| in excess of [$15,000] the minimum amount X deficiency in
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0024| fund
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0025| _________________________________________
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0001|
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0002| sum of municipal distribution
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0003| shares in excess of [$15,000] the minimum amount
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0004|
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0005| so long as no municipality's distribution share is reduced
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0006| below [fifteen thousand dollars ($15,000)] the minimum
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0007| amount, and until each municipality's distribution share is
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0008| reduced to [fifteen thousand dollars ($15,000)] the minimum
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0009| amount, if necessary; and provided further that if the sum of
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0010| the distribution shares when each share is reduced to [fifteen
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thousand dollars ($15,000)] the minimum amount is still in
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0012| excess of the balance in the small cities assistance fund on
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0013| the preceding May 30, [then] the taxation and revenue de-
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0014|
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0015| partment shall reduce each municipality's [fifteen thousand
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dollar ($15,000)] distribution share by a percentage equal to
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0017| a percentage computed by dividing the amount by which the fund
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0018| is insufficient by the sum of all the distribution shares. The
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0019| taxation and revenue department shall certify the amount of the
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0020| distribution shares to the state treasurer.
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0021| D. The state treasurer shall distribute from the
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0022| small cities assistance fund on or before June 15 of each year
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0023| to each qualifying municipality the amount certified by the
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0024| taxation and revenue department for each qualifying
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0025| municipality for the period ending May 30 of the preceding
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0001| year.
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0002| E. Immediately after distribution to municipalities
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0003| from the small cities assistance fund but no later than June 30
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0004| of each year, the unexpended or unencumbered balance in the
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0005| small cities assistance fund remaining after the distribution
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0006| to the qualifying municipalities shall revert to the general
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0007| fund.
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0008| F. Funds distributed under this section shall be
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0009| placed in the general fund of the qualifying municipalities
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0010| receiving distributions.
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0011| G. As used in this section:
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0012| (1) "maximum amount" means for fiscal year
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0013| 1998, thirty-seven thousand dollars ($37,000); for fiscal year
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0014| 1999, forty-four thousand dollars ($44,000); and for fiscal
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0015| year 2000 and each fiscal year thereafter fifty thousand
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0016| dollars ($50,000); and
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0017| (2) "minimum amount" means for fiscal year 1998,
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0018| twenty thousand dollars ($20,000); for fiscal year 1999,
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0019| twenty-five thousand dollars ($25,000); and for fiscal year
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0020| 2000 and each fiscal year thereafter thirty thousand dollars
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0021| ($30,000)."
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0022| Section 2. EFFECTIVE DATE.--The effective date of the
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0023| provisions of this act is July 1, 1997.
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0024| State of New Mexico
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0025| House of Representatives
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0001|
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0002| FORTY-THIRD LEGISLATURE
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0003| FIRST SESSION, 1997
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0004|
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0005|
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0006| March 3, 1997
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0007|
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0008|
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0009| Mr. Speaker:
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0010|
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0011| Your TAXATION AND REVENUE COMMITTEE, to whom has
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0012| been referred
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0013|
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0014| HOUSE BILL 16
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0015|
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0016| has had it under consideration and reports same with
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0017| recommendation that it DO PASS, and thence referred to the
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0018| APPROPRIATIONS AND FINANCE COMMITTEE.
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0019|
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0020|
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0021| Respectfully submitted,
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0022|
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0023|
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0024|
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0025|
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0001|
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0002|
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0003| Jerry W. Sandel, Chairman
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0004|
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0005|
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0006| Adopted Not Adopted
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0007| (Chief Clerk)
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0008| (Chief Clerk)
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0009|
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0010| Date
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0011|
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0012| The roll call vote was 10 For 0 Against
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0013| Yes: 10
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0014| Excused: Gonzales, Lujan, Porter
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0015| Absent: None
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0016|
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0017|
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0018| G:\BILLTEXT\BILLW_97\H0016
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