0001|            SENATE WAYS AND MEANS COMMITTEE SUBSTITUTE FOR
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0002|     
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0003|                            SENATE BILL 59
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0004|     43rd legislature - STATE OF NEW MEXICO - second session, 1998
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0008|                                   
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0009|     
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0010|                                   
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0011|     
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0012|                                AN ACT
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0013|     RELATING TO TAXATION; INCREASING THE RATE OF THE CIGARETTE
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0014|     TAX; DISTRIBUTING ADDITIONAL REVENUES FOR SUPPORT OF CERTAIN
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0015|     PROGRAMS AND PURPOSES; AMENDING SECTIONS OF THE NMSA 1978;
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0016|     MAKING APPROPRIATIONS.
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0017|     
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0018|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019|          Section 1.  [NEW MATERIAL] CHILD HEALTH FUND CREATED--
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0020|     PURPOSE--ADMINISTRATION.--The "child health fund" is created

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0021|     in the state treasury and shall be administered by the human
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0022|     services department.  The fund consists of cigarette tax
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0023|     revenue distributed to the fund pursuant to Section 7-1-6.11
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0024|     NMSA 1978.  Money in the fund shall be appropriated by the
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0025|     legislature to the department to provide child health services
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<center>- 1 -</center>0001|     pursuant to the Child Health Act, if enacted into law by the
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0002|     forty-third legislature.  Money in the fund shall not revert
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0003|     at the end of any fiscal year.
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0004|          Section 2.  A new section of the Public Assistance Act is
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0005|     enacted to read:
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0006|          "[NEW MATERIAL] MEDICAID SERVICES FUND CREATED--PURPOSE--
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0007|     ADMINISTRATION.--The "medicaid services fund" is created in
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0008|     the state treasury and shall be administered by the human
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0009|     services department.  The fund consists of cigarette tax
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0010|     revenue distributed to the fund pursuant to Section 7-1-6.11
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0011|     NMSA 1978.   Money in the fund shall be appropriated by the
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0012|     legislature to the department to provide medical services to
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0013|     those medicaid clients who were eligible for services as of
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0014|     July 1, 1997 in part due to their income being no more than
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0015|     one hundred eighty-five percent of the federal poverty level. 
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0016|     Money in the fund shall not revert at the end of any fiscal
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0017|     year."
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0018|          Section 3.  Section 7-1-6.11 NMSA 1978 (being Laws 1983,
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0019|     Chapter 211, Section 16, as amended) is amended to read:
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0020|          "7-1-6.11.  DISTRIBUTIONS OF CIGARETTE TAXES.--
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0021|               A.  A distribution pursuant to Section 7-1-6.1 NMSA
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0022|     1978 shall be made to the county and municipality recreational
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0023|     fund in an amount equal to [four and three-quarters] two and
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0024|     forty-two hundredths percent of the net receipts, exclusive of
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0025|     penalties and interest, attributable to the cigarette tax.
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<center>- 2 -</center>0001|               B.  A distribution pursuant to Section 7-1-6.1 NMSA
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0002|     1978 shall be made to the county and municipal cigarette tax
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0003|     fund in an amount equal to [nine and one-half] four and eighty-
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0004|     four hundredths percent of the net receipts, exclusive of
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0005|     penalties and interest, attributable to the cigarette tax.
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0006|               C.  A distribution pursuant to Section 7-1-6.1 NMSA
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0007|     1978 shall be made to the cancer center at the university of New
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0008|     Mexico school of medicine in an amount equal to [four and three-
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0009|     quarters] nine and fifteen hundredths percent of the net
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0010|     receipts, exclusive of penalties and interest, attributable to
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0011|     the cigarette tax.
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0012|               D.  A distribution pursuant to Section 7-1-6.1 NMSA
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0013|     1978 shall be made to the New Mexico finance authority in an
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0014|     amount equal to [seven and one-eighth] three and sixty-three
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0015|     hundredths percent of the net receipts, exclusive of penalties
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0016|     and interest, attributable to the cigarette tax.
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0017|               E.  A distribution pursuant to Section 7-1-6.1 NMSA
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0018|     1978 shall be made to the university of New Mexico school of
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0019|     medicine medical trust fund in an amount equal to three and
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0020|     fifty-two hundredths percent of the net receipts, exclusive of
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0021|     penalties and interest, attributable to the cigarette tax.
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0022|               F.  A distribution pursuant to Section 7-1-6.1 NMSA
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0023|     1978 shall be made to the medicaid services fund in an amount
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0024|     equal to ten and eighty-three hundredths percent of the net
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0025|     receipts, exclusive of penalties and interest, attributable to
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<center>- 3 -</center>0001|     the cigarette tax.
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0002|               G.  Contigent upon passage of the Child Health Act by
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0003|     the forty-third legislature, a distribution pursuant to Section
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0004|     7-1-6.1 NMSA 1978 shall be made to the child health fund in an
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0005|     amount equal to twenty-eight and four hundredths percent of the
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0006|     net receipts, exclusive of penalties and interest, attributable
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0007|     to the cigarette tax."
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0008|          Section 4.  Section 7-12-3 NMSA 1978 (being Laws 1971,
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0009|     Chapter 77, Section 3, as amended) is amended to read:
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0010|          "7-12-3.  EXCISE TAX ON CIGARETTES--RATES.--
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0011|               A.  For the privilege of selling, giving or consuming
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0012|     cigarettes in New Mexico, there is levied an excise tax at the
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0013|     rate of [one and five hundredths cents ($.0105)] two and two-
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0014|     tenths cents ($.022) for each cigarette sold, given or consumed
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0015|     in this state.
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0016|               B.  The tax imposed by this section shall be referred
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0017|     to as the "cigarette tax"."
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0018|          Section 5.  Section 24-20-1 NMSA 1978 (being Laws 1993,
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0019|     Chapter 358, Section 3) is amended to read:
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0020|          "24-20-1.  MEDICAL TRUST FUND FOR CANCER AND OTHER MEDICAL
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0021|     RESEARCH--APPROPRIATION.--
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0022|               A.  There is created at the university of New Mexico
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0023|     school of medicine a "medical trust fund" to be administered by
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0024|     the school of medicine.  The fund shall consist of balances
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0025|     transferred to the fund from the dedicated health research fund
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<center>- 4 -</center>0001|     and any other distributions, transfers and deposits that may be
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0002|     made to the fund.  Earnings from investment of the medical trust
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0003|     fund are appropriated to the university of New Mexico school of
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0004|     medicine for cancer and other medical research, including
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0005|     research focusing on pulmonary, respiratory or other diseases
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0006|     that are or may be affected by the use of cigarettes.
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0007|               B.  The university of New Mexico school of medicine
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0008|     shall report annually to the commission on higher education, the
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0009|     department of health and the legislative finance committee
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0010|     regarding the use of the earnings on the medical trust fund."
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0011|          Section 6.  EFFECTIVE DATES.--
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0012|               A.  The effective date of the provisions of Section 3
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0013|     of this act is August 1, 1998.
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0014|               B.  The effective date of the provisions of Sections
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0015|     1, 2 and 4 of this act is July 1, 1998.
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0016|                               
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