46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO PUBLIC MONEY; MAKING A TEMPORARY TRANSFER OF BALANCES FROM THE TOBACCO SETTLEMENT PERMANENT FUND AND THE TOBACCO SETTLEMENT PROGRAM FUND; IMPOSING A CIGARETTE SURTAX; DISTRIBUTING REVENUES FROM THE TAX; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.

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

Section 1. 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] TAX AND SURTAX.--

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 four and [three-quarters] three-fourths 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 nine and one-half 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 [school of medicine] health sciences center in an amount equal to four and [three-quarters] three-fourths 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 cancer research and treatment center at the university of New Mexico health sciences center in an amount equal to eight percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette surtax; provided that twenty-five percent of the distribution pursuant to this subsection shall be used for genomic research.

[D.] E. 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 seven and one-eighth percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax.

F. 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 six percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette surtax; provided that the distribution pursuant to this subsection shall be used for expansion of the university of New Mexico hospital.

G. Until a certification is made pursuant to this subsection, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the tobacco settlement permanent fund in an amount equal to forty-three percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette surtax. Provided, that after the end of the month in which the secretary of finance and administration certifies to the secretary of taxation and revenue that the total amounts distributed to the tobacco settlement permanent fund pursuant to this subsection have exceeded the amount transferred from that fund pursuant to Subsection A of Section 4 of this 2003 act, then no further distribution shall be made pursuant to this subsection.

H. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the supplemental medicaid fund in an amount equal to the net receipts, exclusive of penalties and interest, attributable to the cigarette surtax that are not distributed pursuant to Subsections D, F and G of this section."

Section 2. Section 7-12-3 NMSA 1978 (being Laws 1971, Chapter 77, Section 3, as amended) is amended to read:

"7-12-3. EXCISE TAX ON CIGARETTES--RATES.--

A. For the privilege of selling, giving or consuming cigarettes in New Mexico, there is levied an excise tax at the rate of one and five hundredths cents ($.0105) for each cigarette sold, given or consumed in this state.

B. [The tax] For the privilege of selling, giving or consuming cigarettes in New Mexico, there is levied an additional excise tax at the rate of five cents ($.05) for each cigarette sold, given or consumed in this state. For purposes of distributing tax revenues pursuant to Section 7-1-6.11 NMSA 1978, the tax imposed by this subsection shall be referred to as the "cigarette surtax".

C. Except for purposes of distributing tax revenues pursuant to Section 7-1-6.11 NMSA 1978, the taxes imposed by Subsections A and B of this section shall be jointly referred to as the "cigarette tax"."

Section 3. [NEW MATERIAL] SUPPLEMENTAL MEDICAID FUND CREATED.--The "supplemental medicaid fund" is created in the state treasury. The fund shall be administered by the human services department. The fund shall consist of money appropriated and transferred to the fund and excise tax revenues distributed to the fund by law. Earnings to the fund shall be credited to the fund and the fund shall not revert at the end of any fiscal year. Expenditures from the fund shall be by warrant of the secretary of finance and administration upon vouchers signed by the secretary of human services. The fund shall be subject to appropriation by the legislature for expenses incurred in the medicaid program.

Section 4. TEMPORARY PROVISION--TRANSFER OF FUND BALANCES.--Notwithstanding the provisions of Sections 6-4-9 through 6-4-11 NMSA 1978:

A. the unencumbered and unexpended balance of the tobacco settlement permanent fund is transferred to the general fund;

B. the unencumbered and unexpended balance of the tobacco settlement program fund is transferred to the general fund; and

C. distributions to the state during fiscal year 2003 that would otherwise be made to the tobacco settlement permanent fund shall be made to the general fund.

Section 5. EFFECTIVE DATES.--

A. The effective date of the provisions of Section 4 of this act is the last day of the calendar month in which this act is enacted into law.

B. The effective date of the provisions of Section 2 of this act is July 1, 2003.

C. The effective date of the provisions of Sections 1 and 3 of this act is August 1, 2003.

Section 6. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.