SENATE BILL 1185

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Timothy Z. Jennings

 

 

 

 

 

AN ACT

RELATING TO PUBLIC MONEY; PROVIDING A REBATE FOR A PORTION OF TAXES IMPOSED FOR THE 2007 TAXABLE YEAR; PROVIDING AN EXEMPTION FROM INCOME TAX FOR THE 2007 REBATE; CREATING THE WORKING FAMILIES TAX CREDIT TO PROVIDE A TAX CREDIT FOR CERTAIN PERSONS EQUAL TO A PERCENTAGE OF A FEDERAL INCOME TAX CREDIT FOR EARNED INCOME; ACCELERATING THE IMPLEMENTATION OF INCOME TAX RATE REDUCTIONS; PROVIDING FOR FUNDING OF CRITICAL CAPITAL OUTLAY AND OTHER PROJECTS; RECONCILING MULTIPLE AMENDMENTS TO THE SAME SECTION OF LAW IN LAWS 2003; MAKING AN APPROPRIATION; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978; DECLARING AN EMERGENCY.

 

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

     Section 1. Section 7-2-2 NMSA 1978 (being Laws 1986, Chapter 20, Section 26, as amended by Laws 2003, Chapter 13, Section 1 and by Laws 2003, Chapter 275, Section 1) is amended to read:

     "7-2-2. DEFINITIONS.--For the purpose of the Income Tax Act and unless the context requires otherwise:

          A. "adjusted gross income" means adjusted gross income as defined in Section 62 of the Internal Revenue Code, as that section may be amended or renumbered;

          B. "base income":

                (1) means, for estates and trusts, that part of the estate's or trust's income defined as taxable income and upon which the federal income tax is calculated in the Internal Revenue Code for income tax purposes plus, for taxable years beginning on or after January 1, 1991, the amount of the net operating loss deduction allowed by Section 172(a) of the Internal Revenue Code, as that section may be amended or renumbered, and taken by the taxpayer for that year;

                (2) means, for taxpayers other than estates or trusts, that part of the taxpayer's income defined as adjusted gross income plus, for taxable years beginning on or after January 1, 1991, the amount of the net operating loss deduction allowed by Section 172(a) of the Internal Revenue Code, as that section may be amended or renumbered, and taken by the taxpayer for that year;

                (3) includes, for all taxpayers, any other income of the taxpayer not included in adjusted gross income but upon which a federal tax is calculated pursuant to the Internal Revenue Code for income tax purposes, except amounts for which a calculation of tax is made pursuant to Section 55 of the Internal Revenue Code, as that section may be amended or renumbered; "base income" also includes interest received on a state or local bond; and

                (4) includes, for all taxpayers, an amount deducted pursuant to Section 7-2-32 NMSA 1978 in a prior taxable year if:

                     (a) such amount is transferred to another qualified tuition program, as defined in Section 529 of the Internal Revenue Code, not authorized in the Education Trust Act; or

                     (b) a distribution or refund is made for any reason other than: 1) to pay for qualified higher education expenses, as defined pursuant to Section 529 of the Internal Revenue Code; or 2) upon the beneficiary's death, disability or receipt of a scholarship;

          C. "compensation" means wages, salaries, commissions and any other form of remuneration paid to employees for personal services;

          D. "department" means the taxation and revenue department, the secretary or any employee of the department exercising authority lawfully delegated to that employee by the secretary;

          E. "fiduciary" means a guardian, trustee, executor, administrator, committee, conservator, receiver, individual or corporation acting in any fiduciary capacity;

          F. "filing status" means "married filing joint returns", "married filing separate returns", "head of household", "surviving spouse" and "single", as those terms are generally defined for federal tax purposes;

          G. "fiscal year" means any accounting period of twelve months ending on the last day of any month other than December;

          H. "head of household" means "head of household" as generally defined for federal income tax purposes;

          I. "individual" means a natural person, an estate, a trust or a fiduciary acting for a natural person, trust or estate;

          J. "Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended;

          K. "lump-sum amount" means for the purpose of determining liability for federal income tax, an amount that was not included in adjusted gross income but upon which the five-year-averaging or the ten-year-averaging method of tax computation provided in Section 402 of the Internal Revenue Code, as that section may be amended or renumbered, was applied;

          L. "modified gross income" means all income of the taxpayer and, if any, the taxpayer's spouse and dependents, undiminished by losses and from whatever source, including:

                (1) compensation;

                (2) net profit from business;

                (3) gains from dealings in property;

                (4) interest;

                (5) net rents;

                (6) royalties;

                (7) dividends;

                (8) alimony and separate maintenance payments;

                (9) annuities;

                (10) income from life insurance and endowment contracts;

                (11) pensions;

                (12) discharge of indebtedness;

                (13) distributive share of partnership income;

                (14) income in respect of a decedent;

                (15) income from an interest in an estate or a trust;

                (16) social security benefits;

                (17) unemployment compensation benefits;

                (18) workers' compensation benefits;

                (19) public assistance and welfare benefits;

                (20) cost-of-living allowances; and

                (21) gifts;

M. "modified gross income" excludes:

                (1) payments for hospital, dental, medical or drug expenses to or on behalf of the taxpayer;

                (2) the value of room and board provided by federal, state or local governments or by private individuals or agencies based upon financial need and not as a form of compensation;

                (3) payments pursuant to a federal, state or local government program directly or indirectly to a third party on behalf of the taxpayer when identified to a particular use or invoice by the payer; or

                (4) payments [pursuant to Sections 7-2-14,

7-2-18, 7-2-18.1] for credits and rebates pursuant to the Income Tax Act and made for a credit pursuant to Section 7-3-9 NMSA 1978;

          N. "net income" means, for estates and trusts, base income adjusted to exclude amounts that the state is prohibited from taxing because of the laws or constitution of this state or the United States and means, for taxpayers other than estates or trusts, base income adjusted to exclude:

                (1) an amount equal to the standard deduction allowed the taxpayer for the taxpayer's taxable year by Section 63 of the Internal Revenue Code, as that section may be amended or renumbered;

                 (2) an amount equal to the itemized deductions defined in Section 63 of the Internal Revenue Code, as that section may be amended or renumbered, allowed the taxpayer for the taxpayer's taxable year less the amount excluded pursuant to Paragraph (1) of this subsection;

                (3) an amount equal to the product of the exemption amount allowed for the taxpayer's taxable year by Section 151 of the Internal Revenue Code, as that section may be amended or renumbered, multiplied by the number of personal exemptions allowed for federal income tax purposes;

                (4) income from obligations of the United States of America less expenses incurred to earn that income;

                (5) other amounts that the state is prohibited from taxing because of the laws or constitution of this state or the United States;

                (6) for taxable years that began prior to January 1, 1991, an amount equal to the sum of:

                     (a) net operating loss carryback deductions to that year from taxable years beginning prior to January 1, 1991 claimed and allowed, as provided by the Internal Revenue Code; and

                     (b) net operating loss carryover deductions to that year claimed and allowed; and

                (7) for taxable years beginning on or after January 1, 1991, an amount equal to the sum of any net operating loss carryover deductions to that year claimed and allowed, provided that the amount of any net operating loss carryover from a taxable year beginning on or after January 1, 1991 may be excluded only as follows:

                     (a) in the case of a timely filed return, in the taxable year immediately following the taxable year for which the return is filed; or

                     (b) in the case of amended returns or original returns not timely filed, in the first taxable year beginning after the date on which the return or amended return establishing the net operating loss is filed; and

                     (c) in either case, if the net operating loss carryover exceeds the amount of net income exclusive of the net operating loss carryover for the taxable year to which the exclusion first applies, in the next four succeeding taxable years in turn until the net operating loss carryover is exhausted; in no event shall a net operating loss carryover be excluded in any taxable year after the fourth taxable year beginning after the taxable year to which the exclusion first applies;

          O. "net operating loss" means any net operating loss, as defined by Section 172(c) of the Internal Revenue Code, as that section may be amended or renumbered, for a taxable year as further increased by the income, if any, from obligations of the United States for that year less related expenses;

          P. "net operating loss carryover" means the amount, or any portion of the amount, of a net operating loss for any taxable year that, pursuant to Paragraph (6) or (7) of Subsection N of this section, may be excluded from base income;

          Q. "nonresident" means every individual not a resident of this state;

          R. "person" means any individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, limited liability company, joint venture, syndicate or other association; "person" also means, to the extent permitted by law, any federal, state or other governmental unit or subdivision or agency, department or instrumentality thereof;

          S. "resident" means an individual who is domiciled in this state during any part of the taxable year or an individual who is physically present in this state for one hundred eighty-five days or more during the taxable year; but any individual, other than someone who was physically present in the state for one hundred eighty-five days or more during the taxable year, who, on or before the last day of the taxable year, changed [his] the individual's place of abode to a place without this state with the bona fide intention of continuing actually to abide permanently without this state is not a resident for the purposes of the Income Tax Act for periods after that change of abode;

          T. "secretary" means the secretary of taxation and revenue or the secretary's delegate;

          U. "state" means any state of the United States, the District of Columbia, the commonwealth of Puerto Rico, any territory or possession of the United States or any political subdivision of a foreign country;

          V. "state or local bond" means a bond issued by a state other than New Mexico or by a local government other than one of New Mexico's political subdivisions, the interest from which is excluded from income for federal income tax purposes under Section 103 of the Internal Revenue Code, as that section may be amended or renumbered;

          W. "surviving spouse" means "surviving spouse" as generally defined for federal income tax purposes;

          X. "taxable income" means net income less any lump-sum amount;

          Y. "taxable year" means the calendar year or fiscal year upon the basis of which the net income is computed under the Income Tax Act and includes, in the case of the return made for a fractional part of a year under the provisions of the Income Tax Act, the period for which the return is made; and

          Z. "taxpayer" means any individual subject to the tax imposed by the Income Tax Act."

     Section 2. Section 7-2-7 NMSA 1978 (being Laws 2005 (1st S.S.), Chapter 3, Section 2) is repealed and a new Section 7-2-7 NMSA 1978 is enacted to read:

     "7-2-7. [NEW MATERIAL] INDIVIDUAL INCOME TAX RATES.--The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for a taxable year beginning on or after January 1, 2007:

          A. For married individuals filing separate returns:

     If the taxable income is:       The tax shall be:

Not over $4,000                       1.7% of taxable income

Over $ 4,000 but not over $ 8,000   $ 68.00 plus 3.2% of excess over $ 4,000

Over $ 8,000 but not over $ 12,000   $ 196 plus 4.7% of  excess over $ 8,000

Over $ 12,000                         $ 384 plus 4.9% of  excess over $ 12,000.

          B. For heads of household, surviving spouses and married individuals filing joint returns:

     If the taxable income is:       The tax shall be:

Not over $8,000                       1.7% of taxable income

Over $ 8,000 but not over $ 16,000   $ 136 plus 3.2% of                                        excess over $ 8,000

Over $ 16,000 but not over $ 24,000   $ 392 plus 4.7% of                                        excess over $ 16,000

Over $ 24,000                         $ 768 plus 4.9% of  excess over $ 24,000.

          C. For single individuals and for estates and trusts:

     If the taxable income is:       The tax shall be:

Not over $5,500                       1.7% of taxable income

Over $ 5,500 but not over $ 11,000   $ 93.50 plus 3.2% of excess over $ 5,500

Over $ 11,000 but not over $ 16,000   $ 269.50 plus 4.7% of excess over $ 11,000

Over $ 16,000                         $ 504.50 plus 4.9% of excess over $ 16,000.

          D. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:

                (1) the amount of tax due on the taxpayer's taxable income; and

                (2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income."

     Section 3. Section 7-2-14 NMSA 1978 (being Laws 1972, Chapter 20, Section 2, as amended) is amended to read:

     "7-2-14. LOW-INCOME COMPREHENSIVE TAX REBATE.--

          A. Except as otherwise provided in Subsection B of this section, any resident who files an individual New Mexico income tax return and who is not a dependent of another individual may claim a tax rebate, to be referred to as the "low-income comprehensive tax rebate" for a portion of state and local taxes to which the resident has been subject during the taxable year for which the return is filed. The tax rebate may be claimed even though the resident has no income taxable under the Income Tax Act. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the tax rebate that would have been allowed on a joint return.

          B. No claim for the tax rebate provided in this section shall be filed by a resident who was an inmate of a public institution for more than six months during the taxable year for which the tax rebate could be claimed or who was not physically present in New Mexico for at least six months during the taxable year for which the tax rebate could be claimed.

          C. The tax rebate provided in this section shall not be allowed for a taxpayer who has claimed a working families tax credit for the taxable year.

          [C.] D. For the purposes of this section, the total number of exemptions for which a tax rebate may be claimed or allowed is determined by adding the number of federal exemptions allowable for federal income tax purposes for each individual included in the return who is domiciled in New Mexico plus two additional exemptions for each individual domiciled in New Mexico included in the return who is sixty-five years of age or older plus one additional exemption for each individual domiciled in New Mexico included in the return who, for federal income tax purposes, is blind plus one exemption for each minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident.

          [D.] E. The tax rebate provided for in this section may be claimed in the amount shown in the following table:

Modified gross And the total number

income is: of exemptions is:

         But Not 6 or

Over Over 1 2 3 4 5 More

$ 0   $ 500  $ 120 $ 160 $ 200 $ 240 $ 280 $ 320

   500     1,000     135    195     250     310    350    415

 1,000     1,500     135    195     250     310    350    435

 1,500     2,000     135    195     250     310    350    450

 2,000     2,500     135    195     250     310    350    450

 2,500     3,000     135    195     250     310    350    450

 3,000     3,500     135    195     250     310    350    450

 3,500     4,000     135    195     250     310    355    450

 4,000     4,500     135    195     250     310    355    450

 4,500     5,000     125    190     240     305    355    450

 5,000     5,500     115    175     230     295    355    430

 5,500     6,000     105    155     210     260    315    410

 6,000     7,000      90    130     170     220    275    370

 7,000     8,000      80    115     145     180    225    295

 8,000     9,000      70    105     135     170    195    240

 9,000    10,000      65     95     115     145    175    205

10,000   11,000      60     80     100     130    155    185

11,000   12,000      55     70      90     110    135    160

12,000   13,000      50     65      85     100    115    140

13,000   14,000      50     65      85     100    115    140

14,000   15,000      45     60      75      90    105    120

15,000   16,000      40     55      70      85     95    110

16,000   17,000      35     50      65      80     85    105

17,000   18,000      30     45      60      70     80     95

18,000   19,000      25     35      50      60     70     80

19,000   20,000      20     30      40      50     60     65

20,000   21,000      15     25      30      40     50     55

21,000   22,000      10     20      25      35     40     45.

         [E.] F. If a taxpayer's modified gross income is zero, the taxpayer may claim a credit in the amount shown in the first row of the table appropriate for the taxpayer's number of exemptions.

         [F.] G. The tax rebates provided for in this section may be deducted from the taxpayer's New Mexico income tax liability for the taxable year. If the tax rebates exceed the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.

         [G.] H. For purposes of this section, "dependent" means "dependent" as defined by Section 152 of the Internal Revenue Code of 1986, as that section may be amended or renumbered, but also includes any minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident."

     Section 4. A new section of the Income Tax Act is enacted to read:

     "[NEW MATERIAL] WORKING FAMILIES TAX CREDIT.--

         A. A person who files an individual New Mexico income tax return and who is not a dependent of another taxpayer may claim a credit in an amount calculated pursuant to Subsection B of this section. A person is eligible for a credit pursuant to this section only if the person does not claim a rebate for the taxable year pursuant to Section 7-2-14 NMSA 1978. The credit provided in this section may be referred to as the "working families tax credit".

         B. The amount of credit for which a person is eligible pursuant to this section shall be an amount equal to the product of ten percent of the federal income tax credit for the taxable year for which that person is eligible pursuant to Section 32 of the Internal Revenue Code multiplied by a ratio, the numerator of which is the person's earned income in New Mexico for the taxable year and the denominator of which is the person's total earned income for the taxable year. For the purposes of this subsection, "earned income" means earned income as defined in Section 32 of the Internal Revenue Code.         C. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may claim only one-half of the credit that would have been allowed on a joint return.

         D. The working families tax credit may be deducted from the income tax liability of a person who claims the credit and qualifies for the credit pursuant to this section. If the credit exceeds the person's income tax liability for the taxable year, the excess shall be refunded to the person."

     Section 5. A new section of the Income Tax Act is enacted to read:

     "[NEW MATERIAL] TAX REBATE--2007 TAXABLE YEAR.--

         A. Except as otherwise provided in this section, any resident who files an individual New Mexico income tax return and who is not a dependent of another individual is entitled to a tax rebate during the 2007 taxable year for a portion of state and local taxes to which the person has been subject during the 2007 taxable year, even if the resident has no income taxable pursuant to the Income Tax Act.

         B. For the purposes of this section, the total number of exemptions for which a tax rebate may be claimed or allowed is determined by adding the number of federal exemptions allowable for federal income tax purposes for each individual; provided that, in the case of a husband and wife who have filed a joint return where only one individual is a New Mexico resident, the number of exemptions shall be reduced by one.

         C. The tax rebate provided for in this section is allowed in the amount of one hundred thirty-eight dollars ($138) for each exemption allowed pursuant to Subsection F of this section.

         D. The secretary shall make an advance payment of the tax rebate provided for in this section not later than June 30, 2007 to each resident who meets the requirements of Subsection A of this section and who files a 2006 New Mexico income tax return by April 16, 2007.

         E. If a resident who meets the requirements of Subsection A of this section does not receive an advance payment as provided in Subsection D of this section because the resident has not filed a 2006 New Mexico income tax return by April 16, 2007, but the resident subsequently files a 2006 New Mexico income tax return, the secretary shall make an advance payment of the tax rebate provided for in this section not later than ninety days after the return is filed.

         F. Advance payment amounts shall be based on the number of federal exemptions allowable for federal income tax purposes on the 2006 New Mexico income tax return of the resident for whom a rebate is allowed pursuant to this section.

         G. A resident who meets the requirements of Subsection A of this section but does not receive an advance payment pursuant to Subsection D or F of this section may claim the tax rebate provided in this section on that resident's 2007 New Mexico income tax return based on the number of federal exemptions allowable for federal income tax purposes reported on that return.

         H. The department shall not make an advance payment of the tax rebate provided for in this section to a person who:

                 (1) was an inmate of a public institution for more than six months during the 2006 taxable year; or

                 (2) was not a resident of New Mexico on the last day of the 2006 taxable year.

         I. The department shall not allow a tax rebate provided in this section to a person who claims the rebate on that person's 2007 New Mexico income tax return if that person:

                 (1) was an inmate of a public institution for more than six months during the 2007 taxable year; or

                 (2) was not a resident of New Mexico on the last day of the 2007 taxable year.

         J. The secretary may adopt regulations necessary to administer the provisions of this section.

         K. For purposes of this section, "dependent" means "dependent" as defined by Section 152 of the Internal Revenue Code, but also includes any minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident."

     Section 6. A new section of the Income Tax Act is enacted to read:

     "[NEW MATERIAL] EXEMPTION--2007 TAXABLE YEAR REBATE.--The tax rebate made for the 2007 taxable year is exempt from state income tax."

     Section 7. TEMPORARY PROVISION--EXPENDITURE OF PUBLIC MONEY.--The following amounts are appropriated from the general fund to the following agencies or funds for expenditure in fiscal years 2007 through 2010, unless otherwise indicated, for the following purposes:

         A. to the administrative office of the courts:

                 (1) eight million dollars ($8,000,000) to construct phase 1 of the court of appeals building in Albuquerque in Bernalillo county; and

                 (2) four million dollars ($4,000,000) for equipment for interpreters and jurors for the jury and witness program; security, recording and filing equipment for the magistrate courts; and furniture, security equipment, a vehicle and other courtroom equipment for the district courts statewide;

         B. to the aging and long-term services department, eight million two hundred thousand dollars ($8,200,000) to purchase meals equipment, health and safety equipment and vehicles and for renovations to senior citizen centers statewide;       

         C. to the border authority:

                 (1) six hundred thousand dollars ($600,000) to improve streets and drainage surrounding the port of entry in Columbus in Luna county; and

                 (2) one hundred thousand dollars ($100,000) to conduct a drainage study at the port of entry in Columbus in Luna county;

         D. to the commission for the blind, nine hundred thirty-five thousand dollars ($935,000) for roof replacement and a fire protection sprinkler system in Albuquerque in Bernalillo county;

         E. to the corrections department, one million dollars ($1,000,000) to plan, design, construct, equip, furnish and make other necessary repairs for a kitchen at Camino Nuevo in Albuquerque in Bernalillo county;

         F. to the cultural affairs department:

                 (1) five million dollars ($5,000,000) for renovations and repairs, including upgrades to comply with the Americans with Disabilities Act of 1990, at museums and monuments statewide;

                 (2) one million three hundred thousand dollars ($1,300,000) to complete the construction of the national Hispanic cultural center in Albuquerque in Bernalillo county;

(3) one million eight hundred thousand

dollars ($1,800,000) to complete phase 1 construction of the archaeology center in Santa Fe in Santa Fe county;

                 (4) one million two hundred thousand dollars ($1,200,000) for upgrades and expansion to the museum of space history in Alamogordo in Otero county;

                 (5) four million one hundred thousand dollars ($4,100,000) to complete phases 1 and 2 of the main gallery exhibit and outdoor exhibit and venues at the farm and ranch heritage museum in Las Cruces in Dona Ana county;

                 (6) nine hundred thousand dollars ($900,000) to renovate and upgrade the Girard wing of the museum of international folk art in Santa Fe in Santa Fe county; and

                 (7) seven hundred fifty thousand dollars ($750,000) for conservation and preservation of the state-owned art collection and for museum resources equipment, including a new "van of enchantment";

         G. to the Cumbres and Toltec scenic railroad commission, two million dollars ($2,000,000) for locomotive and track upgrades and other improvements for the Cumbres and Toltec scenic railroad located in Rio Arriba county;

         H. to the economic development department:

                 (1) two million dollars ($2,000,000) to plan and design the redevelopment of central business districts as part of the main street program statewide; and

                 (2) five hundred thousand dollars ($500,000) to design and install utilities at the Wood Cluster park in Las Vegas in San Miguel county;

         I. to the public education department:

                 (1) three million dollars ($3,000,000) to plan, design, construct or renovate pre-kindergarten classrooms statewide;

                 (2) one million five hundred thousand dollars ($1,500,000) to purchase laptop computers for seventh grade students statewide;

                 (3) two million dollars ($2,000,000) to purchase library books for public schools statewide; and

                 (4) ten million dollars ($10,000,000) for educational infrastructure pursuant to the Technology for Education Act at public schools statewide;

         J. to the office of the state engineer, three million dollars ($3,000,000) for surface water measurement at Rio Gallinas and Rio Chama, dam emergency repairs statewide and ground water measurement statewide;

         K. to the energy, minerals and natural resources department:

                 (1) five hundred thousand dollars ($500,000) to purchase and equip fire trucks and carriers statewide; and

                 (2) two million five hundred thousand dollars ($2,500,000) for park improvements statewide;

         L. to the department of finance and administration:

                 (1) eight million dollars ($8,000,000) for capital projects statewide pursuant to the Affordable Housing Act;

                 (2) seven million dollars ($7,000,000) for tribal infrastructure projects related to water, wastewater, electrical, communications, roads, health, emergency facilities and economic development statewide; and

                 (3) two million dollars ($2,000,000) for home weatherization programs statewide;

         M. to the department of game and fish, three million three hundred thousand dollars ($3,300,000) to complete spillway renovations and facility repairs to the Lake Roberts and Burns Canyon dams;

         N. to the local government division of the department of finance and administration:

                 (1) five hundred thousand dollars ($500,000) to renovate the public health facility in Socorro in Socorro county;

                 (2) five hundred thousand dollars ($500,000) to renovate the public health facility in Gallup in McKinley county; and

                 (3) two million five hundred thousand dollars ($2,500,000) to construct a public health facility in Espanola in Rio Arriba county;

         0. to the state armory board, three million dollars ($3,000,000) for armory maintenance and renovations statewide, including the Rio Rancho training center located in Sandoval county;

         P. to the property control division of the general services department, twenty-one million dollars ($21,000,000) to complete construction of the state laboratory services building in Albuquerque in Bernalillo county;

         Q. to the department of public safety, one million five hundred thousand dollars ($1,500,000) for vehicle maintenance and replacement;

         R. to the public school capital outlay fund:

                 (1) ten million dollars ($10,000,000) for funding the local share of public school capital outlay projects for charter schools statewide;

                 (2) forty million dollars ($40,000,000) to fund new or expanded school facilities in high-growth areas of the state; and

                 (3) ten million dollars ($10,000,000) for supplemental funding for public school facilities to address increased adequacy needs;

         S. to the public regulation commission, five hundred thirty-five thousand dollars ($535,000) to plan, design and construct a connection between the New Mexico firefighters training academy and the city sewer in Socorro in Socorro county; for roof repairs; and for fuel storage tank upgrades;

         T. to the state fair commission, ten million dollars ($10,000,000) to purchase a box car and Ford pavilion canopy; renovate restrooms; renovate an indoor horse arena for code compliance; and plan, design, construct or renovate an administration building at the state fairgrounds located in Albuquerque in Bernalillo county;

         U. to the supreme court building commission, one million dollars ($1,000,000) for fire suppression and Americans with Disabilities Act of 1990 compliance in the law library and other improvements and repairs to the supreme court building in Santa Fe in Santa Fe county;        

         V. to the tourism department, seven hundred fifty thousand dollars ($750,000) to renovate the Gallup and Glen Rio visitor centers;

         W. to the wastewater facility construction loan fund, one million five hundred thousand dollars ($1,500,000) for expenditure in fiscal years 2007 and subsequent fiscal years to carry out the purposes of the Wastewater Facility Construction Loan Act. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert;

         X. to the capital program fund:

                 (1) three hundred thousand dollars ($300,000) to complete construction of the border authority office facility in Santa Teresa in Dona Ana county;

                 (2) four million dollars ($4,000,000) for fire suppression, roof repairs, Americans with Disabilities Act of 1990 upgrades and kitchen and bath renovations at the youth diagnostic development center in Albuquerque in Bernalillo county;

                 (3) five million dollars ($5,000,000) to construct and equip a gym, weight room and vocational educational classrooms at the J. Paul Taylor juvenile facility in Dona Ana county;

                 (4) five hundred thousand dollars ($500,000) for grounds, structure and maintenance upgrades at the Eagle Nest reintegration center in Eagle Nest in Colfax county;

                 (5) five hundred thousand dollars ($500,000) to purchase and install lighting, install a generator and landscape grounds at Camp Sierra Blanca in Fort Stanton in Lincoln county;

                 (6) six million dollars ($6,000,000) for security upgrades at state-owned correctional facilities statewide;

                 (7) five million dollars ($5,000,000) for repairs and maintenance at state-owned correctional facilities statewide;

                 (8) five hundred thousand dollars ($500,000) to purchase and install printing equipment in the state printing and graphics shop in Santa Fe in Santa Fe county;

                 (9) five hundred thousand dollars ($500,000) for stabilization and renovations of existing structures at Fort Stanton in Lincoln county;

                 (10) one million five hundred thousand dollars ($1,500,000) to purchase the Coughlin building in Santa Fe in Santa Fe county;

                 (11) two million dollars ($2,000,000) for emergency repairs to buildings maintained by the property control division statewide;

                 (12) six million dollars ($6,000,000) for roof repairs, heating, ventilation and air conditioning upgrades or replacements and other renovations statewide, including upgrades to Simms building recovery center in Santa Fe in Santa Fe county;

                 (13) five hundred thousand dollars ($500,000) for complete structural analysis and programmatic assessments of facilities and public health offices for the department of health facilities statewide;

                 (14) nine hundred thousand dollars ($900,000) to plan, design, construct, renovate, equip and furnish a medical and dental unit at the Sequoyah facility in Albuquerque in Bernalillo county;

                 (15) one million three hundred thousand dollars ($1,300,000) to purchase analytical equipment for the scientific laboratory to support driving under the influence and autopsy testing as well as environmental testing and communicable disease outbreak detection equipment for the state scientific laboratory in Albuquerque in Bernalillo county;

                 (16) one million eight hundred thousand dollars ($1,800,000) to plan, design and construct or expand an existing facility for an Alzheimer's unit and make other improvements at the New Mexico veterans' home in Truth or Consequences in Sierra county;

                 (17) six million dollars ($6,000,000) for capital improvements and renovations at state-owned health facilities statewide;

                 (18) three hundred thousand dollars ($300,000) for renovations of Epi Duran building in Las Vegas in San Miguel county and upgrades to voice-data wiring of state-owned offices statewide;

                 (19) one million five hundred thousand dollars ($1,500,000) for renovations and repairs of offices in Alamogordo in Otero county and the TIWA building in Albuquerque in Bernalillo county, and for expansion of the Las Cruces facility in Dona Ana county;

                 (20) five million dollars ($5,000,000) for land acquisition and to plan, design, construct or renovate a state police district office in Las Cruces in Dona Ana county;

                 (21) five million dollars ($5,000,000) for land acquisition and to plan, design, construct or renovate a state police district office in Las Vegas in San Miguel county;

                 (22) twelve million dollars ($12,000,000) to plan, design and construct a port of entry in Lordsburg in Hidalgo county;

                 (23) one million dollars ($1,000,000) for facility renovations and information technology mitigation statewide;

                 (24) one million seven hundred thousand dollars ($1,700,000) to plan and design a state crime laboratory in Albuquerque in Bernalillo county in conjunction with the state tri-lab; and

                 (25) six hundred thousand dollars ($600,000) to replace remittance transports and for security upgrades of the Lujan building in Santa Fe in Santa Fe county;

         Y. to the board of regents of the New Mexico school for the blind and visually impaired, six million dollars ($6,000,000) to construct, equip and furnish the early childhood center at the New Mexico school for the blind and visually impaired in Alamogordo in Otero county;   

         Z. to the board of regents of the New Mexico school for the deaf, six million seven hundred thousand dollars ($6,700,000) to renovate Connor hall and upgrade dining hall facilities and for electrical and mechanical upgrades at the New Mexico school for the deaf in Santa Fe in Santa Fe county; and

         AA. to the board of regents of the university of New Mexico:

                 (1) five million dollars ($5,000,000) to purchase patient care equipment for the university of New Mexico hospital and cancer treatment center in Albuquerque in Bernalillo county;

                 (2) three million two hundred fifteen thousand dollars ($3,215,000) for expenditure in fiscal years 2008 through 2010 to develop and conduct inflammatory breast cancer research in conjunction with the inflammatory breast cancer clinic and research program at M.D. Anderson cancer center of the university of Texas; and

                 (3) three million five hundred thousand dollars ($3,500,000) for expenditure in fiscal years 2008 through 2011 to plan and develop a center for isotopes in medicine.

     Section 8. CONTINGENT APPROPRIATION TO THE INDIAN WATER RIGHTS SETTLEMENT FUND.--Upon certification by the state engineer to the secretary of finance and administration, prior to July 1, 2008, that the water rights in the Aamodt case have been settled, twelve million dollars ($12,000,000) is appropriated from the appropriation contingency fund to the Indian water rights settlement fund. Notwithstanding the requirement for a joint resolution of the legislature in Subsection A of Section 72-1-11 NMSA 1978, if corresponding commitments have been made for the federal portion of the settlement, the money may be expended by the interstate stream commission in fiscal year 2008 and subsequent fiscal years to implement the state's portion of the settlement. Any unexpended or unencumbered balance shall not revert at the end of a fiscal year.

     Section 9. CONTINGENT APPROPRIATION FOR THE PECOS RIVER COMPACT SETTLEMENT.--

         A. Upon certification by the interstate stream commission to the secretary of finance and administration that at least ninety-five percent of existing appropriations to implement the Pecos River Compact settlement have been fully expended or encumbered for specific land and water rights purchases or for specific contracts for the development of augmentation well fields and pipelines and related professional services and that additional expenditures are necessary, the amount, up to three million dollars ($3,000,000), certified by the secretary as needed, is appropriated to the interstate stream commission for expenditure in fiscal year 2008 to purchase land and water rights within the interstate stream commission's existing pricing guidelines and for the development of augmentation well fields and pipelines and related professional services. Any unexpended or unencumbered balance remaining at the end of fiscal year 2008 shall revert to the appropriation contingency fund.

         B. Upon certification by the interstate stream commission to the secretary of finance and administration that at least ninety-five percent of the appropriation made in Subsection B of this section has been fully expended or encumbered for specific land and water rights purchases or for specific contracts for the development of augmentation well fields and pipelines and related professional services and that additional expenditures are necessary, the amount, up to an additional three million dollars ($3,000,000), certified by the secretary as needed, is appropriated to the interstate stream commission for expenditure in fiscal year 2008 to purchase land and water rights within the interstate stream commission's existing pricing guidelines and for the development of augmentation well fields and pipelines and related professional services. Any unexpended or unencumbered balance remaining at the end of fiscal year 2008 shall revert to the appropriation contingency fund.

         C. After a certification is made pursuant to this section, the interstate stream commission shall report monthly to the secretary of finance and administration and the legislative finance committee regarding the amount of money expended and encumbered, the specific contracts executed and the overall progress toward implementation of the Pecos River Compact settlement.

      Section 10. TEMPORARY PROVISION.--The repeal of Laws 2005 (1st S.S.), Chapter 3, Section 2 by Section 2 of this act does not affect the individual income tax rates imposed by that section for any taxable year beginning in 2006.

     Section 11. REPEAL.--Laws 2005, Chapter 104, Section 4 is repealed.

     Section 12. APPLICABILITY.--The provisions of Sections 1, 3 and 4 of this act apply to taxable years beginning on or after January 1, 2007.

     Section 13. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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