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AN ACT

RELATING TO AVIATION; PROVIDING FOR A MONTHLY DISTRIBUTION TO

THE STATE AVIATION FUND; SPECIFYING USES OF THE STATE

AVIATION FUND; EXTENDING FOR FIVE YEARS THE DISTRIBUTION TO

THE AVIATION FUND FOR THE AIR SERVICE ASSISTANCE PROGRAM;

DESIGNATING THE STATE AVIATION FUND AS A NONREVERTING FUND;

MAKING AN APPROPRIATION.

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

Section 1. Section 7-1-6.7 NMSA 1978 (being Laws 1994,

Chapter 5, Section 2, as amended) is amended to read:

"7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.--

A. A distribution pursuant to Section 7-1-6.1 NMSA

1978 shall be made to the state aviation fund in an amount

equal to four and seventy-nine hundredths percent of the

taxable gross receipts attributable to the sale of fuel

specially prepared and sold for use in turboprop or jet-type

engines as determined by the department.

B. A distribution pursuant to Section 7-1-6.1 NMSA

1978 shall be made to the state aviation fund in an amount

equal to twenty-six hundredths percent of gasoline taxes,

exclusive of penalties and interest, collected pursuant to

the Gasoline Tax Act.

C. From July 1, 2002 through June 30, 2012, a

distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be

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made to the state aviation fund in an amount equal to

forty-six thousandths percent of the net receipts

attributable to the gross receipts tax distributable to the

general fund.

D. A distribution pursuant to Section 7-1-6.1 NMSA

1978 shall be made to the state aviation fund from the net

receipts attributable to the gross receipts tax distributable

to the general fund in an amount equal to:

(1) eighty thousand dollars ($80,000)

monthly from July 1, 2007 through June 30, 2008;

(2) one hundred sixty-seven thousand dollars

($167,000) monthly from July 1, 2008 through June 30, 2009;

and

(3) two hundred fifty thousand dollars

($250,000) monthly after July 1, 2009."

Section 2. Section 64-1-15 NMSA 1978 (being Laws 1963,

Chapter 314, Section 7, as amended) is amended to read:

"64-1-15. STATE AVIATION FUND.--

A. There is created in the state treasury the

"state aviation fund". All income to the state aviation

fund is appropriated to the division. Earnings from

investment of the fund shall be credited to the fund.

B. The amounts distributed to the state aviation

fund pursuant to Subsection C of Section 7-1-6.7 NMSA 1978

shall be used for the air service assistance program. All

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other amounts distributed to the state aviation fund,

including collections by the division for aircraft

registration pursuant to the Aircraft Registration Act,

payments to the division pursuant to Sections 64-1-13 and

64-1-19 NMSA 1978 and reimbursements to the division from

federal aviation administration funds or from any other

source shall be used for planning and program administration,

construction, equipment, materials and maintenance of a

system of airports, navigation aids and related facilities.

All expenditures shall be made in accordance with budgets

approved by the department. Balances in the state aviation

fund shall not be transferred and shall not revert to any

other fund."

Section 3. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2007.