HOUSE BILL 144

51st legislature - STATE OF NEW MEXICO - second session, 2014

INTRODUCED BY

Thomas C. Taylor

AN ACT

RELATING TO TAXATION; ELIMINATING A DISTRIBUTION FROM THE INSURANCE PREMIUM TAX TO THE PUBLIC REGULATION COMMISSION ELECTIONS SUBACCOUNT IN THE PUBLIC ELECTION FUND.

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

     SECTION 1. Section 1-19A-10 NMSA 1978 (being Laws 2003, Chapter 14, Section 10, as amended) is amended to read:

     "1-19A-10. PUBLIC ELECTION FUND--CREATION--USE.--

          A. There is created in the state treasury the "public election fund" solely for the purposes of:

                (1) financing the election campaigns of certified candidates for covered offices;

                (2) paying administrative and enforcement costs of the Voter Action Act; and

                (3) carrying out all other specified provisions of the Voter Action Act.

          B. The state treasurer shall invest the funds as other state funds are invested, and all income derived from the fund shall be credited directly to the fund. Remaining balances at the end of a fiscal year shall remain in the election fund and not revert to the general fund.

          C. Money received from the following sources shall be deposited directly into the fund:

                (1) qualifying contributions that have been submitted to the secretary;

                (2) any recurring balance of unspent fund money distributed to a certified candidate who does not remain a candidate through the primary or general election period for which the money was distributed;

                (3) money that remains unspent or unencumbered by a certified candidate following the date of the primary election;

                (4) money that remains unspent or unencumbered by a certified candidate following the date of the general election;

                (5) unspent seed money that cannot be used for any other purpose;

                (6) money distributed to the fund from funds received pursuant to the Uniform Unclaimed Property Act (1995); and

                (7) money appropriated by the legislature.

          D. A subaccount shall be established in the fund, and money in the subaccount shall only be used to pay the costs of carrying out the provisions of the Voter Action Act related to public regulation commission elections.

          E. [Three hundred thousand dollars ($300,000)] Two hundred thousand dollars ($200,000) per year shall be collected and deposited in the subaccount for public regulation commission elections as follows:

                (1) one hundred thousand dollars ($100,000) from inspection and supervision fees collected pursuant to Section 62-8-8 NMSA 1978; and

                (2) one hundred thousand dollars ($100,000) from utility and carrier inspection fees collected pursuant to Section 63-7-20 NMSA 1978 [and

                (3) one hundred thousand dollars ($100,000) from the insurance premium tax collected pursuant to Section 59A-6-2 NMSA 1978]."

     SECTION 2. Section 59A-6-5 NMSA 1978 (being Laws 1984, Chapter 127, Section 105, as amended) is amended to read:

     "59A-6-5. DISTRIBUTION OF DIVISION COLLECTIONS.--

          A. All money received by the division for fees, licenses, penalties and taxes shall be paid daily by the superintendent to the state treasurer and credited to the "insurance department suspense fund" except as provided by:

                (1) the Law Enforcement Protection Fund Act; and

                (2) Section 59A-6-1.1 NMSA 1978 [and

                (3) the Voter Action Act].

          B. The superintendent may authorize refund of money erroneously paid as fees, licenses, penalties or taxes from the insurance department suspense fund under request for refund made within three years after the erroneous payment. In the case of premium taxes erroneously paid or overpaid in accordance with law, refund may also be requested as a credit against premium taxes due in any annual or quarterly premium tax return filed within three years of the erroneous or excess payment.

          C. If required by a compact to which New Mexico has joined pursuant to law, the superintendent shall authorize the allocation of premiums collected pursuant to Section 59A-14-12 NMSA 1978 to other states that have joined the compact pursuant to an allocation formula agreed upon by the compacting states.

          D. The "insurance operations fund" is created in the state treasury. The fund shall consist of the distributions made to it pursuant to Subsection E of this section. The legislature shall annually appropriate from the fund to the division those amounts necessary for the division to carry out its responsibilities pursuant to the Insurance Code and other laws. Any balance in the fund at the end of a fiscal year greater than one-half of that fiscal year's appropriation shall revert to the general fund.

          E. At the end of every month, after applicable refunds are made pursuant to Subsection B of this section and after any allocations have been made pursuant to Subsection C of this section, the treasurer shall make the following transfers from the balance remaining in the insurance department suspense fund:

                (1) to the "fire protection fund", that part of the balance derived from property and vehicle insurance business;

                (2) to the insurance operations fund, that part of the balance derived from the fees imposed pursuant to Subsections A and E of Section 59A-6-1 NMSA 1978 other than fees derived from property and vehicle insurance business; and

                (3) to the general fund, the balance remaining in the insurance department suspense fund derived from all other kinds of insurance business." 

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2014.

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