SENATE BILL 113
53rd legislature - STATE OF NEW MEXICO - first session, 2017
INTRODUCED BY
John Arthur Smith and Carlos R. Cisneros
FOR THE LEGISLATIVE FINANCE COMMITTEE
AN ACT
RELATING TO STATE EXPENDITURES; REDUCING APPROPRIATIONS IN THE GENERAL APPROPRIATION ACT OF 2015, IN THE GENERAL APPROPRIATION ACT OF 2016 AND IN LAWS 2016, CHAPTER 1; ALLOWING FOR FISCAL YEAR 2017 GENERAL FUND APPROPRIATION REDUCTIONS; TRANSFERRING MONEY FROM FUNDS AND ACCOUNTS TO THE FISCAL YEAR 2017 APPROPRIATION ACCOUNT AND THE OPERATING RESERVE ACCOUNT OF THE GENERAL FUND; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. GENERAL APPROPRIATION ACT OF 2015 APPROPRIATION REDUCTION.--Eleven million six hundred thousand dollars ($11,600,000) of the general fund appropriation to the economic development department in Item (21) of Section 5 of the General Appropriation Act of 2015 for projects pursuant to the Local Economic Development Act shall not be expended for the original purpose but shall revert to the general fund."
SECTION 2. A new section of the General Appropriation Act of 2016 is enacted to read:
"[NEW MATERIAL] 2016 APPROPRIATION REDUCTIONS.--The following general fund appropriations in Section 4 of the General Appropriation Act of 2016 are reduced as follows:
A. to the taxation and revenue department tax administration program in the personal services and employee benefits category, by two million five hundred thousand dollars ($2,500,000);
B. to the taxation and revenue department motor vehicle program in the personal services and employee benefits category, by one million six hundred thousand dollars ($1,600,000);
C. to the department of public safety law enforcement program in the personal services and employee benefits category, by five million dollars ($5,000,000); and
D. to the public education department special appropriations made in Items (a) through (d), (f) through (i) and (l) through (t), by twenty-two million dollars ($22,000,000) in the aggregate."
SECTION 3. A new section of the General Appropriation Act of 2016 is enacted to read:
"[NEW MATERIAL] FISCAL YEAR 2017 OPERATING BUDGET AND ALLOTMENT ADJUSTMENTS.--
A. For the remainder of fiscal year 2017, the department of finance and administration shall regularly consult with the legislative finance committee staff to compare revenue collections with the revenue estimate. If the general fund consensus revenue forecast projects that revenue and transfers to the general fund, including all transfers authorized by Section 13 of the General Appropriation Act of 2016, will be insufficient to meet fiscal year 2017 general fund appropriations, the governor, with the approval of the state board of finance and after review and an opportunity to comment by the legislative finance committee, shall reduce fiscal year 2017 general fund appropriations by up to one percent of the total amount of those appropriations, in accordance with the following provisions:
(1) the reductions shall apply to all agencies, funds, programs and other recipients and to all programs and categories within agencies that receive a general fund appropriation in Section 4 of the General Appropriation Act of 2016 and in Subsection A of Section 3 and Sections 4, 5, 7 and 8 of Chapter 1 of Laws 2016, except that no reductions shall be made to the general fund operating budgets of the medical assistance program or the medicaid behavioral health program of the human services department or to the developmental disabilities support program of the department of health;
(2) except as provided in Paragraph (3) of this subsection, the reductions to appropriations in Section 4 of the General Appropriation Act of 2016 shall apply proportionately to each agency, fund, program and other recipient based on the agency's, fund's, program's and other recipient's share of the total amount of fiscal year 2017 general fund appropriations; and
(3) the reductions to legislative appropriations shall, in the aggregate, be proportionate to those appropriations' share of the total amount of fiscal year 2017 general fund appropriations, but, among individual legislative appropriations, shall be in a proportion that the New Mexico legislative council determines.
B. The department of finance and administration shall reduce and otherwise adjust the general fund allotments of all agencies, funds, programs and other recipients in accordance with the reductions applied under this section.
C. As used in this section:
(1) "fiscal year 2017 general fund appropriations" means the sum of all general fund appropriations in Section 4 of the General Appropriation Act of 2016, as reduced by Laws 2016 (2nd S.S.), Chapter 6, Section 2, and in Subsection A of Section 3 and Sections 4, 5, 7 and 8 of Chapter 1 of Laws 2016, as reduced by Section 11 of the General Appropriation Act of 2016 and by Laws 2016 (2nd S.S.), Chapter 6, Section 1; and
(2) "general fund consensus revenue forecast" means the revenue estimates prepared at the end of the 2017 legislative session by the career economists of the department of finance and administration, taxation and revenue department, department of transportation and legislative finance committee."
SECTION 4. FUND AND OTHER ACCOUNT TRANSFERS--APPROPRIATIONS.--Notwithstanding any restriction on the use of money from the source, the following amounts are appropriated from the following sources for expenditure in fiscal year 2017, and any unexpended or unencumbered balance remaining at the end of fiscal year 2017 shall revert to the source:
A. two million five hundred thousand dollars ($2,500,000) from the state road fund to the taxation and revenue department tax administration program in the personal services and employee benefits category;
B. one million six hundred thousand dollars ($1,600,000) from the motor vehicle suspense fund to the taxation and revenue department motor vehicle program in the personal services and employee benefits category;
C. four million dollars ($4,000,000) from the game protection fund to the department of game and fish for payment to the commissioner of public lands for hunting and fishing licensee access to state trust lands. This appropriation is in addition to the existing one-million-dollar ($1,000,000) contract between the department and the commissioner for access to state trust lands in fiscal year 2017; and
D. five million dollars ($5,000,000) from the state road fund to the department of public safety law enforcement program in the personal services and employee benefits category.
SECTION 5. FUND AND OTHER ACCOUNT TRANSFERS AND REVERSIONS TO GENERAL FUND--FISCAL YEAR 2017.--Notwithstanding any restriction on the use of money in the funds or accounts, the following amounts from the following funds or accounts are transferred to the fiscal year 2017 appropriation account of the general fund:
A. two million nine hundred thousand dollars ($2,900,000) from the state infrastructure bank;
B. four million dollars ($4,000,000) from the rural infrastructure revolving loan fund;
C. four million dollars ($4,000,000) from appropriations made in Laws 2006, Chapter 111, Section 65, Laws 2007, Chapter 42, Section 86 and Laws 2008, Chapter 92, Section 72 to the wastewater facility construction loan fund;
D. four million dollars ($4,000,000) from the enhanced 911 fund;
E. two million dollars ($2,000,000) from the day-care fund;
F. one million six hundred forty-nine thousand four hundred fifty-eight dollars ($1,649,458) from the balance of distributions from the cigarette tax made in accordance with Subsection F of Section 7-1-6.11 NMSA 1978;
G. two million seventy-three thousand one hundred dollars ($2,073,100) from the oil and gas accounting suspense fund administered by the taxation and revenue department;
H. six million dollars ($6,000,000) from amounts reserved for risk-related coverage in the public school insurance fund;
I. ten million dollars ($10,000,000) from the public liability fund;
J. five million dollars ($5,000,000) from the state transportation pool account of the general services department;
K. six hundred ninety-nine thousand three hundred dollars ($699,300) from the public property reserve fund;
L. one million two hundred thirteen thousand seven hundred dollars ($1,213,700) from the insurance licensee continuing education fund;
M. seven hundred eighty-four thousand two hundred dollars ($784,200) from the insurance fraud fund;
N. two hundred two thousand six hundred dollars ($202,600) from the title insurance maintenance assessment fund;
O. seven hundred three thousand seven hundred dollars ($703,700) from the New Mexico medical board fund;
P. one million dollars ($1,000,000) from the New Mexico livestock board general fund;
Q. one million two hundred fifty thousand dollars ($1,250,000) from the workers' compensation administration fund;
R. three million two hundred eighty-two thousand seven hundred dollars ($3,282,700) from the corrective action fund;
S. nine hundred forty-eight thousand four hundred dollars ($948,400) from the food service sanitation fund;
T. nine hundred three thousand two hundred dollars ($903,200) from the water conservation fund;
U. seven hundred twenty thousand dollars ($720,000) from the state air quality permit fund;
V. six hundred fifty thousand ($650,000) from the liquid waste fund;
W. six hundred forty-one thousand eight hundred dollars ($641,800) from the radiation protection fund;
X. six hundred thirty-five thousand one hundred dollars ($635,100) from the tire recycling fund;
Y. five hundred fifty-six thousand nine hundred dollars ($556,900) from the water quality management fund;
Z. three hundred ninety thousand dollars ($390,000) from the storage tank fund;
AA. three hundred eighty-three thousand dollars ($383,000) from the hazardous waste fund;
BB. three hundred seventeen thousand two hundred dollars ($317,200) from the water recreation facilities fund;
CC. three hundred seven thousand four hundred dollars ($307,400) from the public water supply system operator and public wastewater facility operator fund; and
DD. three hundred thirteen thousand dollars ($313,000) from the concealed handgun carry fund.
SECTION 6. Section 6-4-9 NMSA 1978 (being Laws 1999, Chapter 207, Section 1, as amended) is amended to read:
"6-4-9. TOBACCO SETTLEMENT PERMANENT FUND--INVESTMENT--DISTRIBUTION.--
A. The "tobacco settlement permanent fund" is created in the state treasury. The fund shall consist of money distributed to the state pursuant to the master settlement agreement entered into between tobacco product manufacturers and various states, including New Mexico, and executed November 23, 1998 or any money released to the state from a qualified escrow fund or otherwise paid to the state as authorized by [Sections 6-4-12 and] Section 6-4-13 NMSA 1978, enacted pursuant to the master settlement agreement or as otherwise authorized by law. Money in the fund shall be invested by the state investment officer in accordance with the limitations in Article 12, Section 7 of the constitution of New Mexico. Income from investment of the fund shall be credited to the fund. Money in the fund shall not be expended for any purpose, except as provided in this section.
B. In fiscal year 2007 and in each fiscal year thereafter, an annual distribution shall be made from the tobacco settlement permanent fund to the tobacco settlement program fund of an amount equal to fifty percent of the total amount of money distributed to the tobacco settlement permanent fund in that fiscal year until that amount is less than an amount equal to four and seven-tenths percent of the average of the year-end market values of the tobacco settlement permanent fund for the immediately preceding five calendar years. Thereafter, the amount of the annual distribution shall be four and seven-tenths percent of the average of the year-end market values of the tobacco settlement permanent fund for the immediately preceding five calendar years. In the event that the actual amount distributed to the tobacco settlement program fund in a fiscal year is insufficient to meet appropriations from that fund for that fiscal year, the secretary of finance and administration shall proportionately reduce each appropriation accordingly.
C. In addition to the distribution made pursuant to Subsection B of this section, in fiscal years 2009 through 2013 and 2016, the remaining fifty percent of the total amount of money distributed to the tobacco settlement permanent fund in that fiscal year shall be distributed from the tobacco settlement permanent fund to the tobacco settlement program fund.
D. In addition to the distribution made pursuant to Subsections B and E of this section, in fiscal year 2014, twenty-five percent of the total amount of money distributed pursuant to the master settlement agreement to the tobacco settlement permanent fund in that fiscal year shall be distributed from the tobacco settlement permanent fund to the lottery tuition fund.
E. In addition to the distribution made pursuant to Subsections B and D of this section, in fiscal year 2014, twenty-five percent of the total amount of money distributed to the tobacco settlement permanent fund in that fiscal year shall be distributed from the tobacco settlement permanent fund to the tobacco settlement program fund for appropriation for direct services provided by early childhood care and education programs administered by the children, youth and families department.
F. The tobacco settlement permanent fund is a reserve fund of the state. Money in the tobacco settlement permanent fund may be expended:
(1) in the event that general fund balances, including all authorized revenues and transfers to the general fund and balances in the general fund operating reserve, the appropriation contingency fund and the tax stabilization reserve, will not meet the level of appropriations authorized from the general fund for a fiscal year. In that event, in order to avoid an unconstitutional deficit, the legislature may authorize a transfer from the tobacco settlement permanent fund to the general fund but only in an amount necessary to meet general fund appropriations; or
(2) as provided in Laws 2016 (2nd S.S.), Chapter 4, Section 2 [of this 2016 act] and in Section 7 of this 2017 act."
SECTION 7. TOBACCO SETTLEMENT PERMANENT FUND TRANSFER TO THE GENERAL FUND--FISCAL YEAR 2017.--The governor, with state board of finance approval, may, in addition to the transfer authorized by Laws 2016 (2nd S.S.), Chapter 4, Section 2, transfer from the tobacco settlement permanent fund to the operating reserve account of the general fund an amount up to the amount remaining in the fund, less the total amount appropriated in Section 4 of the General Appropriation Act of 2016 from the tobacco settlement program fund, as necessary to meet the appropriations authorized by law from the general fund for fiscal year 2017.
SECTION 8. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
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