HOUSE BILL 111
54th legislature - STATE OF NEW MEXICO - second session, 2020
Miguel P. Garcia
RELATING TO GOVERNMENT FINANCING; CREATING THE LAND GRANT-MERCED ASSISTANCE FUND; PRESCRIBING DUTIES; PROVIDING FOR DISTRIBUTIONS; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] DISTRIBUTION--LAND GRANT-MERCED ASSISTANCE FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the land grant-merced assistance fund in an amount equal to five-hundredths percent of the net receipts attributable to the gross receipts tax after distributions have been made pursuant to Sections 7-1-6.46 and 7-1-6.47 NMSA 1978."
SECTION 2. A new section of Chapter 49 NMSA 1978 is enacted to read:
"[NEW MATERIAL] LAND GRANT-MERCED ASSISTANCE FUND CREATED--DISTRIBUTION.--
A. The "land grant-merced assistance fund" is created in the state treasury and shall be administered by the department of finance and administration. The fund consists of gifts, grants, donations, appropriations to the fund and distributions to the fund made pursuant to the Tax Administration Act.
B. On or before September 1, 2020 and on or before September 1 of each subsequent year, the state auditor shall certify in writing to the department of finance and administration the land grants-mercedes that are in compliance with the Audit Act and the category of compliance required for each land grant-merced pursuant to Subsection B of Section 12-6-3 NMSA 1978 and distributions pursuant to Subsections C and D of this section.
C. An assistance-qualified land grant-merced with an annual revenue, calculated on a cash basis of accounting, exclusive of capital outlay funds or federal or private grants disbursed directly by an administrating agency or previous year distributions from the land grant-merced assistance fund, shall receive an annual distribution amount starting in fiscal year 2021 and continuing in each subsequent fiscal year in accordance with the following:
(1) less than fifty thousand dollars ($50,000), the assistance-qualified land grant-merced shall receive a full distribution;
(2) at least fifty thousand dollars ($50,000) but not more than two hundred fifty thousand dollars ($250,000), the assistance-qualified land grant-merced shall receive seventy-five percent of a full distribution;
(3) at least two hundred fifty thousand dollars ($250,000) but not more than five hundred thousand dollars ($500,000), the assistance-qualified land grant-merced shall receive fifty percent of a full distribution; and
(4) five hundred thousand dollars ($500,000) or more, the assistance-qualified land grant-merced shall receive twenty-five percent of a full distribution.
D. On or before September 30, 2020 and on or before September 30 of each subsequent year, the state treasurer shall distribute to each assistance-qualified land grant-merced the amount certified pursuant to Subsections B and C of this section. If the balance in the fund as of the preceding June 30 exceeds the sum of certified amounts distributed, the difference shall revert to the general fund.
E. As used in this section:
(1) "assistance-qualified land grant-merced" means a land grant-merced that has a board of trustees that has been elected pursuant to the requirements of Chapter 49, Article 1 or 4 NMSA 1978 and that is in compliance with the Audit Act; and
(2) "full distribution" means an amount equal to the annual amount of money in the land grant-merced assistance fund at the start of a fiscal year divided by the total number of assistance-qualified land grants-mercedes certified by the state auditor for that fiscal year pursuant to this section."
SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2020.
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