FORTY-THIRD LEGISLATURE
                        SECOND SESSION, 1998
  
  
                                                 February 9, 1998
  
  
  Mr. Speaker:
  
       Your JUDICIARY COMMITTEE, to whom has been referred
  
                        HOUSE BILL 197
  
  has had it under consideration and reports same with
  recommendation that it DO PASS, amended as follows:
  
       1.  On page 1, lines 12 and 13, strike "AMENDING A SECTION OF
  THE MAGISTRATE RETIREMENT ACT; MAKING AN APPROPRIATION."  and
  insert in lieu thereof "INCREASING CONTRIBUTION RATES; AMENDING
  SECTIONS OF THE MAGISTRATE RETIREMENT ACT.".
  
      2.  On page 1, strike line 25 and on page 2, strike lines 1
  through 6 and in lieu thereof insert the following sections:
  
      "Section 2.  Section 10-12C-10 NMSA 1978 (being Laws 1992,
  Chapter 118, Section 10) is amended to read:
  
      "10-12C-10.  MEMBER CONTRIBUTIONS--TAX TREATMENT.--
  
          A.  Members, while in office, shall contribute [five] six
  and one-tenth percent of salary to the member contribution fund.
  
          B.  Upon implementation, the state, acting as employer of
  members covered pursuant to the provisions of the Magistrate
  Retirement Act, shall, solely for the purpose of compliance with
  Section 414(h) of the Internal Revenue Code of 1986, pick up for the
  purposes specified in that section member contributions required by
  this section for all annual salary earned by the member.  Member
  contributions picked up pursuant to the provisions of this section
  shall be treated as employer contributions for purposes of
  determining income tax obligations under the Internal Revenue Code
  of 1986; however, such picked-up member contributions shall be
  included in the determination of the member's gross annual salary for
  all other purposes under federal and state laws.  Member
  contributions picked up pursuant to the provisions of this section
  shall continue to be designated member contributions for all purposes
  of the Magistrate Retirement Act and shall be considered as part of 
  
  
  
  
  the member's annual salary for purposes of determining the amount of
  the member's contribution.  The provisions of this section are
  mandatory, and the member shall have no option concerning the pick
  up or to the receipt of the contributed amounts directly instead of
  having the amounts paid by the employer to the retirement system. 
  Implementation occurs upon authorization by the board.  In no event
  may implementation occur other than at the beginning of a pay period
  applicable to the member."
  
      Section 3.  Section 10-12C-11 NMSA 1978 (being Laws 1992, Chapter
  118, Section 11) is amended to read:
  
      "10-12C-11.  EMPLOYER CONTRIBUTIONS.--
  
          A.  The state, through the administrative office of the
  courts, shall contribute [nine] eleven and three-tenths percent of
  salary for each member in office to the fund.
  
          B.  Twenty-five dollars ($25.00) from each civil case docket
  fee paid in magistrate or metropolitan court and ten dollars ($10.00)
  from each civil jury fee paid in magistrate or metropolitan court
  shall be paid by the court clerk to the employer's accumulation
  fund."".
  
      3.  Renumber the succeeding section accordingly.,
  
  and thence referred to the APPROPRIATIONS AND FINANCE
  COMMITTEE.
  
                           Respectfully submitted,
  
  
  
                                                            
                                                    Thomas P. Foy, Chairman
  
  
                                   Adopted                          Not Adopted                         
          (Chief Clerk)                                       (Chief Clerk)
  
                        Date                
  
  The roll call vote was 11  For 0  Against
  Yes:         11
               Excused:     King, Sanchez
          Absent: None
  
  
  .122809.1
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