State of New Mexico
                    House of Representatives
  
                    FORTY-SECOND LEGISLATURE
                      SECOND SESSION, 1996
  
  
                                               February 7, 1996
  
  
  Mr. Speaker:
  
     Your TAXATION AND REVENUE COMMITTEE, to whom has
  been referred
  
                         HOUSE BILL 531
                                
                                 has had it under consideration and reports same with
  recommendation that it DO PASS, amended as follows:
  
     1.  On page 1, between lines 18 and 19, insert the following
  new sections:
  
     "Section 1.  Section 7-1-6.7 NMSA 1978 (being Laws 1994,
  Chapter 5, Section 2, as amended by Laws 1995, Chapter 6, Section 1
  and also by Laws 1995, Chapter 36, Section 1) 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 three
  and fifty-nine hundredths percent of the 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 of one percent of [gasoline taxes] the gasoline
  tax, exclusive of penalties and interest, collected pursuant to the
  Gasoline Tax Act."
  
     Section 2.  Section 7-1-6.9 NMSA 1978 (being Laws 1991, Chapter
  9, Section 11, as amended) is amended to read:
  
     "7-1-6.9.  DISTRIBUTION OF GASOLINE TAXES TO MUNICIPALITIES AND
  COUNTIES.--
  
          A.  A distribution pursuant to Section 7-1-6.1 NMSA 1978
  shall be made in an amount equal to ten and thirty-eight hundredths
  percent of the net receipts attributable to the [taxes] gasoline tax,
  exclusive of penalties and interest, imposed by the Gasoline Tax Act.
  
          B.  The amount determined in Subsection A of this section
  shall be distributed as follows:
  
               (1)  ninety percent of the amount shall be paid to
  the treasurers of municipalities and H class counties in the
  proportion that the taxable motor fuel sales in each of the
  municipalities and H class counties bears to the aggregate taxable
  motor fuel sales in all of these municipalities and H class counties;
  and
  
               (2)  ten percent of the amount shall be paid to the
  treasurers of the counties, including H class counties, in the
  proportion that the taxable motor fuel sales outside of incorporated
  municipalities in each of the counties bears to the aggregate taxable
  motor fuel sales outside of incorporated municipalities in all of the
  counties.
  
          C.  This distribution shall be paid into the municipal
  treasury or county general fund for general purposes or for any
  special purposes designated by the governing body of the municipality
  or county.  Any municipality or H class county that has created or
  that creates a "street improvement fund" to which gasoline tax
  revenues or distributions are irrevocably pledged under Sections
  3-34-1 through 3-34-4 NMSA 1978 or that has pledged all or a portion
  of gasoline tax revenues or distributions to the payment of bonds
  shall receive its proportion of the distribution of revenues under
  this section impressed with and subject to these pledges."".
  
     2.  Renumber the succeeding sections accordingly.
  
     3.  On page 12, between lines 4 and 5, insert the following new
  sections:
  
     "Section 9.  SEVERABILITY.--If any part or application of this
  act is held invalid, the remainder or its application to other
  situations or persons shall not be affected.
  
     Section 10.  EFFECTIVE DATE.--The effective date of the
  provisions of Sections 1 through 3 of this act is July 1, 1996.".
  
  
                              Respectfully submitted,
  
  
  
                                                               
                              Jerry W. Sandel, Chairman
  
  
  Adopted                          Not Adopted                       
          (Chief Clerk)                       (Chief Clerk)
  
                       Date             
  
  The roll call vote was 8  For 3  Against
  Yes:         8
  No:          Crook, Hawkins, Parsons
  Excused:     Gallegos, Gonzales
  Absent: None
  
  
                                                      .111763.2
  H0531TR1