44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO FIRE PROTECTION; INCREASING THE DISTRIBUTION TO THE FIRE PROTECTION FUND; PROVIDING FOR INCREASED DISTRIBUTION TO FIRE DISTRICTS.

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

Section 1. Section 59A-6-5 NMSA 1978 (being Laws 1984, Chapter 127, Section 105, as amended) is amended to read:

"59A-6-5. DISTRIBUTION OF INSURANCE DEPARTMENT

COLLECTIONS.--

A. All money received by the insurance department [or insurance board] for fees, licenses, penalties and taxes shall be paid daily by the superintendent to the state treasurer and by him credited to the "insurance department suspense fund" [heretofore created and now existing] except as provided by:

(1) the Law Enforcement Protection Fund Act; [and]

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

(3) the distribution to Carrie Tingley crippled children's hospital pursuant to Section 59A-44-37 NMSA 1978.

B. The superintendent, with approval of the [corporation] public regulation commission [or insurance board, as the case may be related to the money involved], 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.

C. At the end of every month, the treasurer shall transfer to the "fire protection fund" fifty percent of the balance remaining in the insurance department suspense fund, after applicable refunds, [made therefrom under Subsection B of this section, and] that is derived from property and vehicle insurance business, and transfer to the general fund the balance remaining in the insurance department suspense fund derived from property and vehicle and all other kinds of insurance business."

Section 2. Section 59A-53-15 NMSA 1978 (being Laws 1984, Chapter 127, Section 986, as amended) is amended to read:

"59A-53-15. APPROPRIATION FROM STATE TREASURY.--All money [which] that from time to time is deposited in the state treasury and credited to the fire protection fund is appropriated to the [corporation commission for the use of the marshal for the purposes set out in Chapter 59A, Article 53 NMSA 1978 and shall be distributed by the state treasurer and expended as provided in that article. Hereafter, all sums in excess of one hundred thousand dollars ($100,000) for pro rata distribution plus seventy-five percent of the approved state fire marshal budget for the succeeding fiscal year plus the amount certified to be distributed as provided in that article shall be credited to the general fund on or before June 30 of each fiscal year] state fire marshal to carry out the provisions of the Fire Protection Fund Law."

Section 3. A new section of the Fire Protection Fund Law is enacted to read:

"[NEW MATERIAL] SUPPLEMENTAL DISTRIBUTION.--

A. The state fire marshal shall adopt and promulgate rules to govern the distribution of money in the fire protection fund in excess of:

(1) the annual amount pursuant to Sections 59A-53-4 and 59A-53-5 NMSA 1978;

(2) the amount required for administration of the state fire marshal bureau and the firefighter training academy; and

(3) the amount required for volunteer firefighter retirement.

B. The supplemental distribution provided for in Subsection A of this section may be used:

(1) to improve fire department and fire district insurance ratings;

(2) to foster long-range planning goals;

(3) to augment the annual distribution; or

(4) for any other purpose allowed by the Fire Protection Fund Law.

C. The state fire marshal may amend the rules annually to change the purpose of the year's supplemental distribution.

D. The supplemental distribution provided for in this section shall be distributed with the annual distribution provided for in Sections 59A-53-4 and 59A-53-5 NMSA 1978."

Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 1999.