SB 138 — OIL & GAS FUNDS TO JUDICIAL RETIREMENT

SENATE BILL 138 57TH LEGISLATURE -STATEOFNEWMEXICO-- STATE OF NEW MEXICO - FIRST SESSION, 2025 INTRODUCED BY George K.

Muñoz 6This 8document 10may ANincorporate ACTamendments RELATINGproposed TOby TAXATION;a committee, but not yet adopted, as well as amendments that have been adopted during the current legislative session.

REMOVINGThe DISTRIBUTIONSdocument FROMis THEa OILtool ANDto GASshow PROCEEDSamendments ANDin PASS-THROUGHcontext ENTITYand WITHHOLDINGcannot TAXbe ACTused TOfor THEthe MAGISTRATEpurpose RETIREMENTof FUNDadding ANDamendments JUDICIALto RETIREMENTlegislation. FUND.

15h BEAN ITACT ENACTEDg BYo THERELATING LEGISLATURETO OFTAXATION; THE STATE OF NEW MEXICO:

SECTIONREMOVING 1.DISTRIBUTIONS FROM THE OIL AND t hr g e i k GAS PROCEEDS AND PASS-THROUGH ENTITY WITHHOLDING TAX ACT TO THE h r i s MAGISTRATE RETIREMENT FUND AND JUDICIAL RETIREMENT FUND.

Sectionh 7-1-6.43, NMSAt, 1978e (beingu Lawsg 2003,e b l e te 17h ChapterBE 86,IT SectionENACTED 1,BY asTHE amended)LEGISLATURE isOF amendedTHE toSTATE read:OF NEW MEXICO:

w l n d 18d "7-1-6.43.i = = o h SECTION 1.

DISTRIBUTION--OILSection AND7-1-6.43 GASNMSA PROCEEDS1978 AND(being PASS-Laws =2003, = 19 a l THROUGH] ENTITYb WITHHOLDING,d TAX--[MAGISTRATE RETIREMENT FUND-- i a º e rChapter 2086, JUDICIAL RETIREMENT FUND] LEGISLATIVE RETIREMENT FUND.--[A.] A a t m m 21 distribution pursuant to Section 7-1-6.11, NMSAas 1978amended) fromis theamended net d r e 22 receipts attributable to theread: amount of tax deducted pursuant to c e s k 23 the Oil and Gas Proceeds and Pass-Through Entity Withholding e a n b 24 Tax Act shall be made [as follows:

ur [i (1)= tor thet magistratee retirementw fundd inm thea .229159.1n amounto of"7-1-6.43. one hundred thousand dollars ($100,000);

DISTRIBUTION--OIL AND GAS PROCEEDS AND PASS- d m :

b e d s º o t n = .229159.1AIC March 12, 2025 (3:58pm) s k m e e a n e d r e l u [ A d THROUGH ENTITY WITHHOLDING TAX--[MAGISTRATE RETIREMENT FUND-- JUDICIAL RETIREMENT FUND] LEGISLATIVE RETIREMENT FUND.-- STBTCº [A.]»STBTC STBTCºA.»STBTC A distribution pursuant to Section 7-1-6.1 NMSA 1978 from the net receipts attributable to the amount of tax deducted pursuant to the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act shall be made [as follows:

(1) to the magistrate retirement fund in the amount of one hundred thousand dollars ($100,000);

and (3) on and after July 1, 2025] to the legislative retirement fund in the amount of seventy-five thousand dollars ($75,000) or, if larger, in an amount equal to one-twelfth of the amount necessary to pay out the retirement benefits due under state legislator member coverage plan 2 and h Paragraph (2) of Subsection C of Section 10-11-41 NMSA 1978 for u » r the succeeding calendar year.

t h g e l i [B.

In regard to the distributions to the h r i s magistrate retirement fund and the judicial retirement fund, in h , e h December 2024 and in each December thereafter, the public t u g e b l e e , gh employees retirement association, with the assistance of the n d d i = = o h administrative office of the courts, shall determine the funded l ] b ,d i a º r ratio of each fund as of the end of the preceding fiscal year.

e r = t 17e w d m a n o If the funded ratio of the magistrate retirement fund for the w l n d 18 preceding fiscal year is equal to or greater than one hundred = = 19 a l percent, the association shall notify the department, and no i a e r 20 further distributions pursuant to Paragraph (1) of Subsection A a t m m: 21 of this section shall be made.

Ifb ther fundede ratiot ofº theo t n = .229159.1AIC March 12, 2025 (3:58pm) s k m e - 2 - e a n e d r e 22l judicialu retirement[ fundA ford the preceding fiscal year is equal c e s k 23 to or greater than one hundred percent, the association shall e a n b 24 notify the department, and no further distributions pursuant to u [ Paragraph (2)(1) of Subsection A of this section shall be made.

.229159.1If -the 2funded -ratio C.of the judicial retirement fund for the preceding fiscal year is equal to or greater than one hundred percent, the association shall notify the department, and no further distributions pursuant to Paragraph (2) of Subsection A of this section shall be made.

InSTBTCº]»STBTC STBTCºC.»STBTC STBTCºB.»STBTC STBTCºIn regard to the distribution to the legislative retirement fund, in December 2024 and in each December thereafter, the public employees retirement association, with the assistance of the legislative council service, shall determine the amount of retirement benefits for the succeeding calendar year.

If the monthly average exceeds seventy-five thousand dollars h ($75,000), the association shall immediately notify the u » r department of the average amount.]"amount.]»STBTC -STBTCºIn 3regard -to 11t 13h 15g e tl 17i wthe ldistribution nto dthe 18legislative =retirement =fund, 19in ah lr i as eDecember r2024 20and ain teach mDecember mthereafter, 21the dpublic rh , e 22h ct u g employees retirement association, with the assistance of the e sb kl 23e e a, gh legislative council service, shall determine the amount of n bd 24d ui [= .229159.1= o h retirement benefits for the succeeding calendar year.

If the l ] b ,d i a º r e r = monthly average exceeds seventy-five thousand dollars t e w d m a n o ($75,000), the association shall immediately notify the d m :

b r e t º o t n = .229159.1AIC March 12, 2025 (3:58pm) s k m e - 3 - e a n e d r e l u [ A d department of the average amount.»STBTC " - 4 - » g o » r h t i k l i g t h s , e h t l i w l b l e e , g n d l h = = b , a l º d i a r e r = , a t e d m a n o d m :

b r e t º o t n = .229159.1AIC March 12, 2025 (3:58pm) s k em e e a n e d r e l u [ A d