HB 215 — LAW ENFORCEMENT FUND FOR OFFICER RETENTION

HOUSESENATE CORPORATIONS AND TRANSPORTATION COMMITTEE SUBSTITUTE FOR SENATE BILL 215 53RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION , 2018 INTRODUCED4 BY6 David8 E.10 AN ACT RELATING TO TAXATION;

AdkinsCLARIFYING 6THE 8DEFINITION 10IN ANLAW ACTOF RELATINGCONSTRUCTION TOMATERIAL, PUBLICAS SAFETY;USED IN THE GROSS RECEIPTS AND COMPENSATING TAX ACT;

PROVIDINGDECLARING FORAN DISTRIBUTIONSEMERGENCY. FROM THE LAW ENFORCEMENT PROTECTION FUND FOR THREE YEARS FOR RETENTION PAYMENTS TO CERTAIN LAW ENFORCEMENT OFFICERS;

REQUIRING15 MATCHINGBE FUNDSIT FROMENACTED ABY MUNICIPALITYTHE ORLEGISLATURE AOF COUNTY.THE STATE OF NEW MEXICO:

16SECTION BE1. IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 7-9-54 NMSA 1978 (being Laws 1969, e t 17 SECTIONChapter 1.144, Section 44, as amended by Laws 2003, Chapter 272, w l n d 18 Section 6 and by Laws 2003, Chapter 330, Section 2) is amended = = 19 to read:

Sectiona 29-13-7 NMSA 1978 (being Laws 1983, w l ni da 18e Chapterr 289,20 Section"7-9-54. 7, as amended) is amended to read:

=DEDUCTION--GROSS =RECEIPTS 19TAX--GOVERNMENTAL "29-13-7.a t m m 21 GROSS RECEIPTS TAX--SALES TO GOVERNMENTAL AGENCIES.-- d r e 22 A.

EXPENDITUREReceipts LIMITATION--CONTROL.--from aselling ltangible ipersonal property c e s k 23 to the United States or New Mexico or a governmental unit, e ra 20n A.b 24 subdivision, agency, department or instrumentality thereof may u [ be deducted from gross receipts or from governmental gross .210481.1 SCORC/SB 215 receipts.

ExceptUnless ascontrary providedto forfederal law, the academydeduction inprovided Subsectionby a t m m 21 B of this section,subsection amountsdoes distributednot fromapply theto: fund shall be d r e 22 expended only for the following:

c e s k 23 (1) thereceipts repairfrom andselling purchasemetalliferous ofmineral lawore; enforcement e a n b 24 apparatus and equipment, including the financing and u [ refinancing thereof, that meet minimum nationally recognized .209853.1 standards;

(2) thereceipts purchasefrom ofselling lawtangible enforcementpersonal equipment,property includingthat protectiveis vests,or forwill policebe dogs;incorporated into a metropolitan redevelopment project created under the Metropolitan Redevelopment Code;

(3) expensesreceipts associatedfrom withselling advancedconstruction lawmaterial, enforcementexcluding planningtangible andpersonal training;property, whether removable or non-removable, that is or would be classified for depreciation purposes as three-year property, five-year property, seven-year property or ten-year property, including indirect costs related to the asset basis, by Section 168 of the Internal Revenue Code of 1986, as that section may be amended or renumbered;

(4)or maintaininge thee balance17 (4) that portion of the peacereceipts officers',from Newe Mexicoe mountedn patrold members'18 andperforming reservea police"service" officers'that survivorsreflects fundthe atvalue aof minimumtangible amount= = l ] 19 personal property utilized or produced in performance of threesuch hundreda fiftyl thousandr dollarsi ($350,000);20 service.

(5)t complyinge witha matcht orB. contribution requirements for the receipt of federal funds relating to criminal justice programs;

[andReceipts ]from (6)selling notangible morepersonal thanproperty fiftym percentm of21 thee replacementd salariesfor ofany municipalpurpose andto countyan lawIndian enforcementtribe, personnelnation ofor municipalitiespueblo or countiesa ratedr ase class22 1c ine Paragraphr (1)c of23 Subsectiongovernmental Cunit, ofsubdivision, Sectionagency, 29-13-4department NMSAor 1978 e ea 17n participatingb in24 basicinstrumentality lawthereof enforcementfor training;use on Indian reservations or u [ pueblo grants may be deducted from gross receipts or from .210481.1 - 2 - SCORC/SB 215 governmental gross receipts.

andC. e e n d 18 (7) until June 30, 2021, a law enforcement = = l ] 19 officer retention payment in the amount of seven thousand five a l r i 20 hundred dollars ($7,500);

providedWhen that:a seller, in good faith, deducts receipts for tangible personal property sold to the state or a governmental unit, subdivision, agency, department or instrumentality thereof, after receiving written assurances from the buyer's representative that the property sold is not construction material, the department shall not assert in a later assessment or audit of the seller that the receipts are not deductible pursuant to Paragraph (3) of Subsection A of this section." SECTION 2.

tSection e7-9-60 aNMSA t1978 (a)(being theLaws distribution1970, isChapter requested12, bySection a4, mas mamended) 21is eamended d r e 22 municipality or county law enforcement agency with a staffing c e r c 23 vacancy rate of at least ten percent to retainread: a law e a n b 24 enforcement officer who:

1)"7-9-60. is certified in accordance with u [ the Law Enforcement Training Act;

2)DEDUCTION--GROSS performsRECEIPTS primarilyTAX--GOVERNMENTAL patrolGROSS .209853.1RECEIPTS -TAX--SALES 2TO -CERTAIN duties;ORGANIZATIONS.-- A.

andExcept 3)as hasprovided atotherwise leastin twentySubsection yearsB of actualthis servicesection, creditreceipts earnedfrom underselling atangible municipalpersonal policeproperty membere coveragee plan17 asto determined501(c)(3) byorganizations themay publicbe employeesdeducted retirementfrom associationgross whilereceipts workinge fore n d 18 or from governmental gross receipts if the agencysale thatis made to an = = l ] 19 organization that delivers a nontaxable transaction certificate a l r i 20 to the request;seller.

(b)The buyer delivering the municipalitynontaxable ortransaction countyt lawe 6a enforcementt agencycertificate providesshall sevenemploy thousandthe fivetangible hundredpersonal dollarsproperty ($7,500)in the m m 21 e d conduct of functions described in matchingSection funds501(c)(3) toand shall r e 22 c e r c 23 not employ the lawtangible enforcementpersonal officer;property in the conduct of an e a n b 24 unrelated trade or business as defined in Section 513 of the u [ United States Internal Revenue Code of 1986, as amended or .210481.1 - 3 - SCORC/SB 215 renumbered.

and (c) the distribution and the matching funds paid to a law enforcement officer shall not constitute the officer's base salary or wages and shall not be considered to be salary or otherwise be used to determine a pension for the purposes of the Public Employees Retirement Act.

ForThe thededuction academy,provided amountsby distributedthis section does not apply to receipts from theselling fundconstruction shallmaterial, beexcluding expendedtangible onlypersonal property, whether removable or non-removable, that is or would be classified for providingdepreciation tourniquetpurposes andas traumathree-year kitsproperty, andfive-year trainingproperty, onseven-year property or ten-year property, including indirect costs related to the useasset basis, by Section 168 of tourniquetthe andInternal traumaRevenue kitsCode ]of 29-7-7.71986, NMSAas 1978.that section may be amended or renumbered, or from selling metalliferous mineral ore;

pursuantexcept that receipts from selling construction material or from selling metalliferous mineral ore to Sectiona [1501(c)(3) organization that is organized for the purpose of thisproviding 2017homeownership actopportunities eto elow- 17income C.families may be deducted from gross receipts.

AmountsReceipts distributedmay from the fund shall be ededucted eunder nthis dsubsection 18 expended only pursuantif tothe approvedbuyer budgetsdelivers and upon duly = = l ] 19 executed vouchers approved as required by law." a lnontaxable rtransaction icertificate 20to SECTIONthe 2.seller.

EFFECTIVEe DATE.--Thee effective17 dateThe buyer shall use the property in the conduct of functions e e n d 18 described in Section 501(c)(3) of the Internal Revenue Code of = = l ] 19 1986, as amended, and shall not employ the tangible personal a l r i 20 property in the conduct of an unrelated trade or business, as t e a t provisionsdefined ofin thisSection act513 isof Julythat 1,code. 2018.

m m 21 e d rC. e 22 - 3 - c e r c 23 e a n b 24 u [ .209853.1

For the purposes of this section, "501(c)(3) r e 22 c e r c 23 organization" means an organization that has been granted e a n b 24 exemption from the federal income tax by the United States u [ commissioner of internal revenue as an organization described .210481.1 - 4 - SCORC/SB 215 in Section 501(c)(3) of the United States Internal Revenue Code of 1986, as amended or renumbered." SECTION 3.

EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

- 5 - 7 9 11 13 15 e e 17 e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .210481.1