New Mexico Administrative Code
Title 10 - PUBLIC SAFETY AND LAW ENFORCEMENT
Chapter 2 - DEPARTMENT OF PUBLIC SAFETY
Part 4 - LAW ENFORCEMENT RETENTION FUND REPORTING, MONITORING AND ADMINISTRATION
Section 10.2.4.10 - PROCEDURE FOR CALCULATION OF DISBURSEMENTS FROM THE LERF, SUBMISSION OF OBJECTIONS TO THE DISBURSEMENT AND REVERSION OF UNDISBURSED FUNDS

A. Following receipt of the information required to be reported in 10.2.4.9 NMAC, DPS shall calculate the total amount necessary to be disbursed to each requesting law enforcement agency to provide a retention differential disbursement to all eligible officers employed by that law enforcement agency in the fiscal year for which the funds are requested, plus the employer tax liability for each PRDD.

B. Following calculation of the PRDD and employer tax liability for each officer projected to be an eligible officer in each requesting agency, the DPS shall determine whether the balance in the LERF is sufficient to permit the total disbursements calculated. If the balance in the LERF is insufficient to pay the total amount of the disbursement to each requesting agency, DPS shall reduce the amount to be disbursed to each law enforcement agency on a pro rata basis to an amount permitted by the monies available in the LERF.

C. Once the calculation of the PRDD, employer tax liability and any necessary pro rata deduction is complete, DPS shall issue a Notice of Intent to Disburse letter to each agency that requested monies from the LERF. This notice shall advise the agency of the amount DPS intends to distribute from the LERF to the agency for the PRDD and related employer tax liability, including an explanation of the pro rata deduction, if any. If the agency disagrees with the amount set forth in the Notice of Intent to Disburse letter, the agency shall have 30 days from its receipt of the letter to notify DPS of its objection and the reasons therefor.

D. The written Objections to the Notice of Intent to Disburse shall be sent to: DPS.LERF@dps.nm.gov.

E. DPS will respond to all objecting agencies in writing, within 30 days of the date on which all objections by all agencies are due. DPS will either affirm its original Notice of Intent to Disburse letter or issue an Amended Notice of Intent to Disburse letter. If the agency requesting monies from the LERF remains aggrieved, the agency may proceed as provided in 10.2.4.12 NMAC.

F. DPS shall disburse the monies to the requesting law enforcement agencies in accordance with the Notice of Intent to Disburse letter and any amendment thereto in accordance with the choice selected by the law enforcement agency in SHARE Financials as State of New Mexico vendors. Some law enforcement agencies may be set up for manual warrants.

G. DPS shall disburse the monies to all requesting law enforcement agencies in accordance with their respective Notice of Intent to Disburse letters and any amendments thereto, on December 15 of the fiscal year in which the monies are projected to be disbursed by the law enforcement agencies to the eligible officers.

H. Upon receipt of the disbursement, the law enforcement agency shall place the monies in an interest bearing account. Interest earned will revert to DPS as set forth in this rule.

I. The law enforcement agency shall disburse the PRDD to the eligible officer no sooner than the date the officer attains eligibility and no later than 30 days following the date of eligibility, or the law enforcement agency's receipt of the disbursement from DPS, whichever occurs last.

J. The law enforcement agency shall disburse the monies attributable to the employer's tax liability to the appropriate taxing authority as required by law.

K. The law enforcement agency shall report the date of disbursement of the PRDD and the employer taxes on the same to the DPS through the portal within 30 days of disbursement.

L. Within 60 days after the end of the fiscal year in which PRDDs and the accompanying employer tax liability are disbursed and paid and no later than August 31, the law enforcement agency shall return to the DPS any monies disbursed for projected PRDDs and employer tax liability, which were not disbursed and paid as projected, together with any interest earned thereon, in the form of a check. The law enforcement agency returning the monies shall include with the check, a statement of all PRDDs made and employer tax liability paid for each officer, identified by the officer's full legal name, date of the disbursement and date of payment of the employer tax liability. The law enforcement agency shall also provide a statement of the full legal names of the officers projected to receive a retention differential disbursement, who did not receive a disbursement, the amount of the returned PRDD, the amount of the returned employer tax liability and the reason the disbursement was not made. The law enforcement agency shall also include a statement of the interest that accrued on the funds while in the agency's custody, that is being returned to DPS.