N.M. Admin. Code § 20.3.16.12

Current through Register Vol. 35, No. 21, November 5, 2024

Section 20.3.16.12 - SMALL ENTITIES AND ANNUAL FEES

A. A licensee may qualify as a small entity pursuant to the provisions of this section and receive a refund of a portion of annual fees paid following the submission of certification and documentation with the annual fee payment. The submission of certification and documentation of being a small entity after the due date of the annual fee payment will not allow the licensee to qualify as a small entity until the following year in which the next annual fee payment is due. To qualify as a small entity, an entity must provide appropriate documentation that it meets the size standards and gross income standards described in 20.3.16.12.

B. Small entity criteria.

(1) A small business that is a for-profit entity providing services or products and:

(a) earned average gross receipts of $8 million or less over its last 3 completed fiscal years and is not engaged in manufacturing; or

(b) is a manufacturing concern with an average number of 500 or fewer employees based upon employment during each pay period for the preceding 12 calendar months; or

(2) A small governmental jurisdiction that is a government of a city, county, town, township, or village with a population (including educational institution populations) of 49,999 or fewer individuals; or

(3) A small educational institution that:

(a) has more than seventy percent of its operating budget funded by state or local governments; or

(b) has zero percent to fifty percent of its operating budget funded by state or local governmental funds and has 500 or fewer employees.

C. For a small entity that meets the small entity criteria listed above in Paragraph A of this section the following are the maximum annual fees, for each location of use and for each licensed category:

(1) Small businesses not engaged in manufacturing and small not-for-profit organizations (Average gross receipts for the last three completed years for all business locations):

(a) Gross annual receipts of $485,000 to $7 million, the annual fee is $ 4,900 for each location.

(b) Gross annual receipts of less than less than $485,000, the annual fee is $1,000 for each location.

(2) Manufacturing entities that have an average of 500 or fewer employees working in all of licensee's locations:

(a) 35 to 500 employees, the annual fee is $4,900 for each location.

(b) Less than 35 employees, the annual fee is $1000 for each location.

(3) Small governmental jurisdictions.

(a) Population of 20,000 to 49,999, the annual fee is $ 4,900 for each location.

(b) Population of less than 20,000, the annual fee is $1000 for each location.

(4) Educational institutions that are not state or publicly supported with 500 employees or less.

(a) With 35 to 500 employees, the annual fee is $4,900 for each location.

(b) With less than 35 employees, the annual fee is $1000 for each location.

D. For the purposes of this section, the department shall use the small business administration definition of receipts in the Code of Federal Regulations, 13 CFR 121.104(a)(1)(2), or its successor regulation. A licensee who is a subsidiary of a large entity does not qualify as a small entity for the purposes of this section.

E. Whenever appropriate in the interest of administering statutes and regulations within its jurisdiction, it is the practice of the department to answer inquiries from small entities concerning information on and advice about compliance with the statutes and regulations that affect them.

F. A licensee who seeks to establish status as a small entity for the purpose of paying the annual fees required under this section must file a certification statement with the department. The licensee must file the required certification on department Form RPP526 for each license under which it is billed. The department will include a copy of Form RPP526 with each annual fee invoice sent to a licensee. A licensee who seeks to qualify as a small entity must submit the completed Form RPP526 with the reduced annual fee payment.

G. For purposes of this section, the licensee must submit a new certification with its annual fee payment each year.

H. Small entities are required to pay the appropriate small entity fee for each fee category applicable to their license(s).

I. If a person files a false certification with respect to qualifying as a small entity, the department may refuse to process any application submitted by or on behalf of the person with respect to any license issued to the person and may suspend or revoke any licenses held by the person. The filing of a false certification to qualifying as a small entity under this section may also result in punitive action pursuant to applicable New Mexico state statutes.

N.M. Admin. Code § 20.3.16.12

20.3.16.12 NMAC - N, 5/19/2002, Adopted by New Mexico Register, Volume XXXV, Issue 07, April 9, 2024, eff. 5/1/2024