NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Expenditure Decreases)

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

Legislative Finance Committee (LFC)

SUMMARY

Synopsis of Bill

Senate Bill 9 establishes the Next Generation Council, the Next Generation Trust Fund, the Youth Development Grant Assistance Program, and the Youth Development Grant Fund.

The purpose of the act is to establish the next generation council that will establish a grant assistance program (Youth Development Grant Assistance Program) to "support community service, citizenship and leadership activities designed to support youth development for the next generation".

Youth development is defined as the establishment of policies, activities and programs that ensure the healthy development of children and young people to become successful students and community members.

Next Generation Council

Membership of the council consists of thirteen adults and youths appointed to four year terms for adults and two year terms for youths as follows:

Governor appoints: 2 adults, 1 youth

Speaker of the House & President Pro-Tempore of the Senate: 2 adults, 2 youths

Commission on Higher Education: 1 adult, 1 youth

Secretary of Department of Health: 1 adult, 1 youth

State Board of Education: 1 adult

Secretary of CYFD: 1 adult

Initial adult appointees shall serve two years and initial youth appointees shall serve one year. Thereafter, adults shall serve four years and youths two years. Tho council shall meet at least once each quarter but may meet more frequently at the call of the chairman who will be elected annually by members. A majority of the members present at a meeting will constitute a quorum for the conduct of council business. Council members shall receive per diem and mileage as provided in the Per Diem and Mileage Act and no additional compensation.

Not more than ten percent of the money distributed to the next generation trust fund in fiscal years 2002-2005 shall be appropriated by the legislature for use by the council and the department of health (providing administrative assistance) for administrative purposes of the council.

The council and the department of health shall report annually to the tobacco settlement revenue oversight committee or other appropriate interim committee and make recommendations to the oversight or interim committee for grant awards. That committee shall propose legislation annually to fund grant programs.

Next Generation Trust Fund

The Next Generation Trust Fund is created in the state treasury and shall consists of funds appropriated to it by the legislature. The money in the fund shall be invested by the state investment officer in a like manner as the Land Grant Permanent Fund and the Severance Tax Permanent Fund. Income earned on investments shall be credited to the Next Generation Trust Fund. Beginning in fiscal year 2001, there shall be an annual distribution to the youth development grant fund.

Youth Development Grant Assistance Program

The council shall design and implement a youth development grant assistance program that will design an application process for funding of youth development programs and activities for local governments, public schools, not-for-profit organizations, tribal entities and post-secondary educational institutions throughout New Mexico.

Recommendations on funding programs and activities will be made by the council and the department of health to the tobacco settlement revenue oversight committee or other appropriate interim committee for consideration. Priority of the recommendations shall be given to proposals that "involve youths in such positive activities as after-school programs, community service-learning programs, leadership and citizenship projects, youth entrepreneurship programs or programs that provide training and assistance to individuals working with youth and that promote best practices in youth development."

Youth Development Grant Fund

The Youth Development Grant Fund is created in the state treasury and shall consists of funds distributed from the Next Generation Trust Fund as well as any other money, public or private, deposited into the fund. Distribution amounts from the Next Generation Trust Fund shall be determined by formula as follows:

2001: 3/4% of appropriations made to the Next Generation Trust Fund in fiscal year 2001 will be used for by the department of health and the council for administration of the Next Generation Trust Fund Act.

• 5% of appropriations made to the Next Generation Trust Fund in fiscal year 2001;

• 5% of appropriations made to the Next Generation Trust Fund in fiscal year 2001;

Thereafter, 4.7% of the average annual balance in the Next Generation Trust Fund for the preceding two fiscal years.

JE/gm