45th legislature - STATE OF NEW MEXICO - second session, 2002

PROPOSING AN AMENDMENT TO ARTICLE 8 OF THE CONSTITUTION OF NEW MEXICO TO ESTABLISH A MASTER SETTLEMENT PERMANENT FUND AND A MASTER SETTLEMENT PROGRAM FUND CONSISTING OF MONEY DISTRIBUTED TO THE STATE PURSUANT TO THE MASTER SETTLEMENT AGREEMENT WITH TOBACCO PRODUCT MANUFACTURERS.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. It is proposed to amend Article 8 of the constitution of New Mexico by adding a new Section 16 to read: "A. The "master settlement permanent fund" is created in the state treasury. The fund shall consist of money received by the state pursuant to the master settlement agreement entered into between tobacco product manufacturers and various states, including New Mexico, and executed November 23, 1998 or money released to the state from a qualified escrow fund or otherwise paid to the state pursuant to the master settlement agreement. Money in the fund shall be invested by the state investment officer as land grant permanent funds are invested. Income from investment of the fund shall be credited to the fund. Money in the fund shall not be expended for any purpose, but an annual distribution shall be made to the master settlement program fund in accordance with Subsection C of this section.

B. The "master settlement program fund" is created in the state treasury and shall consist of distributions made to the fund from the master settlement permanent fund. Income from investment of the master settlement program fund shall be credited to the fund. Distributions from the master settlement program fund shall be appropriated as provided by law.

C. On July 1 of each fiscal year, an annual distribution shall be made from the master settlement permanent fund to the master settlement program fund of an amount equal to fifty percent of the total amount of money paid into the master settlement permanent fund from the master settlement agreement in the immediately preceding fiscal year until that amount is less than an amount equal to a specified percent of the average of the year-end market values of the master settlement permanent fund for the immediately preceding five calendar years. Thereafter, the amount of the annual distribution shall be a specified percent of the average of the year-end market values of the master settlement permanent fund for the immediately preceding five calendar years. For purposes of this section, the specified percent used shall be the same percent used to calculate the distribution from the land grant permanent fund.

D. Money credited to the tobacco settlement permanent fund and the tobacco settlement program fund at the time of the adoption of this amendment shall be credited to and become a part of the permanent trust fund known as the "master settlement permanent fund" and the "master settlement program fund"."

Section 2. The amendment proposed by this resolution shall be submitted to the people for their approval or rejection at the next general election or at any special election prior to that date that may be called for that purpose.