HOUSE BILL 621

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

Doreen Y. Gallegos

AN ACT

RELATING TO PUBLIC FINANCE; CREATING THE PERMANENT EDUCATION EMERGENCY RESERVE FUND; CONDITIONALLY ALLOWING FOR APPROPRIATIONS FROM THAT FUND TO THE STATE EQUALIZATION GUARANTEE DISTRIBUTION WHEN GENERAL FUND REVENUE LEVELS ARE FORECAST TO DECLINE; MAKING AN APPROPRIATION.

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

     SECTION 1. A new section of Chapter 6 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] PERMANENT EDUCATION EMERGENCY RESERVE FUND.--

          A. The "permanent education emergency reserve fund" is created in the state treasury. The fund consists of all additions to it and all income from investment of the fund. The state investment officer shall invest the money in the fund. Money in the permanent education emergency reserve fund may be used only as provided in Subsection B of this section.

          B. If the market value of the permanent education emergency reserve fund is sixty million dollars ($60,000,000) or more and a legislative-executive consensus forecast for general fund revenue for the current or following fiscal year shows a decline of five percent or more from the forecast for the preceding fiscal year, the legislature may appropriate money from the permanent education emergency reserve fund to the state equalization guarantee distribution in a necessary amount that is in excess of fund's sixty million dollar ($60,000,000) corpus."

     SECTION 2. Section 6-8-1 NMSA 1978 (being Laws 1957, Chapter 179, Section 1, as amended) is amended to read:

     "6-8-1. DEFINITIONS.--As used in Chapter 6, Article 8 NMSA 1978:

          A. "council" means the state investment council;

          B. "department" means the department of finance and administration;

          C. "land grant permanent funds" means the permanent school fund established pursuant to the provisions of Article 12, Section 2 of the constitution of New Mexico and all other permanent funds derived from lands granted or confirmed to the state by the act of congress of June 20, 1910, entitled "An act to enable the people of New Mexico to form a constitution and state government and be admitted into the union on an equal footing with the original states";

          D. "permanent funds" means the land grant permanent funds, permanent education emergency reserve fund, severance tax permanent fund, tobacco settlement permanent fund and water trust fund;

          E. "secretary" means the secretary of finance and administration;

          F. "severance tax permanent fund" means the fund established pursuant to the provisions of Article 8, Section 10 of the constitution of New Mexico;

          G. "tobacco settlement permanent fund" means the fund established pursuant to the provisions of Section 6-4-9 NMSA 1978; and

          H. "water trust fund" means the fund established pursuant to the provisions of Article 16, Section 6 of the constitution of New Mexico."

     SECTION 3. APPROPRIATION.--Sixty million dollars ($60,000,000) is appropriated from the general fund to the permanent education emergency reserve fund in fiscal year 2020.     SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2019.

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