SENATE FINANCE COMMITTEE SUBSTITUTE FOR
SENATE BILL 9
56th legislature - STATE OF NEW MEXICO - first session, 2023
AN ACT
RELATING TO CONSERVATION; CREATING THE CONSERVATION LEGACY PERMANENT FUND; CREATING THE LAND OF ENCHANTMENT LEGACY FUND; INCLUDING THE CONSERVATION LEGACY PERMANENT FUND IN THE PERMANENT FUNDS INVESTED BY THE STATE INVESTMENT COUNCIL.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. 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 by 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, rural libraries endowment fund, severance tax permanent fund, tobacco settlement permanent fund, conservation legacy permanent fund and water trust fund;
E. "secretary" means the secretary of finance and administration;
F. "severance tax permanent fund" means the fund established by Article 8, Section 10 of the constitution of New Mexico;
G. "tobacco settlement permanent fund" means the fund established by Section 6-4-9 NMSA 1978; and
H. "water trust fund" means the fund established by Article 16, Section 6 of the constitution of New Mexico."
SECTION 2. A new section of Chapter 75 NMSA 1978 is enacted to read:
"[NEW MATERIAL] CONSERVATION LEGACY PERMANENT FUND--CREATED--INVESTMENT--DISTRIBUTION.--
A. The "conservation legacy permanent fund" is created as a nonreverting fund in the state treasury. The fund consists of distributions, appropriations, gifts, grants, donations and income from investment of the fund. Money in the fund shall be invested by the state investment officer with the same risk and return profile as land grant permanent funds are invested pursuant to Chapter 6, Article 8 NMSA 1978. Earnings from investment of the fund shall be credited to the fund. Money in the fund shall be expended only as provided by this section.
B. If, on July 1 of each year, the conservation legacy permanent fund exceeds one hundred fifty million dollars ($150,000,000) and the investment income to the fund for the previous fiscal year exceeded five million dollars ($5,000,000), any investment income to the fund from the previous fiscal year in excess of five million dollars ($5,000,000) shall be distributed to the land of enchantment legacy fund."
SECTION 3. A new section of Chapter 75 NMSA 1978 is enacted to read:
"[NEW MATERIAL] LAND OF ENCHANTMENT LEGACY FUND--CREATED-- DISTRIBUTION.--
A. The "land of enchantment legacy fund" is created as a nonreverting fund in the state treasury. The fund consists of distributions, appropriations, gifts, grants, donations and bequests made to the fund. The department of finance and administration shall administer the fund. Any interest earned by the land of enchantment legacy fund shall be credited to the fund. Money in the fund shall be distributed and expended only as provided in this section.
B. On July 1, 2024 and on July 1 of each year thereafter, the department of finance and administration shall make an annual distribution from the land of enchantment legacy fund in an amount that is the greater of twelve million five hundred thousand dollars ($12,500,000) or twenty-five percent of the total balance of the land of enchantment legacy fund; provided that, if the total balance in the fund is less than twelve million five hundred thousand dollars ($12,500,000), the annual distribution shall be the total fund balance. The annual distribution shall be distributed as follows:
(1) twenty-two and one-half percent shall be distributed to the energy, minerals and natural resources department, of which:
(a) fifty percent shall be allocated to the forestry division of the energy, minerals and natural resources department to carry out: 1) projects and programs pursuant to the Forest Conservation Act; 2) forest and watershed management projects; 3) approved projects pursuant to the Forest and Watershed Restoration Act; and 4) projects and programs pursuant to the Prescribed Burning Act; and
(b) fifty percent shall be allocated for projects pursuant to the Natural Heritage Conservation Act;
(2) twenty-two and one-half percent shall be distributed to the board of regents of New Mexico state university for the New Mexico department of agriculture to carry out programs and projects pursuant to the Noxious Weed Management Act, the Healthy Soil Act and the Soil and Water Conservation District Act;
(3) ten percent shall be distributed to the department of environment to plan, design and construct
projects to improve surface water quality and river habitat
statewide;
(4) fifteen percent shall be distributed to the economic development department, of which:
(a) twenty-five percent shall be allocated to the New Mexico outdoor recreation division of the economic development department to carry out projects under the outdoor equity grant program; and
(b) seventy-five percent shall be allocated to the New Mexico outdoor recreation division for special projects and outdoor recreation infrastructure;
(5) eight percent shall be distributed to the cultural affairs department to carry out projects and programs pursuant to the Cultural Properties Protection Act; and
(6) twenty-two percent shall be distributed to the department of game and fish to carry out projects and programs for the protection and propagation of game and fish.
C. Any unencumbered balances from distributions made pursuant to Subsection B of this section shall revert to the land of enchantment legacy fund at the end of the fiscal year following the fiscal year in which the funds were distributed.
D. Distributions made pursuant to this section shall not be used for the purposes of eminent domain."
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