44th legislature - STATE OF NEW MEXICO - second session, 2000

RELATING TO TOBACCO SETTLEMENT REVENUE; PROVIDING FOR DISTRIBUTIONS TO THE TOBACCO SETTLEMENT PROGRAM FUND AND SPECIFYING USES; CREATING A JOINT INTERIM LEGISLATIVE COMMITTEE; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978; MAKING APPROPRIATIONS.

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

Section 1. Section 6-4-9 NMSA 1978 (being Laws 1999, Chapter 207, Section 1) is amended to read:

"6-4-9. TOBACCO SETTLEMENT PERMANENT FUND--INVESTMENT--DISTRIBUTION.--

A. The "tobacco settlement permanent fund" is created in the state treasury. The fund shall consist of money distributed to 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 from a qualified escrow fund authorized by a qualifying state statute enacted 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 pursuant to Chapter 6, Article 8 NMSA 1978. Income from investment of the fund shall be credited to the fund. Money in the fund shall not be expended for any purpose [except by appropriation of the second session of the forty-fourth and subsequent legislatures], but an annual distribution shall be made to the tobacco settlement program fund in accordance with Subsection B of this section.

B. On July 1 of fiscal year 2001 and on July 1 of each fiscal year thereafter, an annual distribution shall be made from the tobacco settlement permanent fund to the tobacco settlement program fund of an amount equal to forty percent of the total amount of money distributed to the tobacco settlement permanent fund in the immediately preceding fiscal year until that amount is less than an amount equal to four and seven-tenths percent of the average of the year-end market values of the tobacco settlement permanent fund for the immediately preceding five calendar years. Thereafter, the amount of the annual distribution shall be four and seven-tenths percent of the average of the year-end market values of the tobacco settlement permanent fund for the immediately preceding five calendar years."

Section 2. Section 6-4-10 NMSA 1978 (being Laws 1999, Chapter 207, Section 2) is amended to read:

"6-4-10. TOBACCO SETTLEMENT [INCOME] PROGRAM FUND CREATED--PURPOSE.--

A. The "tobacco settlement [income] program fund" is created in the state treasury and shall consist of [appropriations] distributions made to the fund from the tobacco settlement permanent fund. Income from investment of the tobacco settlement program fund shall be credited to the fund. Beginning in fiscal year 2002, money in the tobacco settlement program fund may be appropriated by the legislature [for any of] only to the agencies and for the purposes specified in Subsection B of this section and in accordance with the recommendations of the tobacco settlement revenue oversight committee. Balances in the tobacco settlement program fund at the end of any fiscal year shall remain in the fund.

B. Money may be appropriated from the tobacco settlement [income] program fund [for health and educational purposes, including:

(1) support of additional public school programs, including extracurricular and after-school programs designed to involve students in athletic, academic, musical, cultural, civic, mentoring and similar types of activities;

(2) any health or health care program or service for prevention or treatment of disease or illness;

(3) basic and applied research conducted by higher educational institutions or state agencies addressing the impact of smoking or other behavior on health and disease;

(4) public health programs and needs; and

(5) tobacco use cessation and prevention programs, including public information, education and media campaigns] to the following agencies for the following purposes:

(1) to the department of health for:

(a) comprehensive tobacco use prevention and cessation programs, with priority to be given to programs that are community based and culturally appropriate and designed to achieve the "best practices" standards developed by the federal centers for disease control;

(b) diabetes prevention outreach programs; and

(c) a program of primary prevention home visits to families of newborns, from the prenatal stage to age three, with priority to be given to at-risk families;

(2) to the state department of public education for media literacy tobacco use prevention intervention programs targeted at school-age children;

(3) to the school of medicine at the university of New Mexico to contract for research on lung tissue regeneration; and

(4) to the next generation trust fund to be expended in accordance with the provisions of the Next Generation Trust Fund Act, if the Next Generation Trust Fund Act is enacted into law by the second session of the forty-fourth legislature."

Section 3. [NEW MATERIAL] TOBACCO SETTLEMENT REVENUE OVERSIGHT COMMITTEE CREATED--MEMBERSHIP--DUTIES.--

A. There is created a joint interim legislative committee that shall be known as the "tobacco settlement revenue oversight committee".

B. The tobacco settlement revenue oversight committee shall be composed of six members. Three members of the house of representatives shall be appointed by the speaker of the house of representatives and three members of the senate shall be appointed by the committees' committee of the senate or, if the senate appointments are made in the interim, those members shall be appointed by the president pro tempore of the senate after consultation with and agreement of a majority of the members of the committees' committee. Members shall be appointed from each house so as to give the two major political parties in each house the same proportionate representation on the tobacco settlement revenue oversight committee as prevails in each house.

C. The tobacco settlement revenue oversight committee shall:

(1) monitor the use of tobacco settlement revenue and meet on a regular basis to receive and review evaluations of programs receiving funding from tobacco settlement revenues;

(2) prepare recommendations, based on its program evaluation process, of program funding levels for the next fiscal year. The recommendations shall be made available to the New Mexico legislative council and the legislative finance committee on or before December 15 preceding each session; and

(3) make recommendations as necessary for changes in legislation regarding use of the tobacco settlement revenue.

D. The staff for the tobacco settlement revenue oversight committee shall be provided by the legislative council service.

Section 4. APPROPRIATIONS.--

A. The following amounts are appropriated from the tobacco settlement program fund to the following agencies for the specified purposes for expenditure in fiscal year 2001:

(1) four million seven hundred fifty thousand dollars ($4,750,000) to the department of health for comprehensive tobacco use prevention and cessation programs that are community based and culturally appropriate and designed to achieve the "best practices" standards developed by the federal centers for disease control;

(2) one million dollars ($1,000,000) to the department of health for diabetes prevention outreach programs;

(3) two hundred seventy-five thousand dollars ($275,000) to the state department of public education to contract for media literacy tobacco use prevention intervention programs for school-age children;

(4) three million eight hundred thousand dollars ($3,800,000) to the department of health to contract for a program of primary prevention home visits to families of newborns, from the prenatal stage to age three, with priority to be given to at-risk families;

(5) three million dollars ($3,000,000) to the board of regents of the university of New Mexico for the school of medicine to endow a chair for research in tobacco-related illness;

(6) one million dollars ($1,000,000) to the board of regents of the university of New Mexico for the school of medicine to contract for research on lung tissue regeneration; and

(7) the balance remaining in the tobacco settlement program fund after the appropriations pursuant to Paragraphs (1) through (6) of this subsection is appropriated to the next generation trust fund for expenditure in accordance with the provisions of the Next Generation Trust Fund Act, if the Next Generation Trust Fund Act is enacted into law by the second session of the forty-fourth legislature.

B. Any unexpended or unencumbered balance remaining at the end of fiscal year 2001 shall revert to the tobacco settlement program fund.