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

PROPOSING AN AMENDMENT TO ARTICLE 8, SECTION 10 OF THE CONSTITUTION OF NEW MEXICO TO USE, FOR A PERIOD OF FIFTEEN YEARS, A PORTION OF A STATE PERMANENT FUND EXCLUSIVELY FOR PUBLIC SCHOOL CAPITAL OUTLAY PROJECTS.

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

Section 1. It is proposed to amend Article 8, Section 10 of the constitution of New Mexico to read:

"A. There shall be deposited in a permanent trust fund known as the "severance tax permanent fund" that part of state revenue derived from excise taxes that have been or shall be designated severance taxes imposed upon the severance of natural resources within this state, in excess of that amount that has been or shall be reserved by statute for the payment of principal and interest on outstanding bonds to which severance tax revenue has been or shall be pledged. Money in the severance tax permanent fund shall be invested as provided by law. The distributions from the fund authorized in Subsection C of this section shall be appropriated by the legislature as other general operating revenue is appropriated for the benefit of the people of the state.

B. All additions to the fund and all earnings, including interest, dividends and capital gains from investment of the fund shall be credited to the corpus of the fund.

C. Except as provided in Subsection D of this section, the annual distributions from the fund shall be one hundred two percent of the amount distributed in the immediately preceding fiscal year until the annual distributions equal four and seven-tenths percent of the average of the year-end market values of the fund for the immediately preceding five calendar years. Thereafter, the amount of the annual distributions shall be four and seven-tenths percent of the average of the year-end market values of the fund for the immediately preceding five calendar years. In calculating the market value of the fund pursuant to this subsection, the market value of the public school capital outlay subaccount shall be excluded.

D. On July 1, 2001, one billion dollars ($1,000,000,000) of assets of the severance tax permanent fund shall be segregated into a "public school capital outlay subaccount". The annual distribution attributable to the subaccount shall equal the growth in market value of the subaccount during the preceding calendar year and shall be made to an "emergency school capital outlay fund" to be used exclusively for public school capital outlay projects. The legislature shall provide by law how the emergency school capital outlay fund may be expended and shall provide by law a procedure to prioritize public school capital outlay projects that qualify for expenditures from the fund. On July 1, 2016, the assets in the subaccount shall be transferred back to the severance tax permanent fund and no further distributions shall be made pursuant to this subsection.

[D.] E. The frequency and the time of the distributions made pursuant to [Subsection] Subsections C and D of this section shall be as provided by law."

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 which may be called for that purpose.