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

PROPOSING AN AMENDMENT TO THE CONSTITUTION OF NEW MEXICO TO INCREASE THE DISTRIBUTION FROM A STATE PERMANENT FUND FOR THE PURPOSE OF FUNDING NEEDED PUBLIC SCHOOL CONSTRUCTION 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. [Distributions from the fund 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. The annual distributions from the fund shall be:

(1) to the general fund to be appropriated by the legislature as other general operating revenue is appropriated for the benefit of the people of this state, one hundred two percent of the amount distributed to the general fund in the immediately preceding fiscal year until the annual distributions to the general fund 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 to the general fund 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; and

(2) to the public school capital outlay fund to be used exclusively for public school capital outlay projects pursuant to a formula established by law in which formula each school district will have an opportunity to participate, two percent of the average of the year-end market values of the fund for the immediately preceding five calendar years.

D. The frequency and the time of the distributions made pursuant to Subsection C 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.