45th legislature - STATE OF NEW MEXICO - second session, 2002

RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; PROVIDING THAT THE TAX STABILIZATION RESERVE MAY BE EXPENDED UPON AN APPROPRIATION BY EXTRA MAJORITY VOTE OF THE LEGISLATURE AND A DECLARATION BY THE GOVERNOR THAT THE EXPENDITURE IS NECESSARY FOR THE PUBLIC PEACE, HEALTH AND SAFETY; MAKING AN APPROPRIATION; PROVIDING CONTINGENCIES.

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

Section 1. Section 6-4-2.2 NMSA 1978 (being Laws 1987, Chapter 347, Section 3, as amended) is amended to read:

"6-4-2.2. GENERAL FUND TAX STABILIZATION RESERVE.--

A. There is created within the general fund the "tax stabilization reserve".

B. The balance of the tax stabilization reserve shall be those funds directed to it by law and such other funds as the legislature may appropriate from time to time to the reserve.

C. Except as otherwise provided in Subsection D of this section, any balance of the tax stabilization reserve may be:

(1) appropriated only by a two-thirds majority vote of both houses of the legislature following receipt by the legislature of a declaration of the governor that such an appropriation is necessary for the public peace, health and safety; or

(2) expended by the governor only:

(a) pursuant to an appropriation made by a two-thirds majority vote of both houses of the legislature specifying the amount of the appropriation and the purpose of the expenditure; and

(b) if the governor declares that the expenditure is necessary for the public peace, health and safety.

D. In the event that the general fund revenues, including all transfers to the general fund authorized by law, are projected by the governor to be insufficient either to meet the level of appropriations authorized by law from the general fund for the current fiscal year or to meet the level of appropriations recommended in the budget and appropriations bill submitted in accordance with Section [6-3-11.1] 6-3-21 NMSA 1978 for the next fiscal year, the balance in the tax stabilization reserve may be appropriated by the legislature up to the amount of the projected insufficiency for either or both fiscal years."

Section 2. APPROPRIATION--CONTINGENCY.--

A. Thirty million dollars ($30,000,000) is appropriated from the tax stabilization reserve to the department of finance and administration for expenditure in fiscal year 2003 for the purpose of protecting, enhancing or conserving New Mexico's water resources. The department of finance and administration shall transfer the appropriation to the interstate stream commission in three separate increments of ten million dollars ($10,000,000) upon the compliance with the requirements of this section. The transfer and expenditure of each increment of ten million dollars ($10,000,000) of the appropriation is contingent upon:

(1) a declaration by the governor pursuant to Section 6-4-2.2 NMSA 1978 that the expenditure is necessary for the public peace, health and safety;

(2) a plan, prepared by the state engineer and describing the proposed expenditures, that is approved by the state board of finance; and

(3) an agreement by the state board of finance that the expenditure is necessary for the public peace, health and safety.

B. Any unexpended or unencumbered balance remaining at the end of fiscal year 2003 shall revert to the tax stabilization reserve.