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

RELATING TO FINANCE; PROVIDING FOR A TEMPORARY INCREASE IN THE AMOUNT OF THE ANNUAL DISTRIBUTION FROM THE TOBACCO SETTLEMENT PERMANENT FUND; MAKING AN APPROPRIATION.

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, as amended) 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 any money released to the state from a qualified escrow fund or otherwise paid to the state as authorized by the model statute, Sections 6-4-12 and 6-4-13 NMSA 1978, 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, but an annual distribution shall be made to the tobacco settlement program fund in accordance with [Subsection B] Subsections B and C of this section.

B. Except as provided in Subsection C of this section, 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 fifty 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.

C. On July 1 of fiscal year 2003 and on July 1 of fiscal year 2004, a distribution shall be made from the tobacco settlement permanent fund to the tobacco settlement program fund of an amount equal to the total amount of money distributed to the tobacco settlement permanent fund in the immediately preceding fiscal year."