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

PROPOSING TO AMEND ARTICLE 8, SECTION 10 OF THE CONSTITUTION OF NEW MEXICO TO MAKE AN ADDITIONAL ANNUAL DISTRIBUTION FROM THE SEVERANCE TAX PERMANENT FUND AND TO DEPOSIT THE MONEY INTO THE WATER PROJECT FUND.

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.

D. Beginning with fiscal year 2004, in addition to the distributions authorized in Subsection C of this section, an annual distribution shall be made to the water project fund in an amount equal to one percent of the average of the year-end market values of the severance tax permanent fund for the immediately preceding five calendar years.

[D.] E. 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 that may be called for that purpose.