A JOINT RESOLUTION
PROPOSING TO AMEND THE CONSTITUTION OF NEW MEXICO TO PROVIDE
FOR A LIMITED ADDITIONAL DISTRIBUTION FROM THE PERMANENT FUNDS TO PROVIDE MORE
MONEY FOR THE PUBLIC SCHOOLS TO IMPLEMENT AND MAINTAIN EDUCATIONAL REFORMS AND
FOR OTHER PERMANENT FUND RECIPIENTS.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW
MEXICO:
Section 1. It is proposed to amend Article 12, Section 7
of the constitution of New Mexico to read:
"A. As used in this section, "fund"
means the permanent school fund described in Section 2 of this article and all
other permanent funds derived from lands granted or confirmed to the state by
the act of congress of
June 20, 1910, entitled "An act to enable the people of
New Mexico to form a constitution and state government and
be admitted into the union on an equal footing with the original states."
B. The fund shall be invested by the state
investment officer in accordance with policy regulations promulgated by the
state investment council.
C. In making investments, the state investment
officer, under the supervision of the state investment council, shall exercise
the judgment and care under the circumstances then prevailing that businessmen
of ordinary prudence, discretion and intelligence exercise in the management of
their own affairs not in regard to speculation but in regard to the permanent
disposition of their funds, considering the probable income as well as the
probable safety of their capital.
D. The legislature may establish criteria for
investing the fund if the criteria are enacted by a three‑fourths vote of
the members elected to each house, but investment of the fund is subject to the
following restrictions:
(1) not more than sixty‑five percent of the
book value of the fund shall be invested at any given time in corporate
stocks;
(2) not more than ten percent of the voting stock
of a corporation shall be held;
(3) stocks eligible for purchase shall be
restricted to those stocks of businesses listed upon a national stock exchange
or included in a nationally recognized list of stocks; and
(4) not more than fifteen
percent of the book value of the fund may be invested in international
securities at any single time.
E. All additions to the fund and all earnings,
including interest, dividends and capital gains from investment of the fund
shall be credited to the fund.
F. Except as provided in Subsection G of this
section, the annual distributions from the fund shall be five percent of the
average of the year‑end market values of the fund for the immediately
preceding five calendar years.
G. In addition to the annual distribution made
pursuant to Subsection F of this section, unless suspended pursuant to
Subsection H of this section, an additional annual distribution shall be made
pursuant to the following schedule; provided that no distribution shall be made
pursuant to the provisions of this subsection in any fiscal year if the average
of the year-end market values of the fund for the immediately preceding five
calendar years is less than five billion eight hundred million dollars
($5,800,000,000):
(1) in fiscal years 2005 through 2012, an amount
equal to eight-tenths percent of the average of the year-end market values of
the fund for the immediately preceding five calendar years; provided that any
additional distribution from the permanent school fund pursuant to this
paragraph shall be used to implement and maintain educational reforms as
provided by law; and
(2) in fiscal years 2013 through 2016, an amount
equal to one-half percent of the average of the year-end market values of the
fund for the immediately preceding five calendar years; provided that any
additional distribution from the permanent school fund pursuant to this
paragraph shall be used to implement and maintain educational reforms as
provided by law.
H. The legislature, by a three-fifths' vote of
the members elected to each house, may suspend any additional distribution
provided for in Subsection G of this section."
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.