46th legislature - STATE OF NEW MEXICO - first session, 2003
RELATING TO STATE FUNDS; PROVIDING FOR AN ADDITIONAL TEMPORARY DISTRIBUTION FROM THE TOBACCO SETTLEMENT PERMANENT FUND; PROVIDING THAT THE TOBACCO SETTLEMENT PERMANENT FUND MAY, UNDER CERTAIN CIRCUMSTANCES, BE CONSIDERED A RESERVE FUND OF THE STATE; REQUIRING AN EXTRAORDINARY MAJORITY VOTE FOR FUTURE, ADDITIONAL APPROPRIATIONS OR DISTRIBUTIONS FROM THE TOBACCO SETTLEMENT PERMANENT FUND; DECLARING AN EMERGENCY.
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 of this section] except as provided in this
section.
B. On July 1, 2003 and July 1, 2004, a distribution shall be made from the tobacco settlement permanent fund to the tobacco settlement program fund in an amount equal to one hundred percent of the total amount of money distributed to the tobacco settlement permanent fund in the immediately preceding fiscal year.
[B.] C. On July 1, [of fiscal year 2001] 2005 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.
D. The tobacco settlement permanent fund shall be considered a reserve fund of the state and, as a reserve fund, may be expended in the event that general fund balances, including all authorized revenues and transfers to the general fund and balances in the general fund operating reserve and the appropriation contingency fund are insufficient to meet the level of appropriations authorized from the general fund for a fiscal year. In that event, the legislature may authorize a transfer from the tobacco settlement permanent fund to the general fund but only in an amount necessary to meet general fund appropriations.
E. Except as provided in Subsections B, C and D of this section, no distributions or appropriations shall be made from the tobacco settlement permanent fund unless authorized by a law passed by a three-fourths' vote of each house of the legislature."
Section 2. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.