March 19, 2003
Mr. Speaker:
Your CONFERENCE COMMITTEE, to whom has been referred
has had it under consideration and reports same with the following recommendation:
1. The following house consumer and public affairs committee amendments be APPROVED:
1 and 4.
2. The following house consumer and public affairs committee amendments be DISAPPROVED:
2 and 3.
and that the bill be amended further as follows:
3. On page 1, line 11, after the semicolon strike the remainder of the line, strike line 12 and strike line 13 through the semicolon and insert in lieu thereof:
"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; TEMPORARILY TRANSFERRING UNENCUMBERED AND UNEXPENDED BALANCES OF A CERTAIN FUND;".
4. On page 1, lines 16 through 22, strike Sections 1 and 2 in their entirety and insert the following new sections to read:
"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.
B. On July 1 of fiscal year 2001 and on July 1 of]
except as provided in this section.
B. In fiscal years 2003 through 2006, a distribution shall be made from the tobacco settlement permanent fund to the general fund in an amount equal to one hundred percent of the total amount of money distributed to the tobacco settlement permanent fund in that fiscal year.
C. In fiscal year 2007 and in 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] that 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. In the event that the
actual amount distributed to the tobacco settlement program fund
in a fiscal year is insufficient to meet appropriations from that
fund for that fiscal year, the secretary of finance and
administration shall proportionately reduce each appropriation
accordingly.
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, the appropriation contingency fund and the tax stabilization reserve, will not meet the level of appropriations authorized from the general fund for a fiscal year. In that event, in order to avoid an unconstitutional deficit, 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."
Section 2. TEMPORARY PROVISION--TRANSFER OF FUND BALANCES.--During fiscal year 2003, any unexpended or unencumbered balance of the tobacco settlement program fund shall be transferred to the general fund.".
Respectfully submitted,
_____________________________
Gail C. Beam
____________________________
James G. Taylor
_____________________________
Joe Thompson
Adopted____________________ Not Adopted_____________________
(Chief Clerk) (Chief Clerk)
Date ______________