HOUSE JOINT RESOLUTION 12

47th legislature - STATE OF NEW MEXICO - second session, 2006

INTRODUCED BY

Daniel R. Foley

A JOINT RESOLUTION

PROPOSING TO ENACT A NEW SECTION OF ARTICLE 4 OF THE CONSTITUTION OF NEW MEXICO TO REQUIRE THAT NONRECURRING REVENUES ONLY BE USED TO FUND NONRECURRING EXPENSES UNLESS TWO-THIRDS OF THE MEMBERS OF THE LEGISLATURE APPROVE OTHERWISE.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of Article 4 of the constitution of New Mexico is enacted to read:

          "A. Nonrecurring revenues may be appropriated only for nonrecurring expenses; provided that nonrecurring revenue may be used to fund a recurring expense if two-thirds of the members of the legislature vote to approve that specific expenditure.

          B. As used in this section:

                (1) "nonrecurring revenue" means one-time revenue that cannot be relied on in future budget periods, including revenue that may be available for more than one year but that cannot be expected to occur again or is so periodic as to not be recurring, including:

                     (a) infrequent sales of government assets;

                     (b) bond refunding savings;

                     (c) infrequent revenues from development;

                     (d) grants;

                     (e) revenue due to fluctuation in the price of natural resources, calculated as revenue in excess of ten percent of the last five-year average; and

                     (f) legal settlements and other windfalls; and

                (2) "recurring expenses" means expenses associated with the operation of state government or with carrying out the law that occur more frequently than once."

     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.

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