0001| HOUSE JOINT MEMORIAL 3 | 0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, | 0003| 1996 | 0004| INTRODUCED BY | 0005| RAYMOND G. SANCHEZ | 0006| | 0007| | 0008| FOR THE LEGISLATIVE FINANCE COMMITTEE AND THE | 0009| REVENUE STABILIZATION AND TAX POLICY COMMITTEE | 0010| | 0011| A JOINT MEMORIAL | 0012| REQUESTING THE CONGRESS OF THE UNITED STATES TO CONSENT TO THE | 0013| AMENDMENT OF THE CONSTITUTION OF NEW MEXICO TO PERMIT GREATER | 0014| FLEXIBILITY IN THE INVESTMENT AND DISTRIBUTION OF LAND GRANT | 0015| PERMANENT FUNDS. | 0016| | 0017| WHEREAS, the provisions of Sections 9 and 10 of the | 0018| Enabling Act for New Mexico, Act of June 20, 1910, as amended, | 0019| 36 Statutes at Large 557, provided that lands granted by the | 0020| United States to New Mexico shall be held in trust for the land | 0021| grant beneficiaries and that any money derived from the sale of | 0022| these lands or their products shall likewise be held in trust; | 0023| and | 0024| WHEREAS, the constitution of New Mexico incorporates the | 0025| foregoing restrictions prohibiting expenditures from the | 0001| principal of the land grant permanent funds and limiting the | 0002| source of distributions to "income" from the investment of the | 0003| permanent funds, thereby precluding the distributions to | 0004| beneficiaries of any capital gains; and | 0005| WHEREAS, the foregoing restrictions have resulted in the | 0006| investment of the land grant permanent funds primarily in fixed | 0007| income investments to maintain the flow of distributions to the | 0008| land grant beneficiaries, but such a policy does not protect the | 0009| land grant permanent funds from loss of value due to the effects | 0010| of inflation; and | 0011| WHEREAS, current investment theory and practice indicate | 0012| that it is preferable and prudent to have sufficient flexibility | 0013| in investing permanent funds to maintain appreciation of the | 0014| funds at a rate in excess of the rate of inflation, thus | 0015| ensuring the safety of the funds for the future; and | 0016| WHEREAS, to accomplish the foregoing investment objectives | 0017| and maintain adequate distributions to beneficiaries, it is also | 0018| necessary from time to time to distribute limited amounts of the | 0019| principal of the permanent funds; | 0020| NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE | 0021| STATE OF NEW MEXICO that the congress of the United States be | 0022| respectfully petitioned to consent to the amendment of the | 0023| constitution of New Mexico in order to permit more flexible | 0024| investment of its land grant permanent funds and distributions | 0025| of limited amounts of the principal of the funds, all as set | 0001| forth with particularity in a constitutional amendment proposed | 0002| by a joint resolution of the legislature, entitled "A JOINT | 0003| RESOLUTION PROPOSING AMENDMENTS TO ARTICLE 8, SECTION 10 AND | 0004| ARTICLE 12, SECTIONS 2, 4 AND 7 OF THE CONSTITUTION OF NEW | 0005| MEXICO TO PROTECT THE STATE'S PERMANENT FUNDS AGAINST INFLATION | 0006| BY LIMITING DISTRIBUTIONS TO A PERCENTAGE OF EACH FUND'S MARKET | 0007| VALUE AND BY MODIFYING CERTAIN INVESTMENT RESTRICTIONS TO ALLOW | 0008| OPTIMAL DIVERSIFICATION OF INVESTMENTS."; and | 0009| BE IT FURTHER RESOLVED that copies of this memorial and the | 0010| referenced proposed constitutional amendment be sent to the | 0011| president of the United States senate, the speaker of the United | 0012| States house of representatives and the New Mexico congressional | 0013| delegation. | 0014| - - | 0015| State of New Mexico | 0016| House of Representatives | 0017| | 0018| FORTY-SECOND LEGISLATURE | 0019| SECOND SESSION, 1996 | 0020| | 0021| | 0022| January 29, 1996 | 0023| | 0024| | 0025| Mr. Speaker: | 0001| | 0002| Your TAXATION AND REVENUE COMMITTEE, to whom has | 0003| been referred | 0004| | 0005| HOUSE JOINT MEMORIAL 3 | 0006| | 0007| has had it under consideration and reports same with | 0008| recommendation that it DO PASS. | 0009| | 0010| Respectfully submitted, | 0011| | 0012| | 0013| | 0014| | 0015| Jerry W. Sandel, Chairman | 0016| | 0017| | 0018| Adopted Not Adopted | 0019| | 0020| (Chief Clerk) (Chief Clerk) | 0021| | 0022| Date | 0023| | 0024| The roll call vote was 12 For 0 Against | 0025| Yes: 12 | 0001| Excused: Gallegos | 0002| Absent: None | 0003| | 0004| | 0005| HJ003TR1 | 0006| | 0007| FORTY-SECOND LEGISLATURE | 0008| SECOND SESSION, 1996 | 0009| | 0010| | 0011| February 8, 1996 | 0012| | 0013| Mr. President: | 0014| | 0015| Your FINANCE COMMITTEE, to whom has been referred | 0016| | 0017| HOUSE JOINT MEMORIAL 3 | 0018| | 0019| has had it under consideration and reports same with | 0020| recommendation that it DO PASS. | 0021| | 0022| Respectfully submitted, | 0023| | 0024| | 0025| | 0001| __________________________________ | 0002| Ben D. Altamirano, Chairman | 0003| | 0004| | 0005| | 0006| Adopted_______________________ Not Adopted_______________________ | 0007| (Chief Clerk) (Chief Clerk) | 0008| | 0009| | 0010| | 0011| Date ________________________ | 0012| | 0013| | 0014| The roll call vote was 7 For 0 Against | 0015| Yes: 7 | 0016| No: 0 | 0017| Excused: Aragon, Ingle, Jennings T., Kidd, Kysar, Sanchez | 0018| Absent: None | 0019| | 0020| | 0021| HJ003FC1 | 0022| |