44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO PUBLIC FINANCE; CREATING THE TOBACCO SETTLEMENT PERMANENT FUND AND THE TOBACCO SETTLEMENT INCOME FUND; PROVIDING FOR ANNUAL EXPENDITURE OF THOSE DISTRIBUTIONS FOR HEALTH CARE PROGRAMS IN LOW-INCOME RURAL COMMUNITIES; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.

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

Section 1. 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 from a qualified escrow fund authorized by a qualifying state statute 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. Money in the fund shall not be expended for any

purpose, but an annual distribution shall be made to the tobacco settlement income fund in accordance with Subsection B of this section for appropriation by the legislature for health care programs in low-income rural communities as provided by law.

B. For fiscal year 2001 and each fiscal year thereafter, an annual distribution shall be made from the tobacco settlement permanent fund to the tobacco settlement income fund in an amount equal to four and seven-tenths percent of the average of the year-end market values of the

fund for the immediately preceding two fiscal years. The annual distribution shall be made no later than September 1 of the fiscal year.

Section 2. TOBACCO SETTLEMENT INCOME FUND CREATED--

PURPOSE.--

A. The "tobacco settlement income fund" is created in the state treasury and shall consist of distributions made to the fund from the tobacco settlement permanent fund. Money in the fund may be appropriated by the legislature for any of the purposes specified in Subsection B of this section.

B. Money may be appropriated from the tobacco settlement income fund only for health care programs in low-income rural communities that provide or commit to provide primary health care services for residents of those communities.

Section 3. TOBACCO SETTLEMENT DISTRIBUTIONS TO STATE--

TRANSFER TO TOBACCO SETTLEMENT PERMANENT FUND.--The state

treasurer shall deposit in the tobacco settlement permanent fund all amounts 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 from a qualified escrow fund authorized by a qualifying state statute enacted pursuant to the master settlement agreement.

Section 4. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.