44th legislature - STATE OF NEW MEXICO - second session, 2000

RELATING TO TOBACCO SETTLEMENT REVENUE; PROVIDING FOR DISTRIBUTIONS TO THE TOBACCO SETTLEMENT PROGRAM FUND AND AUTHORIZING APPROPRIATIONS FROM THE FUND TO THE UNIVERSITY OF NEW MEXICO HEALTH SCIENCES CENTER; AMENDING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION.

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) 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 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. Income from investment of the fund shall be credited to the fund. Money in the fund shall not be expended for any purpose [except by appropriation of the second session of the forty-fourth and subsequent legislatures], 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 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 forty 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."

Section 2. Section 6-4-10 NMSA 1978 (being Laws 1999, Chapter 207, Section 2) is amended to read:

"6-4-10. TOBACCO SETTLEMENT [INCOME] PROGRAM FUND CREATED--PURPOSE.--

A. The "tobacco settlement [income] program fund" is created in the state treasury and shall consist of [appropriations] distributions made to the fund from the tobacco settlement permanent fund. Income from investment of the tobacco settlement program fund shall be credited to the fund. Money distributed to the tobacco settlement program fund on July 1 of fiscal year 2001 in accordance with the provisions of Subsection B of Section 6-4-9 NMSA 1978 may be appropriated by the second session of the forty-fourth legislature. Beginning in fiscal year 2002, money in the tobacco settlement program fund may be appropriated by the legislature for [any of] the purposes specified in Subsection B of this section. Balances in the tobacco settlement program fund at the end of any fiscal year shall remain in the fund.

B. Money may be appropriated from the tobacco settlement [income] program fund [for health and educational purposes, including:

(1) support of additional public school programs, including extracurricular and after-school programs designed to involve students in athletic, academic, musical, cultural, civic, mentoring and similar types of activities;

(2) any health or health care program or service for prevention or treatment of disease or illness;

(3) basic and applied research conducted by higher educational institutions or state agencies addressing the impact of smoking or other behavior on health and disease;

(4) public health programs and needs; and

(5) tobacco use cessation and prevention programs, including public information, education and media campaigns] to the university of New Mexico health sciences center for research and clinical care programs in tobacco-related illnesses, including programs in the following areas: laboratory science, genomics, epidemiology, education and training, clinical intervention, clinical trials and community outreach."

Section 3. APPROPRIATION.--Seventeen million five hundred seventy-four thousand dollars ($17,574,000) is appropriated from the tobacco settlement program fund to the board of regents of the university of New Mexico for the health sciences center for expenditure in fiscal year 2001 for research and clinical care programs in tobacco-related illnesses, including programs in the following areas: laboratory science, genomics, epidemiology, education and training, clinical intervention, clinical trials and community outreach. Any unexpended or unencumbered balance remaining at the end of fiscal year 2001 shall revert to the tobacco settlement program fund.