46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO STATE FUNDS; 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; REQUIRING AN EXTRAORDINARY MAJORITY VOTE FOR FUTURE, ADDITIONAL APPROPRIATIONS OR DISTRIBUTIONS FROM THE TOBACCO SETTLEMENT PERMANENT FUND; DECLARING AN EMERGENCY.

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, 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] except as provided in this section.

B. On July 1, 2003 and July 1, 2004, a distribution shall be made from the tobacco settlement permanent fund to the tobacco settlement program fund in an amount equal to one hundred percent of the total amount of money distributed to the tobacco settlement permanent fund in the immediately preceding fiscal year.

[B.] C. On July 1, [of fiscal year 2001] 2005 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 fifty 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.

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 and the appropriation contingency fund are insufficient to meet the level of appropriations authorized from the general fund for a fiscal year. In that event, 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.

E. Except as provided in Subsections B, C and D of this section, no distributions or appropriations shall be made from the tobacco settlement permanent fund unless authorized by a law passed by a three-fourths' vote of each house of the legislature."

Section 2. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.