HOUSE BILL 31

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Larry A. Larrañaga

ENDORSED BY THE INVESTMENTS OVERSIGHT COMMITTEE

AN ACT

RELATING TO PUBLIC FINANCES; INCREASING THE STANDARD OF CARE FOR THE INVESTMENT OF THE WATER TRUST FUND.

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

     SECTION 1. Section 72-4A-8 NMSA 1978 (being Laws 2001, Chapter 164, Section 8) is amended to read:

     "72-4A-8. WATER TRUST FUND--CREATED--INVESTMENT--DISTRIBUTION.--

          A. The "water trust fund" is created in the state treasury. The fund shall consist of money appropriated, donated or otherwise accrued to the fund. 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] in accordance with the limitations in Article 12, Section 7 of the constitution of New Mexico. Earnings 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 water project fund in accordance with Subsection B of this section.

          B. On July 1 of fiscal year 2003 and on July 1 of each fiscal year thereafter, an annual distribution shall be made from the water trust fund to the water project fund in the amount of four million dollars ($4,000,000) 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 water trust 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 water trust fund for the immediately preceding five calendar years."

     SECTION 2. CONTINGENT EFFECTIVE DATE.--The provisions of this act shall become effective upon certification by the secretary of state that the constitution of New Mexico has been amended as proposed by a joint resolution of the fiftieth legislature, first session, entitled "A JOINT RESOLUTION PROPOSING TO AMEND ARTICLE 12, SECTION 7 AND ARTICLE 16, SECTION 6 OF THE CONSTITUTION OF NEW MEXICO TO INCREASE THE DUTY OF CARE IN INVESTMENT OF THE LAND GRANT PERMANENT FUNDS AND THE WATER TRUST FUND AND TO CHANGE THE LIMITATIONS ON INVESTMENT OF THE LAND GRANT PERMANENT FUNDS.".