SENATE JOINT RESOLUTION 12

51st legislature - STATE OF NEW MEXICO - second session, 2014

INTRODUCED BY

Michael S. Sanchez

 

 

 

 

 

A JOINT RESOLUTION

PROPOSING AN AMENDMENT TO ARTICLE 12, SECTION 7 OF THE CONSTITUTION OF NEW MEXICO TO ESTABLISH A MINIMUM BALANCE OF THE LAND GRANT PERMANENT FUNDS TO BE MAINTAINED BEFORE ANY ADDITIONAL DISTRIBUTIONS ARE PERMITTED; TO EXTEND THE CURRENT ONE-HALF PERCENT ADDITIONAL ANNUAL DISTRIBUTION BEYOND FISCAL YEAR 2016; AND TO PROVIDE A ONE AND ONE-HALF PERCENT ADDITIONAL ANNUAL DISTRIBUTION FROM THE PERMANENT SCHOOL FUND, STARTING IN FISCAL YEAR 2017, FOR NONSECTARIAN EARLY CHILDHOOD EDUCATION PROGRAMS ADMINISTERED BY THE STATE FOR THE BENEFIT OF CHILDREN BEFORE THEY ARE ELIGIBLE TO ATTEND KINDERGARTEN.

 

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

     SECTION 1. It is proposed to amend Article 12, Section 7 of the constitution of New Mexico to read:

          "A. As used in this section, "fund" means the permanent school fund described in Article 12, Section 2 of this [article] constitution and all other permanent funds derived from lands granted or confirmed to the state by the act of congress of June 20, 1910, entitled "An act to enable the people of New Mexico to form a constitution and state government and be admitted into the union on an equal footing with the original states.".

          B. The fund shall be invested by the state investment officer in accordance with policy regulations promulgated by the state investment council.

          C. In making investments, the state investment officer, under the supervision of the state investment council, shall exercise the judgment and care under the circumstances then prevailing that [businessmen] businesspersons of ordinary prudence, discretion and intelligence exercise in the management of their own affairs not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital.

          D. The legislature may establish criteria for investing the fund if the criteria are enacted by a three-fourths' vote of the members elected to each house, but investment of the fund is subject to the following restrictions:

                (1) not more than sixty-five percent of the book value of the fund shall be invested at any given time in corporate stocks;

                (2) not more than ten percent of the voting stock of a corporation shall be held;

                (3) stocks eligible for purchase shall be restricted to those stocks of businesses listed upon a national stock exchange or included in a nationally recognized list of stocks; and

                (4) not more than fifteen percent of the book value of the fund may be invested in international securities at any single time.

          E. All additions to the fund and all earnings, including interest, dividends and capital gains from investment of the fund, shall be credited to the fund.

          F. Except as provided in Subsection G of this section, the annual distributions from the fund shall be five percent of the average of the year-end market values of the fund for the immediately preceding five calendar years.

          G. In addition to the annual distribution made pursuant to Subsection F of this section, unless suspended pursuant to Subsection [H] J of this section, [an] additional annual [distribution] distributions shall be made pursuant to the following schedule; provided that no distribution shall be made pursuant to the provisions of this subsection in any fiscal year if the average of the year-end market values of the fund for the immediately preceding five calendar years is less than five billion eight hundred million dollars ($5,800,000,000);

                (1) in fiscal years 2005 through 2012, an amount equal to eight-tenths percent of the average of the year-end market values of the fund for the immediately preceding five calendar years; provided that any additional distribution from the permanent school fund pursuant to this paragraph shall be used to implement and maintain educational reforms as provided by law; and

                (2) in fiscal years 2013 through 2016, an amount equal to one-half percent of the average of the year-end market values of the fund for the immediately preceding five calendar years; provided that any additional distribution from the permanent school fund pursuant to this paragraph shall be used to implement and maintain educational reforms as provided by law.

          H. In addition to the annual distributions made pursuant to Subsections F and G of this section, unless suspended pursuant to Subsection J of this section, additional annual distributions shall be made pursuant to the following schedule; provided that no distribution shall be made pursuant to the provisions of this subsection in any fiscal year if the average of the year-end market values of the fund for the immediately preceding five calendar years is less than ten billion dollars ($10,000,000,000) adjusted on July 1, 2016 and each July 1 thereafter for the percentage change in the consumer price index for all urban consumers between the two calendar years immediately preceding the adjustment date, as calculated by the state investment officer and approved by the state investment council:

                (1) in fiscal year 2017 and each subsequent fiscal year, an amount equal to one-half percent of the average of the year-end market values of the fund for the immediately preceding five calendar years; provided that the amount of any additional distribution derived from the permanent school fund pursuant to this paragraph shall be used to implement and maintain educational programs as provided by law; and

                (2) in fiscal year 2017 and each subsequent fiscal year, an amount equal to one and one-half percent of the average of the year-end market values of the fund for the immediately preceding five calendar years; provided that the amount of the additional distribution derived from the permanent school fund pursuant to this paragraph shall be used for nonsectarian early childhood education programs administered by the state for the benefit of children before they are eligible to attend kindergarten, as provided by law.

          I. As used in this section, "nonsectarian early childhood education programs" means nonsectarian services for children until eligible for kindergarten. Such services may be provided by a school district, a state contractor, a pueblo or tribal entity, the New Mexico school for the blind and visually impaired or the New Mexico school for the deaf; provided that nonsectarian early childhood education services available from the New Mexico school for the blind and visually impaired or the New Mexico school for the deaf shall not be delivered by a state contractor.

          [H.] J. The legislature, by a three-fifths' vote of the members elected to each house, may suspend any additional distribution provided for in [Subsection] Subsections G and H of this section."

     SECTION 2. The amendment proposed by this resolution shall be submitted to the people for their approval or rejection at the next general election or at any special election prior to that date that may be called for that purpose.

     SECTION 3. CONTINGENT EFFECTIVE DATE.--The amendment proposed by Section 1 of this resolution shall not become effective without the consent of the United States congress.

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