0001| HOUSE JOINT RESOLUTION 1
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0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND
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0003| SESSION, 1996
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0004| INTRODUCED BY
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0005| RAYMOND G. SANCHEZ
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0006|
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0007|
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0008| FOR THE LEGISLATIVE FINANCE COMMITTEE AND THE REVENUE
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0009| STABILIZATION AND TAX POLICY COMMITTEE
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0010|
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0011| A JOINT RESOLUTION
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0012| PROPOSING AMENDMENTS TO ARTICLE 8, SECTION 10 AND ARTICLE 12,
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0013| SECTIONS 2, 4 AND 7 OF THE CONSTITUTION OF NEW MEXICO TO PROTECT
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0014| THE STATE'S PERMANENT FUNDS AGAINST INFLATION BY LIMITING
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0015| DISTRIBUTIONS TO A PERCENTAGE OF EACH FUND'S MARKET VALUE AND BY
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0016| MODIFYING CERTAIN INVESTMENT RESTRICTIONS TO ALLOW OPTIMAL
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0017| DIVERSIFICATION OF INVESTMENTS.
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0018|
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0019| BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0020| Section 1. It is proposed to amend Article 8, Section 10
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0021| of the constitution of New Mexico to read:
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0022| "A. There shall be deposited in a permanent trust
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0023| fund known as the "severance tax permanent fund" that part of
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0024| state revenue derived from excise taxes [which] that have
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0025| been or shall be designated severance taxes imposed upon the
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0001| severance of natural resources within this state, in excess of
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0002|
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0003| that amount [which] that has been or shall be reserved by
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0004| statute for the payment of principal and interest on outstanding
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0005| bonds to which severance tax revenue has been or shall be
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0006| pledged. Money in the severance tax permanent fund [shall not
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be expended but] shall be invested as provided by law. [The
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income from investments] Distributions from the fund shall be
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0009| appropriated by the legislature as other general operating
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0010| revenue is appropriated for the benefit of the people of the
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0011| state.
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0012| [Money credited to the severance tax permanent fund at the
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time of the adoption of this amendment shall be credited to and
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become a part of the permanent trust fund known as the
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"severance tax permanent fund" hereby created.]
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0016| B. All additions to the fund and all earnings,
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0017| including interest, dividends and capital gains from investment
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0018| of the fund shall be credited to the corpus of the fund.
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0019| C. The annual distributions from the fund shall be
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0020| one hundred two percent of the amount distributed in the
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0021| immediately preceding fiscal year until the annual distributions
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0022| equal four and seven-tenths percent of the average of the year-end market values of the fund for the immediately preceding five
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0023| calendar years. Thereafter, the amount of the annual
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0024| distributions shall be four and seven-tenths percent of the
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0025| average of the year-end market values of the fund for the
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0001| immediately preceding five calendar years.
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0002|
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0003| D. The frequency and the time of the distributions
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0004| made pursuant to Subsection C of this section shall be as
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0005| provided by law."
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0006| Section 2. It is proposed to amend Article 12, Section 2
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0007| of the constitution of New Mexico to read:
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0008| "The permanent school fund of the state shall consist of
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0009| the proceeds of sales of Sections Two, Sixteen, Thirty-Two and
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0010| Thirty-Six in each township of the state, or the lands selected
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0011| in lieu thereof; the proceeds of sales of all lands that have
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0012| been or may hereafter be granted to the state not otherwise
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0013| appropriated by the terms and conditions of the grant; such
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0014| portion of the proceeds of sales of land of the United States
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0015| within the state as has been or may be granted by congress; all
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0016| earnings, including interest, dividends and capital gains from
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0017| investment of the permanent school fund; also all other grants,
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0018| gifts and devises made to the state, the purpose of which is not
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0019| otherwise specified."
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0020| Section 3. It is proposed to amend Article 12, Section 4
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0021| of the constitution of New Mexico to read:
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0022| "All [forefeitures] forfeitures, unless otherwise
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0023| provided by law, and all fines collected under general laws; the
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0024| net proceeds of property that may come to the state by escheat;
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0025| the rentals of all school lands and other lands granted to the
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0001| state, the disposition of which is not otherwise provided for by
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0002| the terms of the grant or by act of congress [and the income
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derived from the permanent school fund] shall constitute the
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0005| current school fund of the state."
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0006| Section 4. It is proposed to amend Article 12, Section 7
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0007| of the constitution of New Mexico to read:
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0008| "A. As used in this section, "fund" means the
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0009| permanent school fund described in Section 2 of this article and
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0010| all other permanent funds derived from lands granted or
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0011| confirmed to the state by the act of congress of June 20, 1910,
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0012| entitled "An act to enable the people of New Mexico to form a
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0013| constitution and state government and be admitted into the union
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0014| on an equal footing with the original states.
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0015| B. The [principal of the permanent school] fund
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0016| [and other permanent funds] shall be invested by [a] the
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0017| state investment officer in accordance with policy regulations
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0018| promulgated by [a] the state investment council [The
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legislature may by a three-fourths vote of the members elected
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to each house provide that said funds may be invested in
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interest-bearing or other securities].
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0022| C. In making investments, the state investment
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0023| officer, under the supervision of the state investment council,
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0024| shall exercise the [judgement] judgment and care under the
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0025| circumstances then prevailing [which] that businessmen of
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0001| ordinary prudence, discretion and intelligence exercise in the
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0002| management of their own affairs not in regard to speculation but
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0003| in regard to the permanent disposition of their funds,
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0004|
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0005| considering the probable income as well as the probable safety
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0006| of their capital. [provided]
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0007| D. The legislature may establish criteria for
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0008| investing the fund if the criteria are enacted by a three-fourths vote of the members elected to each house, but
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0009| investment of the fund is subject to the following restrictions:
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0010| (1) not more than [fifty] sixty-five
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0011| percent of the [permanent school fund or other permanent fund]
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0012| book value of the fund shall be invested at any given time in
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0013| corporate stocks [and bonds nor shall];
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0014| (2) not more than ten percent of the voting
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0015| stock of a corporation shall be held [and provided further];
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0016| (3) stocks eligible for purchase shall be
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0017| restricted to those stocks of businesses [incorporated within
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the United States which have paid dividends for ten consecutive
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years or longer immediately prior to the date of purchase and
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which are] listed upon a national stock exchange or included
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0021| in a nationally recognized list of stocks; and
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0022| (4) not more than fifteen percent of the book
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0023| value of the fund may be invested in international securities at
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0024| any single time.
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0025| E. All additions to the fund and all earnings,
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0001| including interest, dividends and capital gains from investment
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0002| of the fund shall be credited to the fund.
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0003| F. The annual distributions from the fund shall be
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0004|
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0005| one hundred two percent of the amount distributed in the
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0006| immediately preceding fiscal year until the annual distributions
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0007| equal four and seven-tenths percent of the average of the year-end market values of the fund for the immediately preceding five
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0008| calendar years. Thereafter, the amount of the annual
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0009| distributions shall be four and seven-tenths percent of the
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0010| average of the year-end market values of the fund for the
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0011| immediately preceding five calendar years."
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0012| Section 5. The amendments proposed by this resolution
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0013| shall be submitted to the people for their approval or rejection
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0014| at the next general election or at any special election prior to
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0015| that date which may be called for that purpose.
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0016| Section 6. The amendments proposed by Sections 2, 3 and 4
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0017| of this resolution shall not become effective without the
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0018| consent of the United States congress.
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0019| - 6 - State of New Mexico
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0020| House of Representatives
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0021|
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0022| FORTY-SECOND LEGISLATURE
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0023| SECOND SESSION, 1996
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0024|
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0025|
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0001| January 29, 1996
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0002|
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0003|
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0004| Mr. Speaker:
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0005|
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0006| Your TAXATION AND REVENUE COMMITTEE, to whom has
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0007| been referred
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0008|
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0009| HOUSE JOINT RESOLUTION 1
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0010|
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0011| has had it under consideration and reports same with
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0012| recommendation that it DO PASS.
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0013|
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0014| Respectfully submitted,
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0015|
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0016|
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0017|
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0018|
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0019| Jerry W. Sandel, Chairman
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0020|
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0021|
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0022| Adopted Not Adopted
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0023|
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0024| (Chief Clerk) (Chief Clerk)
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0025|
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0001| Date
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0002|
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0003| The roll call vote was 12 For 0 Against
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0004| Yes: 12
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0005| Excused: Gallegos
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0006| Absent: None
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0007|
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0008|
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0009| HJR01TR1
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0010|
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0011| FORTY-SECOND LEGISLATURE
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0012| SECOND SESSION, 1996
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0013|
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0014|
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0015| February 7, 1996
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0016|
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0017| Mr. President:
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0018|
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0019| Your WAYS AND MEANS COMMITTEE, to whom has been
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0020| referred
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0021|
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0022| HOUSE JOINT RESOLUTION 1
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0023|
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0024| has had it under consideration and reports same with
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0025| recommendation that it DO PASS, and thence referred to the
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0001| FINANCE COMMITTEE.
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0002|
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0003| Respectfully submitted,
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0004|
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0005|
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0006|
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0007| __________________________________
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0008| TITO D. CHAVEZ, Chairman
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0009|
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0010|
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0011|
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0012| Adopted_______________________ Not Adopted_______________________
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0013| (Chief Clerk) (Chief Clerk)
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0014|
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0015|
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0016| Date ________________________
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0017|
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0018|
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0019| The roll call vote was 4 For 1 Against
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0020| Yes: 4
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0021| No: Rawson
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0022| Excused: Campos, Riley, Wiener
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0023| Absent: None
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0024|
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0025|
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0001| HJR01WM1
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0002|
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0003|
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0004|
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0005| FORTY-SECOND LEGISLATURE
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0006| SECOND SESSION, 1996
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0007|
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0008|
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0009| February 8, 1996
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0010|
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0011| Mr. President:
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0012|
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0013| Your FINANCE COMMITTEE, to whom has been referred
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0014|
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0015| HOUSE JOINT RESOLUTION 1
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0016|
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0017| has had it under consideration and reports same with
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0018| recommendation that it DO PASS.
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0019|
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0020| Respectfully submitted,
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0021|
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0022|
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0023|
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0024| __________________________________
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0025| Ben D. Altamirano, Chairman
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0001|
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0002|
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0003|
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0004| Adopted_______________________ Not Adopted_______________________
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0005| (Chief Clerk) (Chief Clerk)
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0006|
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0007|
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0008|
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0009| Date ________________________
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0010|
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0011|
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0012| The roll call vote was 8 For 0 Against
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0013| Yes: 8
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0014| No: 0
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0015| Excused: Aragon, Ingle, Kidd, Kysar, Sanchez
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0016| Absent: None
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0017|
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0018|
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0019| HJR01FC1
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0020|
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