0001|                      HOUSE JOINT RESOLUTION 19
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                          M. MICHAEL OLGUIN
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0005|     
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0006|                                   
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0007|     
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0008|     
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0009|     
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0010|                          A JOINT RESOLUTION
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0011|     PROPOSING TO AMEND THE CONSTITUTION OF NEW MEXICO TO
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0012|     TEMPORARILY POSTPONE DEPOSITS INTO THE SEVERANCE TAX PERMANENT
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0013|     FUND IN ORDER TO FUND CAPITAL OUTLAY PROJECTS.
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0014|     
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0015|     BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016|          Section 1.  It is proposed to amend Article 8, Section 10
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0017|     of the constitution of New Mexico to read:
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0018|               "A.  There shall be deposited in a permanent trust
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0019|     fund known as the "severance tax permanent fund" that part of
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0020|     state revenue derived from excise taxes that have been or
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0021|     shall be designated severance taxes imposed upon the severance
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0022|     of natural resources within this state, in excess of:
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0023|                    <u>(1)</u>  that amount that has been or shall be
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0024|     reserved by statute for the payment of principal and interest
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0025|     on outstanding bonds to which severance tax revenue has been
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<center>- 1 -</center>

0001|     or shall be pledged; <u>and</u>
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0002|                    <u>(2)  that amount received from severance
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<u></u>0003| <u>    taxes after January 1, 1999 and before January 1, 2003 and
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<u></u>0004| <u>    appropriated by the legislature for capital outlay projects.</u>
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0005|               <u>B.</u>  Money in the severance tax permanent fund
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0006|     shall be invested as provided by law.  Distributions from the
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0007|     fund shall be appropriated by the legislature as other general
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0008|     operating revenue is appropriated for the benefit of the
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0009|     people of the state.
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0010|               <s>[B.]</s> <u>C.</u>  All additions to the fund and all
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0011|     earnings, including interest, dividends and capital gains from
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0012|     investment of the fund shall be credited to the corpus of the
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0013|     fund.
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0014|               <s>[C.]</s> <u>D.</u>  The annual distributions from the fund
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0015|     shall be one hundred two percent of the amount distributed in
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0016|     the immediately preceding fiscal year until the annual
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0017|     distributions equal four and seven-tenths percent of the
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0018|     average of the year-end market values of the fund for the
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0019|     immediately preceding five calendar years.  Thereafter, the
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0020|     amount of the annual distributions shall be four and seven-
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0021|     tenths percent of the average of the year-end market values of
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0022|     the fund for the immediately preceding five calendar years.
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0023|               <s>[D.]</s> <u>E.</u>  The frequency and the time of the
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0024|     distributions made pursuant to Subsection <s>[C]</s> <u>D</u> of this
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0025|     section shall be as provided by law."
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<center>- 2 -</center>

0001|          Section 2.  The amendment proposed by this resolution
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0002|     shall be submitted to the people for their approval or
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0003|     rejection at the next general election or at any special
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0004|     election prior to that date which may be called for that
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0005|     purpose.
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0006|                              
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