0001|                      SENATE JOINT RESOLUTION 15
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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|                         TIMOTHY Z. JENNINGS
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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 AUTHORIZE
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0012|     AN EXPENDITURE FROM THE LAND GRANT PERMANENT FUNDS FOR THE
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0013|     PURCHASE OF THE BACA LOCATION NUMBER 1, INCLUDING THE VALLES
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0014|     CALDERA.
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0015|     
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0016|     BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017|          Section 1.  It is proposed to amend Article 12, Section 7
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0018|     of the constitution of New Mexico to read:
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0019|               "A.  As used in this section, "fund" means the
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0020|     permanent school fund described in Section 2 of this article
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0021|     and all other permanent funds derived from lands granted or
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0022|     confirmed to the state by the act of congress of June 20,
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0023|     1910, entitled "An act to enable the people of New Mexico to
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0024|     form a constitution and state government and be admitted into
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0025|     the union on an equal footing with the original states."
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0001|               B.  The fund shall be invested by the state
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0002|     investment officer in accordance with policy regulations
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0003|     promulgated by the state investment council. 
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0004|               C.  In making investments, the state investment
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0005|     officer, under the supervision of the state investment
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0006|     council, shall exercise the judgment and care under the
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0007|     circumstances then prevailing that businessmen of ordinary
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0008|     prudence, discretion and intelligence exercise in the
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0009|     management of their own affairs not in regard to speculation
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0010|     but in regard to the permanent disposition of their funds,
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0011|     considering the probable income as well as the probable safety
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0012|     of their capital. 
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0013|               D.  The legislature may establish criteria for
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0014|     investing the fund if the criteria are enacted by a three-
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0015|     fourths vote of the members elected to each house, but
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0016|     investment of the fund is subject to the following
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0017|     restrictions: 
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0018|                    (1)  not more than sixty-five percent of the
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0019|     book value of the fund shall be invested at any given time in
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0020|     corporate stocks; 
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0021|                    (2)  not more than ten percent of the voting
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0022|     stock of a corporation shall be held; 
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0023|                    (3)  stocks eligible for purchase shall be
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0024|     restricted to those stocks of businesses listed upon a
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0025|     national stock exchange or included in a nationally recognized
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0001|     list of stocks; and 
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0002|                    (4)  not more than fifteen percent of the book
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0003|     value of the fund may be invested in international securities
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0004|     at any single time. 
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0005|               E.  All additions to the fund and all earnings,
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0006|     including interest, dividends and capital gains from
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0007|     investment of the fund shall be credited to the fund. 
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0008|               F.  The annual distributions from the fund shall be
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0009|     one hundred two percent of the amount distributed in the
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0010|     immediately preceding fiscal year until the annual
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0011|     distributions equal four and seven-tenths percent of the
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0012|     average of the year-end market values of the fund for the
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0013|     immediately preceding five calendar years.  Thereafter, the
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0014|     amount of the annual distributions shall be four and seven-
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0015|     tenths percent of the average of the year-end market values of
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0016|     the fund for the immediately preceding five calendar years.
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0017|               <u>G.  An expenditure from the fund may be made for
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<u></u>0018| <u>    the purchase of the Baca location number 1, known as the Baca
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<u></u>0019| <u>    ranch, including the Valles Caldera.  Upon certification by a
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<u></u>0020| <u>    legislative commission that negotiations have been successful
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<u></u>0021| <u>    and that the location will be purchased at or below the
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<u></u>0022| <u>    appraised value, the amount necessary for the purchase shall
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<u></u>0023| <u>    be transferred from the fund.  The Baca location number 1
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<u></u>0024| <u>    shall be used by the state in a manner determined by law.  The
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<u></u>0025| <u>    legislature shall enact legislation necessary to effectuate
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<u></u>0001| <u>    the purpose of this subsection.</u>"
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0002|          Section 2.  The amendment proposed by this resolution
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0003|     shall be submitted to the people for their approval or
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0004|     rejection at the next general election or at any special
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0005|     election prior to that date which may be called for that
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0006|     purpose.
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0007|          Section 3.  The amendment proposed by Section 1 of this
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0008|     resolution shall not become effective without the consent of
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0009|     the United States congress.
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0010|                              
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