State of New Mexico
                      House of Representatives
  
                      FORTY-THIRD LEGISLATURE
                        FIRST SESSION, 1997
  
  
                                                    March 1, 1997
  
  
  Mr. Speaker:
  
       Your APPROPRIATIONS AND FINANCE COMMITTEE, to whom
  has been referred
  
                  HOUSE BILL 563, as amended
                               
  has had it under consideration and reports same with
  recommendation that it DO PASS, amended as follows:
  
       1.   On page 1, lines 12 and 13, strike "; MAKING
  APPROPRIATIONS".
  
       2.  On page 3, between lines 24 and 25, insert the following
  new subsection:
  
            "D.  In no event shall any liability of, or contractual
  obligation incurred by, the program established pursuant to the
  provisions of the Education Trust Act obligate or encumber any of
  the state's land grant permanent funds, the severance tax permanent
  fund or any money that is a part of a state-funded financial aid
  program.".
  
       3.  On page 5, line 11, strike "eighteen" and insert in lieu
  thereof "nineteen".
  
       4.  On page 5, line 14, strike "eighteen" and insert in lieu
  thereof "nineteen".
  
       5.  On page 10, strike lines 10 through 15.
  
       6.  On page 11, line 20, after the period insert "If payments
  made by the taxpayer to the education trust fund are not expended
  for the purposes authorized by the Education Trust Act, the payments
  shall be taxable in the year the withdrawal is made.".
  
       7.  On page 12, line 10, after the period insert "All earnings
  of an investor, purchaser or beneficiary from investment of money
  paid by the investor or purchaser or on behalf of the beneficiary
  into the education trust fund shall be taxable in the year they are
  withdrawn if the earnings are not expended for the purposes
  authorized by the Education Trust Act.".
  
       8.   On page 12, lines 11 through 18, strike Section 10 in its
  entirety.
  
  
                                Respectfully submitted,
  
  
  
                                                                                               
                                                              Max Coll, Chairman
  
  
  Adopted                       Not Adopted                       
            (Chief Clerk)                       (Chief Clerk)
  
                         Date             
  
  The roll call vote was 12  For 0  Against
  Yes:      12
            Excused:  Abeyta, Knowles, Marquardt, Pearce, Taylor, JP
            Absent:   None
  
  
                                                        .117809.1
  G:\BILLTEXT\AMEND_97\H0563AF1