The permanent school fund of the state shall consist of the proceeds of sales of Sections Two, Sixteen, Thirty-Two and Thirty-Six in each township of the state, or the lands selected in lieu thereof; the proceeds of sales of all lands that have been or may hereafter be granted to the state not otherwise appropriated by the terms and conditions of the grant; such portion of the proceeds of sales of land of the United States within the state as has been or may be granted by congress; all earnings, including interest, dividends and capital gains from investment of the permanent school fund; also all other grants, gifts and devises made to the state, the purpose of which is not otherwise specified. (As amended November 5, 1996.)

ANNOTATIONS

The 1996 amendment, which was proposed by S.J.R. No. 2 (Laws 1996) and adopted at the general election held November 5, 1996, by a vote of 307,442 for and 153,021 against, inserted "all earnings, including interest, dividends and capital gains from investment of the permanent school fund". Section 6 of S.J.R. No. 2 (Laws 1996) provides that this amendment shall not become effective without the consent of the United States congress. The United States Congress approved the amendment in P.L. 105-37, 111 Stat. 1113, the New Mexico Statehood and Enabling Act Amendments of 1997, approved August 7, 1997.

Compiler's notes. — An amendment proposed by H.J.R. No. 8 (Laws 1994), which would have inserted "all earnings, including interest, dividends and capital gains, from investment of the permanent school fund" following "congress" near the end of the section, was submitted to the people at the general election held on November 8, 1994. It was defeated by a vote of 187,216 for and 192,492 against.

The New Mexico military institute is not a beneficiary of the annual distribution from the permanent school fund provided in Article XII, Section 7(G). — Under the Enabling Act (act) of the New Mexico constitution, the proceeds of land grants covered by the act may be used only for the purposes specified in the act, and under the act, the permanent school fund consists of proceeds of lands granted under the act for the support of “common” or public schools, and because the New Mexico military institute (NMMI) is not a common or public school, as that term is used in the act, NMMI is not a beneficiary of the permanent school fund and is not entitled to a share of the additional 1.25% annual distribution for public schools provided for in Article XII, Section 7(G) of the New Mexico constitution. 2025 Op. Att’y Gen. No. 25-02.

Constitution confirms Enabling Act grants. — Provisions of constitution confirm grants made to state under Enabling Act (June 20, 1910, 36 Stat. 557, ch. 310, §§ 6 to 10, set out in Pamphlet 3). 1935 Op. Att'y Gen. No. 35-1204.

Land exchanges with United States proper. — Under this section and the Enabling Act (see Pamphlet 3), the state may relinquish title to United States to school lands for other lands taken in lieu thereof. 1934 Op. Att'y Gen. No. 34-785.

Under Taylor Grazing Act (43 U.S.C. § 315 et seq.), state may exchange its lands where title is vested in it for other lands of federal government through secretary of the interior, who has power to exchange such lands in same manner as provided for exchange of privately-owned lands. 1935 Op. Att'y Gen. No. 35-1204.

Rent for national forest lands applied to current fund. — Money received from United States from rental of school lands in the national forest, in accordance with Enabling Act (see Pamphlet 3), should be applied to state current school fund. 1913 Op. Att'y Gen. No. 13-977.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 68 Am. Jur. 2d Schools § 87 et seq.

78 C.J.S. Schools and School Districts § 10.