1. A. The "tobacco settlement permanent fund" is created in the state treasury. The fund is not a reserve fund of the state. The fund shall consist of money distributed to the state pursuant to the master settlement agreement entered into between tobacco product manufacturers and various states, including New Mexico, and executed November 23, 1998 or any money released to the state from a qualified escrow fund or otherwise paid to the state as authorized by Section 6-4-13 NMSA 1978, enacted pursuant to the master settlement agreement or as otherwise authorized by law. Money in the fund shall be invested by the state investment officer in accordance with the limitations in Article 12, Section 7 of the constitution of New Mexico. Income from investment of the fund shall be credited to the fund. Money in the fund shall not be expended for any purpose, except as provided in this section.
2. B. In each fiscal year, an annual distribution shall be made from the tobacco settlement permanent fund to the tobacco settlement program fund of an amount equal to four and seven-tenths percent of the average of the year-end market values of the tobacco settlement permanent fund for the immediately preceding five calendar years. In the event that the actual amount distributed to the tobacco settlement program fund in a fiscal year is insufficient to meet appropriations from that fund for that fiscal year, the secretary of finance and administration shall proportionately reduce each appropriation accordingly.
3. C. Money in the tobacco settlement permanent fund may be expended in the event that general fund balances, including all authorized revenues and transfers to the general fund and balances in the general fund operating reserve, the appropriation contingency fund and the tax stabilization reserve, will not meet the level of appropriations authorized from the general fund for a fiscal year. In that event, in order to avoid an unconstitutional deficit, the legislature may authorize a transfer from the tobacco settlement permanent fund to the general fund but only in an amount necessary to meet general fund appropriations.

History: Laws 1999, ch. 207, § 1; 2000 (2nd S.S.), ch. 9, § 1; 2003, ch. 312, § 1; 2009, ch. 3, § 5; 2010, ch. 49, § 1; 2011, ch. 3, § 1; 2011, ch. 167, § 1; 2013, ch. 228, § 1; 2015, ch. 36, § 1; 2016 (2nd S.S.), ch. 4, § 1; 2017, ch. 2, § 6; 2017, ch. 80, § 1; 2021, ch. 60, § 1; 2024, ch. 25, § 1.

ANNOTATIONS

The 2024 amendment, effective July 1, 2024, provided that the tobacco settlement permanent fund is not a reserve fund of the state, and deleted outdated provisions; in Subsection A, after "state treasury" added "The fund is not a reserve fund of the state."; in Subsection B, after "In" deleted "fiscal year 2007 and in", and deleted "fifty percent of the total amount of money distributed to the tobacco settlement permanent fund in that fiscal year until that amount is less than an amount equal to four and seven-tenths percent of the average of the year-end market values of the tobacco settlement permanent fund for the immediately preceding five calendar years. Thereafter, the amount of the annual distribution shall be"; deleted former Subsections C through F, which provided distributions from the tobacco settlement permanent fund for prior years, and redesignated former Subsection F as Subsection C; and in Subsection C, deleted the introductory clause, which provided that the tobacco settlement permanent fund is a reserve fund of the state, and deleted former Paragraph F(2).

The 2021 amendment, effective June 18, 2021, required the remaining fifty percent of distributions to the tobacco settlement permanent fund for fiscal year 2022 be distributed to the tobacco settlement program fund; and in Subsection C, after "2018", added "and 2022".

2017 Amendments. — Laws 2017, ch. 80, § 1, effective June 16, 2017, authorized a 2018 distribution from the tobacco settlement permanent fund to the tobacco settlement program fund, and made technical changes; in Subsection C, after "2013", deleted "and", and after "2016", added "and 2018"; and in Subsection F, in Paragraph F(2), after "as provided in", added "Laws 2016 (2nd S.S.), Chapter 4", and after "Section 2", deleted "of this 2016 act".

Laws 2017, ch. 2, § 6, effective June 16, 2017, amended the language to reflect transfers from the tobacco settlement permanent fund to the general fund in 2016 and 2017, and made technical changes; in Subsection A, after "paid to the state as authorized by", deleted "Sections 6-4-12 and" and added "Section"; in Paragraph F(2), after "as provided in", added "Laws 2016 (2nd S.S.), Chapter 4", and after "Section 2", deleted "of this 2016 act" and added "and in Section 7 of this 2017 act".

The 2016 (2nd S.S.) amendment, effective January 4, 2017, authorized the transfer of funds from the tobacco settlement permanent fund to the appropriation account of the general fund to meet the appropriations authorized by law for fiscal years 2016 and 2017; in Subsection F, after "tobacco settlement permanent fund", deleted "shall be considered" and added "is", after "reserve fund of the state", deleted "and, as a reserve", after the first sentence, added "Money in the tobacco settlement permanent fund", after "may be expended", added the paragraph designation "(1)"; and added new Paragraph F(2).

The 2015 amendment, effective July 1, 2015, provided the legislature with authority to distribute fifty percent of the total amount of money distributed to the tobacco settlement permanent fund in 2016 to be distributed from the tobacco settlement permanent fund to the tobacco settlement program fund; and in Subsection C, after "2013", added "and 2016".

The 2013 amendment, effective July 1, 2013, increased distributions to the lottery tuition fund; made a distribution from the tobacco settlement permanent fund to the lottery tuition fund; made a distribution from the tobacco settlement permanent fund to the tobacco settlement program fund for appropriation for early childhood care and education programs administered by the children, youth and families department; in Subsection A, in the second sentence, after "master settlement agreement", added "or as otherwise authorized by law"; deleted former Subsection B, which made a distribution from the tobacco settlement permanent fund to the general fund; and added Subsections D and E.

The 2010 amendment, effective May 19, 2010, in Subsection D, after "fiscal year 2009", deleted "and in" and after "fiscal year 2010", added "and fiscal year 2011".

The 2009 amendment, effective February 6, 2009, added Subsection D.

The 2003 amendment, effective June 20, 2003, substituted "except as provided in this section" for "but an annual distribution shall be made to the tobacco settlement program fund in accordance with Subsection B of this section" at the end of Subsection A; deleted "On July 1 of fiscal year 2001 and on July 1 of" at the beginning of former Subsection B; added present Subsection B; added the Subsection C designation and in present Subsection C, added "In fiscal year 2007 and in" at the beginning, substituted "that" for "the immediately preceding" following "permanent fund in", added the last sentence; and added Subsection D.

The 2000 amendment, effective April 12, 2000, inserted "distribution" in the section heading; in Subsection A, inserted "any money released to the state", substituted "or otherwise paid the state as authorized by the model statute, Sections 6-4-12 and 6-4-13 NMSA 1978" for "authorized by a qualifying state statute", inserted "Income from investment of the fund shall be credited to the fund", and rewrote the last sentence; and added Subsection B.