[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1051 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1051

To amend the Act of June 20, 1910, to protect the permanent trust funds 
of the State of New Mexico from erosion due to inflation and modify the 
        basis on which distributions are made from those funds.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 12, 1997

 Mr. Skeen (for himself and Mr. Schiff) introduced the following bill; 
            which was referred to the Committee on Resources

_______________________________________________________________________

                                 A BILL


 
To amend the Act of June 20, 1910, to protect the permanent trust funds 
of the State of New Mexico from erosion due to inflation and modify the 
        basis on which distributions are made from those funds.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``New Mexico Statehood and Enabling 
Act Amendments of 1997''.

SEC. 2. PERMANENT TRUST FUNDS OF THE STATE OF NEW MEXICO.

    (a) Investment of and Distributions From Permanent Trust Funds.--
The Act of June 20, 1910 (36 Stat. 557, chapter 310), is amended--
            (1) in the proviso in the second paragraph of section 7, by 
        striking ``the income therefrom only to be used'' and inserting 
        ``distributions from which shall be made in accordance with the 
        first paragraph of section 10 and shall be used'';
            (2) in section 9, by striking ``the interest of which only 
        shall be expended'' and inserting ``distributions from which 
        shall be made in accordance with the first paragraph of section 
        10 and shall be expended''; and
            (3) in the first paragraph of section 10, by adding at the 
        end the following: ``The trust funds, including all interest, 
        dividends, other income, and appreciation in the market value 
        of assets of the funds shall be prudently invested on a total 
        rate of return basis. Distributions from the trust funds shall 
        be made as provided in Article 12, Section 7 of the 
        Constitution of the State of New Mexico.''.
    (b) Consent of Congress.--Congress consents to the amendments to 
the Constitution of the State of New Mexico proposed by Senate Joint 
Resolution 2 of the 42nd Legislature of the State of New Mexico, Second 
Session, 1996, entitled ``A Joint Resolution proposing amendments to 
Article 8, Section 10 and Article 12, Sections 2, 4 and 7 of the 
Constitution of New Mexico to protect the State's permanent funds 
against inflation by limiting distributions to a percentage of each 
fund's market value and by modifying certain investment restrictions to 
allow optimal diversification of investments'', approved by the voters 
of the State of New Mexico on November 5, 1996.
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