Section 7. Investment of permanent school fund
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Investment of permanent school fund
A. As used in this section, ""land grant permanent funds"" means the permanent school fund described in Article 12, Section 2 of this constitution and all other permanent funds derived from lands granted or confirmed to the state by the act of congress of June 20, 1910, entitled """"An act to enable the people of New Mexico to form a constitution and state government and be admitted into the union on an equal footing with the original states."".
B. The land grant permanent funds shall be invested by the state investment officer in accordance with policy rules promulgated by the state investment council.
C. In making investments, the state investment officer, under the supervision of the state investment council, shall invest and manage the land grant permanent funds in accordance with the Uniform Prudent Investor Act.
D. The legislature may establish criteria for investing the land grant permanent funds if the criteria are enacted by a three-fourths' vote of the members elected to each house, but investment of the land grant permanent funds is subject to the following restrictions:
(1) not more than sixty-five percent of the book value of the land grant permanent funds shall be invested at any given time in corporate stocks;
(2) not more than ten percent of the voting stock of a corporation shall be held; and
(3) stocks eligible for purchase shall be restricted to those stocks of businesses listed upon a national stock exchange or included in a nationally recognized list of stocks.
E. All additions to the land grant permanent funds and all earnings, including interest, dividends and capital gains from investment of the land grant permanent funds shall be credited to the land grant permanent funds.
F. The annual distributions from the land grant permanent funds to the beneficiaries specified in the Ferguson Act and the Enabling Act shall be five percent of the average of the year-end market values of the land grant permanent funds for the immediately preceding five calendar years.
G. In addition to the annual distributions made pursuant to Subsection F of this section, unless suspended pursuant to Subsection J of this section, an annual distribution of one and one-fourth percent of the average of the year-end market value of the permanent school fund for the immediately preceding five calendar years shall be made as provided in Subsection H of this section; provided that the additional distribution shall not be made in any fiscal year if the average of the year-end market values of the land grant permanent funds for the immediately preceding five calendar years is less than seventeen billion dollars ($17,000,000,000).
H. Unless suspended pursuant to Subsection G or J of this section, the additional distribution from the permanent school fund provided for in Subsection G of this section shall be as follows and as provided by law:
(1) forty percent of the additional distribution shall be for the public school permanent fund beneficiary for enhanced instruction for students at risk of failure, extending the school year and public school teacher compensation; and
(2) sixty percent of the additional distribution shall be for the provision of early childhood education.
I. As used in this section, ""early childhood education"" means nonsectarian and nondenominational education for children until they are eligible for kindergarten.
J. The legislature, by a three-fifths’ vote of the members elected to each house, may suspend any additional distribution provided for in Subsection G of this section.
Investment of permanent school fund
A. As used in this section, ""fund"" means the permanent school fund described in Article 12, Section 2 of this constitution and all other permanent funds derived from lands granted or confirmed to the state by the act of congress of June 20, 1910, entitled "An act to enable the people of New Mexico to form a constitution and state government and be admitted into the union on an equal footing with the original states.".
B. The fund shall be invested by the state investment officer in accordance with policy regulations promulgated by the state investment council.
C. In making investments, the state investment officer, under the supervision of the state investment council, shall invest and manage the fund in accordance with the Uniform Prudent Investor Act.
D. The legislature may establish criteria for investing the fund if the criteria are enacted by a three-fourths’ vote of the members elected to each house, but investment of the fund is subject to the following restrictions:
(1) not more than sixty-five percent of the book value of the fund shall be invested at any given time in corporate stocks;
(2) not more than ten percent of the voting stock of a corporation shall be held; and
(3) stocks eligible for purchase shall be restricted to those stocks of businesses listed upon a national stock exchange or included in a nationally recognized list of stocks.
E. All additions to the fund and all earnings, including interest, dividends and capital gains from investment of the fund shall be credited to the fund.
F. Except as provided in Subsection G of this section, the annual distributions from the fund shall be five percent of the average of the year-end market values of the fund for the immediately preceding five calendar years.
G. In addition to the annual distribution made pursuant to Subsection F of this section, unless suspended pursuant to Subsection H of this section, an additional annual distribution shall be made pursuant to the following schedule; provided that no distribution shall be made pursuant to the provisions of this subsection in any fiscal year if the average of the year-end market values of the fund for the immediately preceding five calendar years is less than ten billion dollars ($10,000,000,000):
(1) in fiscal years 2005 through 2012, an amount equal to eight-tenths percent of the average of the year-end market values of the fund for the immediately preceding five calendar years; provided that any additional distribution from the permanent school fund pursuant to this paragraph shall be used to implement and maintain educational reforms as provided by law; and
(2) in fiscal years 2013 through 2016, an amount equal to one-half percent of the average of the year-end market values of the fund for the immediately preceding five calendar years; provided that any additional distribution from the permanent school fund pursuant to this paragraph shall be used to implement and maintain educational reforms as provided by law.
H. The legislature, by a three-fifths' vote of the members elected to each house, may suspend any additional distribution provided for in Subsection G of this section.
Investment of permanent school fund
A. As used in this section, ""fund"" means the permanent school fund described in Section 2 of this article and all other permanent funds derived from lands granted or confirmed to the state by the act of congress of June 20, 1910, entitled ""An act to enable the people of New Mexico to form a constitution and state government and be admitted into the union on an equal footing with the original states.""
B. The fund shall be invested by the state investment officer in accordance with policy regulations promulgated by the state investment council.
C. In making investments, the state investment officer, under the supervision of the state investment council, shall exercise the judgment and care under the circumstances then prevailing that businessmen of ordinary prudence, discretion and intelligence exercise in the management of their own affairs not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital.
D. The legislature may establish criteria for investing the fund if the criteria are enacted by a three-fourths vote of the members elected to each house, but investment of the fund is subject to the following restrictions:
(1) not more than sixty-five percent of the book value of the fund shall be invested at any given time in corporate stocks;
(2) not more than ten percent of the voting stock of a corporation shall be held;
(3) stocks eligible for purchase shall be restricted to those stocks of businesses listed upon a national stock exchange or included in a nationally recognized list of stocks; and
(4) not more than fifteen percent of the book value of the fund may be invested in international securities at any single time.
E. All additions to the fund and all earnings, including interest, dividends and capital gains from investment of the fund shall be credited to the fund.
F. Except as provided in Subsection G of this section, the annual distributions from the fund shall be five percent of the average of the year-end market values of the fund for the immediately preceding five calendar years.
G. In addition to the annual distribution made pursuant to Subsection F of this section, unless suspended pursuant to Subsection H of this section, an additional annual distribution shall be made pursuant to the following schedule; provided that no distribution shall be made pursuant to the provisions of this subsection in any fiscal year if the average of the year-end market values of the fund for the immediately preceding five calendar years is less than five billion eight hundred million dollars ($5,800,000,000):
(1) in fiscal years 2005 through 2012, an amount equal to eight-tenths percent of the average of the year-end market values of the fund for the immediately preceding five calendar years; provided that any additional distribution from the permanent school fund pursuant to this paragraph shall be used to implement and maintain educational reforms as provided by law; and
(2) in fiscal years 2013 through 2016, an amount equal to one-half percent of the average of the year-end market values of the fund for the immediately preceding five calendar years; provided that any additional distribution from the permanent school fund pursuant to this paragraph shall be used to implement and maintain educational reforms as provided by law.
H. The legislature, by a three-fifths' vote of the members elected to each house, may suspend any additional distribution provided for in Subsection G of this section.
Investment of permanent school fund
A. As used in this section, "fund" means the permanent school fund described in Section 2 of this article and all other permanent funds derived from lands granted or confirmed to the state by the act of congress of June 20, 1910, entitled ""An act to enable the people of New Mexico to form a constitution and state government and be admitted into the union on an equal footing with the original states.
B. The fund shall be invested by the state investment officer in accordance with policy regulations promulgated by the state investment council.
C. In making investments, the state investment officer, under the supervision of the state investment council, shall exercise the judgment and care under the circumstances then prevailing that businessmen of ordinary prudence, discretion and intelligence exercise in the management of their own affairs not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital.
D. The legislature may establish criteria for investing the fund if the criteria are enacted by a three-fourths vote of the members elected to each house, but investment of the fund is subject to the following restrictions:
(1) not more than sixty-five percent of the book value of the fund shall be invested at any given time in corporate stocks;
(2) not more than ten percent of the voting stock of a corporation shall be held;
(3) stocks eligible for purchase shall be restricted to those stocks of businesses listed upon a national stock exchange or included in a nationally recognized list of stocks; and
(4) not more than fifteen percent of the book value of the fund may be invested in international securities at any single time.
E. All additions to the fund and all earnings, including interest, dividends and capital gains from investment of the fund shall be credited to the fund.
F. The annual distributions from the fund shall be one hundred two percent of the amount distributed in the immediately preceding fiscal year until the annual distributions equal four and seven-tenths percent of the average of the year-end market values of the fund for the immediately preceding five calendar years. Thereafter, the amount of the annual distributions shall be four and seven-tenths percent of the average of the year-end market values of the fund for the immediately preceding five calendar years.
Investment of permanent school fund
The principal of the permanent school fund, and other permanent funds, shall be invested by a state investment officer in accordance with policy regulations promulgated by a state investment council. The legislature may by a three-fourths vote of the members elected to each house provide that said funds may be invested in interest-bearing or other securities.
In making investments, the state investment officer, under the supervision of the state investment council, shall exercise the judgement and care under the circumstances then prevailing which businessmen of ordinary prudence, discretion and intelligence exercise in the management of their own affairs not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital; provided, not more than fifty percent of the permanent school fund or other permanent fund, shall be invested at any given time in corporate stocks and bonds nor shall more than ten percent of the voting stock of a corporation be held and provided further, stocks eligible for purchase shall be restricted to those stocks of businesses incorporated within the United States which have paid dividends for ten consecutive years or longer immediately prior to the date of purchase and which are listed upon a national stock exchange.
Investment of permanent school fund
The principal of the permanent school fund, and other permanent funds, shall be invested by a state investment officer in accordance with policy regulations promulgated by a state investment council. The legislature may by a three-fourth's vote of the members elected to each house provide that said funds may be invested in interest bearing or other securities. All losses from such interest bearing notes or securities which have definite maturity dates shall be reimbursed by the state.
The state investment officer, in order to realize increased income, may, with the approval of the state investment council, sell interest bearing notes or securities at less than their original acquisition cost, providing the proceeds are immediately reinvested in sufficiently higher yielding interest bearing notes or securities, to provide for a portion of the increased interest income to be amortized over the life of the new investment which will restore to the corpus of the fund the amount of the capital loss realized on the sale of the original investment.
In making investments, the state investment officer, under the supervision of the state investment council, shall exercise the judgement and care under the circumstances then prevailing which businessmen of ordinary prudence, discretion and intelligence exercise in the management of their own affairs not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital; provided, not more than fifty per cent of the permanent school fund or other permanent fund, shall be invested at any given time in corporate stocks and bonds nor shall more than ten per cent of the voting stock of a corporation be held; and provided further, stocks eligible for purchase shall be restricted to those stocks of businesses incorporated within the United States which have paid dividends for ten consecutive years or longer immediately prior to the date of purchase and which are listed upon a national stock exchange.
Investment of permanent school fund
The principal of the permanent school fund, and other permanent funds, shall be invested by a state investment officer in accordance with policy regulations promulgated by a state investment council. The legislature may by a three-fourth's vote of the members elected to each house provide that said funds may be invested in interest bearing or other securities. All losses from such interest bearing notes or securities which have definite maturity dates shall be reimbursed by the state.
In making investments, the state investment officer, under the supervision of the state investment council, shall exercise the judgment and care under the circumstances then prevailing which businessmen of ordinary prudence, discretion and intelligence exercise in the management of their own affairs not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital; provided, not more than twenty-five percent of the permanent school fund or other permanent fund, shall be invested at any given time in corporate stocks and bonds nor shall more than ten percent of the voting stock of a corporation be held; and provided further, stocks eligible for purchase shall be restricted to those stocks of businesses incorporated within the United States which have paid dividends for ten consecutive years or longer immediately prior to the date of purchase and which are listed upon a national stock exchange.
Investment of permanent school fund
The principal of the permanent school fund shall be invested in the bonds of the State or Territory of New Mexico, or of any county, city, town, board of education, or school district therein. The legislature may by three-fourths vote of the members elected to each house provide that said funds may be invested in other interest bearing securities. All bonds or other securities in which any portion of the school fund shall be invested must be first approved by the governor, attorney general, and secretary of state. All losses from such funds, however occurring, shall be reimbursed by the State.