A. The "tax stabilization reserve" is created within the state treasury as a reserve fund of the state.
B. The tax stabilization reserve consists of money directed or appropriated to it by law and all income from investment of the reserve. The state investment officer, subject to the approval of the state investment council, shall invest money in the reserve:
(1) in accordance with the prudent investor rule set forth in the Uniform Prudent Investor Act [45-7-601 to 45-7-612 NMSA 1978]; and
(2) in consultation with the state treasurer.
C. The state investment officer shall report quarterly to the legislative finance committee and the state investment council on the investments made pursuant to this section. Annually, a report shall be submitted no later than October 1 each year to the legislative finance committee, the revenue stabilization and tax policy committee and any other appropriate interim committees.
D. Except as otherwise provided in Subsection E of this section and Subsection B of Section 6-4-4 NMSA 1978, any balance of the tax stabilization reserve may be:
(1) appropriated only by a two-thirds' majority vote of both houses of the legislature following receipt by the legislature of a declaration of the governor that such an appropriation is necessary for the public peace, health and safety; or
(2) expended by the governor only:
(a) pursuant to an appropriation made by a two-thirds' majority vote of both houses of the legislature specifying the amount of the appropriation and the purpose of the expenditure; and
(b) if the governor declares that the expenditure is necessary for the public peace, health and safety.
E. If general fund revenues, including all transfers to the general fund authorized by law, are projected by the governor to be insufficient either to meet the level of appropriations authorized by law from the general fund for the current fiscal year or to meet the level of appropriations recommended in the budget and appropriations bill submitted in accordance with Section 6-3-21 NMSA 1978 for the next fiscal year, the balance in the tax stabilization reserve may be appropriated by the legislature up to the amount of the projected insufficiency for either or both fiscal years.
History: 1978 Comp., § 6-4-2.2, enacted by Laws 1987, ch. 264, § 3; 1987, ch. 347, § 3; 1989, ch. 324, § 1; 2002, ch. 109, § 1; 2019, ch. 138, § 1; 2020, ch. 34, § 1.
ANNOTATIONSThe 2020 amendment, effective May 20, 2020, provided an exception to the appropriation requirements for the tax stabilization reserve; and in Subsection D, added "and Subsection B of Section 6-4-4 NMSA 1978".
The 2019 amendment, effective July 1, 2019, transferred the "tax stabilization reserve" from the general fund to the state treasury; in Subsection A, deleted "There is created within the general fund the 'tax stabilization reserve'" and added "The 'tax stabilization reserve' is created within the state treasury as a reserve fund of the state."; in Subsection B, after "The", deleted "balance of the", after "tax stabilization reserve", deleted "shall be those funds" and added "consists of money", after "directed", added "or appropriated", after "by law and", deleted "such other funds as the legislature may appropriate from time to time to the reserve" and added the remainder of the subsection; and added a new Subsection C and redesignated former Subsections C and D as Subsections D and E, respectively.
The 2002 amendment, effective May 15, 2002, added Subsection C(2) and substituted "6-3-21" for "6-3-11.1" in Subsection D.
The 1989 amendment, effective April 7, 1989, in Subsection A, deleted "hereby" preceding "created" and, in Subsection B, deleted the former second sentence which read "Earnings on balances in the tax stabilization reserve are appropriated to the tax stabilization reserve".