The severance tax permanent fund shall be invested in separate differential rate and market rate investment classes. "Differential rate investments" are permitted in Sections 7-27-5.3 through 7-27-5.5, 7-27-5.13 through 7-27-5.17, 7-27-5.22 and 7-27-5.24 through 7-27-5.26 NMSA 1978 and are intended to stimulate the economy of New Mexico and to provide income to the severance tax permanent fund. "Market rate investments" are investments that are not differential rate investments and are intended to provide income to the severance tax permanent fund. All market rate investments and differential rate investments shall be invested in accordance with the Uniform Prudent Investor Act [45-7-601 to 45-7-612 NMSA 1978] and shall be accounted for in accordance with generally accepted accounting principles.
History: 1978 Comp., § 7-27-5, enacted by Laws 1983, ch. 306, § 7; 1987, ch. 219, § 1; 1988, ch. 133, § 2; 1988, ch. 134, § 6; 1989, ch. 265, § 2; 1990, ch. 126, § 2; 1990, ch. 127, § 9; 1990 (2nd S.S.), ch. 3, § 1; 1991, ch. 83, § 2; 1995, ch. 215, § 1; 1997, ch. 178, § 2; 2000, ch. 5, § 3; 2000 (2nd S.S.), ch. 6, § 1; 2005, ch. 240, § 3.
Cross references. — For investment of state funds generally, see 6-8-1 to 6-8-18, 6-10-10 NMSA 1978.
The 2005 amendment, effective July 1, 2005, provided that the fund shall be invested in separate differential rate and market rate investment classes; defined "differential rate investments" by reference to the statutory sections listed prior to the amendment; provided that differential rate investments are intended to provide income to the severance tax permanent fund; defined "market rate investments"; deleted the former statement of the purposes of the severance tax permanent fund and intent of market rate investments and the provision that the prudent man rule be applied to market rate investments.
The 2000 (2nd S.S.) amendment, effective July 3, 2000, substituted "and 7-27-5.24 through 7-27-5.26" for "7-27-5.24 and 7-27-5.25" in the third sentence.
The 2000 amendment, effective February 15, 2000, inserted "and 7-27-5.25" in the third sentence.
The 1997 amendment, effective on June 20, 1997, in the third sentence, deleted "7-27-5.7" following "7-27-5.5" and substituted "7-27-5.22 and 7-27-5.24 NMSA 1978" for "and 7-27-5.21 NMSA 1978" at the end.
The 1995 amendment, effective June 16, 1995, substituted "Sections 7-27-5.3 through 7-27-5.5, 7-27-5.7, 7-27-5.13 through 7-27-5.17 and 7-27-5.21 NMSA 1978" for "Sections 7-27-5.2 through 7-27-5.5, 7-27-5.7 and 7-27-5.13 through 7-27-5.17 NMSA 1978" in the second sentence.
The 1991 amendment, effective July 1, 1991, substituted the final sentence of the section for a sentence which read "The full cost pass-through accounting method shall be used to account for exchanges of fixed-income securities".
The 1990 (2nd S.S.) amendment, effective January 1, 1991, substituted "through 7-27-5.17 NMSA 1978" for "and 7-27-5.14 NMSA 1978" in the third sentence.
The 1990 amendment, effective March 30, 1990, inserted the reference to 7-27-5.14 NMSA 1978 in the third sentence.
The 1989 amendment, effective April 5, 1989, added "7-27-5.13" in the third sentence.
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