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<PRE>[DOCID: f:s430enr.txt]
        S.430

                       One Hundred Fifth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
 the seventh day of January, one thousand nine hundred and ninety-seven


                                 An Act


 
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. PERMANENT TRUST FUNDS OF THE STATE OF NEW MEXICO.

    (a) Short Title.--This Act may be cited as the ``New Mexico 
Statehood and Enabling Act Amendments of 1997''.
    (b) 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.''.
    (c) 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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

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