The permanent funds created by Sections 19-1-17 through 19-1-20 NMSA 1978 shall consist of the proceeds of sales of lands belonging to and that may have been or may hereafter be granted to the state, not otherwise appropriated by the terms and conditions of the grant, interest on the permanent funds, income from investment of the permanent funds and such other money as may be specifically provided by law. The income and current funds created by Sections 19-1-17 through 19-1-20 NMSA 1978 shall consist of rentals, sale of products from lands and anything else other than money directly derived from sale of all state lands so granted, such other money as may be specifically provided by law and miscellaneous income not provided for by Sections 19-1-17 through 19-1-20 NMSA 1978.

History: Laws 1917, ch. 115, § 2; C.S. 1929, § 132-191; 1941 Comp., § 8-116; 1953 Comp., § 7-1-17; Laws 1996, ch. 4, § 1.

Compiler's notes. — Laws 1994, ch. 137, § 1 proposed to amend this section by adding a section heading, substituting "Sections 19-1-17 through 19-1-20 NMSA 1978" for "this act" and "money" for "moneys" throughout the section, substituting "lands belonging to and that" for "lands belonging thereto that" near the beginning of the section, inserting "interest on the permanent funds, income from investment of the permanent funds" near the middle of the section, and deleting "interest on permanent funds" following "from lands" and "the income derived from the investment of the permanent funds herein created" following "so granted" near the end of the section. Laws 1994, ch. 137, § 3 provided that the amendment to this section is effective on the later of the date the secretary of state certifies that Article 12 of the New Mexico Constitution has been amended as proposed by Laws 1994, H.J.R. No. 8, or the date the congress of the United States enacts amendments to the Enabling Act for New Mexico permitting the changes to the constitution. The constitutional amendment was submitted to the people at the general election held on November 8, 1994, but was defeated by a vote of 187,216 for and 192,492 against.

The 1996 amendment, effective upon certification by the secretary of state that the proposed amendments to art. 8, § 10 and art. 12, §§ 2, 4, and 7 of the New Mexico Constitution have passed and been ratified by the United States congress, rewrote the section. Those constitutional amendments, proposed by S.J.R. No. 2 (Laws 1996), were adopted at the general election held November 5, 1996, by a vote of 307,442 for and 153,021 against.

Establishment of irrigation funds. — By Section 19-1-17 NMSA 1978 and this section, there were established the permanent reservoirs for irrigation purposes, permanent fund, and permanent reservoirs for irrigation purposes, income fund; subsequently, by Section 72-14-23 NMSA 1978, there was established the New Mexico irrigation works construction fund, to consist of the income creditable to the income fund above noted and such other moneys as may be appropriated thereto by the state legislature. State ex rel. Interstate Stream Comm'n v. Reynolds, 1963-NMSC-023, 71 N.M. 389, 378 P.2d 622.

Oil royalties as source of funds. — Oil royalties from lands granted to New Mexico by act of congress, June 21, 1898, 30 Stat. 484, known as the Ferguson Act and confirmed by the Enabling Act, form a part of the permanent funds of the university of New Mexico, and income derived therefrom can be used only for current income for that institution. Regents of Univ. of N.M. v. Graham, 1928-NMSC-004, 33 N.M. 214, 264 P. 953.