Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Roybal Caballero
LAST UPDATED
ORIGINAL DATE 03/03/25
SHORT TITLE Sustain The Families Trust Fund
BILL
NUMBER House Bill 520
ANALYST Gygi
REVENUE*
(dollars in thousands)
Type FY25 FY26 FY27 FY28 FY29
Recurring or
Nonrecurring
Fund
Affected
Unknown
See fiscal
implications
See fiscal
implications
See fiscal
implications
See fiscal
implications
See fiscal
implications
See fiscal
implications
Sustain the
Families Trust
Fund
Parentheses ( ) indicate revenue decreases.
*Amounts reflect most recent analysis of this legislation.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
SIC
See fiscal
implications
See fiscal
implications
See fiscal
implications
See fiscal
implications
Recurring
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Department of Finance and Administration (DFA)
Health Care Authority (HCA)
State Investment Council (SIC)
Agency Analysis was Solicited but Not Received From
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of House Bill 520
House Bill 520 (HB520) seeks to create a sustain the families trust fund in the state treasury, to
be used at a future date to issue income subsidies for lower income New Mexicans, as provided
by law. The fund is to be invested by the State Investment Officer and State Investment Council
(SIC) in accordance with the Uniform Prudent Investor Act (UPIA), in consultation with the
secretary of the Health Care Authority. The bill requires annual reporting to appropriate interim
legislative committees.
House Bill 520 – Page 2
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
FISCAL IMPLICATIONS
HB520 creates a new fund in the State Treasury but does not include an appropriation and does
not indicate a revenue source or a process for distributions, so there is no immediate revenue
impact.
SIC reports it will need additional resources for investment, accounting, and administrative staff
to implement HB520 should it be enacted. Because the bill does not specify a source of
contributions or a mechanism for distributions from the fund, the agency does not provide an
estimate of the costs of needed resources.
SIGNIFICANT ISSUES
HB520 does not follow best practices recommended by SIC to establish trust and program fund
structures as separate entities, with the trust contributing to a program/expenditure fund that will
then deliver distributions. Further, according to SIC, funds with an investment horizon of one-
year or less should not be invested by SIC but rather by the State Treasurer’s Office.
The Health Care Authority reports that subsidies from the new fund potentially could impact
eligibility for benefits the Supplemental Nutrition Assistance Program (SNAP), Cash Assistance,
Medicaid and Low-Income Home Energy Assistance (LIHEAP) programs. Lacking a definition
of “lower income” in HB520 or further information on the amount, frequency and duration of the
subsidy, HCA cannot definitely say how this will impact recipients of public assistance.
ADMINISTRATIVE IMPLICATIONS
SIC notes 15 bills introduced this session, including HB520, would create new funds to be
managed by the SIC. However, the bills do not provide funds for implementation and increased
operating costs. SIC reports its assets have quadrupled to more than $60 billion over the past 15
years, while its staffing levels have remained relatively flat. The SIC’s budget request for FY26
included full funding for all 37 authorized FTE, but the agency reports it should: “double the
number of investment staff and increase the number of legal and accounting staff to facilitate
increased workloads, mitigate risk and maintain proper ongoing due diligence of investments.”
TECHNICAL ISSUES
HB520 lacks a definition for “lower income.” As noted by the SIC:
The bill does not define “lower income residents,” who are to be the recipients of the
proposed expenditures to be made, “as provided by law.” It is not clear what provisions
of law are being referred to by the bill that would facilitate such fund disbursements.
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