NM
New Mexico House Bill HB7

New Mexico 2025 Regular Session

New Mexico House Bill HB7 Compare Versions

Only one version of the bill is available at this time.
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2828 HOUSE BILL 7
2929 57
3030 TH LEGISLATURE
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4242 FIRST SESSION
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4545 2025
4646 INTRODUCED BY
4747 Linda Serrato and Javier Martínez
4848 AN ACT
4949 RELATING TO PUBLIC BENEFITS; ENACTING THE CHILDREN'S FUTURE ACT
5050 WITH THE INTENT TO PROVIDE, WITHOUT A GUARANTEE, A SHARE OF A
5151 TRUST FUND FOR EVERY ELIGIBLE PERSON BORN IN NEW MEXICO AFTER
5252 JANUARY 1, 2025 TO USE FOR PARTICULAR PURPOSES; CREATING THE
5353 CHILDREN'S FUTURE FUND; PROVIDING THAT BENEFITS SHALL NOT BE
5454 GUARANTEED AND A PROPERTY INTEREST SHALL NOT BE CREATED BY THE
5555 CHILDREN'S FUTURE ACT; CREATING THE CHILDREN'S FUTURE TASK
5656 FORCE; EXEMPTING MONEY SPENT FOR BENEFICIARIES PURSUANT TO THE
5757 CHILDREN'S FUTURE ACT FROM TAXATION; MAKING AN APPROPRIATION.
5858 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
5959 SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1
6060 through 5 of this act may be cited as the "Children's Future
6161 Act".
6262 SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the
6363 .228888.4
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9191 Children's Future Act:
9292 A. "beneficiary" means a person born in New Mexico
9393 on or after January 1, 2025 and whose primary residence since
9494 birth is continuously in New Mexico; and
9595 B. "department" means the department of finance and
9696 administration.
9797 SECTION 3. [NEW MATERIAL] CHILDREN'S FUTURE FUND.--
9898 A. The "children's future fund" is created as a
9999 nonreverting fund in the state treasury. The purpose of the
100100 fund is to assist beneficiaries who graduate from a high school
101101 in New Mexico in pursuing education, housing, entrepreneurship,
102102 retirement and investment opportunities. The fund consists of
103103 distributions, transfers, appropriations, gifts, grants,
104104 donations and income from investment of the fund. Money in the
105105 fund shall be expended only as provided for in the Children's
106106 Future Act.
107107 B. In accordance with the prudent investor rule set
108108 forth in the Uniform Prudent Investor Act and in consultation
109109 with the secretary of finance and administration or the
110110 secretary's designee, money in the children's future fund shall
111111 be invested as follows:
112112 (1) two-thirds of a transfer, distribution,
113113 appropriation, gift, grant or donation to the children's future
114114 fund shall be invested by the state investment officer for
115115 eighteen years, and then that two-thirds and the associated
116116 .228888.4
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144144 income from its investment shall be invested by the state
145145 treasurer; and
146146 (2) one-third of a transfer, distribution,
147147 appropriation, gift, grant or donation shall be invested by the
148148 state investment officer.
149149 C. Money in the children's future fund is
150150 appropriated to the department for the purposes specified in
151151 the Children's Future Act. The department shall administer the
152152 fund, and expenditures from the fund shall be by warrant of the
153153 secretary of finance and administration pursuant to vouchers
154154 signed by the secretary or the secretary's authorized
155155 representative.
156156 D. The department may expend no more than three
157157 percent of the balance of the children's future fund at the end
158158 of a fiscal year for the costs incurred to administer the
159159 Children's Future Act.
160160 SECTION 4. [NEW MATERIAL] NO GUARANTEE OF BENEFITS OR
161161 ENFORCEABLE INTEREST.--The provisions of the Children's Future
162162 Act do not guarantee any benefits and shall not be construed to
163163 create an interest in property that:
164164 A. does not otherwise exist; or
165165 B. is enforceable under state law.
166166 SECTION 5. [NEW MATERIAL] FIDUCIARY DUTY.--A person who
167167 receives, collects, disburses, expends or invests money from
168168 the children's future fund or for a beneficiary pursuant to the
169169 .228888.4
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197197 Children's Future Act shall be responsible for such money in a
198198 fiduciary relationship to beneficiaries.
199199 SECTION 6. A new section of the Income Tax Act is enacted
200200 to read:
201201 "[NEW MATERIAL] EXEMPTION--CHILDREN'S FUTURE ACT.--
202202 A. Money transferred to or spent on behalf of a
203203 beneficiary pursuant to the Children's Future Act is exempt
204204 from state income taxation.
205205 B. As used in this section, "beneficiary" means a
206206 person born in New Mexico on or after January 1, 2025 and whose
207207 primary residence is in and remains in New Mexico."
208208 SECTION 7. TEMPORARY PROVISION--CHILDREN'S FUTURE TASK
209209 FORCE--CREATION--MEMBERSHIP--DUTIES.--
210210 A. The "children's future task force" is created to
211211 study and provide recommendations on the optimal design and
212212 administration of the Children's Future Act. The task force
213213 shall function from the date of its appointment until December
214214 31, 2025. Staff and administrative support for the task force
215215 shall be provided by the state investment council. The task
216216 force consists of:
217217 (1) one representative from the state
218218 investment council to serve as chair;
219219 (2) one representative from the state
220220 treasurer's office to serve as vice chair;
221221 (3) one representative from the department of
222222 .228888.4
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250250 finance and administration;
251251 (4) one public member appointed by the
252252 governor; and
253253 (5) four public members, one appointed by each
254254 of: the president pro tempore of the senate, the minority
255255 floor leader of the senate, the speaker of the house of
256256 representatives and the minority floor leader of the house of
257257 representatives.
258258 B. At least two appointed members shall have at a
259259 minimum five years of professional investment or financial
260260 experience, and at least two appointed members shall be
261261 representatives of community-based organizations focused on
262262 family financial and economic well-being.
263263 C. Appointments to the children's future task force
264264 shall be made by July 1, 2025. The task force shall meet not
265265 less than once per month at the call of the chair or at the
266266 request of two-fifths of its membership to carry out its
267267 duties. A majority of the members constitutes a quorum for the
268268 transaction of business, and the support of a majority of the
269269 quorum is required for adoption of any action.
270270 D. Appointed members of the children's future task
271271 force are entitled to receive per diem and mileage as provided
272272 in the Per Diem and Mileage Act and shall receive no other
273273 compensation, perquisite or allowance.
274274 E. The children's future task force shall research
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303303 and produce a report with advice and recommendations on the
304304 implementation of the Children's Future Act, including:
305305 (1) optimal design and administration of the
306306 program to implement the provisions of the Children's Future
307307 Act;
308308 (2) a financial plan for financing and
309309 implementing the Children's Future Act within five years of its
310310 effective date, including data on the efficacy of baby bonds;
311311 (3) eligibility requirements for beneficiaries
312312 to use money from the children's future fund;
313313 (4) determination of eligibility, including
314314 possible certification processes across multiple state
315315 agencies;
316316 (5) the application process and time periods
317317 during which eligible beneficiaries may apply to use money from
318318 the children's future fund;
319319 (6) mechanisms for transferring and expending
320320 money on behalf of beneficiaries;
321321 (7) creation and administration of investment
322322 and retirement accounts;
323323 (8) conditions for and limitations on the use
324324 of money in the children's future fund for an investment
325325 account;
326326 (9) third parties with whom to contract to
327327 assist in the administration of the provisions of the
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356356 Children's Future Act and the responsibilities of those third
357357 parties;
358358 (10) measures for ensuring fairness and equity
359359 for designated beneficiaries born in different years,
360360 considering varying levels of income from investment of the
361361 children's future fund;
362362 (11) decisions of investment risk and asset
363363 allocation of the children's future fund; and
364364 (12) other matters as determined by the task
365365 force.
366366 F. The children's future task force shall, by
367367 December 31, report its findings, recommendations and any
368368 proposed legislation to the governor and the legislature.
369369 G. As used in this section, "beneficiary" means a
370370 person born in New Mexico on or after January 1, 2025 and whose
371371 primary residence is in and remains in New Mexico.
372372 SECTION 8. APPROPRIATION.--Five million dollars
373373 ($5,000,000) is appropriated from the general fund to the
374374 children's future fund for expenditure in fiscal year 2026 and
375375 subsequent fiscal years for the purposes of the children's
376376 future fund. Any unexpended or unencumbered balance remaining
377377 at the end of a fiscal year shall not revert to the general
378378 fund.
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