underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
HOUSE BILL 71
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Doreen Y. Gallegos
AN ACT
RELATING TO PUBLIC FINANCE; INCREASING THE AMOUNT THAT IS
ANNUALLY TRANSFERRED TO THE EARLY CHILDHOOD EDUCATION AND CARE
PROGRAM FUND FROM THE EARLY CHILDHOOD EDUCATION AND CARE FUND.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 9-29A-1 NMSA 1978 (being Laws 2020,
Chapter 3, Section 1, as amended) is amended to read:
"9-29A-1. EARLY CHILDHOOD EDUCATION AND CARE FUND.--
A. The "early childhood education and care fund" is
created within the state treasury. The fund shall consist of
distributions, appropriations, gifts, grants and donations.
Income from investment of the fund shall be credited to the
fund. Money in the fund shall be expended only as provided in
this section.
B. The state investment officer, subject to the
.229474.1 underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
approval of the state investment council, shall invest money in
the early childhood education and care fund:
(1) in accordance with the prudent investor
rule set forth in the Uniform Prudent Investor Act; and
(2) in consultation with the state treasurer.
C. The state investment officer shall report
quarterly to the legislative finance committee and the state
investment council on the investments made pursuant to this
section. Annually, a report shall be submitted no later than
October 1 each year to the legislative finance committee, the
revenue stabilization and tax policy committee and any other
appropriate interim committees.
D. On July 1 of each year, a distribution shall be
made from the early childhood education and care fund to the
early childhood education and care program fund in an amount
equal to the greater of five percent of the average of the
year-end market values of the fund for the immediately
preceding three calendar years or [two hundred fifty million
dollars ($250,000,000) ] five hundred million dollars
($500,000,000).
E. In addition to the distribution pursuant to
Subsection D of this section, money in the early childhood
education and care fund may be expended in the event that
general fund balances, including all authorized revenues and
transfers to the general fund and balances in the general fund
.229474.1
- 2 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
operating reserve, the appropriation contingency fund, the
tobacco settlement permanent fund, the state-support reserve
fund and the tax stabilization reserve, will not meet the level
of appropriations authorized from the general fund for a fiscal
year. In that event, to avoid an unconstitutional deficit, the
legislature may appropriate from the early childhood education
and care fund to the general fund only in the amount necessary
to meet general fund appropriations for that fiscal year and
only if the legislature has authorized transfers from the
appropriation contingency fund, the general fund operating
reserve, the tax stabilization reserve and the tobacco
settlement permanent fund that exhaust those fund balances."
SECTION 2. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
- 3 -
.229474.1