NM
New Mexico Senate Bill SB162

New Mexico 2025 Regular Session

New Mexico Senate Bill SB162 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 underscored material = new
22 [bracketed material] = delete
33 1
44 2
55 3
66 4
77 5
88 6
99 7
1010 8
1111 9
1212 10
1313 11
1414 12
1515 13
1616 14
1717 15
1818 16
1919 17
2020 18
2121 19
2222 20
2323 21
2424 22
2525 23
2626 24
2727 25
2828 SENATE BILL 162
2929 57
3030 TH LEGISLATURE
3131 -
3232
3333 STATE
3434
3535 OF
3636
3737 NEW
3838
3939 MEXICO
4040
4141 -
4242 FIRST SESSION
4343 ,
4444
4545 2025
4646 INTRODUCED BY
4747 Pete Campos
4848 FOR THE LEGISLATIVE FINANCE COMMITTEE
4949 AN ACT
5050 RELATING TO THE SEVERANCE TAX PERMANENT FUND; CHANGING THE
5151 AMOUNT OF THE FUND TO BE INVESTED IN NEW MEXICO PRIVATE EQUITY
5252 FUNDS OR NEW MEXICO BUSINESSES.
5353 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
5454 SECTION 1. Section 7-27-5.15 NMSA 1978 (being Laws 1990,
5555 Chapter 126, Section 5, as amended) is amended to read:
5656 "7-27-5.15. NEW MEXICO PRIVATE EQUITY FUNDS AND NEW
5757 MEXICO BUSINESS INVESTMENTS.--
5858 A. [In addition to the investments required by
5959 Subsections F and G of this section ] No more than [eleven
6060 percent of the market value ] seven hundred million dollars
6161 ($700,000,000) of the severance tax permanent fund may be
6262 invested in New Mexico private equity funds or New Mexico
6363 businesses under this section.
6464 .229471.3 underscored material = new
6565 [bracketed material] = delete
6666 1
6767 2
6868 3
6969 4
7070 5
7171 6
7272 7
7373 8
7474 9
7575 10
7676 11
7777 12
7878 13
7979 14
8080 15
8181 16
8282 17
8383 18
8484 19
8585 20
8686 21
8787 22
8888 23
8989 24
9090 25
9191 B. In making investments pursuant to Subsection A
9292 of this section, the council shall make investments in New
9393 Mexico private equity funds or New Mexico businesses whose
9494 investments or enterprises enhance the economic development
9595 objectives of the state.
9696 C. The state investment officer shall make
9797 investments pursuant to Subsection A of this section only upon
9898 approval of the council and within guidelines and policies
9999 established by the council.
100100 D. As used in this section:
101101 (1) "New Mexico business" means, in the case
102102 of a corporation or limited liability company, a business with
103103 its principal office and a majority of its full-time employees
104104 located in New Mexico or, in the case of a limited partnership,
105105 a business with its principal place of business and eighty
106106 percent of its assets located in New Mexico; and
107107 (2) "New Mexico private equity fund" means an
108108 entity that makes, manages or sources potential investments in
109109 New Mexico businesses and that:
110110 (a) has as its primary business activity
111111 the investment of funds in return for equity in or debt of
112112 businesses for the purpose of providing capital for start-up,
113113 expansion, product or market development, recapitalization or
114114 similar business purposes;
115115 (b) holds out the prospects for capital
116116 .229471.3
117117 - 2 - underscored material = new
118118 [bracketed material] = delete
119119 1
120120 2
121121 3
122122 4
123123 5
124124 6
125125 7
126126 8
127127 9
128128 10
129129 11
130130 12
131131 13
132132 14
133133 15
134134 16
135135 17
136136 18
137137 19
138138 20
139139 21
140140 22
141141 23
142142 24
143143 25
144144 appreciation from such investments;
145145 (c) has at least one full-time manager
146146 with at least three years of professional experience in
147147 assessing the growth prospects of businesses or evaluating
148148 business plans;
149149 (d) is committed to investing or helps
150150 secure investing by others, in an amount at least equal to the
151151 total investment made by the state investment officer in that
152152 fund pursuant to this section, in businesses with a principal
153153 place of business in New Mexico and that hold promise for
154154 attracting additional capital from individual or institutional
155155 investors nationwide for businesses in New Mexico; and
156156 (e) accepts investments only from
157157 accredited investors as that term is defined in Section 2 of
158158 the federal Securities Act of 1933, as amended (15 USCA Section
159159 77(b)), and rules and regulations promulgated pursuant to that
160160 section, or federally recognized Indian tribes, nations and
161161 pueblos with at least five million dollars ($5,000,000) in
162162 overall investment assets.
163163 E. The state investment officer is authorized to
164164 make investments in New Mexico businesses to create new job
165165 opportunities and to support new, emerging or expanding
166166 businesses in a manner consistent with the constitution of New
167167 Mexico if:
168168 (1) the investments are made:
169169 .229471.3
170170 - 3 - underscored material = new
171171 [bracketed material] = delete
172172 1
173173 2
174174 3
175175 4
176176 5
177177 6
178178 7
179179 8
180180 9
181181 10
182182 11
183183 12
184184 13
185185 14
186186 15
187187 16
188188 17
189189 18
190190 19
191191 20
192192 21
193193 22
194194 23
195195 24
196196 25
197197 (a) in conjunction with cooperative
198198 investment agreements with parties that have demonstrated
199199 abilities and relationships in making investments in new,
200200 emerging or expanding businesses;
201201 (b) in a New Mexico aerospace business
202202 that has received an award from the United States government or
203203 one of its agencies or instrumentalities: 1) in an amount, not
204204 less than one hundred million dollars ($100,000,000), that is
205205 equal to at least ten times the investment from the severance
206206 tax permanent fund; and 2) for the purpose of stimulating
207207 commercial enterprises; or
208208 (c) in a New Mexico business that: 1)
209209 is established to perform technology transfer, research and
210210 development, research commercialization, manufacturing,
211211 training, marketing or public relations in any field of science
212212 or technology, including [but not limited to ] energy, security,
213213 defense, aerospace, automotives, electronics,
214214 telecommunications, computer and information science,
215215 environmental science, biomedical science, life science,
216216 physical science, materials science or nanoscience, using
217217 research developed in whole or in part by a state institution
218218 of higher education or a prime contractor designated as a
219219 national laboratory by an act of congress that is operating a
220220 facility in the state, or an affiliated entity; and 2) has an
221221 agreement to operate the business on state lands;
222222 .229471.3
223223 - 4 - underscored material = new
224224 [bracketed material] = delete
225225 1
226226 2
227227 3
228228 4
229229 5
230230 6
231231 7
232232 8
233233 9
234234 10
235235 11
236236 12
237237 13
238238 14
239239 15
240240 16
241241 17
242242 18
243243 19
244244 20
245245 21
246246 22
247247 23
248248 24
249249 25
250250 (2) an investment in any one business does not
251251 exceed ten percent of the amount available for investment
252252 pursuant to this section; and
253253 (3) the investments represent no more than
254254 fifty-one percent of the total investment capital in a
255255 business; provided, however, that nothing in this subsection
256256 prohibits the ownership of more than fifty-one percent of the
257257 total investment capital in a New Mexico business if the
258258 additional ownership interest:
259259 (a) is due to foreclosure or other
260260 action by the state investment officer pursuant to agreements
261261 with the business or other investors in that business;
262262 (b) is necessary to protect the
263263 investment; and
264264 (c) does not require an additional
265265 investment of the severance tax permanent fund.
266266 F. [In addition to the investments required by
267267 Subsections A and G of this section ] The state investment
268268 officer shall make a commitment to the small business
269269 investment corporation pursuant to the Small Business
270270 Investment Act to invest two percent of the market value of the
271271 severance tax permanent fund to create new job opportunities by
272272 providing capital for land, buildings or infrastructure for
273273 facilities to support new or expanding businesses and to
274274 otherwise make investments to create new job opportunities to
275275 .229471.3
276276 - 5 - underscored material = new
277277 [bracketed material] = delete
278278 1
279279 2
280280 3
281281 4
282282 5
283283 6
284284 7
285285 8
286286 9
287287 10
288288 11
289289 12
290290 13
291291 14
292292 15
293293 16
294294 17
295295 18
296296 19
297297 20
298298 21
299299 22
300300 23
301301 24
302302 25
303303 support new or expanding businesses in a manner consistent with
304304 the constitution of New Mexico. On July 1 of each year, the
305305 state investment officer shall determine whether the invested
306306 capital in the small business investment corporation is less
307307 than two percent of the market value of the severance tax
308308 permanent fund. If the invested capital in the small business
309309 investment corporation equals less than two percent of the
310310 market value of the severance tax permanent fund, further
311311 commitments shall be made until the invested capital is equal
312312 to two percent of the market value of the fund.
313313 G. [In addition to the investments provided for in
314314 Subsections A and F of this section ] The state investment
315315 officer shall make a commitment to the New Mexico finance
316316 authority to invest five hundred million dollars ($500,000,000)
317317 of the severance tax permanent fund in investments made
318318 pursuant to the Small Business Recovery and Stimulus Act;
319319 provided that:
320320 (1) investments made pursuant to and in
321321 compliance with the Small Business Recovery and Stimulus Act
322322 shall be deemed to be in compliance with the prudent investor
323323 rule set forth in the Uniform Prudent Investor Act; and
324324 (2) the New Mexico finance authority shall not
325325 be held liable for investments made pursuant to this subsection
326326 that do not provide a return on investment that is comparable
327327 to other differential rate investments made pursuant to the
328328 .229471.3
329329 - 6 - underscored material = new
330330 [bracketed material] = delete
331331 1
332332 2
333333 3
334334 4
335335 5
336336 6
337337 7
338338 8
339339 9
340340 10
341341 11
342342 12
343343 13
344344 14
345345 15
346346 16
347347 17
348348 18
349349 19
350350 20
351351 21
352352 22
353353 23
354354 24
355355 25
356356 Severance Tax Bonding Act.
357357 H. The state investment officer shall report
358358 semiannually on the investments made pursuant to this section.
359359 Annually, a report shall be submitted to the legislature prior
360360 to the beginning of each regular legislative session and a
361361 second report no later than October 1 each year to the
362362 legislative finance committee, the revenue stabilization and
363363 tax policy committee and any other appropriate interim
364364 committee. Each report shall provide the amounts invested in
365365 each New Mexico private equity fund, as well as information
366366 about the objectives of the funds, the companies in which each
367367 private equity fund is invested and how each private equity
368368 investment enhances the economic development objectives of the
369369 state. Each report also shall provide the amounts invested in
370370 each New Mexico business."
371371 SECTION 2. EFFECTIVE DATE.--The effective date of the
372372 provisions of this act is July 1, 2025.
373373 - 7 -
374374 .229471.3