New Mexico 2025 Regular Session

New Mexico Senate Bill SB167 Compare Versions

Only one version of the bill is available at this time.

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28	28	SENATE BILL 167
29	29	57
30	30	TH LEGISLATURE
31	31	-
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33	33	STATE
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35	35	OF
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39	39	MEXICO
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42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Michael Padilla
48	48	AN ACT
49	49	RELATING TO EARLY CHILDHOOD FUNDING; TRANSFERRING THE BALANCE
50	50	OF THE EARLY CHILDHOOD EDUCATION AND CARE FUND TO THE EARLY
51	51	CHILDHOOD TRUST FUND; RECOMPILING AND AMENDING CERTAIN EARLY
52	52	CHILDHOOD FUNDS; EXPANDING THE PURPOSES FOR WHICH MONEY IN THE
53	53	FUNDS MAY BE USED TO INCLUDE PRENATAL PROGRAMS AND SERVICES;
54	54	PROVIDING AN EFFECTIVE DATE CONTINGENT ON APPROVAL OF A
55	55	CONSTITUTIONAL AMENDMENT CREATING THE EARLY CHILDHOOD TRUST
56	56	FUND.
57	57	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
58	58	SECTION 1. Section 6-4-27 NMSA 1978 (being Laws 2020,
59	59	Chapter 3, Section 4, as amended) is amended to read:
60	60	"6-4-27. EXCESS EXTRACTION TAXES SUSPENSE FUND--TRANSFER
61	61	OF EXCESS OIL AND GAS EMERGENCY SCHOOL TAX REVENUE--TAX
62	62	STABILIZATION RESERVE--EARLY CHILDHOOD [EDUCATION AND CARE ]
63	63	.229674.3SA underscored material = new
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90	90	TRUST FUND--SEVERANCE TAX PERMANENT FUND.--
91	91	A. The "excess extraction taxes suspense fund" is
92	92	created as a nonreverting fund in the state treasury. Money in
93	93	the fund shall only be used to make transfers by the department
94	94	of finance and administration as required by this section.
95	95	B. At the end of each fiscal year, the department
96	96	of finance and administration shall calculate and transfer the
97	97	balance of the fund attributable to that fiscal year as
98	98	follows:
99	99	(1) if in the current fiscal year the total
100	100	net receipts attributable to the tax imposed pursuant to
101	101	Section 7-31-4 NMSA 1978 and distributed pursuant to Section
102	102	7-1-6.20 NMSA 1978 exceed the annual average amount, the
103	103	department shall distribute the excess amount above the annual
104	104	average amount as follows:
105	105	(a) to the tax stabilization reserve,
106	106	the amount necessary to bring the balance of state reserves to
107	107	a level equal to twenty-five percent of the aggregate recurring
108	108	appropriations for that fiscal year from the general fund, as
109	109	determined by the department; provided that, if the balance in
110	110	the excess extraction taxes suspense fund is not sufficient to
111	111	meet that level, the entire balance shall be transferred to the
112	112	tax stabilization reserve; and
113	113	(b) to the early childhood [education
114	114	and care] trust fund, the balance of the excess amount above
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143	143	the annual average amount, if any, after the transfer is made
144	144	pursuant to Subparagraph (a) of this paragraph; and
145	145	(2) the remaining balance of the fund, if any,
146	146	shall be distributed to the severance tax permanent fund.
147	147	C. As used in this section:
148	148	(1) "annual average amount" means the total
149	149	net receipts attributable to the tax imposed pursuant to
150	150	Section 7-31-4 NMSA 1978 and distributed pursuant to Section
151	151	7-1-6.20 NMSA 1978 in the immediately preceding five fiscal
152	152	years, divided by five; and
153	153	(2) "state reserves" means the general fund
154	154	balances, as determined by the department of finance and
155	155	administration, including all authorized revenues and transfers
156	156	to the general fund and balances in the appropriation
157	157	contingency fund, the general fund operating reserve, the
158	158	state-support reserve fund and the tax stabilization reserve."
159	159	SECTION 2. Section 9-29A-3 NMSA 1978 (being Laws 2020,
160	160	Chapter 3, Section 3, as amended) is recompiled as Section
161	161	6-4-27.1 NMSA 1978 and is amended to read:
162	162	"6-4-27.1. DISTRIBUTION--EARLY CHILDHOOD [EDUCATION AND
163	163	CARE] TRUST FUND--SEVERANCE TAX PERMANENT FUND--PAYMENTS
164	164	PURSUANT TO FEDERAL MINERAL LEASING ACT.--
165	165	A. If, by June 30 of each fiscal year, the net
166	166	receipts for that fiscal year of the money received by the
167	167	state pursuant to the federal Mineral Leasing Act exceed the
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196	196	annual average amount, the excess amount above the annual
197	197	average amount shall be distributed to the early childhood
198	198	[education and care] trust fund and attributed to that fiscal
199	199	year.
200	200	B. If, by [June 30, 2025, and by ] June 30 of each
201	201	fiscal year, [thereafter ] the remaining amount of the net
202	202	receipts for that fiscal year of the money received by the
203	203	state pursuant to the federal Mineral Leasing Act after the
204	204	distribution pursuant to Subsection A of this section exceeds
205	205	the threshold amount, the excess shall be distributed to the
206	206	severance tax permanent fund.
207	207	C. The department of finance and administration
208	208	shall make the calculations to determine if excess amounts
209	209	shall be distributed pursuant to this section. If there is an
210	210	excess amount, the distribution shall be made as soon as
211	211	practicable. If there is not an excess amount, no distribution
212	212	shall be made.
213	213	D. As used in this section:
214	214	(1) "annual average amount" means the total
215	215	net receipts attributable to money received by the state
216	216	pursuant to the federal Mineral Leasing Act in the immediately
217	217	preceding five fiscal years, divided by five; and
218	218	(2) "threshold amount" means the net receipts
219	219	of the money received by the state pursuant to the federal
220	220	Mineral Leasing Act distributed in fiscal year 2024 pursuant to
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249	249	Subsection B of Section 22-8-34 NMSA 1978."
250	250	SECTION 3. Section 9-29A-1 NMSA 1978 (being Laws 2020,
251	251	Chapter 3, Section 1, as amended) recompiled as Section 6-4-34
252	252	NMSA 1978 and is amended to read:
253	253	"6-4-34. EARLY CHILDHOOD [EDUCATION AND CARE ] TRUST
254	254	FUND.--
255	255	A. The early childhood [education and care ] trust
256	256	fund [is created within the state treasury. The fund ] created
257	257	by Article 20, Section 23 of the constitution of New Mexico
258	258	shall consist of distributions, appropriations, gifts, grants
259	259	and donations. Income from investment of the fund shall be
260	260	credited to the fund. Money in the fund shall be expended only
261	261	as [provided in this section ] authorized by Article 20, Section
262	262	23 of the constitution of New Mexico .
263	263	B. The state investment officer, subject to the
264	264	approval of the state investment council, shall invest money in
265	265	the [early childhood education and care ] fund:
266	266	(1) in accordance with the prudent investor
267	267	rule set forth in the Uniform Prudent Investor Act; and
268	268	(2) in consultation with the [state treasurer ]
269	269	secretary of early childhood education and care .
270	270	C. The state investment officer shall report
271	271	quarterly to the legislative finance committee and the state
272	272	investment council on the investments made pursuant to this
273	273	section. Annually, a report shall be submitted no later than
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302	302	October 1 each year to the legislative finance committee, the
303	303	revenue stabilization and tax policy committee and any other
304	304	appropriate interim committees.
305	305	D. On July 1 of each year, a distribution shall be
306	306	made from the [early childhood education and care ] fund to the
307	307	early childhood [education and care ] program fund in an amount
308	308	equal to the greater of five percent of the average of the
309	309	year-end market values of the fund for the immediately
310	310	preceding three calendar years or [two hundred fifty million
311	311	dollars ($250,000,000) ] five hundred million dollars
312	312	($500,000,000).
313	313	E. In addition to the distribution pursuant to
314	314	Subsection D of this section, money in the [early childhood
315	315	education and care] fund may be expended in the event that
316	316	general fund balances, including all authorized revenues and
317	317	transfers to the general fund and balances in the general fund
318	318	operating reserve, the appropriation contingency fund, [the
319	319	tobacco settlement permanent fund ] the state-support reserve
320	320	fund and the tax stabilization reserve, will not meet the level
321	321	of appropriations authorized from the general fund for [a ] the
322	322	current fiscal year. In that event, to avoid an
323	323	unconstitutional deficit, the legislature may appropriate from
324	324	the [early childhood education and care ] fund to the general
325	325	fund only in the amount necessary to meet general fund
326	326	appropriations for that fiscal year and only if the legislature
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355	355	has authorized transfers from the appropriation contingency
356	356	fund, the general fund operating reserve and the tax
357	357	stabilization reserve [and the tobacco settlement permanent
358	358	fund] that exhaust those fund balances."
359	359	SECTION 4. Section 9-29A-2 NMSA 1978 (being Laws 2020,
360	360	Chapter 3, Section 2, as amended) is recompiled as Section
361	361	6-4-35 NMSA 1978 and is amended to read:
362	362	"6-4-35. EARLY CHILDHOOD [EDUCATION AND CARE ] PROGRAM
363	363	FUND.--The "early childhood [education and care ] program fund"
364	364	is created in the state treasury. The fund consists of
365	365	distributions, appropriations, gifts, grants, donations and
366	366	income from investment of the fund. The early childhood
367	367	education and care department shall administer the fund. Money
368	368	in the fund is subject to appropriation by the legislature for
369	369	prenatal programs and services and for early childhood
370	370	[education and care services and ] programs and services for
371	371	children until they are eligible for kindergarten .
372	372	Expenditures from the fund shall be by warrant of the secretary
373	373	of finance and administration pursuant to vouchers signed by
374	374	the secretary of early childhood education and care or the
375	375	secretary's authorized representative. Any unexpended or
376	376	unencumbered balance in the fund at the end of a fiscal year
377	377	shall revert to the early childhood [education and care ] trust
378	378	fund."
379	379	SECTION 5. TEMPORARY PROVISION.--The balance of the early
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408	408	childhood education and care fund shall be transferred to the
409	409	early childhood trust fund.
410	410	SECTION 6. CONTINGENT EFFECTIVE DATE.--The provisions of
411	411	this act shall become effective upon certification by the
412	412	secretary of state that the constitution of New Mexico has been
413	413	amended as proposed by a joint resolution of the first session
414	414	of the fifty-seventh legislature entitled "PROPOSING TO ADD A
415	415	NEW SECTION 23 OF ARTICLE 20 OF THE CONSTITUTION OF NEW MEXICO
416	416	TO CREATE THE EARLY CHILDHOOD TRUST FUND TO BE USED EXCLUSIVELY
417	417	FOR PRENATAL AND EARLY CHILDHOOD PROGRAMS AND SERVICES, EXCEPT
418	418	WHEN STATE FUNDS WILL NOT MEET PREVIOUSLY AUTHORIZED
419	419	EXPENSES.".
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