New Mexico 2025 Regular Session

New Mexico Senate Bill SB202 Compare Versions

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

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28	28	SENATE BILL 202
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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37	37	NEW
38	38
39	39	MEXICO
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42	42	FIRST SESSION
43	43	,
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45	45	2025
46	46	INTRODUCED BY
47	47	Roberto "Bobby" J. Gonzales
48	48	FOR THE LEGISLATIVE FINANCE COMMITTEE
49	49	AN ACT
50	50	RELATING TO PUBLIC FINANCE; STANDARDIZING LANGUAGE IN FUNDS
51	51	MANAGED BY THE STATE INVESTMENT OFFICER; INCLUDING ALL FUNDS
52	52	INVESTED BY THE STATE INVESTMENT OFFICER IN CHAPTER 6, ARTICLE
53	53	8 NMSA 1978; REMOVING THE STATE INVESTMENT OFFICER AS THE
54	54	INVESTMENT MANAGER IN CERTAIN FUNDS; MOVING THE CAPITAL
55	55	DEVELOPMENT PROGRAM FUND TO THE STATE TREASURY AND REDUCING THE
56	56	AMOUNT OF TIME THAT MONEY IN THE FUND WILL REVERT BY ONE YEAR;
57	57	REDUCING THE AMOUNT OF TIME THAT UNRESERVED AND UNDESIGNATED
58	58	FUNDS OF STATE AGENCIES WILL REVERT BY ONE MONTH; REQUIRING
59	59	THAT FEES COLLECTED BY THE CANNABIS CONTROL DIVISION OF THE
60	60	REGULATION AND LICENSING DEPARTMENT BE DEPOSITED IN THE
61	61	REGULATION AND LICENSING DEPARTMENT OPERATING FUND; REPEALING
62	62	AN OUTDATED SECTION OF CHAPTER 6, ARTICLE 8 NMSA 1978.
63	63	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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91	91	SECTION 1. Section 6-4-9 NMSA 1978 (being Laws 1999,
92	92	Chapter 207, Section 1, as amended) is amended to read:
93	93	"6-4-9. TOBACCO SETTLEMENT PERMANENT FUND--INVESTMENT--
94	94	DISTRIBUTION.--
95	95	A. The "tobacco settlement permanent fund" is
96	96	created as a nonreverting fund in the state treasury. The fund
97	97	is not a reserve fund of the state. The fund shall consist of
98	98	money distributed to the state pursuant to the master
99	99	settlement agreement entered into between tobacco product
100	100	manufacturers and various states, including New Mexico, and
101	101	executed November 23, 1998 or any money released to the state
102	102	from a qualified escrow fund or otherwise paid to the state as
103	103	authorized by Section 6-4-13 NMSA 1978, enacted pursuant to the
104	104	master settlement agreement or as otherwise authorized by law.
105	105	Money in the fund shall be invested by the state investment
106	106	officer in accordance with the [limitations in Article 12,
107	107	Section 7 of the constitution of New Mexico ] prudent investor
108	108	rule as set forth in the Uniform Prudent Investor Act . Income
109	109	from investment of the fund shall be credited to the fund.
110	110	Money in the fund shall not be expended for any purpose, except
111	111	as provided in this section.
112	112	B. In each fiscal year, an annual distribution
113	113	shall be made from the tobacco settlement permanent fund to the
114	114	tobacco settlement program fund of an amount equal to four and
115	115	seven-tenths percent of the average of the year-end market
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144	144	values of the tobacco settlement permanent fund for the
145	145	immediately preceding five calendar years. In the event that
146	146	the actual amount distributed to the tobacco settlement program
147	147	fund in a fiscal year is insufficient to meet appropriations
148	148	from that fund for that fiscal year, the secretary of finance
149	149	and administration shall proportionately reduce each
150	150	appropriation accordingly.
151	151	C. Money in the tobacco settlement permanent fund
152	152	may be expended in the event that general fund balances,
153	153	including all authorized revenues and transfers to the general
154	154	fund and balances in the general fund operating reserve, the
155	155	appropriation contingency fund and the tax stabilization
156	156	reserve, will not meet the level of appropriations authorized
157	157	from the general fund for a fiscal year. In that event, in
158	158	order to avoid an unconstitutional deficit, the legislature may
159	159	authorize a transfer from the tobacco settlement permanent fund
160	160	to the general fund but only in an amount necessary to meet
161	161	general fund appropriations."
162	162	SECTION 2. Section 6-4-28 NMSA 1978 (being Laws 2023,
163	163	Chapter 166, Section 1) is amended to read:
164	164	"6-4-28. OPIOID SETTLEMENT RESTRICTED FUND CREATED--
165	165	ADMINISTRATION--INCOME TO THE FUND.--
166	166	A. The "opioid settlement restricted fund" is
167	167	created as a nonreverting fund in the state treasury, separate
168	168	and distinct from the general fund. The opioid settlement
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197	197	restricted fund consists of money, other than attorney fees and
198	198	costs, paid to the state pursuant to the New Mexico opioid
199	199	allocation agreement and pursuant to:
200	200	(1) the distributor settlement agreement; and
201	201	(2) opioid settlements.
202	202	B. The opioid settlement restricted fund also
203	203	consists of appropriations and donations. Money in the fund
204	204	shall be invested by the state investment officer in accordance
205	205	with [law] the prudent investor rule as set forth in the
206	206	Uniform Prudent Investor Act . Income from investment of the
207	207	fund shall be credited to the fund.
208	208	C. Opioid funds designated by the New Mexico opioid
209	209	allocation agreement to be distributed to local governments
210	210	shall not be deposited into the fund.
211	211	D. Appropriations from the opioid settlement
212	212	restricted fund shall only be made to the opioid crisis
213	213	recovery fund and shall not be made for any other purpose.
214	214	E. On July 1, 2024, a distribution shall be made
215	215	from the opioid settlement restricted fund to the opioid crisis
216	216	recovery fund in an amount equal to five percent of the year-
217	217	end market value of the opioid settlement restricted fund for
218	218	the immediately preceding fiscal year.
219	219	F. On July 1, 2025, a distribution shall be made
220	220	from the opioid settlement restricted fund to the opioid crisis
221	221	recovery fund in an amount equal to five percent of the average
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250	250	of the year-end market value of the opioid settlement
251	251	restricted fund for the immediately preceding two calendar
252	252	years.
253	253	G. On July 1, 2026, and on each July 1 thereafter,
254	254	a distribution shall be made from the opioid settlement
255	255	restricted fund to the opioid crisis recovery fund in an amount
256	256	equal to five percent of the average of the year-end market
257	257	values of the opioid settlement restricted fund for the
258	258	immediately preceding three calendar years.
259	259	H. For the purposes of this section:
260	260	(1) "distributor settlement agreement" means
261	261	the settlement agreement between the state and participating
262	262	political subdivisions and opioid distributors, including
263	263	McKesson corporation, Cardinal health and AmerisourceBergen
264	264	corporation, dated as of July 21, 2021 and any revision to the
265	265	agreement;
266	266	(2) "local government" means every litigating
267	267	county and municipality, each county regardless of population
268	268	and each municipality with a population exceeding ten thousand
269	269	according to the latest federal decennial census, any special
270	270	district identified in the distributor settlement agreement and
271	271	any local government identified in the New Mexico opioid
272	272	allocation agreement within the geographic boundaries of New
273	273	Mexico;
274	274	(3) "New Mexico opioid allocation agreement"
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303	303	means the agreement entered into between the state and various
304	304	local governments on March 7, 2022 that relates to the
305	305	allocation of opioid funds in New Mexico;
306	306	(4) "opioid funds" means money obtained
307	307	through judgments or settlements as arising from the liability
308	308	of distributors of opioids, manufacturers of opioids,
309	309	pharmacies for the selling of opioids or the consultants,
310	310	agents or associates of distributors, manufacturers or
311	311	pharmacies; and
312	312	(5) "opioid settlements" means judgments or
313	313	settlements arising from the liability of distributors of
314	314	opioids, manufacturers of opioids, pharmacies for the selling
315	315	of opioids or the consultants, agents or associates of
316	316	distributors, manufacturers or pharmacies."
317	317	SECTION 3. Section 6-4-32 NMSA 1978 (being Laws 2024,
318	318	Chapter 61, Section 1) is amended to read:
319	319	"6-4-32. HIGHER EDUCATION TRUST FUND.--
320	320	A. The "higher education trust fund" is created as
321	321	a nonreverting fund in the state treasury. The fund consists
322	322	of distributions, appropriations, gifts, grants and donations.
323	323	Income from investment of the fund shall be credited to the
324	324	fund. Money in the fund shall be expended only as provided in
325	325	this section.
326	326	B. The state investment officer, subject to the
327	327	approval of the state investment council, shall invest money in
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356	356	the fund:
357	357	(1) in accordance with the prudent investor
358	358	rule set forth in the Uniform Prudent Investor Act; and
359	359	(2) in consultation with the [state treasurer ]
360	360	secretary of higher education .
361	361	C. The state investment officer shall report
362	362	quarterly to the legislative finance committee and the state
363	363	investment council on the investments made pursuant to this
364	364	section. Annually, a report shall be submitted no later than
365	365	October 1 each year to the legislative finance committee, the
366	366	revenue stabilization and tax policy committee and any other
367	367	appropriate interim committees.
368	368	D. On July 1, 2024, a distribution shall be made
369	369	from the trust fund to the higher education program fund in an
370	370	amount equal to forty-seven million nine hundred fifty thousand
371	371	dollars ($47,950,000).
372	372	E. On July 1, 2025 and each July 1 thereafter, a
373	373	distribution shall be made from the trust fund to the higher
374	374	education program fund in an amount equal to five percent of
375	375	the average of the year-end market values of the trust fund for
376	376	the immediately preceding three calendar years. If, on July 1
377	377	of a year, the trust fund has been in effect for less than
378	378	three calendar years, the distribution shall be in an amount
379	379	equal to five percent of the average of the year-end market
380	380	values of the trust fund for the immediately preceding number
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409	409	of calendar years that the trust fund has been in effect.
410	410	F. In addition to the distribution pursuant to
411	411	Subsections D and E of this section, money in the higher
412	412	education trust fund may be expended in the event that general
413	413	fund balances, including all authorized revenues and transfers
414	414	to the general fund and balances in the general fund operating
415	415	reserve, the appropriation contingency fund and the tax
416	416	stabilization reserve, will not meet the level of
417	417	appropriations authorized from the general fund for a fiscal
418	418	year. In that event, to avoid an unconstitutional deficit, the
419	419	legislature may appropriate from the trust fund to the general
420	420	fund only in the amount necessary to meet general fund
421	421	appropriations for that fiscal year and only if the legislature
422	422	has authorized transfers from the appropriation contingency
423	423	fund, the general fund operating reserve and the tax
424	424	stabilization reserve that exhaust those fund balances."
425	425	SECTION 4. Section 6-5-10 NMSA 1978 (being Laws 1994,
426	426	Chapter 11, Section 1, as amended) is amended to read:
427	427	"6-5-10. STATE AGENCY REVERSIONS--DIRECTOR POWERS--
428	428	COMPLIANCE WITH FEDERAL RULES.--
429	429	A. Except as provided in [Subsections B and C ]
430	430	Subsection B of this section, all unreserved undesignated fund
431	431	balances in reverting funds and accounts as reflected in the
432	432	central financial reporting and accounting system as of June 30
433	433	shall revert by [September 30 ] August 31 to the general fund.
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462	462	The division may adjust the reversion within forty-five days of
463	463	release of the audit report for that fiscal year.
464	464	B. The director of the division may modify a
465	465	reversion required pursuant to Subsection A of this section if
466	466	the reversion would violate federal law or rules pertaining to
467	467	supplanting of state funds with federal funds or other
468	468	applicable federal provisions."
469	469	SECTION 5. Section 6-8-1 NMSA 1978 (being Laws 1957,
470	470	Chapter 179, Section 1, as amended) is amended to read:
471	471	"6-8-1. DEFINITIONS.--As used in Chapter 6, Article 8
472	472	NMSA 1978:
473	473	A. "council" means the state investment council;
474	474	B. "department" means the department of finance and
475	475	administration;
476	476	C. "investment fund" means any fund managed or
477	477	invested by the state investment officer or the state
478	478	investment council as required by law;
479	479	[C.] D. "land grant permanent funds" means the
480	480	permanent school fund established by Article 12, Section 2 of
481	481	the constitution of New Mexico and all other permanent funds
482	482	derived from lands granted or confirmed to the state by the act
483	483	of congress of June 20, 1910, entitled "An Act To enable the
484	484	people of New Mexico to form a constitution and state
485	485	government and be admitted into the Union on an equal footing
486	486	with the original States...";
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515	515	[D. "permanent funds" means the land grant
516	516	permanent funds, rural libraries endowment fund, severance tax
517	517	permanent fund, tobacco settlement permanent fund, conservation
518	518	legacy permanent fund and water trust fund; ]
519	519	E. "secretary" means the secretary of finance and
520	520	administration;
521	521	F. "severance tax permanent fund" means the fund
522	522	established by Article 8, Section 10 of the constitution of New
523	523	Mexico;
524	524	G. "tobacco settlement permanent fund" means the
525	525	fund established by Section 6-4-9 NMSA 1978; and
526	526	H. "water trust fund" means the fund established by
527	527	Article 16, Section 6 of the constitution of New Mexico."
528	528	SECTION 6. Section 6-8-7 NMSA 1978 (being Laws 1957,
529	529	Chapter 179, Section 7, as amended) is amended to read:
530	530	"6-8-7. POWERS AND DUTIES OF THE STATE INVESTMENT COUNCIL
531	531	AND STATE INVESTMENT OFFICER--INVESTMENT POLICY--INVESTMENT
532	532	MANAGERS.--
533	533	A. Subject to the limitations, conditions and
534	534	restrictions contained in policymaking regulations or
535	535	resolutions adopted by the council, the council may make
536	536	purchases, sales, exchanges, investments and reinvestments of
537	537	the assets of all funds in accordance with the Uniform Prudent
538	538	Investor Act. The state investment officer and the council are
539	539	trustees of all funds under their control and shall see that
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568	568	money invested is at all times handled in the best interests of
569	569	the state. The council may delegate administrative and
570	570	investment-related functions to the state investment officer.
571	571	B. The state investment officer shall formulate and
572	572	recommend to the council for approval investment regulations or
573	573	resolutions pertaining to the kind or nature of investments and
574	574	limitations, conditions and restrictions upon the methods,
575	575	practices or procedures for investment, reinvestment, purchase,
576	576	sale or exchange transactions that should govern the activities
577	577	of the investment office.
578	578	C. The council shall meet at least ten times per
579	579	year, and as often as exigencies may demand, to consult with
580	580	the state investment officer concerning the work of the
581	581	investment office. The council shall have access to all files
582	582	and records of the investment office and shall require the
583	583	state investment officer to report on and provide information
584	584	necessary to the performance of council functions. The council
585	585	may hire investment management or consulting firms to advise
586	586	the council with respect to the council's investment decisions
587	587	for the investment of funds managed by the investment office
588	588	and pay reasonable compensation for such management or
589	589	consulting services from the assets of the applicable funds,
590	590	subject to budgeting and appropriation by the legislature. The
591	591	terms of any such investment management or consulting services
592	592	contract shall incorporate the statutory requirements for
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621	621	investment of funds under the council's jurisdiction. Prior to
622	622	being hired, a prospective investment management, advisory or
623	623	consulting services firm shall submit to the council a
624	624	disclosure detailing all campaign contributions made within the
625	625	last two years by the firm or the principals of the firm to any
626	626	member of the council, or to a political committee or other
627	627	entity that is intended to aid or promote the nomination or
628	628	election of any council member to a political office.
629	629	D. The council shall provide an opportunity for
630	630	public comment at meetings of the council. Advance notice of
631	631	meetings shall be published on the council's web site and in a
632	632	newspaper of general circulation at least ten days in advance
633	633	of the meeting.
634	634	E. All funds invested or managed by the state
635	635	investment officer or the state investment council shall be
636	636	invested or managed in accordance with the Uniform Prudent
637	637	Investor Act. The council may form and use committees to study
638	638	and make recommendations to the council. Prior to commencing
639	639	work for the council, a committee member who is not a member of
640	640	the council shall submit to the council a disclosure detailing
641	641	all campaign contributions made within the last two years to
642	642	any member of the council or to a political committee or other
643	643	entity that is intended to aid or promote the nomination or
644	644	election of any council member to a political office.
645	645	F. Fiduciaries of the [permanent ] investment funds
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674	674	are:
675	675	(1) the council;
676	676	(2) the state investment officer and
677	677	investment office staff;
678	678	(3) any person providing investment advice to
679	679	the council, the state investment officer or investment office
680	680	staff for an investment management, advisory or consulting
681	681	services fee; and
682	682	(4) all persons exercising discretionary
683	683	authority over or control of funds under the management of the
684	684	council.
685	685	G. The council may contract for legal services for
686	686	litigation on a contingent or partly contingent fee basis,
687	687	subject to an expedited solicitation process devised and
688	688	approved by the council; provided that:
689	689	(1) amounts recovered by the legal services
690	690	contractor shall be deposited in the state investment council
691	691	suspense fund;
692	692	(2) the council shall submit each proposed
693	693	contract to the attorney general and the department for review
694	694	of the contingency fee. The attorney general's and the
695	695	department's review shall take into account the complexity of
696	696	the factual and legal issues presented by the claims to be
697	697	pursued under the contract. If the attorney general or the
698	698	department advises the council that the proposed contingency
699	699	.228765.8
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727	727	fee is not reasonable, the council may nevertheless approve the
728	728	contract and the contingency fee by a majority vote of its
729	729	members; and
730	730	(3) each prospective legal services contractor
731	731	seeking to represent the council on a contingent or partly
732	732	contingent fee basis shall file with the council the disclosure
733	733	required by Section 13-1-191.1 NMSA 1978 disclosing all
734	734	campaign contributions made to the governor, attorney general,
735	735	state treasurer or any member of the council, or to a political
736	736	committee that is intended to aid or promote the nomination or
737	737	election of any candidate to a state office if the committee
738	738	is:
739	739	(a) established by any of the foregoing
740	740	persons or their agents;
741	741	(b) established in consultation with or
742	742	at the request of any of the foregoing persons or their agents;
743	743	or
744	744	(c) controlled by one of the foregoing
745	745	persons or their agents.
746	746	H. The council may select and contract for the
747	747	services of one or more custodian banks for all funds under the
748	748	council's management. For the purpose of this subsection,
749	749	"custodian bank" means a financial institution with the general
750	750	fiduciary duties to manage, control and collect the assets of
751	751	an investment fund, including receiving all deposits and paying
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780	780	all disbursements as directed by staff, safekeeping of assets,
781	781	coordination of asset transfers, timely settlement of
782	782	securities transactions and accurate and timely reporting of
783	783	the assets by individual account and in total.
784	784	I. For funds available for investment for more than
785	785	one year, the council may contract with any state agency to
786	786	provide investment advisory or investment management services,
787	787	separately or through a pooled investment fund; provided that
788	788	the state agency enters into a joint powers agreement with the
789	789	council and that the state agency pays at least the direct cost
790	790	of such services. Notwithstanding any statutory provision
791	791	governing state agency investments, the council may invest
792	792	funds available from a state agency pursuant to a joint powers
793	793	agreement in any type of investment permitted for the land
794	794	grant permanent funds under the prudent investor rule. In
795	795	performing investment services for a state agency, the council
796	796	and the state investment officer and investment office staff
797	797	are exempt from the New Mexico Uniform Securities Act. As used
798	798	in this subsection, "state agency" means any branch, agency,
799	799	department, board, instrumentality, institution or political
800	800	subdivision of the state, the New Mexico finance authority, the
801	801	New Mexico mortgage finance authority and any tax-exempt
802	802	private endowment entity whose sole beneficiary is a state
803	803	agency or whose beneficiaries are students attending a public
804	804	educational institution in the state.
805	805	.228765.8
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833	833	J. The state investment officer shall provide
834	834	quarterly performance reports to the legislative finance
835	835	committee. Annually, the state investment officer shall ratify
836	836	and provide written investment policies, including any
837	837	amendments, to the legislative finance committee.
838	838	K. Council members, the state investment officer
839	839	and investment office staff and committee members appointed by
840	840	the council, jointly and severally, shall be indemnified by the
841	841	state, out of the [permanent ] investment funds, from all
842	842	claims, demands, suits, actions, damages, judgments, costs,
843	843	charges and expenses, including court costs and attorney fees,
844	844	against all claims, liability, losses or damages arising from
845	845	any decisions made or actions taken while acting within the
846	846	scope of duty and pursuant to law as a council member, the
847	847	state investment officer, investment office staff or a
848	848	committee member appointed by the council. Following
849	849	indemnification, if it is shown that the indemnified person
850	850	acted fraudulently or with intentional malice, the state shall
851	851	have the right to recover from the indemnified person any
852	852	amount expended under this subsection."
853	853	SECTION 7. Section 6-8-14 NMSA 1978 (being Laws 1957,
854	854	Chapter 179, Section 14, as amended) is amended to read:
855	855	"6-8-14. MONTHLY REPORTS.--No later than twenty days
856	856	after the end of each month, the state investment officer shall
857	857	submit to the council a report of the operations of the
858	858	.228765.8
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886	886	investment office during the past month. Each report shall
887	887	include a schedule of cumulative fiscal year actual and
888	888	budgeted expenditures and a monthly summary of contributions,
889	889	distributions, fees, income and net gains or losses for each
890	890	[permanent] investment fund and investment pool. The reports
891	891	shall be published on the [web site ] website of the council and
892	892	the sunshine portal and shall be open for inspection to the
893	893	public and the press in the investment office."
894	894	SECTION 8. Section 6-8-23 NMSA 1978 (being Laws 2011,
895	895	Chapter 9, Section 2) is amended to read:
896	896	"6-8-23. COMPENSATION UNDER CONTINGENT FEE CONTRACTS--
897	897	SUSPENSE FUND CREATED.--
898	898	A. For the purpose of making disbursements and
899	899	distributions pursuant to this section, the "state investment
900	900	council suspense fund" is created in the state treasury.
901	901	B. When pursuing a claim and utilizing legal
902	902	services on a contingent fee basis, all amounts received by the
903	903	legal services contractor as satisfaction of the claim shall be
904	904	transferred to the council and deposited into the state
905	905	investment council suspense fund to the credit of the council.
906	906	Upon the direction of the state investment officer, the
907	907	contingent attorney fees due to the legal services contractor
908	908	shall be disbursed from the suspense fund to the contractor.
909	909	C. After a disbursement to a contractor pursuant to
910	910	Subsection B of this section, the balance of the deposit into
911	911	.228765.8
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939	939	the state investment council suspense fund shall be distributed
940	940	to the appropriate [permanent ] investment fund or other
941	941	appropriate fund from which the loss occurred that originated
942	942	the claim pursued by the legal services contractor."
943	943	SECTION 9. Section 6-30-7 NMSA 1978 (being Laws 2010,
944	944	Chapter 10, Section 7) is amended to read:
945	945	"6-30-7. COLONIAS INFRASTRUCTURE TRUST FUND--CREATED--
946	946	INVESTMENT--DISTRIBUTION.--
947	947	A. The "colonias infrastructure trust fund" is
948	948	created as a nonreverting fund in the state treasury. The
949	949	trust fund shall consist of money that is appropriated, donated
950	950	or otherwise allocated to it. Money in the trust fund shall be
951	951	invested by the state investment officer in [the manner that
952	952	land grant permanent funds are invested pursuant to Chapter 6,
953	953	Article 8 NMSA 1978] accordance with the prudent investor rule
954	954	set forth in the Uniform Prudent Investor Act . Income from
955	955	investment of the trust fund shall be credited to the fund.
956	956	Money in the trust fund shall not be expended for any purpose,
957	957	but an annual distribution from the trust fund shall be made to
958	958	the project fund pursuant to this section.
959	959	B. On July 1 of each year in which adequate money
960	960	is available in the trust fund, an annual distribution shall be
961	961	made from the trust fund to the project fund in the amount of
962	962	ten million dollars ($10,000,000) until the distribution is
963	963	less than an amount equal to four and seven-tenths percent of
964	964	.228765.8
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992	992	the average of the year-end market values of the trust fund for
993	993	the immediately preceding five calendar years. Thereafter, the
994	994	amount of the annual distribution shall be four and seven-
995	995	tenths percent of the average of the year-end market values of
996	996	the trust fund for the immediately preceding five calendar
997	997	years."
998	998	SECTION 10. Section 7-27-50 NMSA 1978 (being Laws 2024,
999	999	Chapter 56, Section 3) is amended to read:
1000	1000	"7-27-50. CAPITAL DEVELOPMENT AND RESERVE FUND.--
1001	1001	A. The "capital development and reserve fund" is
1002	1002	created as a nonreverting fund in the state treasury. The fund
1003	1003	consists of distributions, appropriations, gifts, grants and
1004	1004	donations. Income from investment of the fund shall be
1005	1005	credited to the fund. Money in the fund shall be expended only
1006	1006	as provided in Subsections E through F of this section. Money
1007	1007	in the fund shall not be pledged against any state debt.
1008	1008	B. The state investment officer, subject to the
1009	1009	approval of the council, shall invest money in the fund:
1010	1010	(1) in accordance with the prudent investor
1011	1011	rule set forth in the Uniform Prudent Investor Act; and
1012	1012	(2) in consultation with the [state treasurer ]
1013	1013	director of the board of finance division of the department of
1014	1014	finance and administration .
1015	1015	C. The state investment officer shall report
1016	1016	quarterly to the legislative finance committee and the council
1017	1017	.228765.8
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1045	1045	on the investments made pursuant to this section. Annually, a
1046	1046	report shall be submitted no later than October 1 each year to
1047	1047	the legislative finance committee, the revenue stabilization
1048	1048	and tax policy committee and any other appropriate interim
1049	1049	committees.
1050	1050	D. On January 1 of each year, a distribution shall
1051	1051	be made from the capital development and reserve fund to the
1052	1052	capital development program fund in an amount equal to five
1053	1053	percent of the average of the fiscal year-end market values of
1054	1054	the capital development and reserve fund for the immediately
1055	1055	preceding three fiscal years. If, on January 1 of a year, the
1056	1056	capital development and reserve fund has been in effect for
1057	1057	less than three fiscal years, the distribution shall be in an
1058	1058	amount equal to five percent of the average of the fiscal year-
1059	1059	end market values of the capital development and reserve fund
1060	1060	for the immediately preceding number of fiscal years that the
1061	1061	fund has been in effect.
1062	1062	E. Money in the fund is subject to appropriation by
1063	1063	the legislature for capital projects or for transfer to the
1064	1064	severance tax permanent fund.
1065	1065	F. Money in the capital development and reserve
1066	1066	fund may be expended in the event that the balance of the
1067	1067	severance tax bonding fund is insufficient to meet principal
1068	1068	and interest payments on outstanding bonds. In that event, the
1069	1069	balance in the reserve fund shall be transferred to the
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1098	1098	severance tax bonding fund only in the amount necessary to meet
1099	1099	the principal and interest payments."
1100	1100	SECTION 11. Section 7-27-51 NMSA 1978 (being Laws 2024,
1101	1101	Chapter 56, Section 4) is amended to read:
1102	1102	"7-27-51. CAPITAL DEVELOPMENT PROGRAM FUND.--The "capital
1103	1103	development program fund" is created as a nonreverting fund [as
1104	1104	a subaccount of the severance tax bonding fund ] in the state
1105	1105	treasury. The fund consists of distributions, appropriations,
1106	1106	gifts, grants, donations and income from investment of the
1107	1107	fund. The department of finance and administration shall
1108	1108	administer the fund. Money in the fund is subject to
1109	1109	appropriation by the legislature to fund capital projects with
1110	1110	a total cost of less than five million dollars ($5,000,000) and
1111	1111	only the planning and design of capital projects with a total
1112	1112	cost greater than that amount. Expenditures from the fund
1113	1113	shall be by warrant of the secretary of finance and
1114	1114	administration pursuant to vouchers signed by the secretary of
1115	1115	finance and administration or the secretary's authorized
1116	1116	representative. [Any unexpended or unencumbered balance of an
1117	1117	appropriation for a capital project remaining after two years
1118	1118	following the date of the appropriation ] Any law making an
1119	1119	appropriation from the fund for a capital project shall provide
1120	1120	that any unexpended or unencumbered balance of the
1121	1121	appropriation at the end of the project shall revert to the
1122	1122	severance tax permanent fund."
1123	1123	.228765.8
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1151	1151	SECTION 12. Section 9-16-14 NMSA 1978 (being Laws 1987,
1152	1152	Chapter 298, Section 1, as amended) is amended to read:
1153	1153	"9-16-14. REGULATION AND LICENSING DEPARTMENT OPERATING
1154	1154	FUND.--
1155	1155	A. There is established in the state treasury the
1156	1156	"regulation and licensing department operating fund" to be
1157	1157	administered by the department.
1158	1158	B. All money received by the administrative
1159	1159	services division, the construction industries division, the
1160	1160	financial institutions division, the securities division, [and ]
1161	1161	the manufactured housing division and the cannabis control
1162	1162	division, other than money earmarked for revolving funds, shall
1163	1163	be deposited with the state treasurer and held in a separate
1164	1164	suspense account for each division in the [seventy-sixth fiscal
1165	1165	year, all money deposited in the suspense accounts shall be
1166	1166	transferred monthly to the general fund until the sum of all
1167	1167	money transferred to the general fund equals the total amount
1168	1168	deposited and transferred to the general fund from those
1169	1169	divisions in the seventy-fourth fiscal year. All additional
1170	1170	money deposited in the divisions' suspense accounts during the
1171	1171	seventy-sixth fiscal year shall be transferred to the
1172	1172	regulation and licensing department operating fund on June 30,
1173	1173	1988] regulation and licensing department operating fund .
1174	1174	C. [In the seventy-seventh fiscal year and each
1175	1175	fiscal year thereafter ] On the last day of each month, the
1176	1176	.228765.8
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1204	1204	department shall transfer all money received during the month
1205	1205	from the divisions' suspense accounts to the general fund."
1206	1206	SECTION 13. Section 9-16-15 NMSA 1978 (being Laws 2009,
1207	1207	Chapter 122, Section 59) is amended to read:
1208	1208	"9-16-15. MORTGAGE REGULATORY FUND--CREATED--PURPOSE--
1209	1209	APPROPRIATION.--
1210	1210	A. The "mortgage regulatory fund" is created as a
1211	1211	nonreverting fund in the state treasury and shall be
1212	1212	administered by the financial institutions division of the
1213	1213	regulation and licensing department. The fund shall consist of
1214	1214	application, licensing, renewal, examination, investigation and
1215	1215	any other fees received that are associated with the costs of
1216	1216	administering the New Mexico Mortgage Loan Originator Licensing
1217	1217	Act, fees specified in Subsection E of Section 58-21-5 NMSA
1218	1218	1978 and any money that is appropriated or donated or that
1219	1219	otherwise accrues to the fund. [Money in the fund shall be
1220	1220	invested by the state investment officer in the manner that
1221	1221	land grant permanent funds are invested pursuant to Chapter 6,
1222	1222	Article 8 NMSA 1978. Income from investment of the fund shall
1223	1223	be credited to the fund. ]
1224	1224	B. Money in the mortgage regulatory fund is
1225	1225	appropriated to the financial institutions division of the
1226	1226	regulation and licensing department to carry out the provisions
1227	1227	of the New Mexico Mortgage Loan Originator Licensing Act and
1228	1228	the Mortgage Loan Company Act.
1229	1229	.228765.8
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1257	1257	C. Money shall be disbursed from the mortgage
1258	1258	regulatory fund only on warrant of the secretary of finance and
1259	1259	administration upon vouchers signed by the director of the
1260	1260	financial institutions division or the director's authorized
1261	1261	representative. [Any unexpended or unencumbered balance
1262	1262	remaining at the end of a fiscal year shall not revert to the
1263	1263	general fund.]"
1264	1264	SECTION 14. Section 9-26-17 NMSA 1978 (being Laws 2024,
1265	1265	Chapter 5, Section 1) is amended to read:
1266	1266	"9-26-17. WORKFORCE DEVELOPMENT AND APPRENTICESHIP TRUST
1267	1267	FUND.--
1268	1268	A. The "workforce development and apprenticeship
1269	1269	trust fund" is created as a nonreverting fund within the state
1270	1270	treasury. The fund consists of distributions, appropriations,
1271	1271	gifts, grants and donations. Income from investment of the
1272	1272	fund shall be credited to the fund. Money in the fund shall be
1273	1273	expended only as provided in this section.
1274	1274	B. The state investment officer, subject to the
1275	1275	approval of the state investment council, shall invest money in
1276	1276	the workforce development and apprenticeship trust fund:
1277	1277	(1) in accordance with the prudent investor
1278	1278	rule set forth in the Uniform Prudent Investor Act; and
1279	1279	(2) in consultation with the [state treasurer ]
1280	1280	secretary of workforce solutions .
1281	1281	C. The state investment officer shall report
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1310	1310	quarterly to the legislative finance committee and the state
1311	1311	investment council on the investments made pursuant to this
1312	1312	section. Annually, a report shall be submitted no later than
1313	1313	November 1 each year to the legislative finance committee, the
1314	1314	revenue stabilization and tax policy committee and any other
1315	1315	appropriate interim committees.
1316	1316	D. Subject to the availability of funds:
1317	1317	(1) on July 1, 2024 and July 1, 2025:
1318	1318	(a) two million five hundred thousand
1319	1319	dollars ($2,500,000) shall be transferred to the public works
1320	1320	apprentice and training fund; and
1321	1321	(b) two million five hundred thousand
1322	1322	dollars ($2,500,000) shall be appropriated to the workforce
1323	1323	solutions department to carry out the purposes of the
1324	1324	Apprenticeship Assistance Act; and
1325	1325	(2) on July 1 of each year thereafter:
1326	1326	(a) one million five hundred thousand
1327	1327	dollars ($1,500,000) shall be transferred to the public works
1328	1328	apprentice and training fund; and
1329	1329	(b) one million five hundred thousand
1330	1330	dollars ($1,500,000) shall be appropriated to the workforce
1331	1331	solutions department to carry out the purposes of the
1332	1332	Apprenticeship Assistance Act.
1333	1333	E. In addition to the transfers and appropriations
1334	1334	pursuant to Subsection D of this section, money in the
1335	1335	.228765.8
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1363	1363	workforce development and apprenticeship trust fund may be
1364	1364	expended in the event that general fund balances, including all
1365	1365	authorized revenues and transfers to the general fund and
1366	1366	balances in the general fund operating reserve, the
1367	1367	appropriation contingency fund, [the tobacco settlement
1368	1368	permanent fund] the state-support reserve fund and the tax
1369	1369	stabilization reserve, will not meet the level of
1370	1370	appropriations authorized from the general fund for a fiscal
1371	1371	year. In that event, to avoid an unconstitutional deficit, the
1372	1372	legislature may appropriate from the workforce development and
1373	1373	apprenticeship trust fund to the general fund only in the
1374	1374	amount necessary to meet general fund appropriations for that
1375	1375	fiscal year and only if the legislature has authorized
1376	1376	transfers from the appropriation contingency fund, the general
1377	1377	fund operating reserve and the tax stabilization reserve [and
1378	1378	the tobacco settlement permanent fund ] that exhaust those fund
1379	1379	balances."
1380	1380	SECTION 15. Section 9-29A-1 NMSA 1978 (being Laws 2020,
1381	1381	Chapter 3, Section 1, as amended) is amended to read:
1382	1382	"9-29A-1. EARLY CHILDHOOD EDUCATION AND CARE FUND.--
1383	1383	A. The "early childhood education and care fund" is
1384	1384	created as a nonreverting fund within the state treasury. The
1385	1385	fund shall consist of distributions, appropriations, gifts,
1386	1386	grants and donations. Income from investment of the fund shall
1387	1387	be credited to the fund. Money in the fund shall be expended
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1416	1416	only as provided in this section.
1417	1417	B. The state investment officer, subject to the
1418	1418	approval of the state investment council, shall invest money in
1419	1419	the early childhood education and care fund:
1420	1420	(1) in accordance with the prudent investor
1421	1421	rule set forth in the Uniform Prudent Investor Act; and
1422	1422	(2) in consultation with the [state treasurer ]
1423	1423	secretary of early childhood education and care .
1424	1424	C. The state investment officer shall report
1425	1425	quarterly to the legislative finance committee and the state
1426	1426	investment council on the investments made pursuant to this
1427	1427	section. Annually, a report shall be submitted no later than
1428	1428	October 1 each year to the legislative finance committee, the
1429	1429	revenue stabilization and tax policy committee and any other
1430	1430	appropriate interim committees.
1431	1431	D. On July 1 of each year, a distribution shall be
1432	1432	made from the early childhood education and care fund to the
1433	1433	early childhood education and care program fund in an amount
1434	1434	equal to the greater of five percent of the average of the
1435	1435	year-end market values of the fund for the immediately
1436	1436	preceding three calendar years or two hundred fifty million
1437	1437	dollars ($250,000,000).
1438	1438	E. In addition to the distribution pursuant to
1439	1439	Subsection D of this section, money in the early childhood
1440	1440	education and care fund may be expended in the event that
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1469	1469	general fund balances, including all authorized revenues and
1470	1470	transfers to the general fund and balances in the general fund
1471	1471	operating reserve, the appropriation contingency fund, [the
1472	1472	tobacco settlement permanent fund ] the state-support reserve
1473	1473	fund and the tax stabilization reserve, will not meet the level
1474	1474	of appropriations authorized from the general fund for a fiscal
1475	1475	year. In that event, to avoid an unconstitutional deficit, the
1476	1476	legislature may appropriate from the early childhood education
1477	1477	and care fund to the general fund only in the amount necessary
1478	1478	to meet general fund appropriations for that fiscal year and
1479	1479	only if the legislature has authorized transfers from the
1480	1480	appropriation contingency fund, the general fund operating
1481	1481	reserve and the tax stabilization reserve [and the tobacco
1482	1482	settlement permanent fund ] that exhaust those fund balances."
1483	1483	SECTION 16. Section 18-18-1 NMSA 1978 (being Laws 2019,
1484	1484	Chapter 165, Section 1) is amended to read:
1485	1485	"18-18-1. RURAL LIBRARIES ENDOWMENT FUND--
1486	1486	DISTRIBUTIONS.--
1487	1487	A. The "rural libraries endowment fund" is created
1488	1488	as a nonreverting fund in the state treasury to support the
1489	1489	preservation, development and establishment of rural libraries
1490	1490	throughout the state by providing funding for rural libraries'
1491	1491	operational and capital needs and funding for the delivery of
1492	1492	specialized services to rural libraries.
1493	1493	B. The rural libraries endowment fund consists of
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1522	1522	appropriations and donations to the fund and all income from
1523	1523	investment of the fund. The state investment officer shall
1524	1524	invest money in the fund [as money in the fund described in
1525	1525	Article 12, Section 7 of the constitution of New Mexico is
1526	1526	invested] in accordance with the prudent investor rule as set
1527	1527	forth in the Uniform Prudent Investor Act .
1528	1528	C. [Distributions of money ] A distribution from the
1529	1529	rural libraries endowment fund shall be
1530	1530	[(1) in the following gross amounts:
1531	1531	(a) for fiscal year 2022 and each of the
1532	1532	following five fiscal years, the difference, if positive,
1533	1533	between all fund investment income yielded through the
1534	1534	immediately preceding calendar year and all fund distributions,
1535	1535	up to five percent of the year-end market value of the fund for
1536	1536	the immediately preceding calendar year; and
1537	1537	(b) for fiscal year 2028 and each
1538	1538	subsequent fiscal year, the average of fund investment income
1539	1539	yielded in the immediately preceding five calendar years, up to
1540	1540	five percent of the year-end market value of the fund for the
1541	1541	immediately preceding calendar year; and
1542	1542	(2)] made to the following funds in an amount
1543	1543	equal to five percent of the average year-end market value of
1544	1544	the fund for the immediately preceding five calendar years in
1545	1545	the following proportions:
1546	1546	[(a)] (1) ninety-five percent [of the gross
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1575	1575	distribution] to the rural libraries program fund for grants
1576	1576	through the rural libraries grant program; and
1577	1577	[(b)] (2) five percent [of the gross
1578	1578	distribution] to the cultural affairs department for the
1579	1579	state's delivery of specialized services to rural libraries."
1580	1580	SECTION 17. Section 19-1-19 NMSA 1978 (being Laws 1966,
1581	1581	Chapter 4, Section 1, as amended) is amended to read:
1582	1582	"19-1-19. PUBLIC BUILDINGS AT CAPITAL PERMANENT FUND--
1583	1583	INVESTMENT.--
1584	1584	A. The state investment officer shall, in the same
1585	1585	manner [provided under Section 11-2-8.9 NMSA 1953 for other
1586	1586	permanent] as the land grant permanent funds, assume the
1587	1587	investment responsibility for the public buildings at capital
1588	1588	permanent fund created by Section [7-1-16 NMSA 1953 ] 19-1-17
1589	1589	NMSA 1978.
1590	1590	B. As used in this section, "land grant permanent
1591	1591	funds" means the permanent school fund established by Article
1592	1592	12, Section 2 of the constitution of New Mexico and all other
1593	1593	permanent funds derived from lands granted or confirmed to the
1594	1594	state by the act of congress of June 20, 1910, entitled "An Act
1595	1595	To enable the people of New Mexico to form a constitution and
1596	1596	state government and be admitted into the Union on an equal
1597	1597	footing with the original States..." ."
1598	1598	SECTION 18. Section 24-5A-4 NMSA 1978 (being Laws 2015,
1599	1599	Chapter 5, Section 4) is amended to read:
1600	1600	.228765.8
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1628	1628	"24-5A-4. VACCINE PURCHASING FUND.--
1629	1629	A. The "vaccine purchasing fund" is created as a
1630	1630	nonreverting fund in the state treasury. The fund consists of
1631	1631	amounts reimbursed to the state by health insurers and group
1632	1632	health plans pursuant to the Vaccine Purchasing Act and of
1633	1633	appropriations from, and transfers made to, the fund. Income
1634	1634	from investment of the fund shall be credited to the fund.
1635	1635	Money in the fund shall be expended only for the purposes
1636	1636	specified in the Vaccine Purchasing Act, by warrant issued by
1637	1637	the secretary of finance and administration pursuant to
1638	1638	vouchers approved by the secretary of health.
1639	1639	B. Money from the fund may be appropriated to the
1640	1640	department to be expended only as authorized in Section [5 of
1641	1641	the Vaccine Purchasing Act ] 24-5A-5 NMSA 1978.
1642	1642	C. The fund shall be audited in the same manner as
1643	1643	other state funds are audited, and all records of payments made
1644	1644	from the fund shall be open to the public.
1645	1645	[D. Any balance remaining in the fund shall not
1646	1646	revert or be transferred to any other fund at the end of a
1647	1647	fiscal year.
1648	1648	E. Money in the fund shall be invested by the state
1649	1649	investment officer in accordance with the limitations in
1650	1650	Article 12, Section 7 of the constitution of New Mexico.
1651	1651	Income from investment of the fund shall be credited to the
1652	1652	fund.]"
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1681	1681	SECTION 19. Section 58-32-1004 NMSA 1978 (being Laws
1682	1682	2016, Chapter 88, Section 1004) is amended to read:
1683	1683	"58-32-1004. MONEY SERVICES REGULATORY FUND--CREATED--
1684	1684	PURPOSE--APPROPRIATION.--
1685	1685	A. The "money services regulatory fund" is created
1686	1686	as a nonreverting fund in the state treasury and shall be
1687	1687	administered by the financial institutions division of the
1688	1688	regulation and licensing department. The fund shall consist of
1689	1689	application, licensing, renewal, investigation and any other
1690	1690	fees received that are associated with the costs of
1691	1691	administering the Uniform Money Services Act and any money that
1692	1692	is appropriated or donated or that otherwise accrues to the
1693	1693	fund. [Money in the fund shall be invested by the state
1694	1694	investment officer in the manner that land grant permanent
1695	1695	funds are invested pursuant to Chapter 6, Article 8 NMSA 1978.
1696	1696	Income from investment of the fund shall be credited to the
1697	1697	fund.]
1698	1698	B. Money in the money services regulatory fund is
1699	1699	subject to appropriation by the legislature to the financial
1700	1700	institutions division of the regulation and licensing
1701	1701	department to carry out the provisions of the Uniform Money
1702	1702	Services Act.
1703	1703	C. Money shall be disbursed from the money services
1704	1704	regulatory fund only on warrant of the secretary of finance and
1705	1705	administration upon vouchers signed by the director of the
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1734	1734	financial institutions division or the director's authorized
1735	1735	representative. Any unexpended or unencumbered balance
1736	1736	remaining at the end of a fiscal year shall not revert to the
1737	1737	general fund."
1738	1738	SECTION 20. Section 72-4A-8 NMSA 1978 (being Laws 2001,
1739	1739	Chapter 164, Section 8) is amended to read:
1740	1740	"72-4A-8. WATER TRUST FUND--CREATED--INVESTMENT--
1741	1741	DISTRIBUTION.--
1742	1742	A. The "water trust fund" is created in the state
1743	1743	treasury. The fund shall consist of money appropriated,
1744	1744	donated or otherwise accrued to the fund. Money in the fund
1745	1745	shall be invested by the state investment officer [as land
1746	1746	grant permanent funds are invested pursuant to Chapter 6,
1747	1747	Article 8 NMSA 1978] in accordance with the prudent investor
1748	1748	rule as set forth in the Uniform Prudent Investor Act .
1749	1749	Earnings from investment of the fund shall be credited to the
1750	1750	fund. Money in the fund shall not be expended for any purpose,
1751	1751	but an annual distribution shall be made to the water project
1752	1752	fund in accordance with Subsection B of this section.
1753	1753	B. On July 1 of [fiscal year 2003 and on July 1 of
1754	1754	each fiscal year thereafter, an annual ] each year, a
1755	1755	distribution shall be made from the water trust fund to the
1756	1756	water project fund in the amount of four million dollars
1757	1757	($4,000,000) until that amount is less than an amount equal to
1758	1758	four and seven-tenths percent of the average of the year-end
1759	1759	.228765.8
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1787	1787	market values of the water trust fund for the immediately
1788	1788	preceding five calendar years. Thereafter, the amount of the
1789	1789	annual distribution shall be four and seven-tenths percent of
1790	1790	the average of the year-end market values of the water trust
1791	1791	fund for the immediately preceding five calendar years."
1792	1792	SECTION 21. Section 75-12-1 NMSA 1978 (being Laws 2023,
1793	1793	Chapter 26, Section 2) is amended to read:
1794	1794	"75-12-1. CONSERVATION LEGACY PERMANENT FUND--CREATED--
1795	1795	INVESTMENT--DISTRIBUTION.--
1796	1796	A. The "conservation legacy permanent fund" is
1797	1797	created as a nonreverting fund in the state treasury. The fund
1798	1798	consists of distributions, appropriations, gifts, grants,
1799	1799	donations and income from investment of the fund. Money in the
1800	1800	fund shall be invested by the state investment officer [with
1801	1801	the same risk and return profile as land grant permanent funds
1802	1802	are invested pursuant to Chapter 6, Article 8 NMSA 1978 ] in
1803	1803	accordance with the prudent investor rule as set forth in the
1804	1804	Uniform Prudent Investor Act . Earnings from investment of the
1805	1805	fund shall be credited to the fund. Money in the fund shall be
1806	1806	expended only as provided by this section.
1807	1807	B. If, on July 1 of each year, the conservation
1808	1808	legacy permanent fund exceeds one hundred fifty million dollars
1809	1809	($150,000,000) and the investment income to the fund for the
1810	1810	previous fiscal year exceeded five million dollars
1811	1811	($5,000,000), any investment income to the fund from the
1812	1812	.228765.8
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1840	1840	previous fiscal year in excess of five million dollars
1841	1841	($5,000,000) shall be distributed to the land of enchantment
1842	1842	legacy fund."
1843	1843	SECTION 22. REPEAL.--Section 6-8-6 NMSA 1978 (being Laws
1844	1844	1957, Chapter 179, Section 6, as amended) is repealed.
1845	1845	SECTION 23. EFFECTIVE DATE.--The effective date of the
1846	1846	provisions of this act is July 1, 2025.
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