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SENATE BILL 234
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Shannon D. Pinto
AN ACT
RELATING TO PUBLIC EDUCATION; CREATING THE TRIBAL EDUCATION
TRUST FUND; PROVIDING REPORTING REQUIREMENTS; CREATING THE
TRIBAL EDUCATION TRUST FUND DISBURSEMENT FORMULA TASK FORCE;
MAKING APPROPRIATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] TRIBAL EDUCATION TRUST FUND--
CREATED--PURPOSE--DISTRIBUTION--REPORTING REQUIREMENTS--PUBLIC
EDUCATION DEPARTMENT DUTIES--APPROPRIATION.--
A. The "tribal education trust fund" is created as
a nonreverting fund in the state treasury. The tribal
education trust fund shall be used for any purpose enumerated
in Section 22-23A-2 NMSA 1978 or in an intergovernmental
agreement between a New Mexico tribe and the public education
department. The fund consists of distributions,
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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 shall invest money
in the tribal education trust fund:
(1) in accordance with the prudent investor
rule set forth in the Uniform Prudent Investor Act; and
(2) in consultation with the tribal education
trust fund disbursement formula task force created pursuant to
Section 2 of this 2025 act.
C. The state investment officer shall report
quarterly to the legislative education study committee and the
state investment council on the investments made pursuant to
this section. Beginning in fiscal year 2026, a report shall be
submitted no later than October 1 each year to the legislative
education study committee and any other appropriate interim
committees.
D. Beginning in fiscal year 2027, a distribution
shall be made from the tribal education trust fund to the
public education department on July 1 of each year in which
adequate money is available in the tribal education trust fund
in an amount equal to the greater of twelve million five
hundred thousand dollars ($12,500,000) or five percent of the
average of the year-end market values of the tribal education
trust fund for the preceding five calendar years; provided that
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the public education department shall distribute funding
received pursuant to this subsection according to the formula
developed pursuant to Section 2 of this 2025 act.
E. In addition to the distribution pursuant to
Subsection D of this section, money in the tribal education
trust 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 operating
reserve, the appropriation contingency 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 tribal
education trust 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 and the tax stabilization reserve that exhaust those
fund balances.
F. The public education department shall enter into
intergovernmental agreements with New Mexico tribes prior to
the disbursement of funds pursuant to Subsection G of this
section.
G. Beginning in fiscal year 2027, on July 15 of
each year, the public education department shall disburse money
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received pursuant to Subsection D of this section to each New
Mexico tribe that has entered into an intergovernmental
agreement with the department. Money disbursed to a New Mexico
tribe shall not revert and shall carry over to the next fiscal
year for continued use by the New Mexico tribe. Money
disbursed pursuant to this subsection shall be disbursed on
warrants signed by the secretary of finance and administration
pursuant to vouchers signed by the secretary of public
education or the secretary's designee.
H. The public education department shall create a
disbursement formula, in consultation with the tribal education
trust fund disbursement formula task force created pursuant to
Section 2 of this 2025 act, that ensures that a New Mexico
tribe receives nonreverting disbursements each year on July 15
that the New Mexico tribe may use to carry out the purposes of
the Indian Education Act.
I. Prior to April 15 of each year, each New Mexico
tribe shall submit to the public education department a summary
of its operating budget and plan for the ensuing fiscal year
based on tribally determined goals and needs. This summary
shall include a brief narrative describing how the budget and
plan will contribute to meeting the purposes of the Indian
Education Act.
J. Prior to October 15 of each year, each New
Mexico tribe shall submit to the public education department a
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spending report and an assessment of program impact, student
engagement and student outcomes based on tribally determined
criteria.
K. The public education department shall report to
the legislative education study committee, any other
appropriate interim committee and the New Mexico tribes no
later than November 15 of each year the total disbursements
made pursuant to Subsection G of this section for the previous
fiscal year, a summary of tribal reports received and a
projection of available disbursements pursuant to Subsection G
of this section in the following fiscal year.
L. The public education department may:
(1) establish procedures and adopt rules,
after formal consultation with the New Mexico tribes, as
required to administer and disburse money pursuant to
Subsection G of this section; and
(2) solicit, receive and report on tribal
education budgets, plans and reports pursuant to this section.
M. Nothing in this section shall interfere with the
sovereignty of federally recognized New Mexico tribes.
N. Beginning in fiscal year 2026 and in each
subsequent fiscal year, the lesser of one percent of the tribal
education trust fund or one hundred thousand dollars ($100,000)
is appropriated from the tribal education trust fund to the
public education department for expenditure in the fiscal year
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in which it is appropriated to administer the tribal education
trust fund. Administrative costs include staff salaries and
expenses related to administration of the tribal education
trust fund. Any unexpended or unencumbered balance remaining
at the end of a fiscal year shall revert to the tribal
education trust fund.
O. As used in this section, "New Mexico tribe"
means an Indian nation, tribe or pueblo located wholly or
partially in New Mexico in which Native American students are
being educated in New Mexico.
SECTION 2. TEMPORARY PROVISION--TRIBAL EDUCATION TRUST
FUND DISBURSEMENT FORMULA TASK FORCE--CREATION--MEMBERSHIP--
DUTIES--REPORTING REQUIREMENTS.--
A. The "tribal education trust fund disbursement
formula task force" is created within the public education
department. The task force shall function from the date of its
appointment, which shall be no later than December 1, 2025,
until July 1, 2032. The assistant secretary of Indian
education of the public education department shall serve on the
task force in an advisory function. The task force shall be
supported by the public education department. The task force
consists of the following nine members:
(1) three representatives from the Navajo
Nation nominated by the leadership of New Mexico's Indian
nations, tribes and pueblos and appointed by the public
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education department's assistant secretary of Indian education;
(2) two representatives, one from the
Mescalero Apache Tribe and one from the Jicarilla Apache
Nation, nominated by the leadership of New Mexico's Indian
nations, tribes and pueblos and appointed by the public
education department's assistant secretary of Indian education;
(3) three representatives, one from the
southern pueblos, one from the northern pueblos and one from
the western pueblos, nominated by the leadership of New
Mexico's Indian nations, tribes and pueblos and appointed by
the public education department's assistant secretary of Indian
education; and
(4) the chair of the Indian education advisory
council.
B. The task force shall develop a disbursement
formula that the public education department shall use for the
disbursement of funds from the tribal education trust fund.
The task force shall ensure that the disbursement formula is
equitable for each Indian nation, tribe and pueblo located
wholly or in part in the state. The task force shall consider
tribal needs and tribal size, including both a base and student
count elements, for the disbursement formula.
C. The task force shall report its recommendations
for a disbursement formula to the governor, the legislature and
the secretary of public education prior to July 1, 2026.
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D. The task force shall reconvene on July 1, 2031
to review and assess the equity and functionality of the
disbursement formula and provide additional recommendations, if
necessary, to the governor, the legislature and the secretary
of public education prior to July 1, 2032.
E. Members of the task force may receive per diem
and mileage as provided for nonsalaried public officers in the
Per Diem and Mileage Act and shall receive no other
compensation, perquisite or allowance.
SECTION 3. APPROPRIATION.--One hundred million dollars
($100,000,000) is appropriated from the general fund to the
tribal education trust fund for expenditure in fiscal year 2026
and subsequent fiscal years to carry out the purpose of the
tribal education trust fund. Any unexpended or unencumbered
balance remaining at the end of a fiscal year shall not revert
to the general fund.
SECTION 4. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
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