New Mexico 2025 Regular Session

New Mexico Senate Bill SB397 Compare Versions

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

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28	28	SENATE BILL 397
29	29	57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
30	30	INTRODUCED BY
31	31	Antonio Maestas and Leo Jaramillo
32	32	AN ACT
33	33	RELATING TO PUBLIC BENEFITS; ENACTING THE NEW MEXICO NEXT
34	34	GENERATION ACT; CREATING THE NEXT GENERATION TRUST FUND AND
35	35	PROVIDING FOR INVESTMENT OF THAT FUND BY THE STATE INVESTMENT
36	36	OFFICER; CREATING THE BABY BONDS FUND AND REQUIRING THE
37	37	DEPARTMENT OF FINANCE AND ADMINISTRATION TO PROMULGATE RULES
38	38	FOR ADMINISTRATION OF THAT FUND AND THE NEW MEXICO NEXT
39	39	GENERATION ACT; PROVIDING THAT BENEFITS SHALL NOT BE GUARANTEED
40	40	AND THAT A PROPERTY INTEREST SHALL NOT BE CREATED BY THE NEW
41	41	MEXICO NEXT GENERATION ACT; EXEMPTING FROM THE STATE INCOME TAX
42	42	ANY MONEY SPENT FOR BENEFICIARIES PURSUANT TO THE NEW MEXICO
43	43	NEXT GENERATION ACT; REQUIRING INFORMATION SHARING WITH THE
44	44	DEPARTMENT OF FINANCE AND ADMINISTRATION; MAKING
45	45	APPROPRIATIONS.
46	46	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
47	47	.230827.1SA underscored material = new
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74	74	SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1
75	75	through 9 of this act may be cited as the "New Mexico Next
76	76	Generation Act".
77	77	SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the
78	78	New Mexico Next Generation Act:
79	79	A. "beneficiary" means a person born in New Mexico
80	80	on or after July 1, 2025 who:
81	81	(1) has a parent who has resided in New Mexico
82	82	for at least five consecutive years immediately preceding the
83	83	person's birth; or
84	84	(2) while under the age of eighteen, is
85	85	placed:
86	86	(a) in the care and custody of the
87	87	protective services division of the children, youth and
88	88	families department either under the legal authorization of the
89	89	Children's Code or through a voluntary placement agreement
90	90	signed by the person's parent or legal guardian; or
91	91	(b) with a licensed child placement
92	92	agency under the authority of the Child Placement Agency
93	93	Licensing Act;
94	94	B. "educational expenses" means tuition and fees,
95	95	student housing, school supplies or other related expenses for
96	96	a public post-secondary educational institution or for
97	97	vocational training through apprenticeship and training
98	98	programs in New Mexico that are recognized by the office of
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127	127	apprenticeship of the employment and training administration of
128	128	the United States department of labor, the state apprenticeship
129	129	office of the workforce solutions department or the
130	130	apprenticeship council;
131	131	C. "eligible expenditure" means an expenditure on
132	132	behalf of a beneficiary for educational expenses or for a down
133	133	payment to purchase a residence in New Mexico that is made in
134	134	accordance with New Mexico law and rules promulgated by the
135	135	department of finance and administration; and
136	136	D. "parent" means a biological or adoptive parent
137	137	of a child whose parental rights have not been terminated.
138	138	SECTION 3. [NEW MATERIAL] NEW MEXICO NEXT GENERATION
139	139	PROGRAM--ELIGIBILITY--CLAIM.--A beneficiary who is between
140	140	eighteen and forty years of age and who has successfully
141	141	completed a financial literacy course approved by the state
142	142	treasurer may submit a claim to the department of finance and
143	143	administration for that department to make an eligible
144	144	expenditure on behalf of the beneficiary. The claim shall be
145	145	on forms and in the manner prescribed by that department.
146	146	SECTION 4. [NEW MATERIAL] NEXT GENERATION TRUST FUND.--
147	147	A. The "next generation trust fund" is created as a
148	148	nonreverting fund in the state treasury. The purpose of the
149	149	fund is to establish and grow a source of funding to distribute
150	150	to the baby bonds fund. The next generation trust fund
151	151	consists of distributions, transfers, appropriations, gifts,
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180	180	grants, donations, bequests and income from investment of the
181	181	fund. The state investment officer shall invest money in the
182	182	fund in accordance with the prudent investor rule set forth in
183	183	the Uniform Prudent Investor Act and in consultation with the
184	184	state treasurer. Earnings from investment of the fund shall be
185	185	credited to the fund. Money in the fund is subject to
186	186	appropriation by the legislature and shall be expended only as
187	187	provided for in the New Mexico Next Generation Act.
188	188	B. On July 1, 2043 and each July 1 thereafter, a
189	189	distribution shall be made from the next generation trust fund
190	190	to the baby bonds fund in an amount, to be determined by the
191	191	department of finance and administration in consultation with
192	192	the state investment officer, based on the number of
193	193	beneficiaries that will become eligible and the anticipated
194	194	eligible expenditures that will be made in that fiscal year. A
195	195	determination of the distribution amount shall take into
196	196	account the balance of and projected earnings and expenditures
197	197	from the baby bonds fund.
198	198	SECTION 5. [NEW MATERIAL] BABY BONDS FUND.--
199	199	A. The "baby bonds fund" is created in the state
200	200	treasury. The purpose of the baby bonds fund is to establish
201	201	for beneficiaries a resource for educational and housing
202	202	assistance, while simultaneously supporting the state's
203	203	economic development and well-being. The fund consists of
204	204	distributions made to the fund from the next generation trust
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233	233	fund and other distributions, transfers, appropriations, gifts,
234	234	grants, donations, bequests and income from investment of the
235	235	fund. Money in the fund is appropriated to the department of
236	236	finance and administration to make eligible expenditures on
237	237	behalf of beneficiaries pursuant to the New Mexico Next
238	238	Generation Act. The department of finance and administration
239	239	shall administer the fund, and expenditures from the fund shall
240	240	be by warrant of the secretary of finance and administration
241	241	pursuant to vouchers signed by the secretary or the secretary's
242	242	authorized representative.
243	243	B. By May 1, 2043 and on each May 1 thereafter, the
244	244	department of finance and administration, in consultation with
245	245	the department of health and the children, youth and families
246	246	department, shall project the amount of eligible expenditures
247	247	required for the upcoming fiscal year and provide its
248	248	projection to the state investment officer.
249	249	SECTION 6. [NEW MATERIAL] INFORMATION SHARING.--On or
250	250	after July 1, 2025, the vital records and health statistics
251	251	bureau of the department of health and the children, youth and
252	252	families department shall enter into an agreement with the
253	253	department of finance and administration to provide to the
254	254	department of finance and administration any information
255	255	necessary to determine or verify the identity or number of
256	256	beneficiaries that may be eligible for assistance pursuant to
257	257	the New Mexico Next Generation Act. The vital records and
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286	286	health statistics bureau of the department of health and the
287	287	children, youth and families department shall provide to the
288	288	department of finance and administration any information that
289	289	is required pursuant to that agreement.
290	290	SECTION 7. [NEW MATERIAL] RULEMAKING BY DEPARTMENT OF
291	291	FINANCE AND ADMINISTRATION.--The department of finance and
292	292	administration shall promulgate rules necessary for the
293	293	administration of the baby bonds fund and the New Mexico Next
294	294	Generation Act. The rules shall include requirements for:
295	295	A. determining a person's status as a beneficiary;
296	296	B. determining whether a proposed expenditure on
297	297	behalf of a beneficiary constitutes an eligible expenditure;
298	298	C. an accounting of benefits available to
299	299	individual beneficiaries; and
300	300	D. any other procedures necessary for
301	301	administration of the baby bonds fund and the New Mexico Next
302	302	Generation Act.
303	303	SECTION 8. [NEW MATERIAL] NO GUARANTEE OF BENEFITS OR
304	304	ENFORCEABLE INTEREST.--The provisions of the New Mexico Next
305	305	Generation Act do not guarantee any benefits and shall not be
306	306	construed to create an interest in property that is enforceable
307	307	under state law or that does not otherwise exist.
308	308	SECTION 9. [NEW MATERIAL] DESIGNATED BENEFICIARY'S
309	309	ELIGIBILITY FOR NEED-BASED ASSISTANCE.--Except as provided by
310	310	federal law, money in the next generation trust fund and the
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339	339	baby bonds fund shall not be considered an asset for the
340	340	purposes of determining a beneficiary's eligibility for
341	341	need-based public assistance programs, grants or aid.
342	342	SECTION 10. A new section of the Income Tax Act is
343	343	enacted to read:
344	344	"[NEW MATERIAL] EXEMPTION--NEW MEXICO NEXT GENERATION
345	345	ACT.--
346	346	A. Money expended on behalf of a beneficiary
347	347	pursuant to the New Mexico Next Generation Act is exempt from
348	348	state income taxation.
349	349	B. As used in this section, "beneficiary" means a
350	350	person born in New Mexico on or after July 1, 2025 who:
351	351	(1) has a parent who has resided in New Mexico
352	352	for at least five consecutive years immediately preceding the
353	353	person's birth; or
354	354	(2) while under the age of eighteen, is
355	355	placed:
356	356	(a) in the care and custody of the
357	357	protective services division of the children, youth and
358	358	families department either under the legal authorization of the
359	359	Children's Code or through a voluntary placement agreement
360	360	signed by the person's parent or legal guardian; or
361	361	(b) with a licensed child placement
362	362	agency under the authority of the Child Placement Agency
363	363	Licensing Act."
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392	392	SECTION 11. A new section of the Children's Code is
393	393	enacted to read:
394	394	"[NEW MATERIAL] INFORMATION SHARING PURSUANT TO NEW MEXICO
395	395	NEXT GENERATION ACT.--Nothing in the Children's Code shall be
396	396	deemed to prohibit the department from providing to the
397	397	department of finance and administration any information
398	398	necessary to assist in the determination or verification of the
399	399	identity or number of beneficiaries that may be eligible for
400	400	assistance pursuant to the New Mexico Next Generation Act."
401	401	SECTION 12. APPROPRIATIONS.--
402	402	A. Five hundred million dollars ($500,000,000) is
403	403	appropriated from the general fund to the next generation trust
404	404	fund for expenditure in fiscal year 2026 and subsequent fiscal
405	405	years for the purposes of the next generation trust fund. Any
406	406	unexpended or unencumbered balance remaining at the end of a
407	407	fiscal year shall not revert to the general fund.
408	408	B. One hundred thousand dollars ($100,000) is
409	409	appropriated from the general fund to the department of finance
410	410	and administration for expenditure in fiscal year 2026 and
411	411	subsequent fiscal years for administering the New Mexico Next
412	412	Generation Act. Any unexpended or unencumbered balance
413	413	remaining at the end of a fiscal year shall not revert to the
414	414	general fund.
415	415	SECTION 13. EFFECTIVE DATE.--The effective date of the
416	416	provisions of this act is July 1, 2025.
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