SB 153 — EARLY CHILDHOOD FUND TRANSFERS

SENATEAN BILLACT 153RELATING 56THTO LEGISLATUREPUBLIC -STATEOFNEWMEXICO-FINANCE; SECOND SESSION , 2024 INTRODUCED BY Siah Correa Hemphill and Doreen Y.

Gallegos 6 8 FOR THE LEGISLATIVE FINANCE COMMITTEE 10 AN ACT RELATING TO PUBLIC FINANCE;

e8 t 17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

w l n d 18 SECTION 1.

Section 9-29A-1 NMSA 1978 (being Laws 2020, = = 19 a l Chapter 3, Section 1, as amended) is amended to read:

i a e r 20 "9-29A-1.

EARLY CHILDHOOD EDUCATION AND CARE FUND.-- a t m m 21 A.

The "early childhood education and care fund" is d r e 22 created within the state treasury.

The fund shall consist of c e s k 23 distributions, appropriations, gifts, grants and donations.

e a n b 24 Income from investment of the fund shall be credited to the u [ fund.

Money in the fund shall be expended only as provided in .226773.2 this section.

SB 153 C.

The state investment officer shall report Page 1 quarterly to the legislative finance committee and the state investment council on the investments made pursuant to this section.

On July 1 of each year, a distribution shall be made from the early childhood education and care fund to the e t 17 early childhood education and care program fund in an amount w l n d 18 equal to the greater of five percent of the average of the = = 19 a l year-end market values of the fund for the immediately i a e r 20 preceding three calendar years or [one hundred fifty million a t m m 21 dollars ($150,000,000)] two hundred fifty million dollars d r e 22 ($250,000,000).

c e s k 23 E.

In addition to the distribution pursuant to e a n b 24 Subsection D of this section, money in the early childhood u [ education and care fund may be expended in the event that .226773.2 - 2 - 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 tobacco settlement permanent 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 early childhood education and care fund to the SB 153 Page 2 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, the tax stabilization reserve and the tobacco settlement permanent fund that exhaust those fund balances." SECTION 2.

e t 17 "9-29A-2.

EARLY CHILDHOOD EDUCATION AND CARE PROGRAM w l n d 18 FUND.--The "early childhood education and care program fund" is = = 19 a l created [as a nonreverting fund] in the state treasury.

The i a e r 20 fund consists of distributions, appropriations, gifts, grants, a t m m 21 donations and income from investment of the fund.

The early d r e 22 childhood education and care department shall administer the c e s k 23 fund.

Money in the fund is subject to appropriation by the e a n b 24 legislature for early childhood education and care services and u [ programs.

Expenditures from the fund shall be by warrant of .226773.2 - 3 - the secretary of finance and administration pursuant to vouchers signed by the secretary of early childhood education and care or the secretary's authorized representative.

-SB 4153 -Page 113 13 15 e t 17 w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .226773.2