SB 202 — STANDARDIZE STATE INVESTMENT FUND LANGUAGE

u » r H.

t h g e l i (1) "distributor settlement agreement" means h r i s the settlement agreement between the state and participating h , e h political subdivisions and opioid distributors, including t u g e b l e e , gh McKesson corporation, Cardinal health and AmerisourceBergen n d d i = = o h corporation, dated as of July 21, 2021 and any revision to the l ] b ,d i a º r agreement;

e tr 17= (2)t "locale government" means every litigating w l n d 18m county and municipality, each county regardless of population = = 19 a ln ando each(2) municipality"local withgovernment" ameans populationevery exceedinglitigating tend thousand i a e r 20 according to the latest federal decennial census, any special a t m m: 21 district identified in the distributor settlement agreement and d r e 22 any local government identified in the New Mexico opioid c e s k 23 allocation agreement within the geographic boundaries of New e a n b 24 Mexico;

ub [r (3)e "Newt Mexicoº opioido allocationt agreement"n .228765.8= .228765.8AIC February 21, 2025 (8:47pm) s k m e - 5 - meanse thea agreementn enterede intod betweenr thee statel u [ A d county and variousmunicipality, localeach governmentscounty onregardless Marchof 7,population 2022and thateach relatesmunicipality with a population exceeding ten thousand according to the allocationlatest offederal opioiddecennial fundscensus, any special district identified in the distributor settlement agreement and any local government identified in the New Mexico opioid allocation agreement within the geographic boundaries of New Mexico;

(4)(3) "opioid"New funds"Mexico meansopioid moneyallocation obtainedagreement" throughmeans judgmentsthe oragreement settlementsentered asinto arisingbetween from the liabilitystate ofand distributorsvarious oflocal opioids,governments manufacturerson ofMarch opioids,7, pharmacies2022 forthat therelates sellingto of opioids or the consultants,allocation agents or associates of distributors,opioid manufacturersfunds orin pharmacies;New Mexico;

and(4) (5) "opioid settlements"funds" means money obtained through judgments or settlements as arising from the liability of distributors of opioids, manufacturers of opioids, pharmacies for the selling of opioids or the consultants, agents or associates of distributors, manufacturers or pharmacies."h SECTIONpharmacies; 3.

Sectionand 6-4-32u NMSA» 1978r (being(5) Laws"opioid 2024,settlements" Chaptermeans 61,judgments Sectionor 1)t ish amendedg toe read:l i settlements arising from the liability of distributors of h r i s opioids, manufacturers of opioids, pharmacies for the selling h , e h of opioids or the consultants, agents or associates of t u g e b l e e , gh distributors, manufacturers or pharmacies." n d d i = = o h SECTION 3.

eSection t6-4-32 17NMSA "6-4-32.1978 (being Laws 2024, l ] b ,d i a º r Chapter 61, Section 1) is amended to read:

HIGHERe EDUCATIONr TRUST= FUND.--t e w ld nm da 18n A.o "6-4-32.

TheHIGHER "higherEDUCATION educationTRUST trustFUND.-- fund"d ism created: as = = 19 a l a nonreverting fund in the state treasury.

Theb fundr consistse it º o t n = .228765.8AIC February 21, 2025 (8:47pm) s k m e - 6 - e a n e d r 20e ofl distributions,u appropriations,[ gifts,A grantsd andA. donations.

aThe t"higher meducation mtrust 21fund" Incomeis fromcreated investmentas ofa thenonreverting fund shallin be credited to the dstate rtreasury. e 22 fund.

MoneyThe in the fund shallconsists beof expendeddistributions, onlyappropriations, asgifts, providedgrants inand cdonations. e s k 23 this section.

eIncome afrom ninvestment bof 24the B.fund shall be credited to the fund.

TheMoney statein investment officer, subject to the ufund [shall approvalbe ofexpended theonly stateas investmentprovided council, shall invest money in .228765.8this -section. 6 - the fund:

B.

The state investment officer, subject to the approval of the state investment council, shall invest money in the fund:

and (2) in consultation with the [state treasurer]treasurer ] secretary of higher education.education .

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

Annually, a report shall be submitted no later than g o t hr October 1 each year to the legislative finance committee, the g e i k revenue stabilization and tax policy committee and any other h r i s appropriate interim committees.

h , t, D.

On July 1, 2024, a distribution shall be made e u g e b l e e h from the trust fund to the higher education program fund in an n d d i = = o h amount equal to forty-seven million nine hundred fifty thousand l ] b ,d i a º e dollars ($47,950,000).

er i = r t 17e w d m a n o E.

On July 1, 2025 and each July 1 thereafter, a w l n d 18 distribution shall be made from the trust fund to the higher = = 19 a l education program fund in an amount equal to five percent of i a e r 20 the average of the year-end market values of the trust fund for a t m m: 21 the immediately preceding three calendar years.

If,b one Julyd 1s dº ro et 22n of= a.228765.8AIC year,February the21, trust2025 fund(8:47pm) hass beenk inm effecte for- less7 than- ce a n e sd kr 23e threel calendaru years,[ theA d distribution shall be inmade anfrom amountthe etrust afund nto bthe 24higher education program fund in an amount equal to five percent of the average of the year-end market u [ values of the trust fund for the immediately preceding numberthree .228765.8 - 7 - of calendar yearsyears. that the trust fund has been in effect.

If, on July 1 of a year, the trust fund has been in effect for less than three calendar years, the distribution shall be in an amount equal to five percent of the average of the year-end market values of the trust fund for the immediately preceding number of calendar years that the trust fund has been in effect.

In addition to the distribution pursuant to Subsections D and E of this section, money in the higher 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 and the tax stabilization reserve, will not meet the level of h appropriations authorized from the general fund for a fiscal u » r year.

In that event, to avoid an unconstitutional deficit, the t h g e l i legislature may appropriate from the trust fund to the general h r i s fund only in the amount necessary to meet general fund h , e h appropriations for that fiscal year and only if the legislature t u g e b l e e , gh has authorized transfers from the appropriation contingency n d d i = = o h fund, the general fund operating reserve and the tax l ] b ,d i a º r stabilization reserve that exhaust those fund balances." e r = t 17e w d m a n o SECTION 4.

Section 6-5-10 NMSA 1978 (being Laws 1994, w l n d 18m Chapter: 11, Section 1, as amended) is amended to read:

=b r e t º o t n = 19.228765.8AIC February 21, 2025 (8:47pm) s k m e - 8 - e a n e d r e l "6-5-10.u [ A d Chapter 11, Section 1, as amended) is amended to read:

STATE"6-5-10. AGENCY REVERSIONS--DIRECTOR POWERS-- i a e r 20 COMPLIANCE WITH FEDERAL RULES.-- a t m m 21 A.

ExceptSTATE asAGENCY providedREVERSIONS--DIRECTOR inPOWERS-- [SubsectionsCOMPLIANCE BWITH andFEDERAL C]RULES.-- dA. r e 22 Subsection B of this section, all unreserved undesignated fund c e s k 23 balances in reverting funds and accounts as reflected in the e a n b 24 central financial reporting and accounting system as of June 30 u [ shall revert by [September 30] August 31 to the general fund.

.228765.8Except -as 8provided -in The[Subsections divisionB mayand adjustC ] Subsection B of this section, all unreserved undesignated fund balances in reverting funds and accounts as reflected in the reversioncentral withinfinancial forty-fivereporting daysand ofaccounting releasesystem as of theJune audit30 reportshall forrevert thatby fiscal[September year.30 ] August 31 to the general fund.

The division may adjust the reversion within forty-five days of release of the audit report for that fiscal year.

Section 6-8-1 NMSA 1978 (being Laws 1957, h Chapter 179, Section 1, as amended) is amended to read:

g o t hr "6-8-1.

DEFINITIONS.--As used in Chapter 6, Article 8 g e i k NMSA 1978:

h r i s A.

h , t, B.

"department" means the department of finance and e u g e b l e e h administration;

n d d i = = o h C.

"investment fund" means any fund managed or l ] b ,d i a º e invested by the state investment officer or the state er i = r t 17e w d m a n o investment council as required by law;

w l n d 18m [C.]: D.

"landb grant permanent funds" means the = = 19 a l permanent school fund established by Article 12, Section 2 of i a e rd 20s theº constitutiono of New Mexico and all other permanent funds a t mn m= 21.228765.8AIC derivedFebruary from21, lands2025 granted(8:47pm) or confirmed to the state by the act d r e 22 of congress of June 20, 1910, entitled "An Act To enable the c e s k 23m peoplee of- New9 Mexico- to form a constitution and state e a n be 24d governmentr ande bel admitted into the Union on an equal footing u [ withA thed original[C.] States...";D.

.228765.8"land -grant 9permanent -funds" [D.means the permanent school fund established by Article 12, Section 2 of the constitution of New Mexico and all other permanent funds derived from lands granted or confirmed to the state by the act of congress of June 20, 1910, entitled "An Act To enable the people of New Mexico to form a constitution and state government and be admitted into the Union on an equal footing with the original States...";

[D.

"severance tax permanent fund" means the fund established by Article 8, Section 10 of the constitution of New h Mexico;

g o t hr G.

"tobacco settlement permanent fund" means the g e i k fund established by Section 6-4-9 NMSA 1978;

and h r i s H.

"water trust fund" means the fund established by h , t, Article 16, Section 6 of the constitution of New Mexico." e u g e b l e e h SECTION 6.

Section 6-8-7 NMSA 1978 (being Laws 1957, n d d i = = o h Chapter 179, Section 7, as amended) is amended to read:

l ] b ,d i a º e "6-8-7.

POWERS AND DUTIES OF THE STATE INVESTMENT COUNCIL er ti 17= ANDr STATEt INVESTMENTe OFFICER--INVESTMENTw POLICY--INVESTMENTd wm la n do 18AND MANAGERS.--STATE =INVESTMENT =OFFICER--INVESTMENT 19POLICY--INVESTMENT ad lm A.:

Subjectb to the limitations, conditions and i a e rd 20s restrictionsº containedo in policymaking regulations or a t mn m= 21.228765.8AIC resolutionsFebruary adopted21, by2025 the(8:47pm) council,s thek councilm maye make- d10 r- e 22a purchases,n sales, exchanges, investments and reinvestments of c e sd kr 23 the assets of all funds in accordance with the Uniform Prudent e al nu b[ 24A Investord Act.MANAGERS.-- A.

TheSubject stateto investmentthe officerlimitations, conditions and therestrictions councilcontained arein upolicymaking [regulations trusteesor ofresolutions alladopted fundsby underthe theircouncil, controlthe andcouncil shallmay seemake thatpurchases, .228765.8sales, -exchanges, 10investments -and moneyreinvestments investedof isthe atassets of all timesfunds handled in theaccordance bestwith intereststhe ofUniform thePrudent state.Investor Act.

The state investment officer and the council are trustees of all funds under their control and shall see that money invested is at all times handled in the best interests of the state.

The state investment officer shall formulate and recommend to the council for approval investment regulations or resolutions pertaining to the kind or nature of investments and limitations, conditions and restrictions upon the methods, practices or procedures for investment, reinvestment, purchase, h sale or exchange transactions that should govern the activities u » r of the investment office.

t h g e l i C.

The council shall meet at least ten times per h r i s year, and as often as exigencies may demand, to consult with h , e h the state investment officer concerning the work of the t u g e b l e e , gh investment office.

The council shall have access to all files n d d i = = o h and records of the investment office and shall require the l ] b ,d i a º r state investment officer to report on and provide information e r = t 17e w d m a n o necessary to the performance of council functions.

The council w l n d 18 may hire investment management or consulting firms to advise = = 19 a l the council with respect to the council's investment decisions i a e r 20 for the investment of funds managed by the investment office a t m m: 21 and pay reasonable compensation for such management or d r e 22 consulting services from the assets of the applicable funds, c e s k 23 subject to budgeting and appropriation by the legislature.

Theb r e t º o t n = .228765.8AIC February 21, 2025 (8:47pm) s k m e - 11 - e a n be 24d termsr ofe anyl suchu [ A d may hire investment management or consulting servicesfirms uto [advise contractthe shallcouncil incorporatewith therespect statutoryto requirementsthe forcouncil's .228765.8investment -decisions 11for -the investment of funds undermanaged by the council'sinvestment jurisdiction.office and pay reasonable compensation for such management or consulting services from the assets of the applicable funds, subject to budgeting and appropriation by the legislature.

The terms of any such investment management or consulting services contract shall incorporate the statutory requirements for investment of funds under the council's jurisdiction.

h D.

The council shall provide an opportunity for g o t hr public comment at meetings of the council.

Advance notice of g e i k meetings shall be published on the council's web site and in a h r i s newspaper of general circulation at least ten days in advance h , t, of the meeting.

e u g e b l e e h E.

All funds invested or managed by the state n d d i = = o h investment officer or the state investment council shall be l ] b ,d i a º e invested or managed in accordance with the Uniform Prudent er i = r t 17e w d m a n o Investor Act.

The council may form and use committees to study w l n d 18m and: make recommendations to the council.

Priorb toe commencingd =s =º 19o at ln work= for.228765.8AIC theFebruary council,21, a2025 committee(8:47pm) members whok ism note a- member12 of- i a e r 20 the council shall submit to the council a disclosuren detailinge a t m m 21 all campaign contributions made within the last two years to d r e 22l anyu member[ ofA thed counciland ormake torecommendations a political committee or other c e s k 23 entity that is intended to aid or promote the nominationcouncil. or e a n b 24 election of any council member to a political office.

uPrior [to F.commencing work for the council, a committee member who is not a member of the council shall submit to the council a disclosure detailing all campaign contributions made within the last two years to any member of the council or to a political committee or other entity that is intended to aid or promote the nomination or election of any council member to a political office.

FiduciariesF. of the [permanent] investment funds .228765.8 - 12 - are:

Fiduciaries of the [permanent ] investment funds are:

and h (4) all persons exercising discretionary g o t hr authority over or control of funds under the management of the g e i k council.

h r i s G.

The council may contract for legal services for h , t, litigation on a contingent or partly contingent fee basis, e u g e b l e e h subject to an expedited solicitation process devised and n d d i = = o h approved by the council;

l ] b ,d i a º e (1) amounts recovered by the legal services er i = r t 17e w d m a n o contractor shall be deposited in the state investment council w l n d 18m suspense: fund;

=b =e 19d as lº (2)o thet counciln shall= submit.228765.8AIC eachFebruary proposed21, i2025 a(8:47pm) es rk 20m contracte to- the13 attorney- generale anda then departmente ford reviewr ae tl mu m[ 21A ofd thesuspense contingencyfund; fee.

The(2) attorney general's and the dcouncil r e 22 department's review shall takesubmit intoeach accountproposed thecontract complexityto of c e s k 23 the factualattorney general and legal issues presented by the claimsdepartment tofor bereview eof a n b 24 pursued under the contract.contingency fee.

IfThe the attorney generalgeneral's orand the udepartment's [review departmentshall advisestake theinto councilaccount that the proposedcomplexity contingencyof .228765.8the -factual 13and -legal feeissues ispresented notby reasonable, the councilclaims mayto neverthelessbe approvepursued theunder contract and the contingencycontract. fee by a majority vote of its members;

andIf (3)the eachattorney prospectivegeneral legalor servicesthe contractordepartment seekingadvises to represent the council onthat athe contingentproposed orcontingency partly contingent fee basisis shallnot filereasonable, with the council themay disclosurenevertheless requiredapprove by Section 13-1-191.1 NMSA 1978 disclosing all campaign contributions made to the governor,contract attorneyand general, state treasurer or any member of the council,contingency orfee toby a politicalmajority committeevote that is intended to aid or promote the nomination or election of anyits candidatemembers; to a state office if the committee is:

(a)and established(3) each prospective legal services contractor seeking to represent the council on a contingent or partly contingent fee basis shall file with the council the disclosure required by Section 13-1-191.1 NMSA 1978 disclosing all campaign contributions made to the governor, attorney general, h state treasurer or any member of the foregoingcouncil, personsor to a political u » r committee that is intended to aid or theirpromote agents;the nomination or t h g e l i election of any candidate to a state office if the committee h r i s is:

(b)h established, ine consultationh with(a) orestablished atby the request of any of the foregoing t u g e b l e e , gh persons or their agents;

en td 17d ori w= = o h (b) established in consultation with or l n] db 18,d (c)i controlleda byº oner ofat the foregoingrequest =of =any 19of athe lforegoing persons or their agents.agents;

ie ar = t e rw 20d H.m a n o or d m :

Theb councilr maye selectt andº contracto fort then a= t.228765.8AIC mFebruary m21, 212025 services(8:47pm) ofs onek orm moree custodian- banks14 for- alle fundsa undern thee d r e 22l council'su management.[ A d (c) controlled by one of the foregoing persons or their agents.

ForH. the purpose of this subsection, c e s k 23 "custodian bank" means a financial institution with the general e a n b 24 fiduciary duties to manage, control and collect the assets of u [ an investment fund, including receiving all deposits and paying .228765.8 - 14 - all disbursements as directed by staff, safekeeping of assets, coordination of asset transfers, timely settlement of securities transactions and accurate and timely reporting of the assets by individual account and in total.

The council may select and contract for the services of one or more custodian banks for all funds under the council's management.

For the purpose of this subsection, "custodian bank" means a financial institution with the general fiduciary duties to manage, control and collect the assets of an investment fund, including receiving all deposits and paying all disbursements as directed by staff, safekeeping of assets, coordination of asset transfers, timely settlement of securities transactions and accurate and timely reporting of the assets by individual account and in total.

provided that h the state agency enters into a joint powers agreement with the u » r council and that the state agency pays at least the direct cost t h g e l i of such services.

Notwithstanding any statutory provision h r i s governing state agency investments, the council may invest h , e h funds available from a state agency pursuant to a joint powers t u g e b l e e , gh agreement in any type of investment permitted for the land n d d i = = o h grant permanent funds under the prudent investor rule.

In l ] b ,d i a º r performing investment services for a state agency, the council e r = t 17e w d m a n o and the state investment officer and investment office staff w l n d 18m are: exempt from the New Mexico Uniform Securities Act.

Asb usedr = = 19 a l in this subsection, "state agency" means any branch, agency, i a e rt 20º department,o board, instrumentality, institution or political a t mn m= 21.228765.8AIC subdivisionFebruary of21, the2025 state,(8:47pm) thes Newk Mexicom finance authority, the d r e 22- New15 Mexico- mortgage finance authority and any tax-exempt c e s k 23 private endowment entity whose sole beneficiary is a staten e ad nr be 24l agencyu or[ whoseA beneficiariesd are studentsexempt attendingfrom athe publicNew uMexico [Uniform educationalSecurities institutionAct. in the state.

.228765.8As -used 15in -this J.subsection, "state agency" means any branch, agency, department, board, instrumentality, institution or political subdivision of the state, the New Mexico finance authority, the New Mexico mortgage finance authority and any tax-exempt private endowment entity whose sole beneficiary is a state agency or whose beneficiaries are students attending a public educational institution in the state.

J.

Council members, the state investment officer and investment office staff and committee members appointed by the council, jointly and severally, shall be indemnified by the h state, out of the [permanent][permanent ] investment funds, from all u » r claims, demands, suits, actions, damages, judgments, costs, t h g e l i charges and expenses, including court costs and attorney fees, h r i s against all claims, liability, losses or damages arising from h , e h any decisions made or actions taken while acting within the t u g e b l e e , gh scope of duty and pursuant to law as a council member, the n d d i = = o h state investment officer, investment office staff or a l ] b ,d i a º r committee member appointed by the council.

Following e tr 17= indemnification,t ife it is shown that the indemnified person w l n d 18m acteda fraudulentlyn oro withindemnification, intentionalif malice,it theis stateshown shallthat = = 19 a l have the right to recover from the indemnified person anyd i a e r 20 amount expended under this subsection." a t m m: 21 SECTION 7.

Sectionb 6-8-14r NMSAe 1978t (beingº Lawso 1957,t n = .228765.8AIC February 21, 2025 (8:47pm) s k m e - 16 - e a n e d r e 22l Chapteru 179,[ SectionA 14,d asacted amended)fraudulently isor amendedwith intentional malice, the state shall have the right to read:recover from the indemnified person any amount expended under this subsection." SECTION 7.

cSection e6-8-14 sNMSA k1978 23(being "6-8-14.Laws 1957, Chapter 179, Section 14, as amended) is amended to read:

MONTHLY"6-8-14. REPORTS.--No later than twenty days e a n b 24 after the end of each month, the state investment officer shall u [ submit to the council a report of the operations of the .228765.8 - 16 - investment office during the past month.

EachMONTHLY reportREPORTS.--No shalllater includethan atwenty scheduledays ofafter cumulativethe fiscalend yearof actualeach andmonth, budgetedthe expendituresstate andinvestment aofficer monthlyshall summarysubmit ofto contributions,the distributions,council fees,a incomereport andof netthe gainsoperations orof lossesthe for each [permanent] investment fundoffice andduring investmentthe pool.past month.

TheEach reportsreport shall beinclude publisheda onschedule theof [webcumulative site]fiscal websiteyear ofactual theand councilbudgeted expenditures and thea sunshinemonthly portalsummary andof shallcontributions, bedistributions, openfees, forincome inspectionand tonet thegains publicor andlosses thefor presseach in[permanent the] investment office."fund SECTIONand 8.investment pool.

SectionThe 6-8-23reports NMSAshall 1978be (beingpublished Lawson 2011,the Chapter[web 9,site Section] 2)website isof amendedthe council and the sunshine portal and shall be open for inspection to read:the public and the press in the investment office." h SECTION 8.

"6-8-23.Section 6-8-23 NMSA 1978 (being Laws 2011, g o t hr Chapter 9, Section 2) is amended to read:

COMPENSATIONg UNDERe CONTINGENTi FEEk CONTRACTS--"6-8-23. SUSPENSE FUND CREATED.-- A.

ForCOMPENSATION theUNDER purposeCONTINGENT ofFEE makingCONTRACTS-- disbursementsh andr distributionsi pursuants toSUSPENSE thisFUND section,CREATED.-- theh "state, investmentt, councilA. suspense fund" is created in the state treasury.

B.For the purpose of making disbursements and e u g e b l e e h distributions pursuant to this section, the "state investment n d d i = = o h council suspense fund" is created in the state treasury.

When pursuing a claim and utilizing legal e t 17 services on a contingent fee basis, all amounts received by the w l n] db 18,d legal services contractor as satisfaction of the claim shall be = = 19 a l transferred to the council and deposited into the state i a º e rB. 20 investment council suspense fund to the credit of the council.

aWhen tpursuing ma mclaim 21and Uponutilizing thelegal directionr ofi the= stater investmentt officer,e thew d rm ea 22n contingento attorney fees due to the legal services contractoron ca econtingent sfee kbasis, 23all shallamounts bereceived disbursedby from the suspensed fundm to: the contractor.

b e d s º o t n = .228765.8AIC February 21, 2025 (8:47pm) s k m e - 17 - e a n be 24d C.r e l u [ A d legal services contractor as satisfaction of the claim shall be transferred to the council and deposited into the state investment council suspense fund to the credit of the council.

AfterUpon a disbursement to a contractor pursuant to u [ Subsection B of this section, the balancedirection of the deposit into .228765.8 - 17 - the state investment councilofficer, suspensethe fundcontingent shallattorney befees distributeddue to the appropriatelegal [permanent]services investmentcontractor fundshall orbe otherdisbursed appropriate fund from which the losssuspense occurredfund thatto originated the claimcontractor. pursued by the legal services contractor." SECTION 9.

C.

After a disbursement to a contractor pursuant to Subsection B of this section, the balance of the deposit into the state investment council suspense fund shall be distributed to the appropriate [permanent ] investment fund or other appropriate fund from which the loss occurred that originated the claim pursued by the legal services contractor." SECTION 9.

COLONIAS INFRASTRUCTURE TRUST FUND--CREATED-- INVESTMENT--DISTRIBUTION.-- h A.

The "colonias infrastructure trust fund" is g o t hr created as a nonreverting fund in the state treasury.

The g e i k trust fund shall consist of money that is appropriated, donated h r i s or otherwise allocated to it.

Money in the trust fund shall be h , t, invested by the state investment officer in [the manner that e u g e b l e e h land grant permanent funds are invested pursuant to Chapter 6, n d d i = = o h Article 8 NMSA 1978] accordance with the prudent investor rule l ] b ,d i a º e set forth in the Uniform Prudent Investor Act.

Income from er i = r t 17e w d m a n o investment of the trust fund shall be credited to the fund.

w l n d 18m Money: in the trust fund shall not be expended for any purpose, = = 19 a l but an annual distribution from the trust fund shall be made to i a e r 20 the project fund pursuant to this section.

ab e d s º o t mn = .228765.8AIC February 21, 2025 (8:47pm) s k m 21e B.- 18 - e a n e d r e l u [ A d Money in the trust fund shall not be expended for any purpose, but an annual distribution from the trust fund shall be made to the project fund pursuant to this section.

OnB. July 1 of each year in which adequate money d r e 22 is available in the trust fund, an annual distribution shall be c e s k 23 made from the trust fund to the project fund in the amount of e a n b 24 ten million dollars ($10,000,000) until the distribution is u [ less than an amount equal to four and seven-tenths percent of .228765.8 - 18 - the average of the year-end market values of the trust fund for the immediately preceding five calendar years.

On July 1 of each year in which adequate money is available in the trust fund, an annual distribution shall be made from the trust fund to the project fund in the amount of ten million dollars ($10,000,000) until the distribution is less than an amount equal to four and seven-tenths percent of the average of the year-end market values of the trust fund for the immediately preceding five calendar years.

h "7-27-50.

CAPITAL DEVELOPMENT AND RESERVE FUND.-- g o t hr A.

The "capital development and reserve fund" is g e i k created as a nonreverting fund in the state treasury.

The fund h r i s consists of distributions, appropriations, gifts, grants and h , t, donations.

Income from investment of the fund shall be e u g e b l e e h credited to the fund.

Money in the fund shall be expended only n d d i = = o h as provided in Subsections E through F of this section.

Money l ] b ,d i a º e in the fund shall not be pledged against any state debt.

er i = r t 17e w d m a n o B.

The state investment officer, subject to the w l n d 18m approval: of the council, shall invest money in the fund:

=b e d s º o t n = 19.228765.8AIC aFebruary l21, (1)2025 in(8:47pm) accordances withk them prudente investor- i19 - e a n e d r 20e rulel setu forth[ inA d approval of the Uniformcouncil, Prudentshall Investorinvest Act;money in the fund:

and(1) a t m m 21 (2) in consultationaccordance with the [stateprudent treasurer]investor drule rset eforth 22in director of the boardUniform ofPrudent financeInvestor divisionAct; of the department of c e s k 23 finance and administration.

eand a(2) nin bconsultation 24with C.the [state treasurer ] director of the board of finance division of the department of finance and administration.

TheC. state investment officer shall report u [ quarterly to the legislative finance committee and the council .228765.8 - 19 - on the investments made pursuant to this section.

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

On January 1 of each year, a distribution shall be made from the capital development and reserve fund to the capital development program fund in an amount equal to five h percent of the average of the fiscal year-end market values of u » r the capital development and reserve fund for the immediately t h g e l i preceding three fiscal years.

If, on January 1 of a year, the h r i s capital development and reserve fund has been in effect for h , e h less than three fiscal years, the distribution shall be in an t u g e b l e e , gh amount equal to five percent of the average of the fiscal year- n d d i = = o h end market values of the capital development and reserve fund l ] b ,d i a º r for the immediately preceding number of fiscal years that the e r = t 17e w d m a n o fund has been in effect.

w l n d 18m E.:

Moneyb inr thee fundt isº subjecto tot appropriationn by = =.228765.8AIC 19February a21, l2025 the(8:47pm) legislatures fork capitalm projectse or- for20 transfer- toe the i a n e d r 20e severancel taxu permanent[ fund.A d E.

aMoney tin mthe mfund 21is F.subject to appropriation by the legislature for capital projects or for transfer to the severance tax permanent fund.

MoneyF. in the capital development and reserve d r e 22 fund may be expended in the event that the balance of the c e s k 23 severance tax bonding fund is insufficient to meet principal e a n b 24 and interest payments on outstanding bonds.

InMoney thatin event, the ucapital [development balanceand in the reserve fund shallmay be transferredexpended toin the .228765.8event -that 20the -balance of the severance tax bonding fund onlyis ininsufficient the amount necessary to meet the principal and interest payments."payments SECTIONon 11.outstanding bonds.

In that event, the balance in the reserve fund shall be transferred to the severance tax bonding fund only in the amount necessary to meet the principal and interest payments." SECTION 11.

The fund consists of distributions, appropriations, h gifts, grants, donations and income from investment of the g o t hr fund.

The department of finance and administration shall g e i k administer the fund.

Money in the fund is subject to h r i s appropriation by the legislature to fund capital projects with h , t, a total cost of less than five million dollars ($5,000,000) and e u g e b l e e h only the planning and design of capital projects with a total n d d i = = o h cost greater than that amount.

Expenditures from the fund l ] b ,d i a º e shall be by warrant of the secretary of finance and er i = r t 17e w d m a n o administration pursuant to vouchers signed by the secretary of w l n d 18m finance: and administration or the secretary's authorized = = 19 a l representative.

[Anyb unexpended or unencumbered balance of an i a e rd 20s appropriationº foro a capital project remaining after two years a t mn m= 21.228765.8AIC followingFebruary the21, date2025 of(8:47pm) the appropriation] Any law making an d r e 22 appropriation from the fund for a capital project shall provide c e s k 23m thate any- unexpended21 or- unencumbered balance of the e a n be 24d appropriationr ate thel end of the project shall revert to the u [ severanceA taxd permanentfinance fund."and .228765.8administration -or 21the -secretary's SECTIONauthorized 12.representative.

[Any unexpended or unencumbered balance of an appropriation for a capital project remaining after two years following the date of the appropriation] Any law making an appropriation from the fund for a capital project shall provide that any unexpended or unencumbered balance of the appropriation at the end of the project shall revert to the severance tax permanent fund." STBTCº SECTION 12.

All money received by the administrative h services division, the construction industries division, the u » r financial institutions division, the securities division, [and] t h g e l i the manufactured housing division and the cannabis control h r i s division, other than money earmarked for revolving funds, shall h , e h t u g be deposited with the state treasurer and held in a separate e b l e e , gh suspense account for each division in the [seventy-sixth fiscal n d d i = = o h year, all money deposited in the suspense accounts shall be transferredl monthly] tob the,d generali funda untilº ther sum of all e tr 17= money transferred monthly to the general fund equalsuntil the totalsum amountof wall lt ne w d 18m depositeda andn o money transferred to the general fund fromequals thosethe =total =amount 19d am l: divisions in the seventy-fourth fiscal year.

Allb additionalr i a e rt 20º moneyo depositedt inn the= divisions'.228765.8AIC suspenseFebruary accounts21, during2025 the(8:47pm) as tk m me 21- seventy-sixth22 fiscal- yeare shalla ben transferrede to the d r e 22l regulationu and[ licensingA departmentd operatingdeposited fundand ontransferred Juneto 30,the cgeneral efund sfrom kthose 23divisions 1988]in regulationthe andseventy-fourth licensingfiscal departmentyear. operating fund.

eAll aadditional nmoney bdeposited 24in C.the divisions' suspense accounts during the seventy-sixth fiscal year shall be transferred to the regulation and licensing department operating fund on June 30, 1988] regulation and licensing department operating fund.

[InC. the seventy-seventh fiscal year and each u [ fiscal year thereafter] On the last day of each month, the .228765.8 - 22 - department shall transfer all money received during the month from the divisions' suspense accounts to the general fund." SECTION 13.

[In the seventy-seventh fiscal year and each fiscal year thereafter] On the last day of each month, the department shall transfer all money received during the month from the divisions' suspense accounts to the general fund."»STBTC SECTION STBTCº13.»STBTC STBTCº12.»STBTC Section 9-16-15 NMSA 1978 (being Laws 2009, Chapter 122, Section 59) is amended to read:

MORTGAGE REGULATORY FUND--CREATED--PURPOSE-- APPROPRIATION.-- h A.

The "mortgage regulatory fund" is created as a u » r t h nonreverting fund in the state treasury and shall be g e l i administered by the financial institutions division of the h r i s regulation and licensing department.

The fund shall consist of h , e h t u g application, licensing, renewal, examination, investigation and e b l e e , gh any other fees received that are associated with the costs of n d d i = = o h administering the New Mexico Mortgage Loan Originator Licensing l ] b ,d i a º r e r = Act, fees specified in Subsection E of Section 58-21-5 NMSA t e w d m a n o 1978 and any money that is appropriated or donated or that otherwised accruesm to: the fund.

[Moneyb inr the fund shall be e t 17º investedo byt then state= investment.228765.8AIC officerFebruary in21, the2025 manner(8:47pm) thats wk lm ne d- 1823 land- grante permanenta fundsn aree investedd pursuantr toe Chapterl 6,u =[ =A 19d aotherwise laccrues Articleto 8the NMSAfund. 1978.

Income[Money fromin investment of the fund shall ibe ainvested eby rthe 20state beinvestment creditedofficer toin the fund.]manner athat tland mgrant mpermanent 21funds B.are invested pursuant to Chapter 6, Article 8 NMSA 1978.

MoneyIncome infrom theinvestment mortgage regulatory fund is d r e 22 appropriated to the financial institutions division of the cfund eshall sbe kcredited 23 regulation and licensing department to carry out the provisionsfund.] eB. a n b 24 of the New Mexico Mortgage Loan Originator Licensing Act and u [ the Mortgage Loan Company Act.

.228765.8Money -in 23the -mortgage C.regulatory fund is appropriated to the financial institutions division of the regulation and licensing department to carry out the provisions of the New Mexico Mortgage Loan Originator Licensing Act and the Mortgage Loan Company Act.

C.

[Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the h general fund.]" g o t hr SECTION 14.STBTCº 14.»STBTC STBTCº13.»STBTC Section 9-26-17 g e i k NMSA 1978 (being Laws 2024, Chapter 5, Section 1) is amended to h r i s read:

Sectionh 9-26-17, NMSAt, 1978"9-26-17. (being Laws 2024, Chapter 5, Section 1) is amended to read:

"9-26-17.WORKFORCE DEVELOPMENT AND APPRENTICESHIP TRUST e u g e b l e e h FUND.-- n d d i = = o h A.

WORKFORCEThe DEVELOPMENT"workforce ANDdevelopment APPRENTICESHIPand TRUSTapprenticeship FUND.--l A.] b ,d i a º e trust fund" is created as a nonreverting fund within the state r i = r t e w d m a n o treasury.

The "workforcefund developmentconsists andof apprenticeshipdistributions, trustappropriations, fund"d ism created: as a nonreverting fund within the state treasury.

Theb funde consistsd ofs distributions,º appropriations,o t n = .228765.8AIC February 21, 2025 (8:47pm) s k m e - 24 - e a n e d r e l u [ A d gifts, grants and donations.

Money in the fund shall be e t 17 expended only as provided in this section.

w l n d 18 B.

The state investment officer, subject to the = = 19 a l approval of the state investment council, shall invest money in i a e r 20 the workforce development and apprenticeship trust fund:

a t m m 21 (1) in accordance with the prudent investor d r e 22 rule set forth in the Uniform Prudent Investor Act;

and c e s k 23 (2) in consultation with the [state treasurer] e a n b 24 secretary of workforce solutions.

u [ C.

The state investment officer shall report .228765.8 - 24 - quarterly to the legislative finance committee and the state investment council on the investments made pursuant to this section.

Annually, a report shall be submitted no later than November 1 each year to the legislative finance committee, the revenue stabilization and tax policy committee and any other appropriate interim committees.

D.

Subject to the availability of funds:

(1) on July 1, 2024 and July 1, 2025:

(a) two million five hundred thousand dollars ($2,500,000) shall be transferred to the public works apprentice and training fund;

and (b) two million five hundred thousand dollars ($2,500,000) shall be appropriated to the workforce solutions department to carry out the purposes of the Apprenticeship Assistance Act;

and (2) on July 1 of each year thereafter:

e t 17 (a) one million five hundred thousand w l n d 18 dollars ($1,500,000) shall be transferred to the public works = = 19 a l apprentice and training fund;

and i a e r 20 (b) one million five hundred thousand a t m m 21 dollars ($1,500,000) shall be appropriated to the workforce d r e 22 solutions department to carry out the purposes of the c e s k 23 Apprenticeship Assistance Act.

e a n b 24 E.

In addition to the transfers and appropriations u [ pursuant to Subsection D of this section, money in the .228765.8 - 25 - workforce development and apprenticeship 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 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 workforce development and apprenticeship 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 [and the tobacco settlement permanent fund] that exhaust those fund e t 17 balances." w l n d 18 SECTION 15.

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 as a nonreverting fund within the state treasury.

The c e s k 23 fund shall consist of distributions, appropriations, gifts, e a n b 24 grants and donations.

Income from investment of the fund shall u [ be credited to the fund.

Money in the fund shall be expended .228765.8 - 26 - only as provided in this section.

The state investment officer, subject to the approval of the state investment council, shall invest money in the earlyworkforce childhooddevelopment education and careapprenticeship trust fund:

and (2) in consultation with the [state treasurer]treasurer ] secretary of earlyworkforce childhoodsolutions education. and care.

Annually, a report shall be submitted no later than OctoberNovember 1 each year to the legislative finance committee, the revenue stabilization and tax policy committee and any other h appropriate interim committees.

g o t hr D.

Subject to the availability of funds:

g e i k (1) on July 1, 2024 and July 1, 2025:

h r i s (a) two million five hundred thousand h , t, dollars ($2,500,000) shall be transferred to the public works e u g e b l e e h apprentice and training fund;

and n d d i = = o h (b) two million five hundred thousand l ] b ,d i a º e dollars ($2,500,000) shall be appropriated to the workforce r i = r t e w d m a n o solutions department to carry out the purposes of the d m :

b e d s º o t n = .228765.8AIC February 21, 2025 (8:47pm) s k m e - 25 - e a n e d r e l u [ A d Apprenticeship Assistance Act;

and (2) on July 1 of each year thereafter:

(a) one million five hundred thousand dollars ($1,500,000) shall be transferred to the public works apprentice and training fund;

and (b) one million five hundred thousand dollars ($1,500,000) shall be appropriated to the workforce solutions department to carry out the purposes of the Apprenticeship Assistance Act.

E.

In addition to the transfers and appropriations pursuant to Subsection D of this section, money in the workforce development and apprenticeship 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 tobacco settlement h permanent fund] the state-support reserve fund and the tax u » r stabilization reserve, will not meet the level of t h g e l i appropriations authorized from the general fund for a fiscal h r i s year.

In that event, to avoid an unconstitutional deficit, the h , e h legislature may appropriate from the workforce development and t u g e b l e e , gh apprenticeship trust fund to the general fund only in the n d d i = = o h amount necessary to meet general fund appropriations for that l ] b ,d i a º r fiscal year and only if the legislature has authorized e r = t e w d m a n o transfers from the appropriation contingency fund, the general d m :

b r e t º o t n = .228765.8AIC February 21, 2025 (8:47pm) s k m e - 26 - e a n e d r e l u [ A d fund operating reserve and the tax stabilization reserve [and the tobacco settlement permanent fund] that exhaust those fund balances." SECTION STBTCº 15.»STBTC STBTCº14.»STBTC Section 9-29A-1 NMSA 1978 (being Laws 2020, Chapter 3, Section 1, as amended) is amended to read:

"9-29A-1.

EARLY CHILDHOOD EDUCATION AND CARE FUND.-- A.

The "early childhood education and care fund" is created as a nonreverting fund within the state treasury.

The fund shall consist of distributions, 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, subject to the approval of the state investment council, shall invest money in the early childhood education and care fund:

h (1) in accordance with the prudent investor g o t hr rule set forth in the Uniform Prudent Investor Act;

and g e i k (2) in consultation with the [state treasurer ] h r i s secretary of early childhood education and care .

h , t, C.

The state investment officer shall report e u g e b l e e h quarterly to the legislative finance committee and the state n d d i = = o h investment council on the investments made pursuant to this l ] b ,d i a º e section.

Annually, a report shall be submitted no later than r i = r t e w d m a n o October 1 each year to the legislative finance committee, the d m :

b e d s º o t n = .228765.8AIC February 21, 2025 (8:47pm) s k m e - 27 - e a n e d r e l u [ A d revenue stabilization and tax policy committee and any other appropriate interim committees.

On July 1 of each year, a distribution shall be e t 17 made from the early childhood education and care fund to the w l n d 18 early childhood education and care program fund in an amount = = 19 a l equal to the greater of five percent of the average of the i a e r 20 year-end market values of the fund for the immediately a t m m 21 preceding three calendar years or two hundred fifty million d r e 22 dollars ($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 .228765.8 - 27 - 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 h fund and the tax stabilization reserve, will not meet the level u » r of appropriations authorized from the general fund for a fiscal t h g e l i year.

In that event, to avoid an unconstitutional deficit, the h r i s legislature may appropriate from the early childhood education h , e h and care fund to the general fund only in the amount necessary t u g e b l e e , gh to meet general fund appropriations for that fiscal year and n d d i = = o h only if the legislature has authorized transfers from the l ] b ,d i a º r appropriation contingency fund, the general fund operating e r = t e w d m a n o reserve and the tax stabilization reserve [and the tobacco settlementd permanentm fund]: that exhaust those fund balances." SECTION 16.

b r e t º o t n = .228765.8AIC February 21, 2025 (8:47pm) s k m e - 28 - e a n e d r e l u [ A d settlement permanent fund] that exhaust those fund balances." SECTION STBTCº 16.»STBTC STBTCº15.»STBTC Section 18-18-1 NMSA 1978 (being Laws 2019, Chapter 165, Section 1) is amended to read:

e t 17 "18-18-1.

RURAL LIBRARIES ENDOWMENT FUND-- w l n d 18 DISTRIBUTIONS.-- = = 19 a l A.

The "rural libraries endowment fund" is created i a e r 20 as a nonreverting fund in the state treasury to support the a t m m 21 preservation, development and establishment of rural libraries d r e 22 throughout the state by providing funding for rural libraries' c e s k 23 operational and capital needs and funding for the delivery of e a n b 24 specialized services to rural libraries.

u [ B.

The rural libraries endowment fund consists of .228765.8 - 28 - appropriations and donations to the fund and all income from investment of the fund.

The state investment officer shall invest money in the fund [as money in the fund described in Article 12, Section 7 of the constitution of New Mexico is invested] in accordance with the prudent investor rule as set forth in the Uniform Prudent Investor Act.

C.

[Distributions of money] A distribution from the rural libraries endowment fund shall be [(1) in the following gross amounts:

(a) for fiscal year 2022 and each of the following five fiscal years, the difference, if positive, between all fund investment income yielded through the immediately preceding calendar year and all fund distributions, up to five percent of the year-end market value of the fund for the immediately preceding calendar year;

and (b) for fiscal year 2028 and each e t 17 subsequent fiscal year, the average of fund investment income w l n d 18 yielded in the immediately preceding five calendar years, up to = = 19 a l five percent of the year-end market value of the fund for the i a e r 20 immediately preceding calendar year;

and a t m m 21 (2)] made to the following funds in an amount d r e 22 equal to five percent of the average year-end market value of c e s k 23 the fund for the immediately preceding five calendar years in e a n b 24 the following proportions:

u [ [(a)] (1) ninety-five percent [of the gross .228765.8 - 29 - distribution] to the rural libraries program fund for grants through the rural libraries grant program;

and [(b)] (2) five percent [of the gross distribution] to the cultural affairs department for the state's delivery of specialized services to rural libraries." SECTION 17.

Section 19-1-19 NMSA 1978 (being Laws 1966, Chapter 4, Section 1, as amended) is amended to read:

"19-1-19.

PUBLIC BUILDINGS AT CAPITAL PERMANENT FUND-- INVESTMENT.-- A.

The state investment officer shall, in the same manner [provided under Section 11-2-8.9 NMSA 1953 for other permanent] as the land grant permanent funds, assume the investment responsibility for the public buildings at capital permanent fund created by Section [7-1-16 NMSA 1953] 19-1-17 NMSA 1978.

AsThe usedrural inlibraries thisendowment section,fund "landconsists grantof permanentappropriations eand tdonations 17to funds" means the permanent school fund established by Article w l n d 18 12, Section 2 of the constitution of New Mexico and all otherincome = = 19 a l permanent funds derived from landsinvestment granted or confirmed to the i a e r 20 state by the act of congress of June 20, 1910, entitled "An Act a t m m 21 To enable the peoplefund. of New Mexico to form a constitution and d r e 22 state government and be admitted into the Union on an equal c e s k 23 footing with the original States..."." e a n b 24 SECTION 18.

SectionThe 24-5A-4state NMSAinvestment 1978officer (beingshall Lawsinvest 2015,money uin [the Chapterfund 5,[as money in the fund described in h Article 12, Section 4)7 of the constitution of New Mexico is amendedg too read:t hr invested] in accordance with the prudent investor rule as set g e i k forth in the Uniform Prudent Investor Act.

.228765.8h -r 30i -s "24-5A-4.C.

VACCINE[Distributions PURCHASINGof FUND.--money A.] A distribution from the h , t, rural libraries endowment fund shall be e u g e b l e e h [(1) in the following gross amounts:

Then "vaccined purchasingd fund"i is= created= aso h (a) for fiscal year 2022 and each of the l ] b ,d i a nonrevertingº e following five fiscal years, the difference, if positive, r i = r t e w d m a n o between all fund ininvestment income yielded through the stated treasury.m :

Theb funde consistsd ofs amountsº reimbursedo tot then state= by.228765.8AIC healthFebruary insurers21, and2025 group(8:47pm) healths plansk pursuantm toe the- Vaccine29 Purchasing- Acte a n e d r e l u [ A d immediately preceding calendar year and all fund distributions, up to five percent of appropriationsthe from,year-end andmarket transfersvalue madeof to,the fund for the fund.immediately preceding calendar year;

Incomeand from(b) investmentfor offiscal year 2028 and each subsequent fiscal year, the average of fund shallinvestment beincome creditedyielded in the immediately preceding five calendar years, up to five percent of the fund.year-end market value of the fund for the immediately preceding calendar year;

Moneyand in(2)] made to the fundfollowing shallfunds bein expendedan onlyamount forequal theto purposesfive specifiedpercent inof the Vaccineaverage Purchasingyear-end Act,market byvalue warrantof issued by the secretaryfund offor financethe andimmediately administrationpreceding pursuantfive tocalendar vouchersyears approvedin by the secretaryfollowing ofproportions: health.

[(a)] (1) ninety-five percent [of the gross distribution] to the rural libraries program fund for grants through the rural libraries grant program;

and [(b)] (2) five percent [of the gross h distribution] to the cultural affairs department for the g o t hr state's delivery of specialized services to rural libraries." g e i k SECTION STBTCº 17.»STBTC STBTCº16.»STBTC Section 19-1-19 h r i s NMSA 1978 (being Laws 1966, Chapter 4, Section 1, as amended) h , t, is amended to read:

e u g e b l e e h "19-1-19.

PUBLIC BUILDINGS AT CAPITAL PERMANENT FUND-- n d d i = = o h INVESTMENT.-- l ] b ,d i a º e A.

The state investment officer shall, in the same r i = r t e w d m a n o manner [provided under Section 11-2-8.9 NMSA 1953 for other d m :

b e d s º o t n = .228765.8AIC February 21, 2025 (8:47pm) s k m e - 30 - e a n e d r e l u [ A d permanent] as the land grant permanent funds, assume the investment responsibility for the public buildings at capital permanent fund created by Section [7-1-16 NMSA 1953 ] 19-1-17 NMSA 1978.

As used in this section, "land grant permanent funds" means the permanent school fund established by Article 12, Section 2 of the constitution of New Mexico and all other permanent funds derived from lands granted or confirmed to the state by the act of congress of June 20, 1910, entitled "An Act To enable the people of New Mexico to form a constitution and state government and be admitted into the Union on an equal footing with the original States..."." SECTION STBTCº 18.»STBTC STBTCº17.»STBTC Section 24-5A-4 NMSA 1978 (being Laws 2015, Chapter 5, Section 4) is amended to read:

"24-5A-4.

VACCINE PURCHASING FUND.-- h A.

The "vaccine purchasing fund" is created as a g o t hr nonreverting fund in the state treasury.

The fund consists of g e i k amounts reimbursed to the state by health insurers and group h r i s health plans pursuant to the Vaccine Purchasing Act and of h , t, appropriations from, and transfers made to, the fund.

Income e u g e b l e e h from investment of the fund shall be credited to the fund.

n d d i = = o h Money in the fund shall be expended only for the purposes l ] b ,d i a º e specified in the Vaccine Purchasing Act, by warrant issued by r i = r t e w d m a n o the secretary of finance and administration pursuant to d m :

b e d s º o t n = .228765.8AIC February 21, 2025 (8:47pm) s k m e - 31 - e a n e d r e l u [ A d vouchers approved by the secretary of health.

B.

The fund shall be audited in the same manner as other state funds are audited, and all records of payments made e t 17 from the fund shall be open to the public.

w l n d 18 [D.

Any balance remaining in the fund shall not = = 19 a l revert or be transferred to any other fund at the end of a i a e r 20 fiscal year.

a t m m 21 E.

Money in the fund shall be invested by the state d r e 22 investment officer in accordance with the limitations in c e s k 23 Article 12, Section 7 of the constitution of New Mexico.

e a n b 24 Income from investment of the fund shall be credited to the ufund.]" [SECTION fund.]"STBTCº .228765.819.»STBTC -STBTCº18.»STBTC 31Section -h SECTION58-32-1004 19.NMSA 1978 (being Laws 2016, Chapter 88, Section g o t hr 1004) is amended to read:

Sectiong 58-32-1004e NMSAi 1978k (being"58-32-1004. Laws 2016, Chapter 88, Section 1004) is amended to read:

"58-32-1004.MONEY SERVICES REGULATORY FUND--CREATED-- h r i s PURPOSE--APPROPRIATION.-- h , t, A.

MONEYThe SERVICES"money REGULATORYservices FUND--CREATED--regulatory PURPOSE--APPROPRIATION.--fund" A.is created e u g e b l e e h as a nonreverting fund in the state treasury and shall be n d d i = = o h administered by the financial institutions division of the l ] b ,d i a º e regulation and licensing department.

The "moneyfund servicesshall regulatoryconsist fund"of isr createdi as= ar nonrevertingt funde inw thed statem treasurya andn shallo beapplication, administeredlicensing, byrenewal, theinvestigation financialand institutionsany divisionother ofd them regulation: and licensing department.

Theb funde shalld consists ofº application,o licensing,t renewal,n investigation= and.228765.8AIC anyFebruary other21, 2025 (8:47pm) s k m e - 32 - e a n e d r e l u [ A d fees received that are associated with the costs of administering the Uniform Money Services Act and any money that is appropriated or donated or that otherwise accrues to the fund.

Income from investment of the fund shall be credited to the e t 17 fund.] w l n d 18 B.

Money in the money services regulatory fund is = = 19 a l subject to appropriation by the legislature to the financial i a e r 20 institutions division of the regulation and licensing a t m m 21 department to carry out the provisions of the Uniform Money d r e 22 Services Act.

c e s k 23 C.

Money shall be disbursed from the money services e a n b 24 regulatory fund only on warrant of the secretary of finance and u [ administration upon vouchers signed by the director of the .228765.8h - 32 - financial institutions division or the director's authorized u » r representative.

Any unexpended or unencumbered balance t h g e l i remaining at the end of a fiscal year shall not revert to the h r i s general fund." h , e h SECTION 20.STBTCº 20.»STBTC STBTCº19.»STBTC Section 72-4A-8 t u g e b l e e , gh NMSA 1978 (being Laws 2001, Chapter 164, Section 8) is amended n d d i = = o h to read:

Sectionl 72-4A-8] NMSAb 1978,d (beingi Lawsa 2001,º Chapterr 164,"72-4A-8. Section 8) is amended to read:

"72-4A-8.WATER TRUST FUND--CREATED--INVESTMENT-- e r = t e w d m a n o DISTRIBUTION.-- d m :

WATERb TRUSTr FUND--CREATED--INVESTMENT--e DISTRIBUTION.--t º o t n = .228765.8AIC February 21, 2025 (8:47pm) s k m e - 33 - e a n e d r e l u [ A d A.

Earnings from investment of the fund shall be credited to the e t 17 fund.

Money in the fund shall not be expended for any purpose, w l n d 18 but an annual distribution shall be made to the water project = = 19 a l fund in accordance with Subsection B of this section.

i a e r 20 B.

On July 1 of [fiscal year 2003 and on July 1 of a t m m 21 each fiscal year thereafter, an annual] each year, a d r e 22 distribution shall be made from the water trust fund to the c e s k 23 water project fund in the amount of four million dollars e a n b 24 ($4,000,000) until that amount is less than an amount equal to uh [ four and seven-tenths percent of the average of the year-end .228765.8g -o 33t -hr market values of the water trust fund for the immediately g e i k preceding five calendar years.

Thereafter, the amount of the h r i s annual distribution shall be four and seven-tenths percent of h , t, the average of the year-end market values of the water trust e u g e b l e e h fund for the immediately preceding five calendar years." n d d i = = o h SECTION 21.STBTCº 21.»STBTC STBTCº20.»STBTC Section 75-12-1 l ] b ,d i a º e NMSA 1978 (being Laws 2023, Chapter 26, Section 2) is amended r i = r t e w d m a n o to read:

Sectiond 75-12-1m NMSA: 1978 (being Laws 2023, Chapter 26, Section 2) is amended to read:

b e d s º o t n = .228765.8AIC February 21, 2025 (8:47pm) s k m e - 34 - e a n e d r e l u [ A d "75-12-1.

Money in the fund shall be invested by the state investment officer [with the same risk and return profile as land grant permanent funds are invested pursuant to Chapter 6, Article 8 NMSA 1978] in e t 17 accordance with the prudent investor rule as set forth in the w l n d 18 Uniform Prudent Investor Act.

Earnings from investment of the = = 19 a l fund shall be credited to the fund.

Money in the fund shall be i a e r 20 expended only as provided by this section.

a t m m 21 B.

If, on July 1 of each year, the conservation d r e 22 legacy permanent fund exceeds one hundred fifty million dollars c e s k 23 ($150,000,000) and the investment income to the fund for the eh a n b 24 previous fiscal year exceeded five million dollars ug [o t hr ($5,000,000), any investment income to the fund from the .228765.8g -e 34i -k previous fiscal year in excess of five million dollars h r i s ($5,000,000) shall be distributed to the land of enchantment h , t, legacy fund." e u g e b l e e h SECTION 22.STBTCº 22.»STBTC STBTCº21.»STBTC REPEAL.-- n d d i = = o h Section 6-8-6 NMSA 1978 (being Laws 1957, Chapter 179, Section l ] b ,d i a º e 6, as amended) is repealed.

REPEAL.--Sectionr 6-8-6i NMSA= 1978r (beingt Lawse 1957,w Chapterd 179,m Sectiona 6,n aso amended)SECTION isSTBTCº repealed.23.»STBTC STBTCº22.»STBTC EFFECTIVE d m :

SECTIONb 23.e d s º o t n = .228765.8AIC February 21, 2025 (8:47pm) s k m e - 35 - e a n e d r e l u [ A d DATE.--The effective date of the provisions of this act is July 1, 2025.

EFFECTIVE- DATE.--The36 effective- date» ofg theo provisions» ofr thish actt isi Julyk 1,l 2025.i g t h s , e h t l i w l b l e e , g n d l h = = b , a l º d i a r e r = , a t e d m a n o d m :

-b 35r - 10 12 14 16 e t 17º wo lt n d= 18.228765.8AIC =February =21, 192025 a(8:47pm) ls ik aem e re 20 a tn me m 21 d r e 22l c e s k 23 e a n b 24 u [ .228765.8A d