HB 7 — APPRENTICESHIP ASSISTANCE ACT TRANSFERS

HOUSE BILL 7 57TH LEGISLATURE- STATE OF NEW MEXICO - SECOND SESSION, 2026 INTRODUCED BY Joy Garratt and Kathleen Cates and Pat Woods and Michael Padilla and Christine Chandler 7 9 AN ACT RELATING TO WORKFORCE DEVELOPMENT;

MAKING ANNUAL TRANSFERS FROM THE WORKFORCE DEVELOPMENT AND APPRENTICESHIP TRUST FUND TO THE PUBLIC WORKS APPRENTICE AND TRAINING FUND AND ANNUAL 5 APPROPRIATIONS TO THE WORKFORCE SOLUTIONS DEPARTMENT TO CARRY OUT THE PURPOSES OF THE APPRENTICESHIP ASSISTANCE ACT;

e9 t 17 w l n d 18 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

= = 19 a l SECTION 1.

Section 9-26-17 NMSA 1978 (being Laws 2024, i a e r 20 Chapter 5, Section 1) is amended to read:

a t m m 21 "9-26-17.

WORKFORCE DEVELOPMENT AND APPRENTICESHIP TRUST d r e 22 FUND.-- c e s k 23 A.

The "workforce development and apprenticeship e a n b 24 trust fund" is created within the state treasury.

The fund u [ consists of distributions, appropriations, gifts, grants and .232971.1 donations.

and (2) in consultation with the state HB 7 Page 1 treasurer.

The state investment officer shall report quarterly to the legislative finance committee and the state investment council on the investments made pursuant to this 5 section.

e t 17 D.

Subject to the availability of funds [(1)] on w l n d 18 July 1, [2024] 2026 and [July 1, 2025] on July 1 of each year = = 19 a l thereafter:

i a e r 20 [(a)] (1) two million five hundred thousand a t m m 21 dollars ($2,500,000) shall be transferred to the public works d r e 22 apprentice and training fund;

and c e s k 23 [(b)] (2) two million five hundred thousand e a n b 24 dollars ($2,500,000) shall be appropriated to the workforce u [ solutions department to carry out the purposes of the .232971.1 - 2 - Apprenticeship Assistance Act.

[andE. (2) on July 1 of each year thereafter:

(a)In oneaddition millionto fivethe hundredtransfers thousandand dollarsappropriations ($1,500,000)pursuant shallto Subsection D of this section, money in the workforce development and apprenticeship trust fund may be transferredexpended in the event that general fund balances, including all authorized revenues and transfers to the publicgeneral worksfund apprenticeand balances in the general fund operating reserve, the appropriation contingency fund, the state-support reserve fund and trainingthe fund;tax stabilization reserve, will not meet the level of HB 7 Page 2 appropriations authorized from the general fund for a fiscal year.

andIn (b)that oneevent, millionto fiveavoid hundredan thousandunconstitutional dollarsdeficit, ($1,500,000)the shalllegislature bemay appropriatedappropriate tofrom the workforce solutionsdevelopment departmentand apprenticeship trust fund to carrythe outgeneral fund only in the purposes5 ofamount necessary to meet general fund appropriations for that fiscal year and only if the Apprenticeshiplegislature Assistancehas Act.]authorized E.transfers from the appropriation contingency fund, the general fund operating reserve and the tax stabilization reserve that exhaust those fund balances." HB 7 Page 3 25

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 e t 17 permanent fund] the state-support reserve fund and the tax w l n d 18 stabilization reserve, will not meet the level of = = 19 a l appropriations authorized from the general fund for a fiscal i a e r 20 year.

In that event, to avoid an unconstitutional deficit, the a t m m 21 legislature may appropriate from the workforce development and d r e 22 apprenticeship trust fund to the general fund only in the c e s k 23 amount necessary to meet general fund appropriations for that e a n b 24 fiscal year and only if the legislature has authorized u [ transfers from the appropriation contingency fund, the general .232971.1 - 3 - fund operating reserve and the tax stabilization reserve [and the tobacco settlement permanent fund] that exhaust those fund balances." - 4 - 6 8 10 12 14 16 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 [ .232971.1