SENATE BILL 208

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Pete Campos

 

 

 

 

 

AN ACT

RELATING TO CHILDREN; ENACTING THE WELCOME CHILD ACT; PROVIDING WELCOME CHILD BENEFITS TO CERTAIN PARENTS AND GUARDIANS BEGINNING JANUARY 1, 2028; CREATING THE WELCOME CHILD BENEFIT FUND; ESTABLISHING ELIGIBILITY REQUIREMENTS FOR THE WELCOME CHILD BENEFIT; PROVIDING FOR THE SECRETARY OF EARLY CHILDHOOD EDUCATION AND CARE TO PROMULGATE RULES TO IMPLEMENT THE PROVISIONS OF THE WELCOME CHILD ACT; MAKING AN ANNUAL DISTRIBUTION FROM THE EARLY CHILDHOOD EDUCATION AND CARE FUND TO THE WELCOME CHILD BENEFIT FUND; MAKING AN APPROPRIATION.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of the Children's Code is enacted to read:

     "[NEW MATERIAL] SHORT TITLE.--Sections 1 through 5 of this act may be cited as the "Welcome Child Act"."

     SECTION 2. A new section of the Children's Code is enacted to read:

     "[NEW MATERIAL] DEFINITIONS.--As used in the Welcome Child Act:

          A. "department" means the early childhood education and care department, the secretary or an employee of the department exercising authority lawfully delegated to that employee by the secretary; and

          B. "secretary" means the secretary of early childhood education and care."

     SECTION 3. A new section of the Children's Code is enacted to read:

     "[NEW MATERIAL] WELCOME CHILD BENEFIT FUND.--The "welcome child benefit fund" is created as a nonreverting fund in the state treasury. The fund consists of distributions, appropriations, gifts, grants, donations and income from investment of the fund. The department shall administer the fund, and money in the fund is appropriated to the department to provide welcome child benefits pursuant to the Welcome Child Act. Expenditures from the fund shall be by warrant of 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."

     SECTION 4. A new section of the Children's Code is enacted to read:

     "[NEW MATERIAL] WELCOME CHILD BENEFIT.--

          A. Beginning January 1, 2028 and subject to the availability of funds in the welcome child benefit fund, the department shall provide a welcome child benefit to an applicant who:

                (1) is the parent or legal guardian of a newborn or newly adopted child; and

                (2) has resided in the state for at least six months in the twelve-month period immediately prior to the birth or adoption of the child.

          B. Except as provided in Subsection D of this section, the welcome child benefit shall consist of three monthly payments of three thousand dollars ($3,000) to be paid to the child's parent or guardian for each of the three months following the determination of the applicant's eligibility to receive a welcome child benefit pursuant to Section 5 of the Welcome Child Act; provided that if the determination is made ninety days or more after the birth or adoption of a child or after an applicant is appointed as a guardian of a child, the benefit shall be paid in a lump sum of nine thousand dollars ($9,000).

          C. If more than one custodial parent of a child applies and is eligible to receive the welcome child benefit, the monthly welcome child benefit may be divided evenly between the parents.

          D. On January 1, 2030 and each January 1 thereafter, the total amount of the welcome child benefit shall be adjusted to account for inflation. The department shall make the adjustment by multiplying the total amount of the benefit by a fraction, the numerator of which is the consumer price index ending during the prior calendar year and the denominator of which is the consumer price index in calendar year 2028. The result of the multiplication shall be rounded to the nearest dollar, except that if the result would be an amount less than the amount of the benefit for the preceding fiscal year, then no adjustment shall be made.

          E. For purposes of this section, "consumer price index" means the consumer price index or its successor index for all urban consumers for all items, published by the bureau of labor statistics of the United States department of labor or its successor agency."

     SECTION 5. A new section of the Children's Code is enacted to read:

     "[NEW MATERIAL] WELCOME CHILD BENEFIT--APPLICATION AND DOCUMENTATION REQUIRED--NOTICE OF DETERMINATION.--

          A. The department shall require an applicant for the welcome child benefit to provide, within one month of the child's birth or adoption, documentation of:

                (1) the date of the child's birth or the date of adoption or guardianship, as applicable;

                (2) the applicant's relationship to the child;

                (3) the applicant's in-state residency; and

                (4) account information into which the welcome child benefit should be deposited.

          B. The department shall make a determination within sixty days of receipt of a completed application. If the application is approved, the department shall promptly make a payment as provided in Section 4 of the Welcome Child Act.

          C. If an application for a welcome child benefit is denied, the department shall promptly notify the applicant of the grounds for denial.

          D. Only one welcome child benefit may be provided per child.

          E. An applicant for the welcome child benefit shall not be eligible to receive the welcome child benefit if the applicant has willfully or knowingly provided the department with fraudulent documentation in support of an application."

     SECTION 6. 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--DISTRIBUTIONS.--

          A. The "early childhood education and care fund" is created 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:

                (1) in accordance with the prudent investor rule set forth in the Uniform Prudent Investor Act; and

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

          C. The state investment officer shall report 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 October 1 each year to the legislative finance committee, the revenue stabilization and tax policy committee and any other appropriate interim committees.

          D. On July 1 of each year, a distribution shall be made from the early childhood education and care fund to:

                (1) the early childhood education and care program fund in an amount equal to the greater of five percent of the average of the year-end market values of the early childhood education and care fund for the immediately preceding three calendar years or five hundred million dollars ($500,000,000) or, if the balance of the early childhood education and care fund is less than five hundred million dollars ($500,000,000), the balance of the early childhood education and care fund; and

                (2) after the distribution pursuant to Paragraph (1) of this subsection is made, the welcome child benefit fund in an amount equal to one hundred eighty-nine million dollars ($189,000,000) or, if the balance of the early childhood education and care fund is less than one hundred eighty-nine million dollars ($189,000,000), the balance of the early childhood education and care fund.

          E. In addition to the [distribution] distributions pursuant to Subsection D of this section, money in the early childhood education and care 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 early childhood education and care 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 balances."

     SECTION 7. TEMPORARY PROVISION--PROMULGATION OF RULES.--By July 1, 2027, the secretary of early childhood education and care shall adopt rules to implement the provisions of the Welcome Child Act.

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