SENATE BILL 112
57th legislature - STATE OF NEW MEXICO - second session, 2026
INTRODUCED BY
Pete Campos and Sarah Silva
FOR THE LEGISLATIVE FINANCE COMMITTEE
AN ACT
RELATING TO INVESTMENTS; AMENDING THE INVESTMENT CLASSES THAT MAY BE INVESTED IN WITH MONEY IN THE SEVERANCE TAX PERMANENT FUND.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-27-5 NMSA 1978 (being Laws 1983, Chapter 306, Section 7, as amended) is amended to read:
"7-27-5. INVESTMENT OF SEVERANCE TAX PERMANENT FUND.--
A. The severance tax permanent fund shall be invested in separate [differential rate and market rate] investment classes as provided in this section.
B. "Differential rate investments", [are permitted in Sections 7-27-5.3 through 7-27-5.5, 7-27-5.13, through 7-27-5.17, 7-27-5.22, 7-27-5.24 and 7-27-5.26 NMSA 1978 and] which are intended to stimulate the economy of New Mexico and to provide income to the severance tax permanent fund, are permitted only for investments made pursuant to the following:
(1) Subsection F of Section 7-27-5.15 NMSA 1978; and
(2) prior to July 1, 2026, Sections 7-27-5.3 through 7-27-5.5, 7-27-5.13, 7-27-5.17, 7-27-5.19 through 7-27-5.22, 7-27-5.24, 7-27-5.26 and 7-27-5.27 NMSA 1978 and Subsections A, E and G of Section 7-27-5.15 NMSA 1978.
C. "Market rate investments" are investments that are not differential rate investments and are intended to provide income to the severance tax permanent fund.
D. All [market rate investments and differential rate] investments shall be invested in accordance with the Uniform Prudent Investor Act and shall be accounted for in accordance with generally accepted accounting principles.
[B. In addition to the investment classes described in Subsection A of this section, the severance tax permanent fund shall be invested in loans to provide emergency economic relief to local governments as provided by Section 8 of this 2020 act.]"
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