SENATE BILL 202

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

INTRODUCED BY

Pete Campos

 

 

 

 

 

AN ACT

RELATING TO HEALTH PROFESSIONALS; CREATING THE PHYSICIAN GRADUATE MEDICAL EDUCATION TRUST FUND AND THE PHYSICIAN GRADUATE MEDICAL EDUCATION PROGRAM FUND; MAKING TRANSFERS FROM THE GENERAL FUND TO THE PHYSICIAN GRADUATE MEDICAL EDUCATION TRUST FUND AND THE PHYSICIAN GRADUATE MEDICAL EDUCATION PROGRAM FUND; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.

 

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

     SECTION 1. [NEW MATERIAL] PHYSICIAN GRADUATE MEDICAL EDUCATION TRUST FUND.--

          A. The "physician graduate medical education trust fund" is created as a nonreverting fund in the state treasury. The trust fund consists of distributions, appropriations, income from investment of the fund, gifts, grants and donations. Money in the trust fund shall be expended only as provided in this section.  

          B. The state investment officer shall invest money

in the trust fund in accordance with the prudent investor rule as set forth in Chapter 6, Article 8 NMSA 1978 and in consultation with the secretary of health care authority.

          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. An annual report shall be submitted no later than

October 1 of each year to the legislative finance committee,

the revenue stabilization and tax policy committee and any

other appropriate interim committees.

          D. Beginning July 1, 2027 and on July 1 of each succeeding year, a distribution shall be made from the trust fund to the physician graduate medical education program fund in an amount equal to five percent of the average of the year-end market values of the trust fund for the immediately preceding three calendar years. 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.

     SECTION 2. [NEW MATERIAL] PHYSICIAN GRADUATE MEDICAL EDUCATION PROGRAM FUND.--The "physician graduate medical education program 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 health care authority shall administer the fund. Money in the fund is subject to appropriation by the legislature to support physician graduate medical education programs located in rural and underserved areas. Expenditures from the fund shall be by warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of health care authority or the secretary's authorized representative. Any unexpended balance remaining at the end of a fiscal year shall not revert to the physician graduate medical education trust fund."

     SECTION 3. TRANSFERS.--

          A. On the effective date of this act, one hundred million dollars ($100,000,000) is transferred from the general fund to the physician graduate medical education trust fund.

          B. On the effective date of this act, ten million dollars ($10,000,000) is transferred from the general fund to the physician graduate medical education program fund.

     SECTION 4. APPROPRIATION--PHYSICIAN GRADUATE MEDICAL EDUCATION PROGRAM FUND.--

          A. Eight million dollars ($8,000,000) is appropriated from the physician graduate medical education program fund to the health care authority for expenditure in fiscal years 2027 and 2028 to carry out the purposes of the fund as follows:

                (1) up to two million five hundred thousand dollars ($2,500,000) each fiscal year to support physician graduate medical education programs located in rural and underserved areas that are in the process of developing applications with the body responsible for accrediting physician graduate medical education programs;

                (2) up to five hundred thousand dollars ($500,000) for each fiscal year to support physician graduate medical education programs located in rural and underserved areas that have been accredited for less than one year; and

                (3) up to one million dollars ($1,000,000) each fiscal year to support physician graduate medical education programs located in rural and underserved areas that have been accredited for one year or more.

          B. Any unexpended balance remaining at the end of fiscal year 2028 shall revert to the physician graduate medical education program fund.

     SECTION 5. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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