The Public Banking Act establishes the Public Bank of New Mexico as a governmental instrumentality, creating a board of directors to oversee its operations. The board will consist of eleven members appointed by the New Mexico legislative council and the governor, with specific qualifications in banking, finance, and community development. The act outlines the duties of the bank, including the management of funds, investments, and lending activities, while also prohibiting conflicts of interest among its directors and employees. The bank will be governed by the provisions of the Governmental Conduct Act and will be subject to regulatory requirements to ensure transparency and accountability.

Additionally, the act creates the State Banking Fund, which will consist of appropriations, capital, and income generated by the bank. An initial appropriation of $50 million is allocated from the general fund to capitalize the bank, with specific limitations on how the funds can be used. A contingent appropriation of $60 million is also set aside for the bank once it is chartered. The provisions of the act are set to take effect on July 1, 2025, with the funding contingent upon the bank's incorporation and formal chartering.