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, compliance with regulatory requirements, and the prohibition of conflicts of interest among its directors and employees. The bank will be empowered to make various financial transactions, including loans to state-chartered institutions and community organizations, while ensuring that all actions align with the public benefit.

Additionally, the act creates the State Banking Fund, which will be administered by the state treasurer until the bank is chartered. An appropriation of $50 million is allocated from the general fund to capitalize the bank, with specific limits on the use of these funds for establishment and lending program development. A contingent appropriation of $60 million is also set aside for the bank once it is formally 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 chartering.