The proposed legislation, known as the "Public Banking Act," establishes the Public Bank of New Mexico as a governmental instrumentality with a defined structure and governance. It creates a Board of Directors consisting of eleven members appointed by the New Mexico legislative council and the governor, with specific qualifications and terms of service. The bank will be responsible for various financial activities, including investments, lending, and property transactions, while adhering to regulations that prevent conflicts of interest. The chief executive officer and chief risk officer will oversee the bank's operations, ensuring compliance with fiscal and regulatory requirements.

Additionally, the bill creates a nonreverting State Banking Fund to support the bank's activities, with an initial appropriation of $50 million from the general fund to capitalize the bank and develop its lending programs. A contingent appropriation of $60 million is also included, which will be deposited into the bank once it is chartered. The act outlines penalties for conflicts of interest and specifies that certain provisions of existing law will not apply to the Public Bank of New Mexico. The effective date for the act is set for July 1, 2025, with specific conditions for the release of funds upon the bank's incorporation and chartering.