The bill seeks to standardize the management and investment of state funds in New Mexico by amending various sections of existing law. It classifies all funds managed by the State Investment Officer under Chapter 6, Article 8 NMSA 1978, and removes the State Investment Officer as the investment manager for certain funds. Key provisions include the establishment of nonreverting funds such as the Tobacco Settlement Permanent Fund, Opioid Settlement Restricted Fund, and Higher Education Trust Fund, which will adhere to specific investment guidelines under the Uniform Prudent Investor Act. The bill also modifies the reversion timeline for unreserved and undesignated funds, requiring them to revert to the general fund by August 31 instead of September 30, and clarifies definitions related to investment funds.

Additionally, the bill introduces several new funds, including the Colonias Infrastructure Trust Fund and the Rural Libraries Endowment Fund, which will consist of appropriations and donations. It mandates that the State Investment Officer invest these funds according to the prudent investor rule and requires quarterly performance reports to be submitted to the legislative finance committee. The bill also includes provisions for indemnification of council members and state investment officers against claims arising from their official duties, while modifying existing language regarding fund management. Notably, it repeals Section 6-8-6 NMSA 1978 and sets an effective date of July 1, 2025, for the new provisions, aiming to enhance accountability and efficiency in the management of state funds.

Statutes affected:
introduced version: 6-4-9, 6-4-28, 6-4-32, 6-5-10, 6-8-1, 6-8-7, 6-8-14, 6-8-23, 6-30-7, 7-27-50, 7-27-51, 9-16-14, 9-16-15, 9-26-17, 9-29A-1, 18-18-1, 19-1-19, 24-5A-4, 58-32-1004, 72-4A-8, 75-12-1, 6-8-6