The bill establishes a new section in Chapter 6, Article 4 of the New Mexico Statutes, specifically defining the components of the state's reserves. It introduces the term "state reserves" and specifies that these reserves will include five distinct funds: the appropriation contingency fund, the general fund operating reserve, the government results and opportunity expendable trust, the state-support reserve fund, and the tax stabilization reserve.

This legislation aims to clarify and formalize the structure of state reserves, ensuring that these funds are recognized and categorized appropriately within state financial management. By doing so, it seeks to enhance fiscal responsibility and transparency regarding the state's financial resources.