The bill establishes the "Santa Fe College of Osteopathic Medicine Escrow Fund" as a nonreverting fund within the state treasury, which will consist of transfers, gifts, grants, donations, and investment income. The fund is intended to support the establishment of a college of osteopathic medicine, which must achieve full accreditation and graduate its first class by July 1, 2032. Until these conditions are met, the fund will be held in escrow and can be considered an unencumbered reserve. Upon graduation and accreditation, the remaining balance in the fund will be transferred to the tobacco settlement permanent fund.

Additionally, the bill mandates that the Santa Fe College of Osteopathic Medicine submit annual data to the higher education department for the first five years of its operation. This data will include metrics such as the number of applications received, students accepted, students with passing grades, retention rates, on-time graduation rates, and residency placements. Furthermore, it specifies a transfer of $40 million from the tobacco settlement permanent fund to the escrow fund on July 1, 2025, to facilitate the college's establishment.