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 pre-accreditation status. The bill mandates that the college submit annual data to the higher education department for the first five years of operation, detailing various metrics related to student applications, acceptance, performance, and graduation rates.

Additionally, the bill stipulates a transfer of $40 million from the tobacco settlement permanent fund to the escrow fund on July 1, 2025. The escrow fund will remain unencumbered until the first class of medical students graduates and the college receives full accreditation, or by July 1, 2032, at which point the remaining balance will be transferred back to the tobacco settlement permanent fund.