This bill proposes a new section in New Mexico law regarding legislative compensation, which will be based on the annual median household income reported in the American Community Survey. Initially, the compensation for legislators will be set according to the 2027 median household income, with adjustments made every four years based on the most recent data. The bill specifies that compensation will commence when a legislator is sworn in and will continue until they are no longer in office. Additionally, it clarifies that legislators will not be classified as state employees due to their receipt of this compensation.

Furthermore, the bill allows legislators the option to refuse their compensation or any increases by submitting a written notice to the chief clerk of their chamber. This refusal can be retracted, and any reinstated compensation will take effect in the next full pay period after the notice is received, without retroactive payments for the period of refusal. The bill includes a contingent effective date of January 16, 2029, which is dependent on the certification of a constitutional amendment that would permit these changes to legislative compensation.