The bill establishes the "School Age-Appropriate Filtering and Evaluation Project" as a three-year pilot initiative within the New Mexico Public Education Department. It aims to create a voluntary rating system for library materials in public schools, focusing on age appropriateness concerning language, violence, sexual content, and mature themes. The project will involve selected school districts and charter schools, which will implement the rating system, publish lists of rated materials, and gather parental feedback through surveys. Each participant will receive two grants totaling $50,000 to support their involvement in the project.

Additionally, the bill appropriates $3,210,000 from the public education reform fund for the project's administration from fiscal years 2027 to 2029. It stipulates that no more than $1,000,000 can be allocated for grants to participating schools in a single fiscal year, and no more than $70,000 for administrative costs. The bill also outlines specific deadlines for the development of guidance, selection of participants, and reporting requirements to ensure accountability and transparency throughout the project's duration. Any unspent funds at the end of fiscal year 2029 will revert to the public education reform fund.