Bill > HB130

This bill establishes the Public Bank of New Mexico as a state-owned financial institution designed to support local economic development. The bank will be governed by an 11-member board of directors appointed by the legislative council and governor, representing diverse backgrounds in banking, community development, and economic expertise. The chief executive officer, who will be hired by the board, will manage the bank's operations and be responsible for maintaining financial health and regulatory compliance. The bank is authorized to make loans to state agencies, lending institutions, political subdivisions, and nonprofit organizations, with a focus on supporting agriculture, commerce, and industry. The bank is prohibited from making direct loans to private individuals and must prioritize public benefit alongside financial risk analysis. A state banking fund will be created with an initial appropriation of $50 million to capitalize the bank, with additional provisions for establishing and developing lending programs. The bill includes strict conflict of interest rules, requiring board members to disclose any potential conflicts and prohibiting participation in related transactions. The bank will be subject to regulatory requirements, maintain transparent reporting, and be governed by the Governmental Conduct Act. The effective date is set for July 1, 2025, contingent upon the bank receiving its formal charter.

Business and Industry

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=130&year=25