Bill > SB162

This bill modifies the investment rules for the Severance Tax Permanent Fund (STPF), changing the maximum amount that can be invested in New Mexico private equity funds or New Mexico businesses from eleven percent of the market value to a fixed amount of $700 million. The bill maintains existing requirements that these investments must enhance the state's economic development objectives and be approved by the state investment council. It defines "New Mexico business" as a company with its principal office and majority of full-time employees in New Mexico, and "New Mexico private equity fund" as an investment entity with specific criteria, such as having a professional manager with investment experience and committing to invest in New Mexico businesses. The bill continues to authorize investments in various types of businesses, including aerospace, technology transfer, and research-focused enterprises, with restrictions such as no single business investment exceeding 10% of the available funds and maintaining no more than 51% ownership in any business. The state investment officer is required to provide semiannual reports on these investments, including details about the funds, invested companies, and their contribution to the state's economic development. The provisions of this act will take effect on July 1, 2025.

Budget and Finance, Business and Industry

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=162&year=25