Bill > SB544

This bill amends existing New Mexico law to allow for a phased increase in the percentage of the severance tax permanent fund that can be invested in New Mexico businesses and private equity funds, with a portion of these funds to be transferred to the economic development department for investment in qualified businesses. Specifically, it outlines a gradual increase in investment percentages from four percent in fiscal year 2015 up to seven percent and beyond in subsequent fiscal years, and it designates the state investment officer as responsible for making these investments, subject to council approval. A new section is added to authorize the economic development department to invest in "qualified businesses" (defined as New Mexico-based entities engaged in high-technology research or manufacturing, with specific limitations on size, revenue, and business type) using transferred funds, with restrictions on the amount invested per business and reporting requirements to the legislative finance committee. The bill also clarifies that "differential rate investments" from the severance tax permanent fund can be made under various sections, including the newly added section for economic development department investments.