INVESTMENT OF CONSERVATION & LEGACY FUNDS

HB 184/a
Page 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
AN ACT
RELATING TO PUBLIC FUNDS; REQUIRING THE CONSERVATION LEGACY
PERMANENT FUND TO BE INVESTED IN ACCORDANCE WITH THE PRUDENT
INVESTOR RULE; AMENDING THE AMOUNT OF DISTRIBUTION FROM THE
PERMANENT FUND TO THE LAND OF ENCHANTMENT LEGACY FUND;
AMENDING THE AMOUNT THAT MAY BE DISTRIBUTED TO CERTAIN
AGENCIES FROM THE LAND OF ENCHANTMENT LEGACY FUND; PROVIDING
THAT ANY UNEXPENDED BALANCES OF THOSE DISTRIBUTIONS REVERT TO
THE CONSERVATION LEGACY PERMANENT FUND; RECOMPILING CERTAIN
SECTIONS OF THE NMSA 1978; TRANSFERRING THE BALANCE OF THE
LAND OF ENCHANTMENT LEGACY FUND TO THE CONSERVATION LEGACY
PERMANENT FUND; MAKING APPROPRIATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 75-12-1 NMSA 1978 (being Laws 2023,
Chapter 26, Section 2) is recompiled as Section 6-4-38 NMSA
1978 and is amended to read:
"6-4-38. CONSERVATION LEGACY PERMANENT FUND--CREATED--
INVESTMENT--DISTRIBUTION.--
A. The "conservation legacy permanent fund" is
created as a nonreverting fund in the state treasury. The
fund consists of distributions, appropriations, gifts,
grants, donations and income from investment of the fund.
Money in the fund shall be invested by the state investment
officer in accordance with the prudent investor rule as set
HB 184/a
Page 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
forth in the Uniform Prudent Investor Act. Earnings from
investment of the fund shall be credited to the fund. Money
in the fund shall be expended only as provided by this
section.
B. Except as provided in Subsection C of this
section, on July 1 of each year, a distribution shall be made
from the permanent fund to the land of enchantment legacy
fund in an amount equal to five percent of the average of the
year-end market values of the permanent fund for the
immediately preceding three calendar years.
C. On July 1, 2026, a distribution shall be made
from the permanent fund to the land of enchantment legacy
fund in an amount equal to five percent of the average
year-end market value of the permanent fund for the preceding
two calendar years."
SECTION 2. Section 75-12-2 NMSA 1978 (being Laws 2023,
Chapter 26, Section 3) is recompiled as Section 6-4-38.1 NMSA
1978 and is amended to read:
"6-4-38.1. LAND OF ENCHANTMENT LEGACY FUND--CREATED--
DISTRIBUTION.--
A. The "land of enchantment legacy fund" is
created as a nonreverting fund in the state treasury. The
fund consists of distributions, appropriations, gifts,
grants, donations and bequests made to the fund. The
department of finance and administration shall administer the
HB 184/a
Page 3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
fund, and money in the fund is appropriated to that
department to make distributions as provided in this section
and for no other purpose. Any interest earned by the land of
enchantment legacy fund shall be credited to the fund.
B. On receipt of the distribution made pursuant to
Section 6-4-38 NMSA 1978, the department of finance and
administration shall distribute the balance of the fund as
follows:
(1) twenty-two and one-half percent to the
energy, minerals and natural resources department, of which:
(a) fifty percent shall be allocated to
the forestry division of the energy, minerals and natural
resources department to carry out: 1) projects and programs
pursuant to the Forest Conservation Act; 2) forest and
watershed management projects; 3) approved projects pursuant
to the Forest and Watershed Restoration Act; and 4) projects
and programs pursuant to the Prescribed Burning Act; and
(b) fifty percent shall be allocated
for projects pursuant to the Natural Heritage Conservation
Act;
(2) twenty-two and one-half percent to the
board of regents of New Mexico state university for the New
Mexico department of agriculture to carry out programs and
projects pursuant to the Noxious Weed Management Act, the
Healthy Soil Act and the Soil and Water Conservation District
HB 184/a
Page 4
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Act;
(3) ten percent to the department of
environment to plan, design and construct projects to improve
surface water quality and river habitat statewide;
(4) fifteen percent to the economic
development department, of which:
(a) twenty-five percent shall be
allocated to the New Mexico outdoor recreation division of
the economic development department to carry out projects
under the outdoor equity grant program; and
(b) seventy-five percent shall be
allocated to the New Mexico outdoor recreation division for
special projects and outdoor recreation infrastructure;
(5) eight percent to the cultural affairs
department to carry out projects and programs pursuant to the
Cultural Properties Protection Act; and
(6) twenty-two percent to the department of
wildlife to carry out projects and programs for the
protection and propagation of game and fish.
C. Any unexpended balances from distributions made
pursuant to Subsection B of this section shall revert to the
conservation legacy permanent fund three fiscal years after
the end of the fiscal year in which the distributions were
made.
D. Distributions made pursuant to this section
HB 184/a
Page 5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
shall not be used for the purposes of eminent domain."
SECTION 3. TRANSFER.--The balance of the land of
enchantment legacy fund is transferred to the conservation
legacy permanent fund.
SECTION 4. EFFECTIVE DATE.--The effective date of the
provisions of Sections 1 and 2 of this act is July 1, 2026.