EQUINE SHELTER FUND & TRUST FUND

HB0243

HOUSE BILL 243

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Joseph L. Sanchez
and
Tara L. Lujan
and
G. Andrés Romero

and
Cynthia Borrego

AN ACT

RELATING TO EQUINES; AMENDING PROVISIONS RELATING TO THE EQUINE
SHELTER RESCUE FUND; ESTABLISHING THE EQUINE WELFARE TRUST
FUND; MAKING A TRANSFER FROM THE GENERAL FUND TO THE EQUINE
WELFARE TRUST FUND; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
Section 77-2-32 NMSA 1978 (being Laws 2013,
Chapter 49, Section 1, as amended) is amended to read:

"77-2-32. EQUINE SHELTER RESCUE FUND--CREATED.--

A. The "equine shelter rescue fund" is created as a
nonreverting fund in the state treasury. The fund consists of

distributions
, appropriations, gifts, grants, donations and
amounts designated pursuant to Section 7-2-30.7 NMSA 1978.
[
The board shall administer the fund, and
] Money in the fund is
appropriated to the board
of regents of New Mexico state
university for expenditure by the New Mexico department of
agriculture
to carry out the intent of aiding equine [
rescues
]

rescue or retirement facilities
and [
homeless
] equines
that are
surrendered, transferred by the board or law enforcement or
otherwise acquired for purposes of rescue or sanctuary
in the
state,
including:

(1) providing shelter or placement based on
capacity;

(2) contracting with or employing equine
trainers;

(3) providing feed and pasture to maintain
equines;

(4) providing for basic and emergency
veterinary care or husbandry, including sterilization,
fertility control or hoof care;

(5) administering adoption programs and
services; and

(6) paying the costs of administering the fund
in an amount not to exceed five percent of the annual
distributions from the fund
.

[
B. The board shall establish by rule the
distribution of funds from the equine shelter rescue fund to
equine rescue and retirement facilities registered by the board
pursuant to Section 77-2-30 NMSA 1978, taking into
consideration the number of equines being cared for in each
facility and the need of each facility.
]

B. The New Mexico department of agriculture shall
administer the fund, solicit applications for contracts from
eligible applicants for disbursements and make disbursements of
the available funds to eligible applicants that meet funding
criteria on an annual basis.

C. To receive a contract for services, an applicant
shall apply to the New Mexico department of agriculture on
forms and in a manner prescribed by the department. An
application shall include:

(1) a description of the proposed services or
project for which the applicant is seeking funds via a contract
agreement;

(2) a demonstration that the proposed services
or project will meet one or more of the purposes provided in
Subsection A of this section; and

(3) details and specifics as to the reasonable

expected costs and the time frame of the proposed project or
services.

D. To be eligible to receive funds from the fund
,
an applicant shall:

(1) be a registered equine rescue or
retirement facility in accordance with Section 77-2-30 NMSA
1978;

(2) be in good standing with the board and in
compliance with Section 77-2-31 NMSA 1978;

(3) if the applicant is a private
organization, be a tax-exempt organization pursuant to Section
501(c)(3) of the federal Internal Revenue Code of 1986;

(4) adhere to American association of equine
practitioners guidelines pursuant to rules promulgated by the
board; and

(5) not be intentionally breeding equines.

E. Beginning October 1, 2028 and each October 1
thereafter, the New Mexico department of agriculture shall
submit a report to the legislative finance committee that shall
include the following:

(1) the amount of each funded contract;

(2) a description of each contract;

(3) the name of each funded contractor;

(4) how much funding the contracting entity
has expended;

(5) the progress or completion of the
contract;

(6) how the contract supports equine welfare;

(7) an explanation for why any money remaining
in the fund
was not disbursed to eligible entities;

(8) the number of proposed contracts, and
their costs, that were approved for but did not receive funding
due to the insufficiency of available funds in the fund
; and

(9) the total amount of administrative costs
incurred by the New Mexico department of agriculture to
administer the fund.
"

SECTION 2.
[
NEW MATERIAL
] EQUINE WELFARE TRUST FUND.--

A. The "equine welfare trust fund" is created as a
nonreverting fund in the state treasury. The fund consists of
distributions, appropriations, gifts, grants and donations.
Income from investment of the fund shall be credited to the
fund. Money in the fund shall be expended only as provided in
this section.

B. The state investment officer, subject to the
approval of the state investment council, shall invest money in
the equine welfare trust fund:

(1) in accordance with the prudent investor
rule set forth in the Uniform Prudent Investor Act; and

(2) in consultation with the director of the
New Mexico department of agriculture.

C. The state investment officer shall report
quarterly to the legislative finance committee and the state
investment council on the investments made pursuant to this
section. Annually, a report shall be submitted no later than
October 1 each year to the legislative finance committee, the
revenue stabilization and tax policy committee and any other
appropriate interim committees.

D. On July 1, 2027 and each July 1 thereafter, a
distribution shall be made from the equine welfare trust fund
to the equine shelter rescue fund in an amount equal to four
percent of the average of the year-end market values of the
trust fund for the immediately preceding three calendar years.
If, on July 1 of a year, the trust fund has been in effect for
less than three calendar years, the distribution shall be in an
amount equal to four percent of the average of the year-end
market values of the trust fund for the immediately preceding
number of calendar years that the trust fund has been in
effect.

SECTION 3.
TRANSFER.--Five million dollars ($5,000,000)
is transferred from the general fund to the equine welfare
trust fund.

SECTION 4.
APPROPRIATION.--Five hundred thousand dollars
($500,000) is appropriated from the general fund to the equine
shelter rescue fund for expenditure in fiscal year 2027 and
subsequent fiscal years. Any unexpended balance remaining at
the end of a fiscal year shall not revert to the general fund.

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