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SB112 • 2026

SEVERANCE TAX FUND INVESTMENT CLASSES

SEVERANCE TAX FUND INVESTMENT CLASSES

Taxes
Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor
Senator Pete Campos, Representative Sarah Silva
Last action
Official status
[3] SCC/STBTC/SFC-SCC API.
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

SEVERANCE TAX FUND INVESTMENT CLASSES

SEVERANCE TAX FUND INVESTMENT CLASSES

What This Bill Does

  • SEVERANCE TAX FUND INVESTMENT CLASSES

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-23 New Mexico Legislature

    Sent to SCC - Referrals: SCC/STBTC/SFC

  2. New Mexico Legislature

    Action Postponed Indefinitely

Official Summary Text

SEVERANCE TAX FUND INVESTMENT CLASSES

Current Bill Text

Read the full stored bill text 
SB0112

SENATE BILL 112

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

INTRODUCED BY

Pete Campos
and
Sarah Silva

FOR THE LEGISLATIVE FINANCE COMMITTEE

AN ACT

RELATING TO INVESTMENTS; AMENDING THE INVESTMENT CLASSES THAT
MAY BE INVESTED IN WITH MONEY IN THE SEVERANCE TAX PERMANENT
FUND.

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

SECTION 1.
Section 7-27-5 NMSA 1978 (being Laws 1983,
Chapter 306, Section 7, as amended) is amended to read:

"7-27-5. INVESTMENT OF SEVERANCE TAX PERMANENT FUND.--

A. The severance tax permanent fund shall be
invested in separate [
differential rate and market rate
]
investment classes
as provided in this section
.

B.
"Differential rate investments", [
are permitted
in Sections 7-27-5.3 through 7-27-5.5, 7-27-5.13, through
7-27-5.17, 7-27-5.22, 7-27-5.24 and 7-27-5.26 NMSA 1978 and
]

which
are intended to stimulate the economy of New Mexico and
to provide income to the severance tax permanent fund,
are
permitted only for investments made pursuant to the following:

(1) Subsection F of Section 7-27-5.15 NMSA
1978; and

(2) prior to July 1, 2026
,
Sections 7-27-5.3
through 7-27-5.5, 7-27-5.13, 7-27-5.17, 7-27-5.19 through
7-27-5.22, 7-27-5.24, 7-27-5.26 and 7-27-5.27 NMSA 1978 and
Subsections A, E and G of Section 7-27-5.15 NMSA 1978.

C.
"Market rate investments" are investments that
are not differential rate investments and are intended to
provide income to the severance tax permanent fund.

D.
All [
market rate investments and differential
rate
] investments shall be invested in accordance with the
Uniform Prudent Investor Act and shall be accounted for in
accordance with generally accepted accounting principles.

[
B. In addition to the investment classes described
in Subsection A of this section, the severance tax permanent
fund shall be invested in loans to provide emergency economic
relief to local governments as provided by Section 8 of this
2020 act.
]"

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