PHYSICIAN GRADUATE ED. TRUST FUND

SB0202

SENATE BILL 202

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

INTRODUCED BY

Pete Campos

AN ACT

RELATING TO HEALTH PROFESSIONALS; CREATING THE PHYSICIAN
GRADUATE MEDICAL EDUCATION TRUST FUND AND THE PHYSICIAN
GRADUATE MEDICAL EDUCATION PROGRAM FUND; MAKING TRANSFERS FROM
THE GENERAL FUND TO THE PHYSICIAN GRADUATE MEDICAL EDUCATION
TRUST FUND AND THE PHYSICIAN GRADUATE MEDICAL EDUCATION PROGRAM
FUND; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.

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

SECTION 1.
[
NEW MATERIAL
] PHYSICIAN GRADUATE MEDICAL
EDUCATION TRUST FUND.--

A. The "physician graduate medical education trust
fund" is created as a nonreverting fund in the state treasury.
The trust fund consists of distributions, appropriations,
income from investment of the fund, gifts, grants and
donations. Money in the trust fund shall be expended only as
provided in this section.

B. The state investment officer shall invest money

in the trust fund in accordance with the prudent investor rule
as set forth in Chapter 6, Article 8 NMSA 1978 and in
consultation with the secretary of health care authority.

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. An annual report shall be submitted no later than

October 1 of each year to the legislative finance committee,

the revenue stabilization and tax policy committee and any

other appropriate interim committees.

D. Beginning July 1, 2027 and on July 1 of each
succeeding year, a distribution shall be made from the trust
fund to the physician graduate medical education program fund
in an amount equal to five 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 five
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 2.
[
NEW MATERIAL
] PHYSICIAN GRADUATE MEDICAL
EDUCATION PROGRAM FUND.--The "physician graduate medical
education program 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. The health care authority shall
administer the fund. Money in the fund is subject to
appropriation by the legislature to support physician graduate
medical education programs located in rural and underserved
areas. Expenditures from the fund shall be by warrant of the
secretary of finance and administration pursuant to vouchers
signed by the secretary of health care authority or the
secretary's authorized representative. Any unexpended balance
remaining at the end of a fiscal year shall not revert to the
physician graduate medical education trust fund."

SECTION 3.
TRANSFERS.--

A. On the effective date of this act, one hundred
million dollars ($100,000,000) is transferred from the general
fund to the physician graduate medical education trust fund.

B. On the effective date of this act, ten million
dollars ($10,000,000) is transferred from the general fund to
the physician graduate medical education program fund.

SECTION 4.
APPROPRIATION--PHYSICIAN GRADUATE MEDICAL
EDUCATION PROGRAM FUND.--

A. Eight million dollars ($8,000,000) is
appropriated from the physician graduate medical education
program fund to the health care authority for expenditure in
fiscal years 2027 and 2028 to carry out the purposes of the
fund as follows:

(1) up to two million five hundred thousand
dollars ($2,500,000) each fiscal year to support physician
graduate medical education programs located in rural and
underserved areas that are in the process of developing
applications with the body responsible for accrediting
physician graduate medical education programs;

(2) up to five hundred thousand dollars
($500,000) for each fiscal year to support physician graduate
medical education programs located in rural and underserved
areas that have been accredited for less than one year; and

(3) up to one million dollars ($1,000,000)
each fiscal year to support physician graduate medical
education programs located in rural and underserved areas that
have been accredited for one year or more.

B. Any unexpended balance remaining at the end of
fiscal year 2028 shall revert to the physician graduate medical
education program fund.

SECTION 5.
EMERGENCY.--It is necessary for the public
peace, health and safety that this act take effect immediately.

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