New Mexico Code § 9-29A-3

Distribution; early childhood education and care fund; medicaid trust fund; severance tax permanent fund; payments
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medicaid trust fund; severance tax permanent fund; payments
pursuant to federal Mineral Leasing Act.
A. If, by June 30 of each fiscal year, the net receipts for that fiscal year of the money
received by the state pursuant to the federal Mineral Leasing Act exceed the annual
average amount, the excess amount above the annual average amount shall be
distributed as follows and attributed to that fiscal year:
(1) for fiscal years 2026 through 2028:
(a) fifty percent to the early childhood education and care fund and fifty
percent to the medicaid trust fund; provided that
(b) if, as of the end of one of those fiscal years, the balance of the early
childhood education and care fund is less than the balance of that fund as of the end of
fiscal year 2025, the distribution to the medicaid trust fund made pursuant to
Subparagraph (a) of this paragraph shall be decreased by an amount equal to one-half
of the difference between the balance of the early childhood education and care fund as
of the end of fiscal year 2025 and the balance of that fund as of the end of that fiscal
year; and
(2) for fiscal year 2029 and each fiscal year thereafter, one hundred percent
to the early childhood education and care fund.
B. If, by June 30, 2025, and by June 30 of each fiscal year thereafter, the remaining
amount of the net receipts for that fiscal year of the money received by the state
pursuant to the federal Mineral Leasing Act after the distribution pursuant to Subsection
A of this section exceeds the threshold amount, the excess shall be distributed to the
severance tax permanent fund.
C. The department of finance and administration shall make the calculations to
determine if excess amounts shall be distributed pursuant to this section. If there is an
excess amount, the distribution shall be made as soon as practicable. If there is not an
excess amount, no distribution shall be made.
D. As used in this section:
(1) "annual average amount" means the total net receipts attributable to
money received by the state pursuant to the federal Mineral Leasing Act in the
immediately preceding five fiscal years, divided by five; and
(2) "threshold amount" means the net receipts of the money received by the
state pursuant to the federal Mineral Leasing Act distributed in fiscal year 2024 pursuant
to Subsection B of Section 22-8-34 NMSA 1978.
History: Laws 2020, ch. 3, § 3; 2023, ch. 22, § 3; 2025, ch. 26, § 4.

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