SEVERANCE TAX PERMANENT FUND INVESTMENTS

SB 162 sets a $700 million cap on investments from New Mexico's severance tax permanent fund into New Mexico private equity funds or New Mexico businesses. It replaces a previous percentage-based limit with this fixed dollar amount, requiring that such investments must support the state's economic development goals. The bill defines "New Mexico business" as having its principal office and majority of employees in the state, and "New Mexico private equity fund" as meeting specific criteria like investing primarily in NM businesses and requiring accredited investors. This change directly affects how the state allocates its oil and gas revenue fund to support local economic growth, while maintaining existing commitments of $500 million to the New Mexico Finance Authority and a 2% investment target for small business initiatives.