SEVERANCE TAX FUND INVESTMENT CLASSES

SB 112 amends New Mexico's Severance Tax Permanent Fund investment rules to clarify which investments qualify as "differential rate" (designed to boost New Mexico's economy) versus standard "market rate" investments. It restricts differential rate investments to specific existing sections of law until July 1, 2026, after which only market rate investments may be used. The bill ensures all investments follow prudent financial standards and accounting rules. This directly affects the state treasurer and fund managers who handle the $1.2+ billion Severance Tax Permanent Fund, which is funded by oil and gas extraction revenues.