SB 240 New Mexico Senate · 2026 Regular Session

CAPITAL OUTLAY PROJECTS

SB 240 authorizes New Mexico to issue bonds funded by severance taxes (taxes on oil, gas, and mineral extraction) to finance state capital projects like building construction, vehicle purchases, and equipment. It requires state agencies to certify their need for funds by the end of 2028 and to spend at least 5% of the bond proceeds within six months and 85% within three years of receiving the money. Unspent funds must be returned to the state treasury by 2030 or within six months of project completion, whichever comes first, preventing long-term budgeting of unused funds. This ensures timely project spending while holding agencies accountable for efficient use of bond proceeds.

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Feb 2026

Committee Review

Feb 2026

Senate Passage

Feb 2026

House Passage

Feb 2026

Signed into Law

Mar 2026

Introduced Feb 3, 2026 Signed Mar 11, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

FC substitute → Final Version · 2 edits

MINOR

The bill was reformatted from a committee substitute version to a final version, with minor text reorganization and page number adjustments. No substantive policy changes were made to the bill's content, funding amounts, or requirements.

TECHNICAL

Page numbers and line numbering were adjusted to reflect the final version format, with the original committee substitute formatting removed.

The title and descriptive text were reorganized for clarity, but the substantive provisions remain identical to the committee substitute version.

introduced version → FC substitute · 9 edits

MAJOR

This bill was substantially expanded from its original version to include a much broader range of state agencies and projects funded through severance tax bonds and general fund appropriations. The FC substitute version adds numerous new projects across education, transportation, tribal infrastructure, and public services, while also tightening certification requirements and reversion timelines for unexpended funds. The changes significantly increase the bill's scope and fiscal impact by authorizing millions of dollars in new capital expenditures across multiple departments.

Scope change

The bill's scope expanded dramatically from a limited set of projects to include over 100 specific projects across dozens of state agencies, tribal entities, and educational institutions. The applicability now covers capital improvements, equipment purchases, facility renovations, and infrastructure projects statewide.

FISCAL

Added numerous new project appropriations totaling hundreds of millions of dollars across departments including education, transportation, tribal affairs, environmental services, and public safety.

SCOPE

Expanded the bill to include specific projects for the University of New Mexico School of Medicine, tribal infrastructure facilities, and extensive public education school improvements.

Added specific funding for tribal infrastructure including senior centers, cultural facilities, and community wellness facilities for various Pueblo and Navajo Nation chapters.

Added extensive public education funding covering over 120 specific school projects including technology upgrades, facility improvements, and new construction across the Albuquerque public school district and other districts.

REQUIREMENT

Strengthened certification requirements by adding specific thresholds: agencies must expect to incur substantial binding obligations within six months and spend at least 85% of proceeds within three years before certifying need for bond proceeds.

Added prohibition on using severance tax bond proceeds for indirect project costs, with exceptions only for capital program fund appropriations.

Added requirement that money appropriated from bond proceeds cannot be subject to binding written agreements with third parties prior to the authorized state agency's approval to enter into that agreement.

TIMELINE

Established specific reversion dates for unexpended balances, with different timelines for federal grant matching projects, vehicle purchases, and other construction projects, all reverting by fiscal year 2030 at the latest.

DEFINITION

Added definition of 'unexpended balance' to clarify it means the remainder after reserving for unpaid costs and expenses subject to binding written agreements with third parties.

Floor votes · Senate Feb 18, 2026 · House Feb 18, 2026

How they voted

33–0

Passed · 5 other

Total votes 38

Feb 18, 2026

D Democratic22

21 Yea 1

95% Yea

R Republican16

12 Yea 4

75% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 11, 2026

Signed into law

Signed

executive

Feb 19, 2026

Lower · Passed

passed House

lower

Feb 18, 2026

Upper · Passed

floor substitute adopted (1 amendment)

upper

Feb 18, 2026

Upper · Passed

passed Senate

upper

Feb 18, 2026

Lower · Passed

DO PASS committee report adopted

lower

Feb 18, 2026

Introduced

Sent to House Taxation & Revenue Committee

lower

Feb 17, 2026

Upper · Passed

DO NOT PASS, replaced with committee substitute

upper

Feb 3, 2026

Introduced

Sent to Senate Finance Committee

upper

2 primary · 0 co-sponsors