Summary:

 House Bill 130 (HB 130):  This legislation proposes the creation and establishment of the Public Bank of New Mexico, as proposed in the Public Banking Act. The Act offers details to create a public banking entity that operates with high standards of fiscal management and ethical governance to benefit the economic landscape of New Mexico through targeted financial activities. 

Legislation Overview:

 
House Bill 130 (HB 130) Here are the key elements and provisions of the Act:

Establishment and Purpose: The Public Bank of New Mexico is established as a governmental instrument to facilitate banking and financial operations, support community economic development, and manage state assets more effectively.

Governance and Management: The bank will be governed by a board of directors consisting of eleven members with diverse backgrounds in banking, finance, community development, and public administration.  The board will oversee the bank’s operations, establish policies, and ensure compliance with state and federal laws.  A Chief Executive Officer (CEO) and Chief Risk Officer (CRO) will manage the daily operations and strategic planning of the bank.

Financial Operations: The bank is authorized to make investments, loans, and other financial transactions under specific conditions to support public projects and economic development.  It will operate under the principles of the Uniform Prudent Investor Act, focusing on prudent financial management.

Conflict of Interest and Legal Compliance:  Stringent rules are in place to manage conflicts of interest among the bank's directors, officers, and employees.  Violations of these rules can lead to criminal penalties.

Funding and Capitalization:  The initial capitalization includes appropriations from the general fund, with specific amounts allocated for the establishment of the bank and the development of its programs.  The state banking fund created will support the bank's operations and will be managed by the state treasurer until the bank is fully chartered.  Certain statutory provisions that typically apply to state entities will not apply to the Public Bank of New Mexico.

Special Provisions and Effective Dates: The act specifies effective dates for its various sections, contingent upon the formal establishment and chartering of the bank.