Roadrunner Capitol Reports
Legislation Detail

HB 134/a TRIBAL EDUCATION TRUST FUND

Rep Derrick Lente

Actions: [2] HEC/HAFC-HEC [5] DP/a-HAFC [8] DP/a [10] fl/a- PASSED/H (68-0) [7] SFC-SFC [9] DP

Scheduled: Not Scheduled

image of sponsor
Summary:
 House Bill 134 (HB 134) creates the Tribal Education Trust Fund and provides reporting requirements. HB 134 creates the Tribal Education Trust Fund Disbursement Formula Task Force. HB 134 makes an appropriation.
 
Legislation Overview:
 House Bill 134 (HB 134) establishes the Tribal Education Trust Fund (Fund), the Tribal Education Trust Fund Disbursement Formula Task Force (Task Force) and makes an appropriation
.
SECTION 1 creates the Fund, as follows:
 A. The Fund is created as a nonreverting fund in the state treasury from the usual sources and shall be used for the purposes specified in this subsection or in an intergovernmental agreement between an Indian nation, tribe or pueblo and the Public Education Department (PED). Income from investment of the Fund shall be credited to the Fund and money in the fund shall be expended only as provided in this section. 

B-C. The state investment officer shall invest money in the Fund as specified and shall report quarterly to the Legislative Education Study Committee (LESC) and the State Investment Council. Beginning in Fiscal Year 2025, a report shall be submitted no later than October 1 each year to the LESC and any other appropriate interim committees. 

D. Beginning in Fiscal Year 2026, a distribution shall be made from the Fund to the PED on July 1 of each year in which adequate money is available as specified in this Subsection; provided that the PED shall distribute funding received pursuant to this subsection according to the formula  developed pursuant to Section 2 of this 2024 act. 

E. In addition to the distribution pursuant to Subsection D, money in the Fund may be expended in the event that General Fund balances will not meet the level of appropriations authorized for a fiscal year. In that event, to avoid an unconstitutional deficit, the legislature may appropriate from the Fund to the General Fund only in the amount necessary to meet General Fund appropriations for that fiscal year and only if the legislature has authorized transfers from additional funds as specified in this subsection that exhaust those fund balances.

F. The PED shall enter into intergovernmental agreements with New Mexico tribes prior to 
the disbursement of funds pursuant to Subsection G of this section. 

G. Beginning in Fiscal Year 2026, on July 15 of each year, the PED shall disburse money received pursuant to Subsection D of this section to each New Mexico tribe that has entered into an intergovernmental agreement with the department. Money disbursed to a New Mexico 
tribe shall not revert and shall carry over to the next fiscal year for continued use by the New Mexico tribe. Money shall be disbursed as specified in this subsection.

H. The PED shall create a disbursement formula, in consultation with the Task Force
created pursuant to Section 2 of this 2024 act, that ensures that a New Mexico tribe receives nonreverting disbursements each year on July 15 that the New Mexico tribe may use to carry out the purposes of the Indian Education Act. 

I. Prior to April 15 of each year, each New Mexico tribe shall submit to the PED a summary 
of its operating budget and plan for the ensuing fiscal year based on tribally determined goals and needs. This summary shall include a brief narrative describing how the budget and 
plan will contribute to meeting the purposes of the Indian Education Act. 

J. Prior to October 15 of each year, each New Mexico tribe shall submit to the PED a spending report and an assessment of program impact, student engagement and student outcomes based on tribally determined criteria. 

K. The PED shall report to the LESC, any other appropriate interim committee and the New Mexico tribes no later than November 15 of each year the total disbursements made pursuant to Subsection G of this section for the previous fiscal year, a summary of tribal reports received and a projection of available disbursements pursuant to Subsection G of this section in the following fiscal year. 

L. The PED may:
(1) establish procedures and adopt rules, after formal consultation with the New Mexico tribes, as required to administer and disburse money pursuant to Subsection G of this section; and 
(2) solicit, receive and report on tribal education budgets, plans and reports pursuant to this section. 

M. Nothing in this section shall interfere with the sovereignty of federally recognized New Mexico tribes. 

N. Beginning in Fiscal Year 2025 and in each subsequent fiscal year, the lesser of one percent of the Fund or $100,000 is appropriated from the Fund to the PED for expenditure in the fiscal year in which it is appropriated to administer the Fund as specified. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall revert to the Fund. 

O. As used in this section, "New Mexico tribe" means an Indian nation, tribe or pueblo located wholly or partially in New Mexico in which Native American students are being educated in New Mexico. 

SECTION 2 creates the Task Force.
 A. The Task Force is created within the PED  and shall function from the date of its 
appointment, which shall be no later than December 1, 2024, until July 1, 2031. The assistant secretary of Indian education of the PED shall serve on the Task Force in an advisory function. The task force shall be supported by the PED and shall consist of nine members as specified in this subsection. 

B. The Task Force shall develop a disbursement formula that is equitable for all tribes as specified in this subsection that the PED shall use for the disbursement from the Fund. The Task Force shall consider tribal needs and tribal size, including both a base and student count elements for the disbursement formula.

C. The Task Force shall report its recommendations for a disbursement formula to the governor, the legislature and the secretary of public education prior to July 1, 2025. 

D. The task force shall reconvene on July 1, 2030 to review and assess the equity and functionality of the disbursement formula and provide additional recommendations, if necessary prior to July 1, 2031. 

E. Members of the task force may receive per diem and mileage as provided for nonsalaried public officers and shall receive no other compensation, perquisite or allowance. 


SECTION 3 makes an appropriation of $100,000,000 from the General Fund to the Fund for expenditure in Fiscal Year 2025 and subsequent fiscal years to carry out the purpose of the 
Fund. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the General Fund. 


SECTION 4 makes the effective date  July 1, 2024. 
Amendments:
 House Bill 134 is amended by the House Education Committee as follows: 

In Section 1 of the Tribal Education Trust Fund, Subsection D is amended to strike "the greater of twelve million five hundred thousand dollars ($12,500,000) or”, which makes the distribution in Fiscal Year 2026 from the Tribal Education Fund shall be five percent of the average of the year-end market values of the tribal education trust fund for the preceding five calendar years 


2. On page 4, line 9, strike "create a" and insert in lieu thereof "implement the". 

In Section 1 of the Tribal Education Trust Fund, Subsection H is amended to specify the Public Education Department shall implement the disbursement formula developed by the Tribal Education Trust Fund Disbursement Formula Task Force for tribes — rather than a single tribe.

Section 2 has the title amended to remove “MEMBERSHIP”.

In Section 2, Subsection A, is amended to remove the requirement that the assistant secretary of Indian education of the Public Education Department shall serve on the Tribal Education Trust Fund Disbursement Formula Task Force in an advisory function. The specification for the members of the nine members of the task force is deleted, and the following is inserted:

"B. To determine task force membership, the legislative education study committee shall convene representatives from the twenty-three sovereign Indian nations, tribes and pueblos located wholly or in part in New Mexico to propose an equitable tribal representation on the task force. The secretary of Indian affairs may participate in the deliberations with tribal representatives in an advisory capacity. The deliberations shall be based on indigenous values for decision-making in accordance with the principle of tribal self-determination. A consensus proposal for task force membership developed by the representatives of the twenty-three Indian nations, tribes and pueblos shall be presented to the legislative education study committee no later than September 1, 2024. The legislative education study committee shall transmit the proposal to the public education department. The public education department shall solicit and accept task force appointments pursuant to that proposal and convene the task force pursuant to Subsection A of this section.". 

Reletter the succeeding subsections accordingly. 

In Section 2, Subsection B, the text is amended to insert “implement” and delete “use” in reference to the disbursement of funds. 

In Section 2, Subsection C, to specify that the task force shall provide the disbursement formula, and deletes that the task force shall "report its recommendations for a" .
 
Relates To:
 House Bill 135 is amended to reflect the content of House Bill 134, which creates the Tribal Education Trust Fund and the Tribal Education Trust Fund Disbursement Formula Task Force.