New Mexico House Bill HB160

New Mexico 2022 Regular Session

• Introduced: 1/27/22
• Report Pass: 2/3/22
• Report Pass: 2/9/22

Caption

Hist. Underutilized Business Opportunities

Impact

The bill mandates state agencies to establish agency-specific goals based on their expenditures while ensuring that HUBs are considered in contracting processes. Agencies will be required to report annual data regarding payments made to these businesses and the total number of contracts awarded. This level of accountability will help to measure the effectiveness of the initiative and ensure that historically underutilized businesses gain a significant foothold in public procurement, thereby potentially transforming the economic landscape for these entities in New Mexico.

Summary

House Bill 160, known as the Historically Underutilized Business Opportunity Act, was introduced to stimulate economic development and foster job creation in the state. The bill aims to promote full and equal business opportunities by encouraging state agencies to set specific goals for utilizing historically underutilized businesses (HUBs) in public purchasing decisions. This initiative particularly focuses on businesses owned by women and individuals from specific communities of color, thereby addressing historical disparities in access to state contracts.

Contention

Debate surrounds the bill's practicality and its implications for procurement processes. While supporters argue that the act will open the market for underutilized businesses, skeptics raise concerns that the goals set by state agencies may not be sufficient or enforced strictly enough to make a meaningful difference. Additionally, the effectiveness of provided training and support to these businesses is also called into question, which is essential to their success in competing for state contracts.