New Mexico 2025 Regular Session

New Mexico House Bill HB135 Compare Versions

Only one version of the bill is available at this time.

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28	28	HOUSE BILL 135
29	29	57
30	30	TH LEGISLATURE
31	31	-
32	32
33	33	STATE
34	34
35	35	OF
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37	37	NEW
38	38
39	39	MEXICO
40	40
41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Kristina Ortez
48	48	AN ACT
49	49	RELATING TO ECONOMIC DEVELOPMENT; AMENDING THE LOCAL ECONOMIC
50	50	DEVELOPMENT ACT; REQUIRING A QUALIFYING ENTITY TO CONDUCT A
51	51	HOUSING STUDY PRIOR TO SUBMITTING AN APPLICATION FOR PUBLIC
52	52	SUPPORT; ADDING DEFINITIONS; AMENDING APPLICATION AND
53	53	EVALUATION REQUIREMENTS.
54	54	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
55	55	SECTION 1. Section 5-10-3 NMSA 1978 (being Laws 1993,
56	56	Chapter 297, Section 3, as amended by Laws 2021, Chapter 3,
57	57	Section 1 and by Laws 2021, Chapter 135, Section 1) is amended
58	58	to read:
59	59	"5-10-3. DEFINITIONS.--As used in the Local Economic
60	60	Development Act:
61	61	A. "arts and cultural district" means a developed
62	62	district of public and private uses that is created pursuant to
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90	90	the Arts and Cultural District Act;
91	91	B. "broadband telecommunications network
92	92	facilities" means the electronics, equipment, transmission
93	93	facilities, fiber-optic cables and any other item directly
94	94	related to a system capable of transmission of internet
95	95	protocol or other formatted data at current federal
96	96	communications commission baseline speed standard, all of which
97	97	will be owned and used by a provider of internet access
98	98	services;
99	99	C. "cultural facility" means a facility that is
100	100	owned by the state, a county, a municipality or a qualifying
101	101	entity that serves the public through preserving, educating and
102	102	promoting the arts and culture of a particular locale,
103	103	including theaters, museums, libraries, galleries, cultural
104	104	compounds, educational organizations, performing arts venues
105	105	and organizations, fine arts organizations, studios and media
106	106	laboratories and live-work housing facilities;
107	107	D. "department" means the economic development
108	108	department;
109	109	E. "economic development project" or "project"
110	110	means the project of a qualifying entity for which public
111	111	support may be provided pursuant to the Local Economic
112	112	Development Act;
113	113	F. "governing body" means the city council, city
114	114	commission or board of trustees of a municipality or the board
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143	143	of county commissioners of a county;
144	144	G. "housing study" means a multivariable estimate
145	145	of housing demand created by new employment, including new
146	146	full-time economic base jobs, expected to occur as a result of
147	147	implementation of an economic development project;
148	148	[G.] H. "local government" means a municipality or
149	149	county;
150	150	[H.] I. "municipality" means an incorporated city,
151	151	town or village;
152	152	[I.] J. "new full-time economic base job" means a
153	153	job:
154	154	(1) that is primarily performed in New Mexico;
155	155	(2) that is held by an employee who is hired
156	156	to work an average of at least thirty-two hours per week for at
157	157	least forty-eight weeks per year;
158	158	(3) that is:
159	159	(a) involved, directly or in a
160	160	supervisory capacity, with the production of: 1) a service;
161	161	provided that the majority of the revenue generated from the
162	162	service is from sources outside the state; or 2) tangible or
163	163	intangible personal property for sale; or
164	164	(b) held by an employee who is employed
165	165	at a regional, national or international headquarters operation
166	166	or at an operation that primarily provides services for other
167	167	operations of the qualifying entity that are located outside
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196	196	the state; and
197	197	(4) that is not directly involved with natural
198	198	resources extraction or processing, on-site services where the
199	199	customer is present for the delivery of the service, retail,
200	200	construction or agriculture except for value-added processing
201	201	performed on agricultural products that would then be sold for
202	202	wholesale or retail consumption;
203	203	[J.] K. "person" means an individual, corporation,
204	204	association, partnership or other legal entity;
205	205	[K.] L. "public support" means the provision of
206	206	assistance by the state to a local or regional government or
207	207	the provision of direct or indirect assistance to a qualifying
208	208	entity by a local or regional government for an economic
209	209	development project. "Public support":
210	210	(1) includes the provision of:
211	211	(a) land, buildings or other
212	212	infrastructure, by purchase, lease, grant, construction,
213	213	reconstruction, improvement or other acquisition or conveyance;
214	214	(b) the placement of new broadband
215	215	telecommunications network facilities; provided that the
216	216	facilities shall not serve a public facility or location that
217	217	already meets federal communications commission baseline speed
218	218	standards;
219	219	(c) rights-of-way infrastructure,
220	220	including trenching and conduit, for the placement of new
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249	249	broadband telecommunications network facilities;
250	250	(d) public works improvements essential
251	251	to the location or expansion of a qualifying entity;
252	252	(e) payments for professional services
253	253	contracts necessary for local or regional governments to
254	254	implement a plan or provide public support for a project;
255	255	(f) direct loans or grants for land,
256	256	buildings or infrastructure;
257	257	(g) technical assistance to cultural
258	258	facilities;
259	259	(h) loan guarantees securing the cost of
260	260	land, buildings or infrastructure in an amount not to exceed
261	261	the revenue that may be derived from an increment of the: 1)
262	262	municipal gross receipts tax imposed at a rate not to exceed
263	263	one-fourth percent and dedicated by the ordinance imposing the
264	264	increment for projects; or 2) county gross receipts tax imposed
265	265	at a rate not to exceed one-eighth percent and dedicated by the
266	266	ordinance imposing the increment for projects;
267	267	(i) grants for public works
268	268	infrastructure improvements essential to the location or
269	269	expansion of a qualifying entity and grants or subsidies to
270	270	cultural facilities;
271	271	(j) land for a publicly held industrial
272	272	park or a publicly owned cultural facility, by purchase; and
273	273	(k) the construction of a building for
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302	302	use by a qualifying entity; but
303	303	(2) does not include the purchase, lease,
304	304	grant or other acquisition or conveyance of water rights;
305	305	[L.] M. "qualifying entity" means a corporation,
306	306	limited liability company, partnership, joint venture,
307	307	syndicate, association or other person that is one or a
308	308	combination of two or more of the following:
309	309	(1) an industry for the manufacturing,
310	310	processing or assembling of agricultural or manufactured
311	311	products;
312	312	(2) a commercial enterprise for storing,
313	313	warehousing, distributing or selling products of agriculture,
314	314	mining or industry, but, other than as provided in Paragraph
315	315	(5), (6) or (9) of this subsection, not including any
316	316	enterprise for sale of goods or commodities at retail or for
317	317	distribution to the public of electricity, gas, water or
318	318	telephone or other services commonly classified as public
319	319	utilities;
320	320	(3) a business, including a restaurant or
321	321	lodging establishment, in which all or part of the activities
322	322	of the business involves the supplying of services to the
323	323	general public or to governmental agencies or to a specific
324	324	industry or customer, but, other than as provided in Paragraph
325	325	(5) or (9) of this subsection, not including businesses
326	326	primarily engaged in the sale of goods or commodities at
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355	355	retail;
356	356	(4) an Indian nation, tribe or pueblo or a
357	357	federally chartered tribal corporation;
358	358	(5) a telecommunications sales enterprise that
359	359	makes the majority of its sales to persons outside New Mexico;
360	360	(6) a facility for the direct sales by growers
361	361	of agricultural products, commonly known as farmers' markets;
362	362	(7) a business that is the developer of a
363	363	metropolitan redevelopment project;
364	364	(8) a cultural facility; and
365	365	(9) a retail business;
366	366	[M.] N. "regional government" means any combination
367	367	of municipalities and counties that enter into a joint powers
368	368	agreement to provide public support for economic development
369	369	projects pursuant to a plan adopted by all parties to the joint
370	370	powers agreement; and
371	371	[N.] O. "retail business" means a business that is
372	372	primarily engaged in the sale of goods or commodities at retail
373	373	and that is located:
374	374	(1) in a municipality with a population,
375	375	according to the most recent federal decennial census, of:
376	376	(a) fifteen thousand or less; or
377	377	(b) more than fifteen thousand if the
378	378	economic development project is not funded or financed with
379	379	state government revenues; or
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408	408	(2) in an unincorporated area of a county."
409	409	SECTION 2. Section 5-10-6 NMSA 1978 (being Laws 1993,
410	410	Chapter 297, Section 6, as amended) is amended to read:
411	411	"5-10-6. ECONOMIC DEVELOPMENT PLAN--CONTENTS--
412	412	PUBLICATION.--
413	413	A. Every local or regional government seeking to
414	414	pursue economic development projects shall adopt an economic
415	415	development plan or a comprehensive plan that includes an
416	416	economic development component, and an economic development
417	417	plan or comprehensive plan may include an analysis of the role
418	418	of arts and cultural activities in economic development. The
419	419	plan may be specific to a single economic development goal or
420	420	strategy or may include several goals or strategies, including
421	421	any goals or strategies relating to economic development
422	422	through arts and cultural activities. Any plan or plan
423	423	amendment shall be adopted by ordinance of the governing body
424	424	of the local government or each local government of a regional
425	425	government proposing the plan or plan amendment.
426	426	B. The economic development plan or ordinance
427	427	adopting the plan shall include a requirement that a qualifying
428	428	entity shall conduct a housing study of the counties and
429	429	municipalities to be affected by the implementation of the
430	430	proposed economic development project prior to submitting an
431	431	application for public support of the qualifying entity's
432	432	economic development project; provided that the qualifying
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461	461	entity conducting the housing study shall not solely rely on a
462	462	cost burden analysis.
463	463	[B.] C. The economic development plan or the
464	464	ordinance adopting the plan may:
465	465	(1) describe the local or regional
466	466	government's economic development and community goals,
467	467	including any economic development goals with an arts and
468	468	cultural component, and assign priority to and strategies for
469	469	achieving those goals;
470	470	(2) describe the types of qualifying entities
471	471	and economic activities that will qualify for public support;
472	472	(3) describe the criteria to be used to
473	473	determine eligibility for public support and a qualifying
474	474	entity to participate in an economic development project;
475	475	(4) describe the manner in which a qualifying
476	476	entity may submit an application for public support pursuant to
477	477	Section 5-10-8 NMSA 1978, including the type of information
478	478	required from the qualifying entity sufficient to ensure its
479	479	solvency and ability to perform its contractual obligations,
480	480	its commitment to remain in the community and its commitment to
481	481	the stated economic development goals of the local or regional
482	482	government;
483	483	(5) describe the process the local or regional
484	484	government will use to verify the information submitted on an
485	485	application for public support pursuant to Section 5-10-8 NMSA
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514	514	1978;
515	515	(6) if an economic development project is
516	516	determined to be unsuccessful or if a qualifying entity seeks
517	517	to leave the area, describe the methods the local or regional
518	518	government will use to terminate the local or regional
519	519	government's public support and recoup its investment;
520	520	(7) identify revenue sources, including those
521	521	of the local or regional government, that will be used to
522	522	provide public support for economic development projects;
523	523	(8) identify other resources the local or
524	524	regional government is prepared to offer qualifying entities,
525	525	including specific land or buildings it is willing to lease,
526	526	sell or grant a qualifying entity; community infrastructure it
527	527	is willing to build, extend or expand, including roads, water,
528	528	sewers or other utilities; and professional services contracts
529	529	by local or regional governments necessary to provide these
530	530	resources;
531	531	(9) detail the minimum benefit the local or
532	532	regional government requires from a qualifying entity,
533	533	including the number and types of jobs to be created; the
534	534	proposed payroll; repayment of loans, if any; purchase by the
535	535	qualifying entity of local or regional government-provided
536	536	land, buildings or infrastructure; the public to private
537	537	investment ratio; and direct local tax base expansion;
538	538	(10) describe the safeguards of public
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567	567	resources that will be ensured, including specific ways the
568	568	local or regional government can recover any costs, land,
569	569	buildings or other thing of value if a qualifying entity ceases
570	570	operation, relocates or otherwise defaults or reneges on its
571	571	contractual or implied obligations to the local or regional
572	572	government; and
573	573	(11) if a regional government, describe the
574	574	joint powers agreement, including whether it can be terminated
575	575	and, if so, how the contractual or other obligations, risks and
576	576	any property will be assigned or divided among the local
577	577	governments who are party to the agreement.
578	578	[C.] D. The economic development plan shall be
579	579	printed and made available to the residents within the local or
580	580	regional government area."
581	581	SECTION 3. Section 5-10-8 NMSA 1978 (being Laws 1993,
582	582	Chapter 297, Section 8, as amended) is amended to read:
583	583	"5-10-8. APPLICATIONS FOR PUBLIC SUPPORT.--
584	584	A. After the adoption of an economic development
585	585	plan by a local or regional government, a qualifying entity
586	586	shall submit to the local or regional government an application
587	587	for public support of a qualifying entity's economic
588	588	development project.
589	589	B. A qualifying entity shall conduct a housing
590	590	study of the counties and municipalities to be affected by the
591	591	implementation of the proposed economic development project
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620	620	prior to submitting an application for public support of the
621	621	qualifying entity's economic development project; provided that
622	622	the qualifying entity conducting the housing study shall not
623	623	solely rely on a cost burden analysis.
624	624	[B.] C. The application shall:
625	625	(1) be on a form and require such information
626	626	as the local or regional government deems necessary; and
627	627	(2) include the findings of the housing study
628	628	conducted pursuant to Subsection B of this section ."
629	629	SECTION 4. Section 5-10-9 NMSA 1978 (being Laws 1993,
630	630	Chapter 297, Section 9, as amended) is amended to read:
631	631	"5-10-9. PROJECT EVALUATION--DEPARTMENT.--
632	632	A. The local or regional government shall review
633	633	each application for public support submitted pursuant to
634	634	Section 5-10-8 NMSA 1978, and any public support shall be
635	635	approved by ordinance.
636	636	B. The local or regional government's evaluation of
637	637	an application shall be based on the provisions of the economic
638	638	development plan, the financial and management stability of the
639	639	qualifying entity, the demonstrated commitment of the
640	640	qualifying entity to the community, the findings of the housing
641	641	study, a cost-benefit analysis of the project and any other
642	642	information the local or regional government believes is
643	643	necessary for a full review of the economic development project
644	644	application.
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673	673	C. The local or regional government may negotiate
674	674	with a qualifying entity on the type or amount of public
675	675	support to be provided or on the scope of the economic
676	676	development project."
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