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HOUSE BILL 135
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Kristina Ortez
AN ACT
RELATING TO ECONOMIC DEVELOPMENT; AMENDING THE LOCAL ECONOMIC
DEVELOPMENT ACT; REQUIRING A QUALIFYING ENTITY TO CONDUCT A
HOUSING STUDY PRIOR TO SUBMITTING AN APPLICATION FOR PUBLIC
SUPPORT; ADDING DEFINITIONS; AMENDING APPLICATION AND
EVALUATION REQUIREMENTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 5-10-3 NMSA 1978 (being Laws 1993,
Chapter 297, Section 3, as amended by Laws 2021, Chapter 3,
Section 1 and by Laws 2021, Chapter 135, Section 1) is amended
to read:
"5-10-3. DEFINITIONS.--As used in the Local Economic
Development Act:
A. "arts and cultural district" means a developed
district of public and private uses that is created pursuant to
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the Arts and Cultural District Act;
B. "broadband telecommunications network
facilities" means the electronics, equipment, transmission
facilities, fiber-optic cables and any other item directly
related to a system capable of transmission of internet
protocol or other formatted data at current federal
communications commission baseline speed standard, all of which
will be owned and used by a provider of internet access
services;
C. "cultural facility" means a facility that is
owned by the state, a county, a municipality or a qualifying
entity that serves the public through preserving, educating and
promoting the arts and culture of a particular locale,
including theaters, museums, libraries, galleries, cultural
compounds, educational organizations, performing arts venues
and organizations, fine arts organizations, studios and media
laboratories and live-work housing facilities;
D. "department" means the economic development
department;
E. "economic development project" or "project"
means the project of a qualifying entity for which public
support may be provided pursuant to the Local Economic
Development Act;
F. "governing body" means the city council, city
commission or board of trustees of a municipality or the board
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of county commissioners of a county;
G. "housing study" means a multivariable estimate
of housing demand created by new employment, including new
full-time economic base jobs, expected to occur as a result of
implementation of an economic development project;
[G.] H. "local government" means a municipality or
county;
[H.] I. "municipality" means an incorporated city,
town or village;
[I.] J. "new full-time economic base job" means a
job:
(1) that is primarily performed in New Mexico;
(2) that is held by an employee who is hired
to work an average of at least thirty-two hours per week for at
least forty-eight weeks per year;
(3) that is:
(a) involved, directly or in a
supervisory capacity, with the production of: 1) a service;
provided that the majority of the revenue generated from the
service is from sources outside the state; or 2) tangible or
intangible personal property for sale; or
(b) held by an employee who is employed
at a regional, national or international headquarters operation
or at an operation that primarily provides services for other
operations of the qualifying entity that are located outside
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the state; and
(4) that is not directly involved with natural
resources extraction or processing, on-site services where the
customer is present for the delivery of the service, retail,
construction or agriculture except for value-added processing
performed on agricultural products that would then be sold for
wholesale or retail consumption;
[J.] K. "person" means an individual, corporation,
association, partnership or other legal entity;
[K.] L. "public support" means the provision of
assistance by the state to a local or regional government or
the provision of direct or indirect assistance to a qualifying
entity by a local or regional government for an economic
development project. "Public support":
(1) includes the provision of:
(a) land, buildings or other
infrastructure, by purchase, lease, grant, construction,
reconstruction, improvement or other acquisition or conveyance;
(b) the placement of new broadband
telecommunications network facilities; provided that the
facilities shall not serve a public facility or location that
already meets federal communications commission baseline speed
standards;
(c) rights-of-way infrastructure,
including trenching and conduit, for the placement of new
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broadband telecommunications network facilities;
(d) public works improvements essential
to the location or expansion of a qualifying entity;
(e) payments for professional services
contracts necessary for local or regional governments to
implement a plan or provide public support for a project;
(f) direct loans or grants for land,
buildings or infrastructure;
(g) technical assistance to cultural
facilities;
(h) loan guarantees securing the cost of
land, buildings or infrastructure in an amount not to exceed
the revenue that may be derived from an increment of the: 1)
municipal gross receipts tax imposed at a rate not to exceed
one-fourth percent and dedicated by the ordinance imposing the
increment for projects; or 2) county gross receipts tax imposed
at a rate not to exceed one-eighth percent and dedicated by the
ordinance imposing the increment for projects;
(i) grants for public works
infrastructure improvements essential to the location or
expansion of a qualifying entity and grants or subsidies to
cultural facilities;
(j) land for a publicly held industrial
park or a publicly owned cultural facility, by purchase; and
(k) the construction of a building for
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use by a qualifying entity; but
(2) does not include the purchase, lease,
grant or other acquisition or conveyance of water rights;
[L.] M. "qualifying entity" means a corporation,
limited liability company, partnership, joint venture,
syndicate, association or other person that is one or a
combination of two or more of the following:
(1) an industry for the manufacturing,
processing or assembling of agricultural or manufactured
products;
(2) a commercial enterprise for storing,
warehousing, distributing or selling products of agriculture,
mining or industry, but, other than as provided in Paragraph
(5), (6) or (9) of this subsection, not including any
enterprise for sale of goods or commodities at retail or for
distribution to the public of electricity, gas, water or
telephone or other services commonly classified as public
utilities;
(3) a business, including a restaurant or
lodging establishment, in which all or part of the activities
of the business involves the supplying of services to the
general public or to governmental agencies or to a specific
industry or customer, but, other than as provided in Paragraph
(5) or (9) of this subsection, not including businesses
primarily engaged in the sale of goods or commodities at
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retail;
(4) an Indian nation, tribe or pueblo or a
federally chartered tribal corporation;
(5) a telecommunications sales enterprise that
makes the majority of its sales to persons outside New Mexico;
(6) a facility for the direct sales by growers
of agricultural products, commonly known as farmers' markets;
(7) a business that is the developer of a
metropolitan redevelopment project;
(8) a cultural facility; and
(9) a retail business;
[M.] N. "regional government" means any combination
of municipalities and counties that enter into a joint powers
agreement to provide public support for economic development
projects pursuant to a plan adopted by all parties to the joint
powers agreement; and
[N.] O. "retail business" means a business that is
primarily engaged in the sale of goods or commodities at retail
and that is located:
(1) in a municipality with a population,
according to the most recent federal decennial census, of:
(a) fifteen thousand or less; or
(b) more than fifteen thousand if the
economic development project is not funded or financed with
state government revenues; or
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(2) in an unincorporated area of a county."
SECTION 2. Section 5-10-6 NMSA 1978 (being Laws 1993,
Chapter 297, Section 6, as amended) is amended to read:
"5-10-6. ECONOMIC DEVELOPMENT PLAN--CONTENTS--
PUBLICATION.--
A. Every local or regional government seeking to
pursue economic development projects shall adopt an economic
development plan or a comprehensive plan that includes an
economic development component, and an economic development
plan or comprehensive plan may include an analysis of the role
of arts and cultural activities in economic development. The
plan may be specific to a single economic development goal or
strategy or may include several goals or strategies, including
any goals or strategies relating to economic development
through arts and cultural activities. Any plan or plan
amendment shall be adopted by ordinance of the governing body
of the local government or each local government of a regional
government proposing the plan or plan amendment.
B. The economic development plan or ordinance
adopting the plan shall include a requirement that a qualifying
entity shall conduct a housing study of the counties and
municipalities to be affected by the implementation of the
proposed economic development project prior to submitting an
application for public support of the qualifying entity's
economic development project; provided that the qualifying
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entity conducting the housing study shall not solely rely on a
cost burden analysis.
[B.] C. The economic development plan or the
ordinance adopting the plan may:
(1) describe the local or regional
government's economic development and community goals,
including any economic development goals with an arts and
cultural component, and assign priority to and strategies for
achieving those goals;
(2) describe the types of qualifying entities
and economic activities that will qualify for public support;
(3) describe the criteria to be used to
determine eligibility for public support and a qualifying
entity to participate in an economic development project;
(4) describe the manner in which a qualifying
entity may submit an application for public support pursuant to
Section 5-10-8 NMSA 1978, including the type of information
required from the qualifying entity sufficient to ensure its
solvency and ability to perform its contractual obligations,
its commitment to remain in the community and its commitment to
the stated economic development goals of the local or regional
government;
(5) describe the process the local or regional
government will use to verify the information submitted on an
application for public support pursuant to Section 5-10-8 NMSA
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1978;
(6) if an economic development project is
determined to be unsuccessful or if a qualifying entity seeks
to leave the area, describe the methods the local or regional
government will use to terminate the local or regional
government's public support and recoup its investment;
(7) identify revenue sources, including those
of the local or regional government, that will be used to
provide public support for economic development projects;
(8) identify other resources the local or
regional government is prepared to offer qualifying entities,
including specific land or buildings it is willing to lease,
sell or grant a qualifying entity; community infrastructure it
is willing to build, extend or expand, including roads, water,
sewers or other utilities; and professional services contracts
by local or regional governments necessary to provide these
resources;
(9) detail the minimum benefit the local or
regional government requires from a qualifying entity,
including the number and types of jobs to be created; the
proposed payroll; repayment of loans, if any; purchase by the
qualifying entity of local or regional government-provided
land, buildings or infrastructure; the public to private
investment ratio; and direct local tax base expansion;
(10) describe the safeguards of public
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resources that will be ensured, including specific ways the
local or regional government can recover any costs, land,
buildings or other thing of value if a qualifying entity ceases
operation, relocates or otherwise defaults or reneges on its
contractual or implied obligations to the local or regional
government; and
(11) if a regional government, describe the
joint powers agreement, including whether it can be terminated
and, if so, how the contractual or other obligations, risks and
any property will be assigned or divided among the local
governments who are party to the agreement.
[C.] D. The economic development plan shall be
printed and made available to the residents within the local or
regional government area."
SECTION 3. Section 5-10-8 NMSA 1978 (being Laws 1993,
Chapter 297, Section 8, as amended) is amended to read:
"5-10-8. APPLICATIONS FOR PUBLIC SUPPORT.--
A. After the adoption of an economic development
plan by a local or regional government, a qualifying entity
shall submit to the local or regional government an application
for public support of a qualifying entity's economic
development project.
B. A qualifying entity shall conduct a housing
study of the counties and municipalities to be affected by the
implementation of the proposed economic development project
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prior to submitting an application for public support of the
qualifying entity's economic development project; provided that
the qualifying entity conducting the housing study shall not
solely rely on a cost burden analysis.
[B.] C. The application shall:
(1) be on a form and require such information
as the local or regional government deems necessary; and
(2) include the findings of the housing study
conducted pursuant to Subsection B of this section ."
SECTION 4. Section 5-10-9 NMSA 1978 (being Laws 1993,
Chapter 297, Section 9, as amended) is amended to read:
"5-10-9. PROJECT EVALUATION--DEPARTMENT.--
A. The local or regional government shall review
each application for public support submitted pursuant to
Section 5-10-8 NMSA 1978, and any public support shall be
approved by ordinance.
B. The local or regional government's evaluation of
an application shall be based on the provisions of the economic
development plan, the financial and management stability of the
qualifying entity, the demonstrated commitment of the
qualifying entity to the community, the findings of the housing
study, a cost-benefit analysis of the project and any other
information the local or regional government believes is
necessary for a full review of the economic development project
application.
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C. The local or regional government may negotiate
with a qualifying entity on the type or amount of public
support to be provided or on the scope of the economic
development project."
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