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HOUSE BILL 276
57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
INTRODUCED BY
Joy Garratt and Patricia A. Lundstrom and Cathrynn N. Brown
and Michael Padilla and Art De La Cruz
FOR THE NEW MEXICO FINANCE AUTHORITY OVERSIGHT COMMITTEE
AN ACT
RELATING TO PUBLIC-PRIVATE PARTNERSHIPS; CREATING THE PUBLIC-
PRIVATE PARTNERSHIP FUND AND THE PUBLIC-PRIVATE PARTNERSHIP
PROGRAM; REQUIRING THE LOCAL GOVERNMENT DIVISION OF THE
DEPARTMENT OF FINANCE AND ADMINISTRATION, IN CONSULTATION WITH
THE NEW MEXICO FINANCE AUTHORITY, TO PROVIDE GRANTS TO PUBLIC
PARTNERS TO COMPLETE BROADBAND PROJECTS AND TRANSPORTATION
PROJECTS; REQUIRING RULEMAKING; PROVIDING THAT APPROPRIATIONS
FROM THE PUBLIC PROJECT REVOLVING FUND MAY BE MADE TO THE
PUBLIC-PRIVATE PARTNERSHIP FUND; EXEMPTING PUBLIC-PRIVATE
PARTNERSHIP AGREEMENTS FROM THE PROCUREMENT CODE; MAKING AN
APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] PUBLIC-PRIVATE PARTNERSHIP
FUND--CREATED--PURPOSE--PUBLIC-PRIVATE PARTNERSHIP PROGRAM--
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DISTRIBUTIONS.--
A. As used in this section:
(1) "authority" means the New Mexico finance
authority;
(2) "broadband project" means a project to
develop, repair, replace or maintain the state facilities or
infrastructure used to provide internet, including 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 minimum speed
standard, all of which will be owned and used by a provider of
internet access services;
(3) "division" means the local government
division of the department of finance and administration;
(4) "private partner" means an individual, a
foreign or domestic corporation, a general partnership, a
limited liability company, a limited partnership, a joint
venture, a business trust, a public benefit corporation, a
nonprofit entity or other private business entity or any
combination thereof;
(5) "public partner" means the state or any of
its branches, agencies, departments, boards, instrumentalities
or institutions and all political subdivisions of the state;
(6) "public-private partnership" means an
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arrangement between one or more public partners and one or more
private partners for the development of a broadband project or
a transportation project; and
(7) "transportation project" means studies,
planning, design, construction and maintenance of
transportation infrastructure located in this state.
B. The "public-private partnership fund" is created
as a nonreverting fund in the state treasury. The public-
private partnership fund consists of distributions from the
public project revolving fund, appropriations, income from
investment of the public-private partnership fund, gifts,
grants and donations. The division shall administer the
public-private partnership fund, and money in the public-
private partnership fund is appropriated to the division to
administer the public-private partnership program.
Disbursements from the public-private partnership fund shall be
made by warrant of the secretary of finance and administration
pursuant to vouchers signed by the director of the division or
the director's designee.
C. The "public-private partnership program" is
created and shall be administered by the division. The
division shall, in consultation with the authority, evaluate
and provide grants to fund proposed transportation projects and
broadband projects.
D. A public partner shall apply to receive a grant
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on forms and in a manner prescribed by the division, which
shall include the public-private partnership agreement executed
by the public partner and private partner. When determining an
award pursuant to this section, the division shall:
(1) undertake a cost-benefit analysis of the
proposed public-private partnership in comparison to a
traditional project that is managed by a public partner;
(2) determine whether the application of
procurement rules normally applicable to the public partner
would delay or increase the cost of the proposed public
project;
(3) consider other financing available to
complete the project, including matching financing provided by
the private partner; and
(4) consider the likelihood of the broadband
project's or transportation project's completion.
E. In addition to the requirements provided
pursuant to Subsection D of this section, the division shall
base its decision to award a grant for the completion of a:
(1) broadband project on:
(a) whether the proposed project
supports the expansion of broadband as estimated by the amount
of private properties and commercial properties that would
receive internet as a result of the project; or
(b) the need to develop, repair, replace
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or maintain the state facilities or infrastructure used to
provide internet with existing broadband infrastructure based
on the geographic area served by the project; and
(2) transportation project on whether the
project is necessary to study, plan, design, construct or
maintain transportation infrastructure or facilities and is
currently delayed by the public partner due to cost or the
procurement process.
F. The division shall promulgate rules to
administer the public-private partnership program, including
procedures:
(1) for a public partner to apply for grants
from the program;
(2) to evaluate a proposed project; provided
that the division shall:
(a) apply procurement, accounting and
governmental conduct standards in evaluating a public partner's
proposal and public-private partnership agreement;
(b) consider the recommendations of the
authority; and
(c) ensure an expedited review process;
(3) to award grants to a public partner to
complete the public project; and
(4) to safeguard public funds.
G. The authority shall:
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(1) evaluate the financial risks of the
proposed transportation project or broadband project; and
(2) promulgate rules as necessary to recommend
projects to the division.
H. Money in the public-private partnership fund may
be used to cover the administrative costs of the authority in
complying with this section."
SECTION 2. Section 6-21-6.1 NMSA 1978 (being Laws 1994,
Chapter 145, Section 2, as amended) is amended to read:
"6-21-6.1. PUBLIC PROJECT REVOLVING FUND--APPROPRIATIONS
TO OTHER FUNDS.--
A. At the end of each fiscal year, after all debt
service charges, replenishment of reserves and administrative
costs on all outstanding bonds, notes or other obligations
payable from the public project revolving fund are satisfied,
an aggregate amount not to exceed thirty-five percent of the
governmental gross receipts tax proceeds distributed to the
public project revolving fund in the preceding fiscal year less
all debt service charges and administrative costs of the
authority paid in the preceding fiscal year on bonds issued
pursuant to this section may be appropriated by the legislature
from the public project revolving fund to:
(1) the following funds for local
infrastructure financing:
(a) the wastewater facility construction
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loan fund for purposes of the Wastewater Facility Construction
Loan Act;
(b) the rural infrastructure revolving
loan fund for purposes of the Rural Infrastructure Act;
(c) the solid waste facility grant fund
for purposes of the Solid Waste Act;
(d) the drinking water state revolving
loan fund for purposes of the Drinking Water State Revolving
Loan Fund Act;
(e) the water and wastewater project
grant fund for purposes specified in the New Mexico Finance
Authority Act; or
(f) the local government planning fund
for purposes specified in the New Mexico Finance Authority Act;
[or]
(2) the public-private partnership fund for
purposes specified in Section 1 of this 2025 act; or
[(2)] (3) the cultural affairs facilities
infrastructure fund.
B. The authority and the department of finance and
administration in coordination with the New Mexico finance
authority oversight committee may recommend annually to each
regular session of the legislature amounts to be appropriated
to the funds listed in Subsection A of this section."
SECTION 3. Section 13-1-98 NMSA 1978 (being Laws 1984,
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Chapter 65, Section 71, as amended by Laws 2023, Chapter 149,
Section 2 and by Laws 2023, Chapter 174, Section 1) is amended
to read:
"13-1-98. EXEMPTIONS FROM THE PROCUREMENT CODE.--The
provisions of the Procurement Code shall not apply to:
A. procurement of items of tangible personal
property or services by a state agency or a local public body
from a state agency, a local public body or external
procurement unit except as otherwise provided in Sections
13-1-135 through 13-1-137 NMSA 1978;
B. procurement of tangible personal property or
services for the governor's mansion and grounds;
C. printing and duplicating contracts involving
materials that are required to be filed in connection with
proceedings before administrative agencies or state or federal
courts;
D. purchases of publicly provided or publicly
regulated gas, electricity, water, sewer and refuse collection
services;
E. purchases of books, periodicals, instructional
materials and training materials in printed, digital or
electronic format from the publishers, designated public-
education-department-approved instructional material
depositories or copyright holders thereof and purchases of
print, digital or electronic format library materials by
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public, school and state libraries for access by the public;
F. travel or shipping by common carrier or by
private conveyance or to meals and lodging;
G. purchase of livestock at auction rings or to the
procurement of animals to be used for research and
experimentation or exhibit;
H. contracts with businesses for public school
transportation services;
I. procurement of tangible personal property or
services, as defined by Sections 13-1-87 and 13-1-93 NMSA 1978,
by the corrections industries division of the corrections
department pursuant to rules adopted by the corrections
industries commission, which shall be reviewed by the
purchasing division of the general services department prior to
adoption;
J. purchases not exceeding ten thousand dollars
($10,000) consisting of magazine subscriptions, web-based or
electronic subscriptions, conference registration fees and
other similar purchases where prepayments are required;
K. municipalities having adopted home rule charters
and having enacted their own purchasing ordinances;
L. the issuance, sale and delivery of public
securities pursuant to the applicable authorizing statute, with
the exception of bond attorneys and general financial
consultants;
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M. contracts entered into by a local public body
with a private independent contractor for the operation, or
provision and operation, of a jail pursuant to Sections 33-3-26
and 33-3-27 NMSA 1978;
N. contracts for maintenance of grounds and
facilities at highway rest stops and other employment
opportunities, excluding those intended for the direct care and
support of persons with handicaps, entered into by state
agencies with private, nonprofit, independent contractors who
provide services to persons with handicaps;
O. contracts and expenditures for services or items
of tangible personal property to be paid or compensated by
money or other property transferred to New Mexico law
enforcement agencies by the United States department of justice
drug enforcement administration;
P. contracts for retirement and other benefits
pursuant to Sections 22-11-47 through 22-11-52 NMSA 1978;
Q. contracts with professional entertainers;
R. contracts and expenditures for legal
subscription and research services and litigation expenses in
connection with proceedings before administrative agencies or
state or federal courts, including experts, mediators, court
reporters, process servers and witness fees, but not including
attorney contracts;
S. contracts for service relating to the design,
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engineering, financing, construction and acquisition of public
improvements undertaken in improvement districts pursuant to
Subsection L of Section 3-33-14.1 NMSA 1978 and in county
improvement districts pursuant to Subsection L of Section
4-55A-12.1 NMSA 1978;
T. works of art for museums or for display in
public buildings or places;
U. contracts entered into by a local public body
with a person, firm, organization, corporation or association
or a state educational institution named in Article 12, Section
11 of the constitution of New Mexico for the operation and
maintenance of a hospital pursuant to Chapter 3, Article 44
NMSA 1978, lease or operation of a county hospital pursuant to
the Hospital Funding Act or operation and maintenance of a
hospital pursuant to the Special Hospital District Act;
V. purchases of advertising in all media, including
radio, television, print and electronic;
W. purchases of promotional goods intended for
resale by the tourism department;
X. procurement of printing, publishing and
distribution services for materials produced and intended for
resale by the cultural affairs department;
Y. procurement by or through the public education
department from the federal department of education relating to
parent training and information centers designed to increase
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parent participation, projects and initiatives designed to
improve outcomes for students with disabilities and other
projects and initiatives relating to the administration of
improvement strategy programs pursuant to the federal
Individuals with Disabilities Education Act; provided that the
exemption applies only to procurement of services not to exceed
two hundred thousand dollars ($200,000);
Z. procurement of services from community
rehabilitation programs or qualified individuals pursuant to
the State Use Act;
AA. purchases of products or services for eligible
persons with disabilities pursuant to the federal
Rehabilitation Act of 1973;
BB. procurement, by either the department of health
or Grant county or both, of tangible personal property,
services or construction that are exempt from the Procurement
Code pursuant to Section 9-7-6.5 NMSA 1978;
CC. contracts for investment advisory services,
investment management services or other investment-related
services entered into by the educational retirement board, the
state investment officer or the retirement board created
pursuant to the Public Employees Retirement Act;
DD. the purchase for resale by the state fair
commission of feed and other items necessary for the upkeep of
livestock;
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EE. contracts entered into by the crime victims
reparation commission to distribute federal grants to assist
victims of crime, including grants from the federal Victims of
Crime Act of 1984 and the federal Violence Against Women Act of
1994;
FF. procurement by or through the early childhood
education and care department of early pre-kindergarten and
pre-kindergarten services purchased pursuant to the Pre-
Kindergarten Act;
GG. procurement of services of commissioned
advertising sales representatives for New Mexico magazine;
HH. public-private partnership agreements for the
performance of a broadband project or a transportation project
pursuant to Section 1 of this 2025 act;
[HH.] II. contracts entered into by the forestry
division of the energy, minerals and natural resources
department to distribute federal grants to nongovernmental
entities and individuals selected through an application
process conducted by the United States department of
agriculture, the United States department of the interior or
any division or bureau thereof for programs for wildfire
prevention or protection, urban forestry, forest and watershed
restoration and protection, reforestation or economic
development projects to advance the use of trees and wood
biomass for hazardous fuel reduction; and
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[II.] JJ. procurements exempt from the Procurement
Code as otherwise provided by law."
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