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HOUSE BILL 421
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Linda Serrato
AN ACT
RELATING TO BUSINESS; ENACTING THE BUSINESS SECURITY ASSISTANCE
ACT; PROVIDING DEFINITIONS; REQUIRING RULEMAKING; PROVIDING
REBATE PAYMENTS TO CERTIFIED VENDORS THAT SELL DISCOUNTED
SECURITY EQUIPMENT OR SECURITY SERVICES TO BUSINESSES; CREATING
THE BUSINESS SECURITY ASSISTANCE FUND; CREATING A GROSS
RECEIPTS TAX DEDUCTION FOR SALES OF SECURITY EQUIPMENT AND
SERVICES; PROVIDING A DELAYED REPEAL; MAKING A TRANSFER FROM
THE GENERAL FUND TO THE BUSINESS SECURITY ASSISTANCE FUND;
MAKING APPROPRIATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1
through 6 of this act may be cited as the "Business Security
Assistance Act".
SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the
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Business Security Assistance Act:
A. "business" means a physical, nonresidential
location where business is conducted, including a real estate
development site or other space;
B. "certified vendor" means a business incorporated
under the Business Corporation Act and doing business in New
Mexico that sells security equipment or provides security
services that is certified by the department;
C. "department" means the regulation and licensing
department;
D. "security equipment":
(1) means:
(a) an installed physical barrier that
is intended to reduce the ability of a person to enter a
business or remove objects from a business without permission
of the business owner, including a fence, security door or
window bar; and
(b) a device that senses or records
activity at a business or the area surrounding a business by
changes in chemistry, heat, pressure, sound or visual imagery
for purposes of detecting unauthorized persons entering the
business; and
(2) does not mean a drone or a retail shelf,
also known as a "smart shelf", that uses digital technology to
track inventory; and
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E. "security service" means a professional
monitoring service provided by a private patrol company
licensed pursuant to the Private Investigations Act.
SECTION 3. [NEW MATERIAL] PERFORMANCE REQUIREMENTS--
VENDOR CERTIFICATION.--The department shall:
A. determine the performance requirements for
security equipment by rule, including:
(1) the required strength, durability and
impact resistance of a physical barrier; and
(2) the sensitivity and range of area
detection for monitoring devices; and
B. certify vendors as eligible to receive a rebate
for providing discounted security equipment or security
services.
SECTION 4. [NEW MATERIAL] REBATE FOR SELLING DISCOUNTED
SECURITY EQUIPMENT AND SERVICES.--
A. A certified vendor that sells security equipment
or security services discounted by at least twenty-five percent
to the owner of a business may receive a rebate payment in an
amount equal to a twenty-five percent discount in the sale
price; provided that the total aggregate amount of the rebate
for sales made to the same business shall not exceed twenty-
five thousand dollars ($25,000); and provided further that
sufficient funding is available to pay the rebate from the
business security assistance fund.
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B. A certified vendor may apply to the department
for a rebate on or before September 1 of each year on forms and
in a manner prescribed by the department. Applications shall
be considered in the order received.
C. Subject to availability of funds in the business
security assistance fund, rebate payments shall be paid to
certified vendors that meet the requirements to receive a
rebate on or before December 1 following the date the
application is received.
SECTION 5. [NEW MATERIAL] BUSINESS SECURITY ASSISTANCE
FUND CREATED--DISBURSEMENTS.--The "business security assistance
fund" is created as a nonreverting fund in the state treasury.
The fund consists of appropriations, gifts, donations, grants
and interest on the money in the fund. The department shall
administer the fund, and money in the fund is appropriated to
the department to provide rebates pursuant to Section 4 of the
Business Security Assistance Act. Disbursements from the fund
shall be made by warrant of the secretary of finance and
administration pursuant to vouchers signed by the
superintendent of regulation and licensing.
SECTION 6. [NEW MATERIAL] REPORTS.--On or before December
1 of each year, the department shall submit a report to the
legislative finance committee detailing the status of the
business security assistance fund and the number of businesses
that received a discounted sale of security equipment or a
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security service.
SECTION 7. A new section of the Gross Receipts and
Compensating Tax Act is enacted to read:
"[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS--SECURITY
SERVICES AND EQUIPMENT.--
A. A certified vendor's receipts from the selling
of discounted security equipment or security services to a
business to improve security at a physical, nonresidential
location in New Mexico where business is conducted, including a
real estate development site or other space, may be deducted
from gross receipts.
B. A taxpayer allowed a deduction pursuant to this
section shall report the amount of the deduction separately in
a manner required by the department.
C. The deduction provided by this section shall be
included in the tax expenditure budget pursuant to Section
7-1-84 NMSA 1978, including the annual aggregate cost of the
deduction.
D. As used in this section:
(1) "certified vendor" means a business
incorporated under the Business Corporation Act and doing
business in New Mexico that is certified by the regulation and
licensing department to sell discounted security equipment or
services pursuant to the Business Security Assistance Act;
(2) "security equipment" means "security
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equipment", as defined in the Business Security Assistance Act;
and
(3) "security service" means professional
monitoring services provided by a private patrol company
licensed pursuant to the Private Investigations Act."
SECTION 8. TRANSFER.--One hundred million dollars
($100,000,000) is transferred from the general fund to the
business security assistance fund.
SECTION 9. APPROPRIATION.--One million dollars
($1,000,000) is appropriated from the general fund to the
regulation and licensing department for expenditure in fiscal
year 2026 and subsequent fiscal years to implement the Business
Security Assistance Act. Any unexpended or unencumbered
balance remaining at the end of a fiscal year shall not revert
to the general fund.
SECTION 10. DELAYED REPEAL.--Sections 1 through 7 of this
act are repealed effective July 1, 2028.
SECTION 11. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
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