HB 421 — BUSINESS SECURITY ASSISTANCE ACT

HOUSE COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE SUBSTITUTE FOR HOUSE BILL 421 57TH LEGISLATURE -STATEOFNEWMEXICO- FIRST SESSION, 2025 INTRODUCED4 BY Linda Serrato 6 8 10 AN ACT RELATING TO BUSINESS;

MAKING AAPPROPRIATIONS. TRANSFER FROM w l n d 18 THE GENERAL FUND TO THE BUSINESS SECURITY ASSISTANCE FUND;

w l n d 18 = = 19 a l MAKINGBE APPROPRIATIONS.IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

i a e r 20 aSECTION t1. m m 21 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

[NEW MATERIAL] SHORT TITLE.--Sections 1 a t m m 21 through 6 of this act may be cited as the "Business Security d r e 22 SECTIONAssistance 1.Act".

[NEW MATERIAL] SHORT TITLE.--Sections 1 c e s k 23 throughSECTION 62. of this act may be cited as the "Business Security e a n b 24 Assistance Act".

u[NEW [MATERIAL] SECTIONDEFINITIONS.--As 2.used in the e a n b 24 Business Security Assistance Act:

[NEWu MATERIAL][ DEFINITIONS.--AsA. used in the .229518.3GLG Business Security Assistance Act:

A."business" means a physical, nonresidential .231116.2 HCEDC/HB 421 location where business is conducted, including a real estate development site or other space;

"business" means a physical, nonresidential location where business is conducted, including a real estate development site or other space;

"certified vendor" means a pass-through entity as defined in Section 7-3A-2 NMSA 1978 or a business incorporated under the Business Corporation Act andor the Limited Liability Company Act that is doing business in New Mexico thatand sells security equipment or provides security services and that is certified by the department;

and w l n d 18 (b) a device that senses or records = = 19 a l activity at a business or the area surrounding a business by a l i a e r 20 changes in chemistry, heat, pressure, sound or visual imagery a t m m 21 for purposes of detecting unauthorized persons entering the d r e 22 business;business or removing objects from the business without c e s k 23 permission of the business owner;

and c e sa kn 23b 24 (2) does not mean a drone or a retail shelf, eu a[ n b 24 also known as a "smart shelf", that uses digital technology to u.231116.2 [- 2 - HCEDC/HB 421 track inventory;

and .229518.3GLG - 2 - E.

certify vendors as eligible to receive a rebate or deduction from gross receipts pursuant to Section 7 of this 2025 act for providing discounted security equipment or security services.

e t 17 SECTION 4.

[NEW MATERIAL] REBATE FOR SELLING DISCOUNTED w l n d 18 SECURITY EQUIPMENT AND SERVICES.-- e= t= 1719 A.

A certified vendor that sells security equipment wa l ni da 18e r 20 or security services discounted by at least twenty-five percent =a =t 19m am l21 to the owner of a business may receive a rebate payment in an id ar e r22 20 amount equal to a twenty-five percent discount in the sale ac te ms mk 2123 price;

provided that the total aggregate amount of the rebate de ra en 22b 24 for sales made to the same business shallin nota exceedcalendar twenty-year cshall eu s[ knot 23exceed fivetwenty-five thousand dollars ($25,000);

and provided further.231116.2 that- e3 a- nHCEDC/HB b421 24further that sufficient funding is available to pay the rebate from the u [ business security assistance fund.

.229518.3GLG - 3 - B.

A certified vendor may apply to the department for a rebate on or before September 1 of each calendar year on forms and in a manner prescribed by the department.

[NEW MATERIAL] BUSINESS SECURITY ASSISTANCE FUND CREATED--DISBURSEMENTS.--The "business security assistance fund" is created as a nonreverting fund in the state treasury.

The department shall administer the fund, e t 17 and money in the fund is appropriated to the department to w l n d 18 provide rebates pursuant to Section 4 of the eBusiness tSecurity 17= Business= Security19 Assistance Act.

Disbursements from the fund wshall lbe nmade dby 18a shalll bei madea bye r 20 warrant of the secretary of finance and =administration =pursuant 19 a lt administrationm pursuantm 21 to vouchers signed by the i a e r 20 superintendent of regulation and d r e 22 licensing.

Balances in the fund at the end of a tfiscal myear mc 21e SECTIONs 6.k 23 for fiscal years 2026 and 2027 shall not revert.

[NEWBalances MATERIAL]in REPORTS.--On or before December d r e 22 1 of each year, the department shall submit a report to the c e s k 23 legislative finance committee detailing the status of the e a n b 24 businessthe security assistance fund andat the numberend of businessesfiscal uyear [2028 thatshall receivedrevert ato discountedthe saleu of[ securitygeneral equipmentfund. or a .229518.3GLG - 4 - security service.

.231116.2 - 4 - HCEDC/HB 421 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 security service.

e t 17 B.

A taxpayer allowed a deduction pursuant to this w l n d 18 section shall report the amount of the deduction separately in = = 19 a manner required by the department.

a l i a e r 20 C.

The deduction provided by this section shall be a t m m 21 included in the tax expenditure budget pursuant to Section ed tr 17e 22 7-1-84 NMSA 1978, including the annual aggregate cost of the wc le ns dk 1823 deduction.

=e =a 19n ab l24 D.

iu a[ e r 20 (1) "certified vendor" means a businesspass-through a.231116.2 t- m5 m- 21HCEDC/HB 421 entity as defined in Section 7-3A-2 NMSA 1978 or a business incorporated under the Business Corporation Act andor doingthe dLimited rLiability eCompany 22Act that is doing business in New Mexico and that is certified by the regulation and c e s k 23 licensing department to sell discounted security equipment or e a n b 24 services pursuant to the Business Security Assistance Act;

u [ (2) "security"discounted" equipment" means "securityan .229518.3GLGamount -equal 5to -at equipment",least asa definedtwenty-five percent discount in the sale price for security equipment pursuant to the Business Security Assistance Act;

and (3) "security service"equipment" means professional"security monitoringequipment" servicesas provideddefined byin a private patrol company licensed pursuant to the PrivateBusiness InvestigationsSecurity Act."Assistance SECTIONAct; 8.

TRANSFER.--Oneand hundred(4) million"security dollarsservice" ($100,000,000)means isprofessional transferredmonitoring fromservices theprovided generalby funda private patrol company licensed pursuant to the businessPrivate securityInvestigations assistanceAct." fund.e t 17 SECTION 8.

SECTIONAPPROPRIATION.--One 9.hundred million dollars w l n d 18 ($100,000,000) is appropriated from the general fund to the = = 19 business security assistance fund for the purposes of the fund a l i a e r 20 for expenditure in fiscal years 2026 through 2028.

APPROPRIATION.--OneAny milliona dollarst ($1,000,000)m ism appropriated21 fromunexpended theor generalunencumbered fundbalance toremaining at the regulationend andof licensingd departmentr fore expenditure22 in fiscal year 20262028 andshall subsequentrevert fiscal years to implement the Businessgeneral Securityfund. Assistance Act.