New Mexico 2021 Regular Session Status: Enacted Bipartisan · 1 D · 1 R cosponsors

SB 49 — USES OF LOCAL ECON DEVELOPMENT FUNDING

Last action — Signed

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 19, 2021. Enacted.

Prognosis

Likely to advance 74% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 4 sponsors

    4 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (1 D · 1 R) — cross-party backing.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

320 added · 481 removed

Plain-language change summary

The recent amendment to Bill SB 49 expands the definition of "retail business" to include those located in unincorporated areas of a county. Additionally, it clarifies that funding can be used not just for new construction but also for rehabilitating or remodeling existing buildings used by qualifying entities. This change is significant because it broadens support for retail businesses outside city limits, helping to promote economic growth in rural areas and enabling existing businesses to improve their facilities.

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SENATE TAX, BUSINESS AND TRANSPORTATION COMMITTEE SUBSTITUTE FOR SENATE HEALTH AND PUBLIC AFFAIRS COMMITTEE SUBSTITUTE FOR SENATE BILL 49 55TH LEGISLATURE -STATEOFNEWMEXICO- FIRST SESSION, 2021 4 6 8 10 AN ACT RELATING TO PUBLIC FINANCES;
AN ACT RELATING TO PUBLIC FINANCES;
e t 17 w l n d 18 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
= = 19 a l SECTION 1.
SECTION 1.
Section 5-10-3 NMSA 1978 (being Laws 1993, i a e r 20 Chapter 297, Section 3, as amended) is amended to read:
Section 5-10-3 NMSA 1978 (being Laws 1993, Chapter 297, Section 3, as amended) is amended to read:
a t m m 21 "5-10-3.
"5-10-3.
DEFINITIONS.--As used in the Local Economic d r e 22 Development Act:
DEFINITIONS.--As used in the Local Economic Development Act:
c e s k 23 A.
A.
"arts and cultural district" means a developed e a n b 24 district of public and private uses that is created pursuant to u [ the Arts and Cultural District Act;
"arts and cultural district" means a developed district of public and private uses that is created pursuant to the Arts and Cultural District Act;
.219868.1 STBTC/SHPAC/SB 49 B.
B.
C.
STBTC/SHPAC/SB 49 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;
"cultural facility" means a facility that is Page 1 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;
e t 17 D.
D.
"department" means the economic development w l n d 18 department;
"department" means the economic development department;
= = 19 E.
E.
"economic development project" or "project" a l i a e r 20 means the provision of public support or assistance by the a t m m 21 state to a local or regional government or the provision of d r e 22 direct or indirect assistance to a qualifying entity by a local c e s k 23 or regional government.
"economic development project" or "project" means the provision of public support or 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.
e a n b 24 (1) includes:
(1) includes:
u [ (a) the purchase, lease, grant, .219868.1 - 2 - STBTC/SHPAC/SB 49 construction, reconstruction, improvement or other acquisition or conveyance of land, buildings or other infrastructure;
(a) the purchase, lease, grant, construction, reconstruction, improvement or other acquisition or conveyance of land, buildings or other infrastructure;
(d) payments for professional services contracts necessary for local or regional governments to implement a plan or project;
STBTC/SHPAC/SB 49 Page 2 (d) payments for professional services contracts necessary for local or regional governments to implement a plan or project;
(g) loan guarantees securing the cost of land, buildings or infrastructure in an amount not to exceed e t 17 the revenue that may be derived from an increment of the:
(g) 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) w l n d 18 municipal gross receipts tax imposed at a rate not to exceed = = 19 one-fourth percent and dedicated by the ordinance imposing the a l i a e r 20 increment to a project;
1) municipal gross receipts tax imposed at a rate not to exceed one-fourth percent and dedicated by the ordinance imposing the increment to a project;
or 2) county gross receipts tax imposed a t m m 21 at a rate not to exceed one-eighth percent and dedicated by the d r e 22 ordinance imposing the increment to a project;
or 2) county gross receipts tax imposed at a rate not to exceed one-eighth percent and dedicated by the ordinance imposing the increment to a project;
c e s k 23 (h) grants for public works e a n b 24 infrastructure improvements essential to the location or u [ expansion of a qualifying entity and grants or subsidies to .219868.1 - 3 - STBTC/SHPAC/SB 49 cultural facilities;
(h) grants for public works infrastructure improvements essential to the location or expansion of a qualifying entity and grants or subsidies to cultural facilities;
but (2) does not include the purchase, lease, grant or other acquisition or conveyance of water rights;
but STBTC/SHPAC/SB 49 Page 3 (2) does not include the purchase, lease, grant or other acquisition or conveyance of water rights;
e t 17 (2) that is held by an employee who is hired w l n d 18 to work an average of at least thirty-two hours per week for at = = 19 least forty-eight weeks per year;
(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;
a l i a e r 20 (3) that is:
(3) that is:
a t m m 21 (a) involved, directly or in a d r e 22 supervisory capacity, with the production of:
(a) involved, directly or in a supervisory capacity, with the production of:
c e s k 23 provided that the majority of the revenue generated from the e a n b 24 service is from sources outside the state;
provided that the majority of the revenue generated from the service is from sources outside the state;
or 2) tangible or u [ intangible personal property for sale;
or 2) tangible or intangible personal property for sale;
or .219868.1 - 4 - STBTC/SHPAC/SB 49 (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 the state;
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 STBTC/SHPAC/SB 49 Page 4 located outside the state;
"qualifying entity" means a corporation, limited liability company, partnership, joint venture, syndicate, association or other person that is one or a combination of two e t 17 or more of the following:
"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:
w l n d 18 (1) an industry for the manufacturing, = = 19 processing or assembling of agricultural or manufactured a l i a e r 20 products;
(1) an industry for the manufacturing, processing or assembling of agricultural or manufactured products;
a t m m 21 (2) a commercial enterprise for storing, d r e 22 warehousing, distributing or selling products of agriculture, c e s k 23 mining or industry, but, other than as provided in Paragraph e a n b 24 (5), (6) or (9) of this subsection, not including any u [ enterprise for sale of goods or commodities at retail or for .219868.1 - 5 - STBTC/SHPAC/SB 49 distribution to the public of electricity, gas, water or telephone or other services commonly classified as public utilities;
(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 retail;
(3) a business, including a restaurant or STBTC/SHPAC/SB 49 Page 5 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 retail;
(6) a facility for the direct sales by growers e t 17 of agricultural products, commonly known as farmers' markets;
(6) a facility for the direct sales by growers of agricultural products, commonly known as farmers' markets;
w l n d 18 (7) a business that is the developer of a = = 19 metropolitan redevelopment project;
(7) a business that is the developer of a metropolitan redevelopment project;
a l i a e r 20 (8) a cultural facility;
(8) a cultural facility;
and a t m m 21 (9) a retail business;
and (9) a retail business;
d r e 22 L.
L.
"regional government" means any combination of c e s k 23 municipalities and counties that enter into a joint powers e a n b 24 agreement to provide for economic development projects pursuant u [ to a plan adopted by all parties to the joint powers agreement;
"regional government" means any combination of municipalities and counties that enter into a joint powers agreement to provide for economic development projects pursuant to a plan adopted by all parties to the joint powers agreement;
.219868.1 - 6 - STBTC/SHPAC/SB 49 and M.
and M.
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"retail business" means a business that is primarily engaged in the sale of goods or commodities at retail and that is located:
"retail business" means a business that is STBTC/SHPAC/SB 49 Page 6 primarily engaged in the sale of goods or commodities at retail and that is located:
[(1)] (a) fifteen thousand or less;
(a) fifteen thousand or less;
or [(2)] (b) more than fifteen thousand [but less than thirty-five thousand] if [(a)] the economic development project is not funded or financed with state government revenues;
or (b) more than fifteen thousand if the economic development project is not funded or financed with state government revenues;
[and (b) the business created through the project will not directly compete with an existing business that is:
or (2) in an unincorporated area of a county." SECTION 2.
1) in the municipality;
Section 5-10-15 NMSA 1978 (being Laws 2020, Chapter 74, Section 2) is amended to read:
and 2) engaged in the sale of the same or similar goods or commodities at retail] or (2) in an unincorporated area of a county." SECTION 2.
"5-10-15.
Section 5-10-15 NMSA 1978 (being Laws 2020, e t 17 Chapter 74, Section 2) is amended to read:
STATE PARTICIPATION IN ECONOMIC DEVELOPMENT PROJECTS--PROJECT PARTICIPATION AGREEMENT--DUTIES AND REQUIREMENTS--ECONOMIC DEVELOPMENT DEPARTMENT.-- A.
w l n d 18 "5-10-15.
The department may participate with local or regional governments in economic development projects that:
STATE PARTICIPATION IN ECONOMIC DEVELOPMENT = = 19 PROJECTS--PROJECT PARTICIPATION AGREEMENT--DUTIES AND a l i a e r 20 REQUIREMENTS--ECONOMIC DEVELOPMENT DEPARTMENT.-- a t m m 21 A.
(1) provide for:
The department may participate with local or d r e 22 regional governments in economic development projects that:
(a) the purchase, lease, grant, construction, reconstruction, improvement or other acquisition or conveyance of land, buildings or other infrastructure;
c e s k 23 (1) provide for:
e a n b 24 (a) the purchase, lease, grant, u [ construction, reconstruction, improvement or other acquisition .219868.1 - 7 - STBTC/SHPAC/SB 49 or conveyance of land, buildings or other infrastructure;
(c) public works improvements essential to the location or expansion of a qualifying entity;
(c) public works improvements essential STBTC/SHPAC/SB 49 Page 7 to the location or expansion of a qualifying entity;
(g) grants for public works infrastructure improvements essential to the location or expansion of a qualifying entity and grants or subsidies to e t 17 cultural facilities;
(g) grants for public works infrastructure improvements essential to the location or expansion of a qualifying entity and grants or subsidies to cultural facilities;
w l n d 18 (h) the purchase of land for a publicly = = 19 held industrial park or a publicly owned cultural facility;
(h) the purchase of land for a publicly held industrial park or a publicly owned cultural facility;
a l i a e r 20 (i) technical assistance to cultural a t m m 21 facilities;
(i) technical assistance to cultural facilities;
[and] or d r e 22 (j) the construction, rehabilitation or c e s k 23 remodeling of a building for use by a qualifying entity;
or (j) the construction, rehabilitation or remodeling of a building for use by a qualifying entity;
and e a n b 24 (2) that also:
and (2) that also:
u [ (a) provide new full-time economic base .219868.1 - 8 - STBTC/SHPAC/SB 49 jobs;
(a) provide new full-time economic base jobs;
1) the department has determined that the retail project would not substantially compete with a specific business already in operation in the state;
1) the department has determined that the retail project would not substantially compete with a specific business already in operation in the STBTC/SHPAC/SB 49 Page 8 state;
and 2) the business is located outside a class A county and is located in a municipality with a population of fifteen thousand or less according to the most recent federal decennial census or is located [more than ten miles from the closest municipality with a population greater than fifteen thousand according to the most recent federal decennial census] within the unincorporated portion of a county;
and 2) the business is located outside a class A county and is located in a municipality with a population of fifteen thousand or less according to the most recent federal decennial census or is located within the unincorporated portion of a county;
or (c) provide extensions or improvements to infrastructure, excluding buildings, on government owned land not obtained through the issuance of industrial revenue bonds pursuant to the Industrial Revenue Bond Act or the County e t 17 Industrial Revenue Bond Act in a municipality with a population w l n d 18 of less than sixty thousand according to the most recent = = 19 federal decennial census or in an unincorporated area not a l i a e r 20 located within ten miles of the external boundaries of a a t m m 21 municipality with a population of sixty thousand or more d r e 22 according to the most recent federal decennial census;
or (c) provide extensions or improvements to infrastructure, excluding buildings, on government owned land not obtained through the issuance of industrial revenue bonds pursuant to the Industrial Revenue Bond Act or the County Industrial Revenue Bond Act in a municipality with a population of less than sixty thousand according to the most recent federal decennial census or in an unincorporated area not located within ten miles of the external boundaries of a municipality with a population of sixty thousand or more according to the most recent federal decennial census;
provided c e s k 23 that the project shall not include a participating qualifying e a n b 24 entity;
provided that the project shall not include a participating qualifying entity;
and provided further that the department shall u [ prioritize participation in a project pursuant to this .219868.1 - 9 - STBTC/SHPAC/SB 49 subparagraph based on:
and provided further that the department shall prioritize participation in a project pursuant to this subparagraph based on:
B.
STBTC/SHPAC/SB 49 Page 9 B.
If the department participates in an economic development project that does not include a qualifying entity, the department shall not enter into a project participation agreement pursuant to this section, but shall enter into an e t 17 intergovernmental agreement with the participating local or w l n d 18 regional government.
If the department participates in an economic development project that does not include a qualifying entity, the department shall not enter into a project participation agreement pursuant to this section, but shall enter into an intergovernmental agreement with the participating local or regional government.
= = 19 D.
D.
The project participation agreement shall a l i a e r 20 require that public support provided for the economic a t m m 21 development project shall be in exchange for a substantive d r e 22 contribution from the qualifying entity as determined by the c e s k 23 department.
The project participation agreement shall require that public support provided for the economic development project shall be in exchange for a substantive contribution from the qualifying entity as determined by the department.
e a n b 24 E.
E.
The qualifying entity shall provide security to u [ the state and each local or regional government or any other .219868.1 - 10 - STBTC/SHPAC/SB 49 New Mexico governmental entity providing public support for the economic development project.
The qualifying entity shall provide security to the state and each local or regional government or any other New Mexico governmental entity providing public support for the economic development project.
The department at the discretion of the secretary of economic development may release at any time the security for that portion of the public support provided by the state.
STBTC/SHPAC/SB 49 Page 10 The department at the discretion of the secretary of economic development may release at any time the security for that portion of the public support provided by the state.
e t 17 provided that the recovery shall be:
provided that the recovery shall be:
w l n d 18 (1) limited to the amount of public support = = 19 provided by the governmental entity enforcing the project a l i a e r 20 participation agreement, unless otherwise authorized by another a t m m 21 participating governmental entity;
(1) limited to the amount of public support provided by the governmental entity enforcing the project participation agreement, unless otherwise authorized by another participating governmental entity;
and d r e 22 (2) proportional to the failed performance of c e s k 23 the substantive contribution and shall take into account all e a n b 24 previous substantive contributions for the economic development u [ project performed by the qualifying entity, based on the terms .219868.1 - 11 - STBTC/SHPAC/SB 49 stated in the project participation agreement.
and (2) proportional to the failed performance of the substantive contribution and shall take into account all previous substantive contributions for the economic development project performed by the qualifying entity, based on the terms stated in the project participation agreement.
(2) the security provided to the state and each local or regional government or other New Mexico governmental entity by the qualifying entity in the form of a letter of credit, lien, mortgage or other indenture and the pledge of the qualifying entity's financial or material participation and cooperation to guarantee the qualifying entity's performance pursuant to the project participation agreement;
(2) the security provided to the state and STBTC/SHPAC/SB 49 Page 11 each local or regional government or other New Mexico governmental entity by the qualifying entity in the form of a letter of credit, lien, mortgage or other indenture and the pledge of the qualifying entity's financial or material participation and cooperation to guarantee the qualifying entity's performance pursuant to the project participation agreement;
(3) a schedule for project development and completion, including measurable goals and time limits for e t 17 those goals;
(3) a schedule for project development and completion, including measurable goals and time limits for those goals;
w l n d 18 (4) provisions for performance review and = = 19 actions to be taken upon a determination that project a l i a e r 20 performance is unsatisfactory;
(4) provisions for performance review and actions to be taken upon a determination that project performance is unsatisfactory;
and a t m m 21 (5) provisions allowing the department and the d r e 22 local or regional government or other New Mexico governmental c e s k 23 entity to recover that portion of the public support for which e a n b 24 the qualifying entity failed to provide a substantive u [ contribution as determined by the department." .219868.1 - 12 - STBTC/SHPAC/SB 49 SECTION 3.
and (5) provisions allowing the department and the local or regional government or other New Mexico governmental entity to recover that portion of the public support for which the qualifying entity failed to provide a substantive contribution as determined by the department." SECTION 3.
- 13 - 5 7 9 11 13 15 e t 17 w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .219868.1
STBTC/SHPAC/SB 49 Page 12 25
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Action History

  1. Signed

  2. passed House

  3. DO PASS committee report adopted

  4. DO PASS committee report adopted

  5. Sent to House Commerce & Economic Development Committee & House Taxation & Revenue Committee

  6. passed Senate

  7. withdrawn from committee

  8. referred to Senate Finance Committee

  9. DO NOT PASS, replaced with committee substitute

  10. DO NOT PASS, replaced with committee substitute

  11. Sent to Senate Health and Public Affairs Committee

Sponsors

Sponsorship breakdown

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4 sponsors · 0 co-sponsors · 108 not signed on

Sponsors (4)

Co-sponsors (0)

None.

Not signed on (108)

108 members have not signed on to this bill.

Show all 108 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

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Frequently asked questions

Who sponsors SB 49?
SB 49 is sponsored by Crowder, Randal S., Fajardo, Kelly K., Elizabeth "Liz" Stefanics (Democrat), and Pat Woods (Republican).
What is the current status of SB 49?
This bill has been enacted into law. Introduced January 19, 2021. Enacted.
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