HB 203 — ECONOMIC DEVELOPMENT FINANCE & AG ENTERPRISES

HOUSEAN BILLACT 203RELATING 54THTO LEGISLATUREECONOMIC -DEVELOPMENT; STATEOFNEWMEXICO- FIRST SESSION, 2019 INTRODUCED BY Nathan P.

Small and Raymundo Lara and Melanie A.

Stansbury and Andrea Romero and Anthony Allison 7 9 AN ACT RELATING TO ECONOMIC DEVELOPMENT;

146 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 6-25-3 NMSA 1978 (being Laws 2003, e t 17 Chapter 349, Section 3, as amended) is amended to read:

w l n d 18 "6-25-3.

DEFINITIONS.--As used in the Statewide Economic = = 19 Development Finance Act:

a l i a e r 20 A.

"authority" means the New Mexico finance a t m m 21 authority;

d r e 22 B.

"department" means the economic development c e s k 23 department;

e a n b 24 C.

"community development entity" means an entity u [ designed to take advantage of the federal new markets tax .212150.1 credit program;

HB 203 Page 1 F.

(2) retention and expansion of existing business, including agricultural enterprises, such as new or business, including agricultural e e 17 ongoing agricultural projects that add value to New Mexico e e n d 18 agricultural products;

= = l ] 19 (3) attraction of new business, including a l r i 20 agricultural enterprises, such as new or ongoing agricultural t e a t projects that add value to New Mexico agricultural products;

or m m 21 e d r e 22 (4) creation and promotion of an environment c e r c 23 suitable for the support of start-up and emerging business, e a n b 24 including agricultural enterprises, such as new or ongoing u [ agricultural projects that add value to New Mexico agricultural .212150.1 - 2 - products within the state;

"eligible entity" means a for-profit or not-for-not- profitfor-profit business, including an agricultural enterprise, such as new or ongoing agricultural projects that add value HB 203 Page 2 to New Mexico agricultural products and including a corporation, limited liability company, partnership or other entity, determined by the department to be engaged in an enterprise that serves an economic development goal and is suitable for financing assistance;

"federal new markets tax credit program" means the tax credit program codified as Section 45D of the Internal ,Revenue Code of 1986, as that section may be amended or Revenue Code of 1986 e e 17 renumbered, and regulations issued pursuant to that section;

e e n d 18 J.

"financing assistance" means project revenue = = l ] 19 bonds, loans, loan participations or loan guarantees provided a l r i 20 by the authority to or for eligible entities pursuant to the t e a t Statewide Economic Development Finance Act;

m m 21 e d r e 22 K.

"fund" means the economic development revolving c e r c 23 fund;

e a n b 24 L.

"mortgage" means a mortgage, deed of trust or u [ pledge of any assets as a collateral security;

.212150.1 - 3 - M.

"opt-in agreement" means an agreement entered into between the department and a qualifying county, a school district and, if applicable, a qualifying municipality that provides for county, school district and, if applicable, municipal approval of a project, subject to compliance with all local zoning, permitting and other land use rules, and for payments in lieu of taxes to the qualifying county, HB 203 Page 3 school district and, if applicable, qualifying municipality as provided by the Statewide Economic Development Finance Act;

"payment in lieu of taxes" means the total annual payment, including any state in-lieu payment, paid as compensation for the tax impact of a project, in an amount negotiated and determined in the opt-in agreement between the department and the qualifying county, the school district and, if applicable, the qualifying municipality, which payment shall be distributed to the county, municipality and school district e e 17 in the same proportion as property tax revenues are normally e e n d 18 distributed to those recipients;

= = l ] 19 O.

"standard project" means land, buildings, a l r i 20 improvements, machinery and equipment, operating capital and t e a t other personal property for which financing assistance is m m 21 e d r e 22 provided for adequate consideration, taking into account the c e r c 23 anticipated quantifiable benefits of the standard project, for e a n b 24 use by an eligible entity as:

u [ (1) industrial or manufacturing facilities;

.212150.1 - 4 - (2) commercial facilities, including facilities for wholesale sales and services;

(4) educational facilities, including HB 203 Page 4 schools;

[and] (6) recreational and tourism facilities, including parks, pools, trails, open space and equestrian facilities;

"project" means a standard project or a state e e 17 project;

e e n d 18 Q.

"qualifying municipality or county" means a = = l ] 19 municipality or county that enters into an opt-in agreement;

a l r i 20 R.

"quantifiable benefits" means a project's t e a t advancement of an economic development goal as measured by a m m 21 e d r e 22 variety of factors, including:

c e r c 23 (1) the benefits an eligible entity contracts e a n b 24 to provide, such as local hiring quotas, job training u [ commitments and installation of public facilities or .212150.1 - 5 - infrastructure;