New Mexico 2021 Regular Session Status: In Committee

SB 5 — LOCAL EC. DEV. PROJECT CHANGES

Last action — DO NOT PASS, replaced with committee substitute

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

This bill died with 2021 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

490 added · 530 removed

Plain-language change summary

The amended version of Senate Bill 5 now includes a program that allows the Economic Development Department to provide grants for rent, lease, and mortgage reimbursements to specific businesses. Previously, this funding was tied directly to the Severance Tax Permanent Fund, which has been removed, potentially broadening the funding sources for these grants. This change matters because it may make it easier for businesses to access financial support during challenging times, contributing to local economic stability and recovery.

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SENATE BILL 5 55TH LEGISLATURE -STATEOFNEWMEXICO- FIRST SESSION, 2021 INTRODUCED BY George K.
SENATE TAX, BUSINESS AND TRANSPORTATION COMMITTEE SUBSTITUTE FOR SENATE BILL 5 55TH LEGISLATURE -STATEOFNEWMEXICO- FIRST SESSION, 2021 4 6 8 10 AN ACT RELATING TO BUSINESS;
Munoz 6 8 10 AN ACT RELATING TO BUSINESS;
CREATING A = = 19 a l PROGRAM WITH THE NEW MEXICO FINANCE AUTHORITY TO PROVIDE GRANTS i a e r 20 TO CERTAIN BUSINESSES TO REIMBURSE RENT AND LEASE PAYMENTS FROM a t m m 21 FUNDING TRANSFERRED TO THE ECONOMIC DEVELOPMENT DEPARTMENT FROM d r e 22 THE SEVERANCE TAX PERMANENT FUND;
CREATING A = = 19 a l PROGRAM BETWEEN THE ECONOMIC DEVELOPMENT DEPARTMENT AND THE NEW i a e r 20 MEXICO FINANCE AUTHORITY TO PROVIDE GRANTS TO CERTAIN a t m m 21 BUSINESSES FOR REIMBURSEMENT OF RENT, LEASE AND MORTGAGE d r e 22 PAYMENTS;
MAKING AN APPROPRIATION;
Section 5-10-3 NMSA 1978 (being Laws 1993, .219271.3 Chapter 297, Section 3, as amended) is amended to read:
Section 5-10-3 NMSA 1978 (being Laws 1993, .219709.1 STBTC/SB 5 Chapter 297, Section 3, as amended) is amended to read:
"cultural facility" means a facility that is owned by the state, a county, a municipality or a qualifying e t 17 entity that serves the public through preserving, educating and w l n d 18 promoting the arts and culture of a particular locale, = = 19 a l including theaters, museums, libraries, galleries, cultural i a e r 20 compounds, educational organizations, performing arts venues a t m m 21 and organizations, fine arts organizations, studios and media d r e 22 laboratories and live-work housing facilities;
"cultural facility" means a facility that is owned by the state, a county, a municipality or a qualifying e t 17 entity that serves the public through preserving, educating and w l n d 18 promoting the arts and culture of a particular locale, = = 19 including theaters, museums, libraries, galleries, cultural a l i a e r 20 compounds, educational organizations, performing arts venues a t m m 21 and organizations, fine arts organizations, studios and media d r e 22 laboratories and live-work housing facilities;
"economic development project" or "project" .219271.3 - 2 - 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.
"economic development project" or "project" .219709.1 - 2 - STBTC/SB 5 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.
= = 19 a l (f) technical assistance to cultural i a e r 20 facilities;
= = 19 (f) technical assistance to cultural a l i a e r 20 facilities;
1) e a n b 24 municipal gross receipts tax imposed at a rate not to exceed u [ one-fourth percent and dedicated by the ordinance imposing the .219271.3 - 3 - increment to a project;
1) e a n b 24 municipal gross receipts tax imposed at a rate not to exceed u [ one-fourth percent and dedicated by the ordinance imposing the .219709.1 - 3 - STBTC/SB 5 increment to a project;
= = 19 a l G.
= = 19 G.
"local government" means a municipality or i a e r 20 county;
"local government" means a municipality or a l i a e r 20 county;
u [ (2) that is held by an employee who is hired .219271.3 - 4 - to work an average of at least thirty-two hours per week for at least forty-eight weeks per year;
u [ (2) that is held by an employee who is hired .219709.1 - 4 - STBTC/SB 5 to work an average of at least thirty-two hours per week for at least forty-eight weeks per year;
and (4) that is not directly involved with natural resources extraction or processing, on-site services where the customer is present for the delivery of the service, retail, e t 17 construction or agriculture except for value-added processing w l n d 18 performed on agricultural products that would then be sold for = = 19 a l wholesale or retail consumption;
and (4) that is not directly involved with natural resources extraction or processing, on-site services where the customer is present for the delivery of the service, retail, e t 17 construction or agriculture except for value-added processing w l n d 18 performed on agricultural products that would then be sold for = = 19 wholesale or retail consumption;
i a e r 20 J.
a l i a e r 20 J.
"public support" means the provision of c e s k 23 assistance by the state to a local or regional government or e a n b 24 the provision of direct or indirect assistance to a qualifying u [ entity by a local or regional government for an economic .219271.3 - 5 - development project.
"public support" means the provision of c e s k 23 assistance by the state to a local or regional government or e a n b 24 the provision of direct or indirect assistance to a qualifying u [ entity by a local or regional government for an economic .219709.1 - 5 - STBTC/SB 5 development project.
w l n d 18 (g) loan guarantees securing the cost of = = 19 a l land, buildings or infrastructure in an amount not to exceed i a e r 20 the revenue that may be derived from an increment of the:
w l n d 18 (g) loan guarantees securing the cost of = = 19 land, buildings or infrastructure in an amount not to exceed a l i a e r 20 the revenue that may be derived from an increment of the:
.219271.3 - 6 - (h) grants for public works infrastructure improvements essential to the location or expansion of a qualifying entity and grants or subsidies to cultural facilities;
.219709.1 - 6 - STBTC/SB 5 (h) 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 (2) a commercial enterprise for storing, = = 19 a l warehousing, distributing or selling products of agriculture, i a e r 20 mining or industry, but, other than as provided in Paragraph a t m m 21 (5), (6) or (9) of this subsection, not including any d r e 22 enterprise for sale of goods or commodities at retail or for c e s k 23 distribution to the public of electricity, gas, water or e a n b 24 telephone or other services commonly classified as public u [ utilities;
w l n d 18 (2) a commercial enterprise for storing, = = 19 warehousing, distributing or selling products of agriculture, a l i a e r 20 mining or industry, but, other than as provided in Paragraph a t m m 21 (5), (6) or (9) of this subsection, not including any d r e 22 enterprise for sale of goods or commodities at retail or for c e s k 23 distribution to the public of electricity, gas, water or e a n b 24 telephone or other services commonly classified as public u [ utilities;
.219271.3 - 7 - (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;
.219709.1 - 7 - STBTC/SB 5 (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;
= = 19 a l [L.] M.
= = 19 [L.] M.
"regional government" means any combination i a e r 20 of municipalities and counties that enter into a joint powers a t m m 21 agreement to provide public support for economic development d r e 22 projects pursuant to a plan adopted by all parties to the joint c e s k 23 powers agreement;
"regional government" means any combination a l i a e r 20 of municipalities and counties that enter into a joint powers a t m m 21 agreement to provide public support for economic development d r e 22 projects pursuant to a plan adopted by all parties to the joint c e s k 23 powers agreement;
"retail business" means a business that is u [ primarily engaged in the sale of goods or commodities at retail .219271.3 - 8 - and that is located in a municipality with a population, according to the most recent federal decennial census, of:
"retail business" means a business that is u [ primarily engaged in the sale of goods or commodities at retail .219709.1 - 8 - STBTC/SB 5 and that is located in a municipality with a population, according to the most recent federal decennial census, of:
No local or regional government shall provide e t 17 public support for economic development projects as permitted w l n d 18 pursuant to Article 9, Section 14 of the constitution of = = 19 a l New Mexico except as provided in the Local Economic Development i a e r 20 Act or as otherwise permitted by law.
No local or regional government shall provide e t 17 public support for economic development projects as permitted w l n d 18 pursuant to Article 9, Section 14 of the constitution of = = 19 New Mexico except as provided in the Local Economic Development a l i a e r 20 Act or as otherwise permitted by law.
The total amount of public money expended and d r e 22 the value of credit pledged in the fiscal year in which that c e s k 23 money is expended by a local government for economic e a n b 24 development projects pursuant to Article 9, Section 14 of the u [ constitution of New Mexico and the Local Economic Development .219271.3 - 9 - Act shall not exceed ten percent of the annual general fund expenditures of the local government in that fiscal year.
The total amount of public money expended and d r e 22 the value of credit pledged in the fiscal year in which that c e s k 23 money is expended by a local government for economic e a n b 24 development projects pursuant to Article 9, Section 14 of the u [ constitution of New Mexico and the Local Economic Development .219709.1 - 9 - STBTC/SB 5 Act shall not exceed ten percent of the annual general fund expenditures of the local government in that fiscal year.
w l n d 18 (3) revenue generated through the imposition = = 19 a l of an increment of the county gross receipts tax at a rate not i a e r 20 to exceed one-eighth percent and dedicated to furthering or a t m m 21 implementing economic development plans and projects as defined d r e 22 in the Local Economic Development Act or projects as defined in c e s k 23 the Statewide Economic Development Finance Act;
w l n d 18 (3) revenue generated through the imposition = = 19 of an increment of the county gross receipts tax at a rate not a l i a e r 20 to exceed one-eighth percent and dedicated to furthering or a t m m 21 implementing economic development plans and projects as defined d r e 22 in the Local Economic Development Act or projects as defined in c e s k 23 the Statewide Economic Development Finance Act;
provided that e a n b 24 no more than the greater of fifty thousand dollars ($50,000) or u [ ten percent of the revenue collected shall be used for .219271.3 - 10 - promotion and administration of or professional services contracts related to the implementation of any such economic development plan adopted by the governing body;
provided that e a n b 24 no more than the greater of fifty thousand dollars ($50,000) or u [ ten percent of the revenue collected shall be used for .219709.1 - 10 - STBTC/SB 5 promotion and administration of or professional services contracts related to the implementation of any such economic development plan adopted by the governing body;
A regional or local government that generates revenue for economic development projects to which the limits e t 17 of Subsection B of this section do not apply shall create an w l n d 18 economic development fund into which such revenues shall be = = 19 a l deposited.
A regional or local government that generates revenue for economic development projects to which the limits e t 17 of Subsection B of this section do not apply shall create an w l n d 18 economic development fund into which such revenues shall be = = 19 deposited.
The economic development fund and income from the i a e r 20 economic development fund shall be deposited as provided by a t m m 21 law.
The economic development fund and income from the a l i a e r 20 economic development fund shall be deposited as provided by a t m m 21 law.
In order to expend money from an economic u [ development fund for arts and cultural district purposes, .219271.3 - 11 - cultural facilities or retail businesses, the governing body of a municipality or county that has imposed a municipal or county local option infrastructure gross receipts tax for furthering or implementing economic development plans and providing public support for projects as defined in the Local Economic Development Act or projects as defined in the Statewide Economic Development Finance Act by referendum of the majority of the voters voting on the question approving the ordinance imposing the municipal or county infrastructure gross receipts tax before July 1, 2013 shall be required to adopt a resolution.
In order to expend money from an economic u [ development fund for arts and cultural district purposes, .219709.1 - 11 - STBTC/SB 5 cultural facilities or retail businesses, the governing body of a municipality or county that has imposed a municipal or county local option infrastructure gross receipts tax for furthering or implementing economic development plans and providing public support for projects as defined in the Local Economic Development Act or projects as defined in the Statewide Economic Development Finance Act by referendum of the majority of the voters voting on the question approving the ordinance imposing the municipal or county infrastructure gross receipts tax before July 1, 2013 shall be required to adopt a resolution.
The resolution shall call for an election to approve arts and cultural districts as a qualifying purpose and cultural facilities or retail businesses as a qualifying entity before any revenue generated by the municipal or county local option gross receipts tax for furthering or implementing economic development plans and providing public support for e t 17 projects as defined in the Local Economic Development Act or w l n d 18 projects as defined in the Statewide Economic Development = = 19 a l Finance Act can be expended from the economic development fund i a e r 20 for arts and cultural district purposes, cultural facilities or a t m m 21 retail businesses.
The resolution shall call for an election to approve arts and cultural districts as a qualifying purpose and cultural facilities or retail businesses as a qualifying entity before any revenue generated by the municipal or county local option gross receipts tax for furthering or implementing economic development plans and providing public support for e t 17 projects as defined in the Local Economic Development Act or w l n d 18 projects as defined in the Statewide Economic Development = = 19 Finance Act can be expended from the economic development fund a l i a e r 20 for arts and cultural district purposes, cultural facilities or a t m m 21 retail businesses.
The governing body shall adopt a resolution c e s k 23 calling for an election within seventy-five days of the date e a n b 24 the ordinance is adopted on the question of approving arts and u [ cultural districts as a qualifying purpose and cultural .219271.3 - 12 - facilities or retail businesses as a qualifying entity eligible to utilize revenue generated by the Municipal Local Option Gross Receipts and Compensating Taxes Act or the County Local Option Gross Receipts and Compensating Taxes Act for furthering or implementing economic development plans and providing public support for projects as defined in the Local Economic Development Act or projects as defined in the Statewide Economic Development Finance Act.
The governing body shall adopt a resolution c e s k 23 calling for an election within seventy-five days of the date e a n b 24 the ordinance is adopted on the question of approving arts and u [ cultural districts as a qualifying purpose and cultural .219709.1 - 12 - STBTC/SB 5 facilities or retail businesses as a qualifying entity eligible to utilize revenue generated by the Municipal Local Option Gross Receipts and Compensating Taxes Act or the County Local Option Gross Receipts and Compensating Taxes Act for furthering or implementing economic development plans and providing public support for projects as defined in the Local Economic Development Act or projects as defined in the Statewide Economic Development Finance Act.
If a majority of the voters voting on the w l n d 18 question approves the ordinance adding arts and cultural = = 19 a l districts and cultural facilities or retail businesses as an i a e r 20 approved use of the local option municipal or county economic a t m m 21 development infrastructure gross receipts tax fund, the d r e 22 ordinance shall become effective on July 1 or January 1, c e s k 23 whichever date occurs first after the expiration of three e a n b 24 months from the date of the adopted ordinance.
If a majority of the voters voting on the w l n d 18 question approves the ordinance adding arts and cultural = = 19 districts and cultural facilities or retail businesses as an a l i a e r 20 approved use of the local option municipal or county economic a t m m 21 development infrastructure gross receipts tax fund, the d r e 22 ordinance shall become effective on July 1 or January 1, c e s k 23 whichever date occurs first after the expiration of three e a n b 24 months from the date of the adopted ordinance.
The ordinance u [ shall include the effective date." .219271.3 - 13 - SECTION 3.
The ordinance u [ shall include the effective date." .219709.1 - 13 - STBTC/SB 5 SECTION 3.
The economic development plan or the ordinance = = 19 a l adopting the plan may:
The economic development plan or the ordinance = = 19 adopting the plan may:
i a e r 20 (1) describe the local or regional a t m m 21 government's economic development and community goals, d r e 22 including any economic development goals with an arts and c e s k 23 cultural component, and assign priority to and strategies for e a n b 24 achieving those goals;
a l i a e r 20 (1) describe the local or regional a t m m 21 government's economic development and community goals, d r e 22 including any economic development goals with an arts and c e s k 23 cultural component, and assign priority to and strategies for e a n b 24 achieving those goals;
u [ (2) describe the types of qualifying entities .219271.3 - 14 - and economic activities that will qualify for [economic development projects] public support;
u [ (2) describe the types of qualifying entities .219709.1 - 14 - STBTC/SB 5 and economic activities that will qualify for [economic development projects] public support;
= = 19 a l (6) if an economic development project is i a e r 20 determined to be unsuccessful or if a qualifying entity seeks a t m m 21 to leave the area, describe the methods the local or regional d r e 22 government will use to terminate [its economic assistance] the c e s k 23 local or regional government's public support and recoup its e a n b 24 investment;
= = 19 (6) if an economic development project is a l i a e r 20 determined to be unsuccessful or if a qualifying entity seeks a t m m 21 to leave the area, describe the methods the local or regional d r e 22 government will use to terminate [its economic assistance] the c e s k 23 local or regional government's public support and recoup its e a n b 24 investment;
u [ (7) identify revenue sources, including those .219271.3 - 15 - of the local or regional government, that will be used to provide public support for economic development projects;
u [ (7) identify revenue sources, including those .219709.1 - 15 - STBTC/SB 5 of the local or regional government, that will be used to provide public support for economic development projects;
w l n d 18 (10) describe the safeguards of public = = 19 a l resources that will be ensured, including specific ways the i a e r 20 local or regional government can recover any costs, land, a t m m 21 buildings or other thing of value if a qualifying entity ceases d r e 22 operation, relocates or otherwise defaults or reneges on its c e s k 23 contractual or implied obligations to the local or regional e a n b 24 government;
w l n d 18 (10) describe the safeguards of public = = 19 resources that will be ensured, including specific ways the a l i a e r 20 local or regional government can recover any costs, land, a t m m 21 buildings or other thing of value if a qualifying entity ceases d r e 22 operation, relocates or otherwise defaults or reneges on its c e s k 23 contractual or implied obligations to the local or regional e a n b 24 government;
and u [ (11) if a regional government, describe the .219271.3 - 16 - joint powers agreement, including whether it can be terminated and, if so, how the contractual or other obligations, risks and any property will be assigned or divided among the local governments who are party to the agreement.
and u [ (11) if a regional government, describe the .219709.1 - 16 - STBTC/SB 5 joint powers agreement, including whether it can be terminated and, if so, how the contractual or other obligations, risks and any property will be assigned or divided among the local governments who are party to the agreement.
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= = 19 a l B.
= = 19 B.
The joint powers agreement shall require that i a e r 20 the governing body of each local government approve public a t m m 21 support for each economic development project.
The joint powers agreement shall require that a l i a e r 20 the governing body of each local government approve public a t m m 21 support for each economic development project.
The agreement may provide for a regional body u [ consisting of representatives from the governing bodies of each .219271.3 - 17 - local government that is a party to the agreement and may determine the powers and duties of that body in implementing the regional government's plan and providing public support for projects." SECTION 5.
The agreement may provide for a regional body u [ consisting of representatives from the governing bodies of each .219709.1 - 17 - STBTC/SB 5 local government that is a party to the agreement and may determine the powers and duties of that body in implementing the regional government's plan and providing public support for projects." SECTION 5.
The local or regional government's evaluation of u [ an application shall be based on the provisions of the economic .219271.3 - 18 - development plan, the financial and management stability of the qualifying entity, the demonstrated commitment of the qualifying entity to the community, a cost-benefit analysis of the project and any other information the local or regional government believes is necessary for a full review of the economic development project application.
The local or regional government's evaluation of u [ an application shall be based on the provisions of the economic .219709.1 - 18 - STBTC/SB 5 development plan, the financial and management stability of the qualifying entity, the demonstrated commitment of the qualifying entity to the community, a cost-benefit analysis of the project and any other information the local or regional government believes is necessary for a full review of the economic development project application.
Money in the special account shall be = = 19 a l expended only for economic development project purposes, which i a e r 20 may include the payment of necessary professional services a t m m 21 contract costs.
Money in the special account shall be = = 19 expended only for economic development project purposes, which a l i a e r 20 may include the payment of necessary professional services a t m m 21 contract costs.
In the case of a regional government, revenues c e s k 23 of each local government dedicated or pledged for economic e a n b 24 development purposes shall be deposited in a special account of u [ that local government and may be expended only by that local .219271.3 - 19 - government as provided by the regional government's economic development plan and joint powers agreement.
In the case of a regional government, revenues c e s k 23 of each local government dedicated or pledged for economic e a n b 24 development purposes shall be deposited in a special account of u [ that local government and may be expended only by that local .219709.1 - 19 - STBTC/SB 5 government as provided by the regional government's economic development plan and joint powers agreement.
An ordinance e t 17 repealing an economic development plan shall not be effective w l n d 18 unless the ordinance provides for satisfying existing contracts = = 19 a l and the rights of the parties arising from those contracts.
An ordinance e t 17 repealing an economic development plan shall not be effective w l n d 18 unless the ordinance provides for satisfying existing contracts = = 19 and the rights of the parties arising from those contracts.
i a e r 20 B.
a l i a e r 20 B.
In the case of funds u [ or accounts of a regional government, the unexpended and .219271.3 - 20 - unencumbered balances shall be divided among the local governments as provided in the joint powers agreement." SECTION 9.
In the case of funds u [ or accounts of a regional government, the unexpended and .219709.1 - 20 - STBTC/SB 5 unencumbered balances shall be divided among the local governments as provided in the joint powers agreement." SECTION 9.
[B.] The department shall administer the fund, and money in the fund is appropriated to the department to pay the cost of administering the fund and for e t 17 [participation in local and regional] economic development w l n d 18 projects [as determined by the department] pursuant to the = = 19 a l Local Economic Development Act.
[B.] The department shall administer the fund, and money in the fund is appropriated to the department to pay the cost of administering the fund and for e t 17 [participation in local and regional] economic development w l n d 18 projects [as determined by the department.
[C.] Money in the fund shall i a e r 20 be expended on warrants of the department of finance and a t m m 21 administration pursuant to vouchers signed by the secretary of d r e 22 economic development.
C.] pursuant to the = = 19 Local Economic Development Act.
Money in the fund shall be a l i a e r 20 expended on warrants of the department of finance and a t m m 21 administration pursuant to vouchers signed by the secretary of d r e 22 economic development.
.219271.3 - 21 - (1) up to fifty-six and twenty-five hundredths percent of the tax revenue attributable to the state gross receipts tax and compensating tax, as determined pursuant to Subsection A of Section 10 of this 2021 act, and distributed pursuant to Subsection A of Section 14 of this 2021 act;
.219709.1 - 21 - STBTC/SB 5 (1) up to fifty-six and twenty-five hundredths percent of the tax revenue attributable to the state gross receipts tax and the state compensating tax, as determined pursuant to Subsection A of Section 10 of this 2021 act, and distributed pursuant to Subsection A of Section 14 of this 2021 act;
"[NEW MATERIAL] GROSS RECEIPTS TAX AND COMPENSATING TAX REVENUE AS PUBLIC SUPPORT FOR CERTAIN PROJECTS.-- e t 17 A.
"[NEW MATERIAL] GROSS RECEIPTS TAX AND COMPENSATING TAX e t 17 REVENUE AS PUBLIC SUPPORT FOR CERTAIN PROJECTS.-- w l n d 18 A.
A qualifying entity that meets the following w l n d 18 requirements may receive public support for the qualifying = = 19 a l entity's economic development project from funds in the Local i a e r 20 Economic Development Act fund pursuant to Subsection B of a t m m 21 Section 5-10-14 NMSA 1978 in an amount determined by the d r e 22 department but not to exceed fifty-six and twenty-five c e s k 23 hundredths percent of the net receipts attributable to the e a n b 24 state gross receipts tax and compensating tax imposed on the u [ expenses related to the construction of the qualifying entity's .219271.3 - 22 - project, as determined by the department, related to the economic development project and the amount dedicated pursuant to Subsection B of this section;
A qualifying entity that meets the following = = 19 requirements may receive public support for the qualifying a l i a e r 20 entity's economic development project from funds in the Local a t m m 21 Economic Development Act fund pursuant to Subsection B of d r e 22 Section 5-10-14 NMSA 1978 in an amount determined by the c e s k 23 department but not to exceed fifty-six and twenty-five e a n b 24 hundredths percent of the net receipts attributable to the u [ state gross receipts tax and state compensating tax imposed on .219709.1 - 22 - STBTC/SB 5 the expenses related to the construction of the qualifying entity's project, as determined by the department, related to the economic development project and the amount dedicated pursuant to Subsection B of this section;
provided that the department shall not sign the agreement unless the applicable e t 17 local governments have signed a project participation agreement w l n d 18 pursuant to Paragraph (1) of this subsection;
provided that the e t 17 department shall not sign the agreement unless the applicable w l n d 18 local governments have signed a project participation agreement = = 19 pursuant to Paragraph (1) of this subsection;
= = 19 a l (3) the economic development project has a i a e r 20 reasonable expectation to incur, within ten years of the date a t m m 21 the project participation agreement with the local government d r e 22 and the department is executed, at least three hundred fifty c e s k 23 million dollars ($350,000,000) in expenses related to the e a n b 24 construction and infrastructure of the project in the state;
a l i a e r 20 (3) the economic development project has a a t m m 21 reasonable expectation to incur, within ten years of the date d r e 22 the project participation agreement with the local government c e s k 23 and the department is executed, at least three hundred fifty e a n b 24 million dollars ($350,000,000) in expenses related to the u [ construction and infrastructure of the project in the state;
u [ (4) the qualifying entity and the economic .219271.3 - 23 - development project meet all other requirements to receive public support pursuant to the Local Economic Development Act;
.219709.1 - 23 - STBTC/SB 5 (4) the qualifying entity and the economic development project meet all other requirements to receive public support pursuant to the Local Economic Development Act;
A local government may dedicate, by ordinance, fifty-six and twenty-five hundredths percent of the tax revenue attributable to the gross receipts and compensating taxes imposed by the local government on the qualifying entity's e t 17 receipts for construction-related expenses, as determined by w l n d 18 the department, related to the economic development project to = = 19 a l the Local Economic Development Act fund for the purposes i a e r 20 provided in Subsection B of Section 5-10-14 NMSA 1978.
A local government may dedicate, by ordinance, fifty-six and twenty-five hundredths percent of the tax revenue attributable to the gross receipts and compensating taxes e t 17 imposed by the local government on the qualifying entity's w l n d 18 receipts for construction-related expenses, as determined by = = 19 the department, related to the economic development project to a l i a e r 20 the Local Economic Development Act fund for the purposes a t m m 21 provided in Subsection B of Section 5-10-14 NMSA 1978.
a t m m 21 C.
d r e 22 C.
If the requirements of Subsection A of this d r e 22 section have been met, the department and the local governments c e s k 23 that signed a project participation agreement with the e a n b 24 qualifying entity shall:
If the requirements of Subsection A of this c e s k 23 section have been met, the department and the local governments e a n b 24 that signed a project participation agreement with the u [ qualifying entity shall:
u [ (1) review the documents submitted by a .219271.3 - 24 - qualifying entity pursuant to Paragraph (5) of Subsection A of this section;
.219709.1 - 24 - STBTC/SB 5 (1) review the documents submitted by a qualifying entity pursuant to Paragraph (5) of Subsection A of this section;
and (4) if the department, on or before the twenty-fifth day of December, March, June and September, e t 17 provide the estimates and any supporting documentation to the w l n d 18 taxation and revenue department, on forms and in a manner = = 19 a l determined by that department.
and (4) if the department, on or before the e t 17 twenty-fifth day of December, March, June and September, w l n d 18 provide the estimates and any supporting documentation to the = = 19 taxation and revenue department, on forms and in a manner a l i a e r 20 determined by that department.
i a e r 20 D.
a t m m 21 D.
The taxation and revenue department shall review a t m m 21 the estimated amounts for accuracy and computation, make any d r e 22 necessary corrections or adjustments and make a final c e s k 23 determination of the amounts to be distributed from the e a n b 24 relevant tax revenue pursuant to Section 14 of this 2021 act.
The taxation and revenue department shall review d r e 22 the estimated amounts for accuracy and computation, make any c e s k 23 necessary corrections or adjustments and make a final e a n b 24 determination of the amounts to be distributed from the u [ relevant tax revenue pursuant to Section 14 of this 2021 act.
u [ The taxation and revenue department shall provide notice of the .219271.3 - 25 - final determination, including the reasoning for any corrections or adjustments made, prior to making the distribution." SECTION 11.
.219709.1 - 25 - STBTC/SB 5 The taxation and revenue department shall provide notice of the final determination, including the reasoning for any corrections or adjustments made, prior to making the distribution." SECTION 11.
"[NEW MATERIAL] GRANTS TO REIMBURSE RENT OR LEASE PAYMENTS FOR CERTAIN BUSINESSES.-- A.
"[NEW MATERIAL] GRANTS TO REIMBURSE RENT, LEASE OR MORTGAGE PAYMENTS FOR CERTAIN BUSINESSES.-- A.
Prior to January 1, 2023, the department may use funds transferred pursuant to Section 15 of this 2021 act or other funds appropriated by the legislature to the department for the purpose of transferring those funds to the authority to provide recovery grants to recovery entities pursuant to this section.
Prior to January 1, 2023, the department may transfer to the authority funds appropriated by the legislature to the department for the purpose of providing recovery grants to recovery entities pursuant to this section.
The department and the authority shall enter into a memorandum of understanding to develop a program for the authority to accept a transfer of funds from the department e t 17 pursuant to Subsection A of this section, to provide recovery w l n d 18 grants to recovery entities, to accept and review applications = = 19 a l for recovery grants and to disburse recovery grants to recovery i a e r 20 entities.
The department and the authority shall enter into a memorandum of understanding to develop a program for the authority to accept a transfer of funds from the department pursuant to Subsection A of this section, to provide recovery e t 17 grants to recovery entities, to accept and review applications w l n d 18 for recovery grants and to disburse recovery grants to recovery = = 19 entities.
The authority shall require documentation from a t m m 21 applicants of tax obligations and payments, employment levels d r e 22 and rent and lease payments for taxable years 2020 through c e s k 23 2022.
The authority shall require documentation from a l i a e r 20 applicants of employment levels and rent, lease and mortgage a t m m 21 payments for taxable years 2020 through 2022.
The authority shall prioritize funding to applicants e a n b 24 that had the greatest decline in business revenues from taxable u [ year 2019 to taxable year 2020.
The authority d r e 22 shall prioritize funding to applicants that had the greatest c e s k 23 decline in business revenues from taxable year 2019 to taxable e a n b 24 year 2020.
The department shall provide .219271.3 - 26 - oversight of the program and may set policies and promulgate rules in accordance with this section.
The department shall provide oversight of the u [ program and may set policies and promulgate rules in accordance .219709.1 - 26 - STBTC/SB 5 with this section.
(1) use the proceeds of the recovery grant for reimbursement of rent or lease obligations of the recovery entity for its business locations within the state of New Mexico;
(1) use the proceeds of the recovery grant for reimbursement of rent, lease or mortgage obligations of the recovery entity for its business locations within the state of New Mexico;
(2) provide a written certification signed by e t 17 an appropriate officer of the recovery entity that certifies w l n d 18 that:
(2) provide a written certification signed by an appropriate officer of the recovery entity that certifies e t 17 that:
= = 19 a l (a) the officer understands that the i a e r 20 recovery entity receiving a recovery grant shall provide a t m m 21 documentation that tax payments made to the state in each d r e 22 taxable year during the term of the agreement exceed the sum of c e s k 23 the recovery entity's tax payments during taxable year 2020 e a n b 24 plus the amount of recovery grants received in each taxable u [ year;
w l n d 18 (a) the officer understands that, = = 19 pursuant to the Local Economic Development Act, the recovery a l i a e r 20 grant shall be accompanied by new job creation in accordance a t m m 21 with department rules and policies and the terms of the d r e 22 agreement issued by the authority to the recovery entity in c e s k 23 advance of disbursement of the recovery grant;
.219271.3 - 27 - (b) the officer understands that, pursuant to the Local Economic Development Act, the recovery grant shall be accompanied by new job creation in accordance with department rules and policies and the terms of the agreement issued by the authority to the recovery entity in advance of disbursement of the recovery grant;
e a n b 24 (b) all documents submitted in support u [ of the recovery grant application are true and accurate to the .219709.1 - 27 - STBTC/SB 5 best of the officer's knowledge;
(c) all documents submitted in support of the recovery grant application are true and accurate to the best of the officer's knowledge;
(c) the officer has a reasonable basis to believe that, as of the date of a recovery grant application and receipt of any recovery grant, the recovery entity does not expect to permanently cease business operations or file for bankruptcy;
(d) the officer has a reasonable basis to believe that, as of the date of a recovery grant application and receipt of any recovery grant, the recovery entity does not expect to permanently cease business operations or file for bankruptcy;
(d) as of the date of a recovery grant application and of receipt of a recovery grant, the recovery entity is current on all obligations pursuant to the Income Tax Act, the Corporate Income and Franchise Tax Act, the Withholding Tax Act, the Gross Receipts and Compensating Tax Act and the Unemployment Compensation Law applicable to the recovery entity's business operations;
(e) as of the date of a recovery grant application and of receipt of a recovery grant, the recovery e t 17 entity is current on all obligations pursuant to the Income Tax w l n d 18 Act, the Corporate Income and Franchise Tax Act, the = = 19 a l Withholding Tax Act, the Gross Receipts and Compensating Tax i a e r 20 Act and the Unemployment Compensation Law applicable to the a t m m 21 recovery entity's business operations;
and (e) all recovery grant proceeds will be used for the purpose of payment of rent, lease or mortgage payments of the recovery entity pursuant to the Local Economic e t 17 Development Act;
and d r e 22 (f) all recovery grant proceeds will be c e s k 23 used for the purpose of payment of rent or lease payments of e a n b 24 the recovery entity pursuant to the Local Economic Development u [ Act;
w l n d 18 (3) provide documentation to the authority = = 19 demonstrating a decline in business revenues between taxable a l i a e r 20 years 2019 and 2020;
.219271.3 - 28 - (3) upon request, provide the department and the authority with information relevant to the reporting requirements of the department and the authority pursuant to Subsection H of this section;
a t m m 21 (4) upon request, provide the department and d r e 22 the authority with information relevant to the reporting c e s k 23 requirements of the department and the authority pursuant to e a n b 24 Subsection G of this section;
and (4) submit an application to the authority for a recovery grant pursuant to rules established by the authority, but no later than June 30, 2022.
and u [ (5) submit an application to the authority for .219709.1 - 28 - STBTC/SB 5 a recovery grant pursuant to rules established by the authority, but no later than June 30, 2022.
provided that, for each quarterly payment, a recovery entity may be awarded a specified amount for each job created depending on the wages provided and the relative decline in business revenues for taxable year 2020, e t 17 not to exceed a total of twenty-five thousand dollars ($25,000) w l n d 18 per quarter.
provided that, for each quarterly payment a recovery entity may be awarded a specified amount for each job created depending on the wages provided and the relative decline in business revenues for taxable year 2020, not to exceed a total of twenty-five thousand dollars ($25,000) per quarter.
To remain eligible for additional quarterly = = 19 a l payments, a recovery entity shall provide documentation to the i a e r 20 department and to the authority demonstrating the following:
To remain eligible for additional quarterly payments, a recovery entity shall provide documentation to the department and to the authority demonstrating the following:
a t m m 21 (1) the recovery entity remains active and d r e 22 open with new full-time-equivalent employees added to the c e s k 23 payroll in the prior quarter, as submitted quarterly to the e a n b 24 workforce solutions department from the date of application to u [ the date of receipt of a recovery grant payment;
(1) the recovery entity remains active and e t 17 open with new full-time-equivalent employees added to the w l n d 18 payroll in the prior quarter, as submitted quarterly to the = = 19 workforce solutions department from the date of application to a l i a e r 20 the date of receipt of a recovery grant payment;
.219271.3 - 29 - (2) the recovery entity is current on rent and lease obligations and those obligations were equal to or greater than the amount of any prior recovery grant payments disbursed to the recovery entity;
a t m m 21 (2) the recovery entity is current on state d r e 22 and local tax obligations;
(3) the recovery entity is current on state and local tax obligations;
and c e s k 23 (3) the recovery entity paid rent, lease or e a n b 24 mortgage obligations of the recovery entity for its business u [ locations within the state of New Mexico from the date of .219709.1 - 29 - STBTC/SB 5 application to the present request for a subsequent quarterly payment that exceeds all payments to the recovery entity to date pursuant to this section.
and (4) taxes paid to the state in each taxable year during the agreement pursuant to Subsection C of this section exceed the total amount of taxes paid to the state in taxable year 2020 and the value of the grants received during each taxable year of the agreement, and the excess is due to a result of business activity and hiring of employees during the time frame of the agreement.
E.
The excess shall be deemed to meet the state's requirement to invest money in the severance tax permanent fund pursuant to Article 8, Section 10 of the constitution of New Mexico.
If, on the effective date of this 2021 act, there remains in effect a public health order that requires businesses to remain closed, the department and the authority shall set aside a portion of the funds available for recovery grants until such time as the public health order ceases to be in effect or is changed to permit all businesses subject to the public health order to be open.
e t 17 E.
The portion set aside shall be estimated, at the discretion of the department and the authority, to represent the number of recovery entities and employees impacted by the public health order, but in no case shall exceed twenty percent of the total funds appropriated pursuant to Section 15 of this 2021 act.
If, on the effective date of this 2021 act, w l n d 18 there remains in effect a public health order that requires = = 19 a l businesses to remain closed, the department and the authority i a e r 20 shall set aside a portion of the funds available for recovery a t m m 21 grants until such time as the public health order ceases to be d r e 22 in effect or is changed to permit all businesses subject to the c e s k 23 public health order to be open.
The portion set aside shall be e a n b 24 estimated, at the discretion of the department and the u [ authority, to represent the number of recovery entities and .219271.3 - 30 - employees impacted by the public health order, but in no case shall exceed twenty percent of the total funds transferred pursuant to Section 15 of this 2021 act.
Upon the effective date of this 2021 act, the department and the state investment council shall coordinate to develop a funding schedule to ensure that sufficient funding is made available to the department to carry out the provisions of this section.
Information obtained by the department and the e t 17 authority regarding individual recovery entity grant applicants w l n d 18 shall be confidential and not subject to inspection pursuant to = = 19 the Inspection of Public Records Act;
G.
provided that nothing in a l i a e r 20 this section shall prevent the department and the authority a t m m 21 from disclosing broad demographic information and information d r e 22 relating to the total amount of recovery grants made, the total c e s k 23 outstanding balance of recovery grants made and the names of e a n b 24 the recovery entities that received recovery grants.
Information obtained by the department and the authority regarding individual recovery entity grant applicants shall be confidential and not subject to inspection pursuant to the Inspection of Public Records Act;
u [ G.
provided that nothing in this section shall prevent the department and the authority from disclosing broad demographic information and information relating to the total amount of recovery grants made, the total outstanding balance of recovery grants made and the names of e t 17 the recovery entities that received recovery grants.
The department and the authority shall submit an .219709.1 - 30 - STBTC/SB 5 annual report in each year of 2021 through 2023 to the legislature, the legislative finance committee, the New Mexico finance authority oversight committee, the revenue stabilization and tax policy committee and the interim legislative committee concerning economic and rural development.
w l n d 18 H.
The report shall provide information regarding recovery grants made pursuant to this section.
The department and the authority shall submit an = = 19 a l annual report in each year of 2021 through 2023 to the i a e r 20 legislature, the legislative finance committee, the New Mexico a t m m 21 finance authority oversight committee, the revenue d r e 22 stabilization and tax policy committee and the interim c e s k 23 legislative committee concerning economic and rural e a n b 24 development.
The report shall include:
The report shall provide information regarding u [ recovery grants made pursuant to this section.
The report .219271.3 - 31 - shall include:
(4) the total projected annual payroll for the jobs created;
e t 17 (4) the total projected annual payroll for the w l n d 18 jobs created;
(5) the state tax revenues generated by the recovery entities that have received and are receiving recovery grants, in total, and the estimated increase in state tax revenues in excess of state tax revenues in taxable year 2020 that are attributable to recovery entities that received e t 17 recovery grants;
= = 19 (5) the total number of recovery grant a l i a e r 20 applications;
w l n d 18 (6) the total number of recovery grant = = 19 a l applications;
a t m m 21 (6) the number of recovery entities, if any, d r e 22 that received initial payments but were determined to be c e s k 23 ineligible for additional quarterly payments;
i a e r 20 (7) the number of recovery entities, if any, a t m m 21 that received initial payments but were determined to be d r e 22 ineligible for additional quarterly payments;
and e a n b 24 (7) an overview of the industries and types of u [ business entities represented by recovery entities that .219709.1 - 31 - STBTC/SB 5 received recovery grants.
and c e s k 23 (8) an overview of the industries and types of e a n b 24 business entities represented by recovery entities that u [ received recovery grants.
H.
.219271.3 - 32 - I.
(b) filed tax returns to the taxation and revenue department demonstrating a decline in business revenues for taxable year 2020 greater than or equal to twenty-five percent from revenues for taxable year 2019;
and (b) is current on all state or local tax obligations;
and (c) is current on all state or local tax obligations;
(3) "recovery grant" means a grant disbursed to a recovery entity by the authority from funds provided by the department for the purpose of reimbursement of rent, lease e t 17 or mortgage payments of the recovery entity pursuant to the w l n d 18 Local Economic Development Act;
e t 17 (3) "recovery grant" means a grant disbursed w l n d 18 to a recovery entity by the authority from funds provided by = = 19 a l the department from a transfer from the severance tax permanent i a e r 20 fund for the purpose of reimbursement of rent or lease payments a t m m 21 of the recovery entity pursuant to the Local Economic d r e 22 Development Act;
and = = 19 (4) "taxable year" means "taxable year" as a l i a e r 20 that term is used in the Income Tax Act or the Corporate Income a t m m 21 and Franchise Tax Act, as applicable to a recovery entity." d r e 22 SECTION 12.
and c e s k 23 (4) "taxable year" means "taxable year" as e a n b 24 that term is used in the Income Tax Act or the Corporate Income u [ and Franchise Tax Act, as applicable to a recovery entity." .219271.3 - 33 - SECTION 12.
Section 7-1-6.12 NMSA 1978 (being Laws 1983, c e s k 23 Chapter 211, Section 17, as amended) is amended to read:
Section 7-1-6.12 NMSA 1978 (being Laws 1983, Chapter 211, Section 17, as amended) is amended to read:
e a n b 24 "7-1-6.12.
"7-1-6.12.
TRANSFER--REVENUES FROM MUNICIPAL LOCAL OPTION u [ GROSS RECEIPTS AND COMPENSATING TAXES.-- .219709.1 - 32 - STBTC/SB 5 A.
TRANSFER--REVENUES FROM MUNICIPAL LOCAL OPTION GROSS RECEIPTS AND COMPENSATING TAXES.-- A.
A transfer pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each municipality for which the department is collecting a local option gross receipts tax and municipal compensating tax imposed by that municipality in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the net receipts attributable to the local option gross receipts tax and municipal compensating tax imposed by that municipality, less any deduction for administrative cost determined and made by the department pursuant to the provisions of the act authorizing imposition by that municipality of the local option gross receipts tax and municipal compensating tax and any additional administrative fee withheld pursuant to Section 7-1-6.41 NMSA 1978.
A transfer pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each municipality for which the department is collecting a local option gross receipts tax and municipal compensating tax imposed by that municipality in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the net receipts attributable to the local option gross receipts tax and municipal compensating tax imposed by that municipality, less any deduction for administrative cost determined and made by the department pursuant to the provisions of the act authorizing imposition by that municipality of the local option gross receipts tax and municipal compensating tax and any additional administrative e t 17 fee withheld pursuant to Section 7-1-6.41 NMSA 1978.
B.
w l n d 18 B.
A transfer pursuant to this section may be adjusted for a distribution made to a tax increment development district with respect to a portion of a gross receipts tax e t 17 increment dedicated by a municipality pursuant to the Tax w l n d 18 Increment for Development Act.
A transfer pursuant to this section may be = = 19 a l adjusted for a distribution made to a tax increment development i a e r 20 district with respect to a portion of a gross receipts tax a t m m 21 increment dedicated by a municipality pursuant to the Tax d r e 22 Increment for Development Act.
= = 19 C.
c e s k 23 C.
A transfer pursuant to this section shall be a l i a e r 20 adjusted for a distribution made to the Local Economic a t m m 21 Development Act fund pursuant to Section 14 of this 2021 act d r e 22 and with respect to the amount dedicated by a municipality c e s k 23 pursuant to Subsection B of Section 10 of this 2021 act." e a n b 24 SECTION 13.
A transfer pursuant to this section shall be e a n b 24 adjusted for a distribution made to the Local Economic u [ Development Act fund pursuant to Section 14 of this 2021 act .219271.3 - 34 - and with respect to the amount dedicated by a municipality pursuant to Subsection B of Section 10 of this 2021 act." SECTION 13.
Section 7-1-6.13 NMSA 1978 (being Laws 1983, u [ Chapter 211, Section 18, as amended) is amended to read:
Section 7-1-6.13 NMSA 1978 (being Laws 1983, Chapter 211, Section 18, as amended) is amended to read:
.219709.1 - 33 - STBTC/SB 5 "7-1-6.13.
"7-1-6.13.
[Except as provided in Subsection B of this section] A transfer pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each county for which the department is collecting a local option gross receipts tax and county compensating tax imposed by that county in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the net receipts attributable to the local option gross receipts tax and county compensating tax imposed by that county, less any deduction for administrative cost determined and made by the department pursuant to the provisions of the e t 17 act authorizing imposition by that county of the local option w l n d 18 gross receipts tax and county compensating tax and any = = 19 a l additional administrative fee withheld pursuant to Section i a e r 20 7-1-6.41 NMSA 1978.
[Except as provided in Subsection B of this section] A transfer pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each county for which the department is collecting a local option gross receipts tax and county compensating tax imposed by that county in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the net receipts attributable to the local option gross receipts tax and county compensating tax imposed by that county, less any deduction for administrative cost determined and made by the department pursuant to the provisions of the act authorizing imposition by that county of the local option gross receipts tax and county compensating tax and any additional administrative fee withheld pursuant to Section 7-1-6.41 NMSA 1978.
a t m m 21 B.
e t 17 B.
A transfer pursuant to this section may be d r e 22 adjusted for a distribution made to a tax increment development c e s k 23 district with respect to a portion of a gross receipts tax e a n b 24 increment dedicated by a county pursuant to the Tax Increment u [ for Development Act.
A transfer pursuant to this section may be w l n d 18 adjusted for a distribution made to a tax increment development = = 19 district with respect to a portion of a gross receipts tax a l i a e r 20 increment dedicated by a county pursuant to the Tax Increment a t m m 21 for Development Act.
.219271.3 - 35 - C.
d r e 22 C.
A transfer pursuant to this section shall be adjusted for a distribution made to the Local Economic Development Act fund pursuant to Section 14 of this 2021 act and with respect to the amount dedicated by a county pursuant to Subsection B of Section 10 of this 2021 act." SECTION 14.
A transfer pursuant to this section shall be c e s k 23 adjusted for a distribution made to the Local Economic e a n b 24 Development Act fund pursuant to Section 14 of this 2021 act u [ and with respect to the amount dedicated by a county pursuant .219709.1 - 34 - STBTC/SB 5 to Subsection B of Section 10 of this 2021 act." SECTION 14.
(1) seventy-five percent of the net receipts e t 17 attributable to the state gross receipts tax and the state w l n d 18 compensating tax;
(1) seventy-five percent of the net receipts attributable to state gross receipts tax and the state compensating tax;
and = = 19 a l (2) fifty-six and twenty-five hundredths i a e r 20 percent of the net receipts attributable to the local option a t m m 21 gross receipts tax and county compensating tax imposed by a d r e 22 county and local option gross receipts tax and municipal c e s k 23 compensating tax imposed by a municipality.
and (2) fifty-six and twenty-five hundredths percent of the net receipts attributable to the local option e t 17 gross receipts tax and county compensating tax imposed by a w l n d 18 county and local option gross receipts tax and municipal = = 19 compensating tax imposed by a municipality.
e a n b 24 B.
a l i a e r 20 B.
u [ (1) "economic development project" means .219271.3 - 36 - "economic development project" as used in the Local Economic Development Act;
a t m m 21 (1) "economic development project" means d r e 22 "economic development project" as used in the Local Economic c e s k 23 Development Act;
and (2) "qualifying entity" means "qualifying entity" as used in the Local Economic Development Act." SECTION 15.
and e a n b 24 (2) "qualifying entity" means "qualifying u [ entity" as used in the Local Economic Development Act." .219709.1 - 35 - STBTC/SB 5 SECTION 15.
A new section of the Severance Tax Bonding Act is enacted to read:
APPROPRIATION.--Two hundred million dollars ($200,000,000) is appropriated from the general fund to the economic development department for expenditure in fiscal years 2021 through 2023 to provide grants pursuant to Section 11 of this act.
"[NEW MATERIAL] TRANSFER TO THE ECONOMIC DEVELOPMENT DEPARTMENT FOR RECOVERY GRANTS TO CERTAIN BUSINESSES.--Within thirty days of the effective date of this 2021 act, the state investment officer shall make a commitment to the economic development department to invest two hundred million dollars ($200,000,000) of the severance tax permanent fund for the purpose of providing recovery grants pursuant to Section 11 of this 2021 act.
Any unexpended or unencumbered balance remaining at the end of fiscal year 2023 shall revert to the general fund.
The state investment office shall transfer from the commitment to the economic development department amounts necessary to provide the recovery grants, as determined by the e t 17 economic development department.
SECTION 16.
The economic development w l n d 18 department may expend no more than one percent of the funding = = 19 a l transferred to it pursuant to this section for administering i a e r 20 the provisions of this section.
EFFECTIVE DATE.--The effective date of the provisions of Sections 1 through 10 and 12 through 14 of this act is July 1, 2021.
Any of the transferred funds a t m m 21 not encumbered for recovery grants at the end of fiscal year d r e 22 2023 shall revert to the severance tax permanent fund." c e s k 23 SECTION 16.
SECTION 17.
Section 7-27-5 NMSA 1978 (being Laws 1983, e a n b 24 Chapter 306, Section 7, as amended) is amended to read:
u [ "7-27-5.
INVESTMENT OF SEVERANCE TAX PERMANENT FUND.-- .219271.3 - 37 - A.
The severance tax permanent fund shall be invested in separate differential rate and market rate investment classes.
"Differential rate investments" are permitted in Sections 7-27-5.3 through 7-27-5.5, 7-27-5.13 through 7-27-5.17, 7-27-5.22, 7-27-5.24 and 7-27-5.26 NMSA 1978 and are intended to stimulate the economy of New Mexico and to provide income to the severance tax permanent fund.
"Market rate investments" are investments that are not differential rate investments and are intended to provide income to the severance tax permanent fund.
All market rate investments and differential rate investments shall be invested in accordance with the Uniform Prudent Investor Act and shall be accounted for in accordance with generally accepted accounting principles.
B.
In addition to the investment classes described in Subsection A of this section, the severance tax permanent e t 17 fund shall be invested in:
w l n d 18 (1) loans to provide emergency economic relief = = 19 a l to local governments as provided by Section [8 of this 2020 i a e r 20 act] 7-27-5.27 NMSA 1978;
and a t m m 21 (2) the economic development department to d r e 22 provide recovery grants as provided by Section 15 of this 2021 c e s k 23 act." e a n b 24 SECTION 17.
EFFECTIVE DATE.--The effective date of the u [ provisions of Sections 1 through 10 and 12 through 14 of this .219271.3 - 38 - act is July 1, 2021.
SECTION 18.
- 39 - 6 8 10 12 14 16 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 [ .219271.3
- 36 - 14 16 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 [ .219709.1
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Action History

  1. DO NOT PASS, replaced with committee substitute

  2. Sent to Senate Tax, Business and Transportation Committee & Senate Finance Committee

Sponsors

  • George K. Munoz · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 111 not signed on

Sponsors (1)

  • Munoz, George K.

Co-sponsors (0)

None.

Not signed on (111)

111 members have not signed on to this bill.

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"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.

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finance
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SB 5 is sponsored by Munoz, George K..
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This bill died with 2021 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
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