HOUSE MEMORIAL 7
53rd legislature - STATE OF NEW MEXICO - first session, 2017
INTRODUCED BY
Linda M. Trujillo and Joanne J. Ferrary
A MEMORIAL
REQUESTING THE LEGISLATIVE FINANCE COMMITTEE TO UNDERTAKE A STUDY OF WAYS IN WHICH THE RESOURCES OF THE NEW MEXICO FINANCE AUTHORITY MIGHT BE MADE MORE ACCESSIBLE TO PERSONS AND BUSINESSES IN NEW MEXICO, INCLUDING THE OPTION OF FORMING A STATE-OWNED BANK.
WHEREAS, small businesses in New Mexico have many of the same problems experienced by small businesses in other states in obtaining start-up financing; and
WHEREAS, with two national laboratories and three research universities located in New Mexico, there is a potential for new businesses in the technology transfer sector, but efforts to start up such businesses are hampered by a lack of venture capital in New Mexico; and
WHEREAS, there are many farmers in New Mexico who are getting older and want to retire, but younger individuals and families interested in agriculture cannot obtain the necessary financing to purchase farming operations; and
WHEREAS, in 1919, North Dakota founded the bank of North Dakota, a state-owned bank that provides lending programs to promote agriculture, commerce and industry and stimulate economic development; and
WHEREAS, in 2010, Massachusetts created the Massachusetts Growth Capital corporation, which provides capital and advice to small businesses; and
WHEREAS, at least twenty-two states have undertaken studies to determine the feasibility of state-owned banks as a way to stabilize state economies, provide local businesses with greater access to credit, augment the lending capacity of private banks and contribute revenue to help fund state government; and
WHEREAS, the New Mexico finance authority has substantial financial resources that might be made more readily available to assist small businesses in New Mexico; and
WHEREAS, a state-owned bank in New Mexico could help stabilize the state economy, provide local existing and start-up businesses with greater access to credit, support local economic development, augment the lending capacity of private banks in New Mexico and contribute revenue to help fund state government;
NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the legislative finance committee be requested to undertake a study during the 2017 interim of ways in which the resources of the New Mexico finance authority might be made more accessible to persons and businesses in New Mexico; and
BE IT FURTHER RESOLVED that the study include the feasibility of establishing a state-owned bank in New Mexico; and
BE IT FURTHER RESOLVED that the legislative finance committee present a report on the results of its study to the appropriate interim legislative committees by October 1, 2017; and
BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the chief executive officer of the New Mexico finance authority, the chair and vice chair of the legislative finance committee and the director of the legislative finance committee.
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