SENATE BILL 222
56th legislature - STATE OF NEW MEXICO - second session, 2024
George K. Muñoz
RELATING TO ECONOMIC DEVELOPMENT; PROVIDING APPLICATIONS TO THE ECONOMIC DEVELOPMENT DEPARTMENT FOR FUNDING PURSUANT TO THE LOCAL ECONOMIC DEVELOPMENT ACT; REQUIRING AN ANNUAL REPORT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 5-10-8 NMSA 1978 (being Laws 1993, Chapter 297, Section 8, as amended) is amended to read:
"5-10-8. APPLICATIONS FOR PUBLIC SUPPORT.--
A. [After the adoption of an economic development plan by a local or regional government] A qualifying entity shall submit to [the] a local or regional government or the department an application for public support of a qualifying entity's economic development project; provided that an application to a local or regional government shall not be made until the local or regional government has adopted an economic development plan.
B. The application shall be on a form and require such information as the local or regional government or the department deems necessary. The department's application shall be made available online."
SECTION 2. Section 5-10-9 NMSA 1978 (being Laws 1993, Chapter 297, Section 9, as amended) is amended to read:
"5-10-9. APPLICATION--PROJECT EVALUATION--DEPARTMENT.--
A. The local or regional government or the department shall review each application for public support submitted pursuant to Section 5-10-8 NMSA 1978, and any public support from a local or regional government shall be approved by ordinance.
B. The local or regional government's or the department's evaluation of an application shall be based on the provisions of the economic 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 or the department believes is necessary for a full review of the economic development project application.
C. The local or regional government or the department may negotiate with a qualifying entity on the type or amount of public support to be provided or on the scope of the economic development project."
SECTION 3. A new section of the Local Economic Development Act, Section 5-10-15.1 NMSA 1978, is enacted to read:
"5-10-15.1. [NEW MATERIAL] ANNUAL REPORT.--
A. The department shall compile an annual report on the public support provided for economic development projects by all local or regional governments and the department. The report shall include:
(1) the number of qualifying entities approved for support;
(2) the aggregate amount of public support provided;
(3) for each economic development project for which public support was provided, the:
(a) amount of public support provided;
(b) number of jobs the qualifying entity committed to create;
(c) number of jobs created by the qualifying entity;
(d) median wage of the jobs created;
(e) amount of capital investment the qualifying entity committed to expend or allocate;
(f) amount of capital investment expended or allocated by the qualifying entity; and
(g) return on the investment and an explanation of the methodology;
(4) the average amount of public support provided for each job created by qualifying entities; and
(5) any other information necessary to evaluate the effectiveness of public support provided pursuant to the Local Economic Development Act.
B. The department shall present the annual report to the legislative finance committee with an analysis of the effectiveness and cost of the Local Economic Development Act and whether it is fulfilling the purpose for which it was created.
C. The department shall publish the report on its website; provided that the department shall not include any confidential, sensitive or proprietary information about a qualifying entity, including its financial information, management information or trade secrets."
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