52nd legislature - STATE OF NEW MEXICO - second session, 2016

RELATING TO ECONOMIC DEVELOPMENT; REQUIRING THAT AT LEAST TWENTY-FIVE PERCENT OF STATE APPROPRIATIONS TO CARRY OUT THE LOCAL ECONOMIC DEVELOPMENT ACT BE APPLIED TO SMALL-BUSINESS PROJECTS; CREATING THE LOCAL ECONOMIC DEVELOPMENT FUND; MAKING AN APPROPRIATION.

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

SECTION 1. Section 5-10-1 NMSA 1978 (being Laws 1993, Chapter 297, Section 1) is amended to read:

"5-10-1. SHORT TITLE.--[This act] Chapter 5, Article 10 NMSA 1978 may be cited as the "Local Economic Development Act"."

SECTION 2. A new section of the Local Economic Development Act is enacted to read:

"[NEW MATERIAL] STATE APPROPRIATIONS FOR LOCAL PROJECTS.--The department shall apply at least twenty-five percent of the money it expends in each fiscal year to carry out the purposes of the Local Economic Development Act to projects that directly support small businesses. For the purpose of this section, "small business" means a business entity that is independently owned and operated and that employs twenty-five or fewer employees."

SECTION 3. A new section of the Local Economic Development Act is enacted to read:

"[NEW MATERIAL] LOCAL ECONOMIC DEVELOPMENT FUND.--The "local economic development fund" is created in the state treasury. The fund consists of appropriations made to the fund, income from investment of the fund and money otherwise accruing to the fund. Money in the fund shall not revert to any other fund at the end of a fiscal year. The department shall administer the fund, and money in the fund is appropriated to the department for economic development projects undertaken in accordance with the Local Economic Development Act. Money in the fund shall be disbursed on warrants signed by the secretary of finance and administration pursuant to vouchers signed by the secretary of economic development or the secretary's authorized representative."

SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2016.