SB0158

SENATE BILL 158

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Benny Shendo, Jr.

FOR THE LEGISLATIVE FINANCE COMMITTEE

AN ACT

RELATING TO ECONOMIC DEVELOPMENT INCENTIVES; REQUIRING THE ECONOMIC DEVELOPMENT DEPARTMENT TO COMPILE AND PRESENT AN ANNUAL REPORT ON PROJECTS FUNDED WITH PUBLIC SUPPORT PURSUANT TO THE LOCAL ECONOMIC DEVELOPMENT ACT; REQUIRING THE ECONOMIC DEVELOPMENT DEPARTMENT AND THE WORKFORCE SOLUTIONS DEPARTMENT TO PROVIDE INFORMATION TO THE STAFF OF THE LEGISLATIVE FINANCE COMMITTEE FOR PURPOSES OF EVALUATING ECONOMIC DEVELOPMENT INCENTIVES; REQUIRING THE INDUSTRIAL TRAINING BOARD TO REPORT CERTAIN DEVELOPMENT TRAINING DATA TO THE LEGISLATIVE FINANCE COMMITTEE.

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

SECTION 1. A new section of the Local Economic Development Act is enacted to read:

"[NEW MATERIAL] ANNUAL REPORT.--

A. The department shall compile an annual report on economic development projects for which public support is provided. The department shall present the 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. The report shall include:

(1) the aggregate amount of public support provided for all projects;

(2) for each project:

(a) the name of the qualifying entity approved for support;

(b) the amount of public support provided;

(d) the number of jobs that the qualifying entity committed to create and the median wage of the jobs, including the specific number and average wage of new full-time economic base jobs;

(e) the number of jobs created and the median wage of the jobs created, including the specific number and average wage of new full-time economic base jobs created; and

(f) the actual economic impact of the project, including the return on investment of the public support and an explanation of the methodology used to determine the economic impact of the project; and

(3) any other information necessary to evaluate the effectiveness and cost of the Local Economic Development Act.

B. 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."

SECTION 2. Section 9-15-10 NMSA 1978 (being Laws 1983, Chapter 297, Section 10, as amended) is amended to read:

"9-15-10. ORGANIZATIONAL UNITS OF DEPARTMENT--POWERS AND DUTIES SPECIFIED BY LAW--ACCESS TO INFORMATION.--

A. Those organizational units of the department and the officers of those units specified by law shall have all of the powers and duties enumerated in the specific laws involved. However, the carrying out of those powers and duties shall be subject to the direction and supervision of the secretary, and [he] the secretary shall retain the final decision-making authority and responsibility for the administration of any such laws as provided in Subsection B of Section 9-15-6 NMSA 1978. The department shall have access to all records, data and information of other state departments, agencies and institutions, including its own organizational units, not specifically held confidential by law. Except as provided in Subsection B of this section, any information obtained by the department that is proprietary technical information or related to the possible relocation or expansion of a business shall be deemed confidential and withheld from inspection pursuant to the Inspection of Public Records Act.

B. Upon written request by the director of the legislative finance committee, including by electronic means, the department shall provide to the staff of the legislative finance committee all information obtained by the department that is proprietary technical information or related to an actual relocation or expansion of a business; provided that providing such information shall not violate the terms of a previously executed agreement with the department. The staff of the legislative finance committee is prohibited from requesting or using this information for a purpose other than to evaluate tax expenditures and economic development incentives for effectiveness and efficiency or to make recommendations regarding the continuance of such expenditures and incentives.

C. The department shall provide visible and clearly marked notification of confidential information revealed pursuant to Subsection B of this section. The staff of the legislative finance committee shall not reveal such confidential information unless the information is aggregated to at least three businesses."

SECTION 3. Section 9-26-14 NMSA 1978 (being Laws 2007, Chapter 200, Section 14) is amended to read:

"9-26-14. DISCLOSURE OF INFORMATION.--

A. To the extent permitted by federal law, upon the written request of a corporation organized pursuant to the Educational Assistance Act, the department shall furnish the last known address and the date of that address of every person certified to the department as being an absent obligor of an educational debt that is due and owed to the corporation or that the corporation has lawfully contracted to collect. The corporation and its officers and employees shall use such information only for the purpose of enforcing the educational debt obligation of such absent obligors and shall not disclose that information or use it for any other purpose.

B. To the extent permitted by federal law, upon written request by the director of the legislative finance committee, including by electronic means, the department shall provide all information related to labor data obtained by the department to the staff of the legislative finance committee. The staff of the legislative finance committee is prohibited from requesting or using this information for a purpose other than to evaluate tax expenditures and economic development incentives for effectiveness and efficiency or to make recommendations regarding the continuance of such expenditures and incentives.

SECTION 4. A new section of Chapter 21, Article 19 NMSA 1978 is enacted to read:

"[NEW MATERIAL] REPORT.--For each company or preemployment training program that receives development training pursuant to Section 21-19-7 NMSA 1978, the industrial training board shall report to the legislative finance committee:

A. the number of persons trained;

B. the average wage of each person trained;

C. the city and county in which the training is provided; and

D. the actual economic impact of the project, including the return on investment of the public support and an explanation of the methodology used to determine the economic impact of the project."

SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2025.

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