HOUSE BILL 421
57th legislature - STATE OF NEW MEXICO - first session, 2025
INTRODUCED BY
Linda Serrato
AN ACT
RELATING TO BUSINESS; ENACTING THE BUSINESS SECURITY ASSISTANCE ACT; PROVIDING DEFINITIONS; REQUIRING RULEMAKING; PROVIDING REBATE PAYMENTS TO CERTIFIED VENDORS THAT SELL DISCOUNTED SECURITY EQUIPMENT OR SECURITY SERVICES TO BUSINESSES; CREATING THE BUSINESS SECURITY ASSISTANCE FUND; CREATING A GROSS RECEIPTS TAX DEDUCTION FOR SALES OF SECURITY EQUIPMENT AND SERVICES; PROVIDING A DELAYED REPEAL; MAKING A TRANSFER FROM THE GENERAL FUND TO THE BUSINESS SECURITY ASSISTANCE FUND; MAKING APPROPRIATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 6 of this act may be cited as the "Business Security Assistance Act".
SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Business Security Assistance Act:
A. "business" means a physical, nonresidential location where business is conducted, including a real estate development site or other space;
B. "certified vendor" means a business incorporated under the Business Corporation Act and doing business in New Mexico that sells security equipment or provides security services that is certified by the department;
C. "department" means the regulation and licensing department;
D. "security equipment":
(1) means:
(a) an installed physical barrier that is intended to reduce the ability of a person to enter a business or remove objects from a business without permission of the business owner, including a fence, security door or window bar; and
(b) a device that senses or records activity at a business or the area surrounding a business by changes in chemistry, heat, pressure, sound or visual imagery for purposes of detecting unauthorized persons entering the business; and
(2) does not mean a drone or a retail shelf, also known as a "smart shelf", that uses digital technology to track inventory; and
E. "security service" means a professional monitoring service provided by a private patrol company licensed pursuant to the Private Investigations Act.
SECTION 3. [NEW MATERIAL] PERFORMANCE REQUIREMENTS--VENDOR CERTIFICATION.--The department shall:
A. determine the performance requirements for security equipment by rule, including:
(1) the required strength, durability and impact resistance of a physical barrier; and
(2) the sensitivity and range of area detection for monitoring devices; and
B. certify vendors as eligible to receive a rebate for providing discounted security equipment or security services.
SECTION 4. [NEW MATERIAL] REBATE FOR SELLING DISCOUNTED SECURITY EQUIPMENT AND SERVICES.--
A. A certified vendor that sells security equipment or security services discounted by at least twenty-five percent to the owner of a business may receive a rebate payment in an amount equal to a twenty-five percent discount in the sale price; provided that the total aggregate amount of the rebate for sales made to the same business shall not exceed twenty-five thousand dollars ($25,000); and provided further that sufficient funding is available to pay the rebate from the business security assistance fund.
B. A certified vendor may apply to the department for a rebate on or before September 1 of each year on forms and in a manner prescribed by the department. Applications shall be considered in the order received.
C. Subject to availability of funds in the business security assistance fund, rebate payments shall be paid to certified vendors that meet the requirements to receive a rebate on or before December 1 following the date the application is received.
SECTION 5. [NEW MATERIAL] BUSINESS SECURITY ASSISTANCE FUND CREATED--DISBURSEMENTS.--The "business security assistance fund" is created as a nonreverting fund in the state treasury. The fund consists of appropriations, gifts, donations, grants and interest on the money in the fund. The department shall administer the fund, and money in the fund is appropriated to the department to provide rebates pursuant to Section 4 of the Business Security Assistance Act. Disbursements from the fund shall be made by warrant of the secretary of finance and administration pursuant to vouchers signed by the superintendent of regulation and licensing.
SECTION 6. [NEW MATERIAL] REPORTS.--On or before December 1 of each year, the department shall submit a report to the legislative finance committee detailing the status of the business security assistance fund and the number of businesses that received a discounted sale of security equipment or a security service.
SECTION 7. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:
"[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS--SECURITY SERVICES AND EQUIPMENT.--
A. A certified vendor's receipts from the selling of discounted security equipment or security services to a business to improve security at a physical, nonresidential location in New Mexico where business is conducted, including a real estate development site or other space, may be deducted from gross receipts.
B. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department.
C. The deduction provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the deduction.
D. As used in this section:
(1) "certified vendor" means a business incorporated under the Business Corporation Act and doing business in New Mexico that is certified by the regulation and licensing department to sell discounted security equipment or services pursuant to the Business Security Assistance Act;
(2) "security equipment" means "security equipment", as defined in the Business Security Assistance Act; and
(3) "security service" means professional monitoring services provided by a private patrol company licensed pursuant to the Private Investigations Act."
SECTION 8. TRANSFER.--One hundred million dollars ($100,000,000) is transferred from the general fund to the business security assistance fund.
SECTION 9. APPROPRIATION.--One million dollars ($1,000,000) is appropriated from the general fund to the regulation and licensing department for expenditure in fiscal year 2026 and subsequent fiscal years to implement the Business Security Assistance Act. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.
SECTION 10. DELAYED REPEAL.--Sections 1 through 7 of this act are repealed effective July 1, 2028.
SECTION 11. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2025.
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