Summary:

 Senate Bill 158 (SB 158) adds to the Local Economic Development Act (Act) to require the Economic Development Department (EDD) to compile and present an annual report on projects funded with public support pursuant to the Act. SB 158 requires the EDD and the Workforce Solutions Department to provide information to the staff of the Legislative Finance Committee (LFC) for purposes of evaluating economic development incentives. SB 158 requires the Industrial Training Board to report certain development training data to the LFC. 
 

Legislation Overview:

 Senate Bill 158 (Senate Bill 158) in Section 1 adds a new section of the Local Economic Development Act to require an annual report as follows:
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 (LFC) with an analysis of the effectiveness and cost of the Act that incudes the information specified in this subsection.
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 amends Executive Department code to insert Subsections B and C to direct the LFC regarding access and confidentiality of records containing proprietary technical information or related to an actual relocation or expansion of a business with the exception that such information may not violate the terms of a previously executed agreement with the department. 
Subsection B prohibits LFC staff from using this information for a purpose other than to evaluate tax expenditures and economic development incentives or to make recommendations regarding the continuance of expenditures and incentives.
Subsection C specifies the department shall provide visible and clearly marked notification of confidential information revealed pursuant to Subsection B. The LFC staff shall not reveal such confidential information unless the information is aggregated to at least three businesses.

SECTION 3 amends Executive Department code to direct the LFC regarding disclosure of labor data information by inserting Subsections B and C, as follows:
B. To the extent permitted by federal law, upon written request by the director of the LFC, the department shall provide all information related to labor data obtained by the department to the LFC staff. The staff is prohibited from 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 LFC staff shall not reveal such confidential information unless the information is aggregated to at least three businesses.

SECTION 4 adds a new section to State and Private Education Institutions requiring reports on development training as specified in this section.

SECTION 5 makes the effective date of this act July 1, 2025. 

Current Law:

 Senate Bill 158 refers to Section 9-15-10 NMSA 1978 (being Laws 1983,
Chapter 297, Section 10, as amended) and Section 9-26-14 NMSA 1978 (being Laws 2007,
Chapter 200, Section 14), which currently do not to specify a structure for requests, confidentiality and uses of proprietary technical data and labor data by LFC staff.