House Bill 19 (HB 19) relates to economic development. HB 19 enacts the Trade Ports Development Act, providing districts and establishing criteria for trade port projects. HB 19 creates the Trade Port Advisory Committee and specifies duties for the committee and the secretary of economic development. HB 19 allows public partners to enter into public-private partnership agreements to facilitate development of trade ports. HB 19 creates the Trade Ports Development Fund and authorizes grants and loans. HB 19 provides for distributions pursuant to the Tax Administration Act and changes a distribution of the Motor Vehicle Excise Tax. HB 19 adds an exemption to the procurement code. HB 19 makes an appropriation.
 

 SECTION 1 provides that Sections 1through 10 of this act may be cited as the Trade Ports Development Act (Act). 
SECTION 2 provides definitions as used in the Act. 
SECTION 3 allows trade port districts and provides designation criteria. 
A private partner or a public partner may propose a specific geographic area for designation as a trade port district pursuant to Section 7(B) of the Act. 
A proposed trade port district shall meet as many of the criteria as feasible at the time of designation. Thirteen criteria are listed from federal support and security to transportation access to land availability.
SECTION 4 specifies criteria the secretary shall consider before approving a proposed grant, loan and public-private partnership agreement for trade port projects.
SECTION 5 creates the Trade Ports Advisory Committee (Committee). 
A. The Economic Development Department (EDD) shall provide necessary administrative services to the Committee. 
B. The Committee is composed of a variety of state officials and public members as specified in this Subsection.
C. The public members appointed initially shall have staggered terms. Thereafter, the public members shall serve for six-year terms. A vacancy in a term of a public member of the Committee shall be filled by the New Mexico Legislative Council for the remainder of the original term. 
D. The members shall select a chair, who shall be a public member and who shall serve a term of two years. 
E. Members who are not public employees are entitled to per diem and mileage but shall receive no other compensation, perquisite or allowance. 
F. Members of the Committee shall certify annually and in writing that they have no conflict of interest and shall not participate in or influence a decision by the Committee.  
SECTION 6 specifies the Committee duties.
SECTION 7 specifies the powers and duties of the secretary as follows: 
A. develop forms of application for approval of public-private partnerships; 
B. review and approve, modify or disapprove specific geographic areas to be designated as trade port districts; 
C. review and approve or disapprove proposed public-private partnership agreements for a trade port project; 
D. modify or terminate existing approvals or designations for failure to meet the requirements of the Act; 
E. adopt and promulgate rules establishing the application process and criteria for the approval of public-private partnership agreements, grants and loans in accordance with the provisions of the State Rule Act;
F. approve or disapprove applications for grants or loans from the Trade Ports Development Fund (Fund) for trade port projects; 
G. consult with the department of transportation on technical issues relevant to the secretary's consideration of an application, including compliance with the statewide transportation improvement program;
H. request updates to any technical information, including any annual certification, provided in connection with an approved application or designation; and 
I. take all other actions necessary to implement the Act, including entering into joint powers agreements and retaining legal counsel and experts when appropriate. 
SECTION 8 authorizes public-private partnership agreements and provides approval requirements and restrictions.
A. a public partner is authorized to enter into public-private partnership agreements for a trade port project to provide economic and administrative efficiencies.
B. Prior to entering into negotiations regarding the use of a public-private partnership agreement for a proposed trade port project, the public partner shall publish in a newspaper of general circulation its interest in considering such an agreement. 
C. Prior to entering into a public-private partnership agreement, a public partner shall:
(1) undertake a cost-benefit analysis of a public-private partnership trade port project in comparison with a traditional public partner-managed project; 
(2) conduct a public hearing relating to the proposed public-private partnership held in accordance with the Open Meetings Act;
(3) demonstrate that the proposed trade port project serves an important public purpose and fulfills an important public need; and 
(4) demonstrate that the proposed trade port project will comply with applicable state and federal law. 
D. A public-private partnership agreement shall meet a list of criteria as specified in this subsection. 
E. A public-private partnership agreement for a trade port project shall not become effective until it is approved by the secretary pursuant to Section 7(C) of the Act. 
SECTION 9 creates the Trade Ports Development Fund (Fund) in the state treasury consisting of the appropriations and other sources of funds as specified. Income from the Fund shall be credited to the Fund. Money in the Fund shall not revert or be transferred to any other fund at the end of a fiscal year. 
B. The EDD shall administer and appropriate the Fund for the purposes of carrying out the provisions of the Act, including the planning, renovation or construction of trade ports and associated facilities and infrastructure.
C-G. Money in the Fund may be used as follows:
- to make grants of up to $250,000 to a public partner for the purposes of studying the costs and benefits of entering into a public-private partnership for a proposed trade port project. 
- to provide grants and loans for financing a trade port project through a public-private partnership agreement, as specified in this subsection.
- pursuant to Subsections B and C of this section only for grants or loans to a public partner for a trade port project. 
- for grants or loans to an Indian nation, tribe or pueblo that has entered into a partnership with a private partner for the development of a trade port project only as specified in this subsection.
- for administrative and reimbursable costs incurred by the Economic Development Department and the Department of Transportation, subject to the legislative appropriation process. 
SECTION 10 requires the secretary to provide an annual report beginning in 2025 to the governor and the Legislative Finance Committee, which includes the information requested in this subsection. 
SECTION 11 adds a new section of the Tax Administration Act to direct that a gross receipts tax distribution shall be made to the Fund in an amount equal to one percent of the net receipts attributable to the gross receipts tax after distributions have been made pursuant to Sections 7-1-6.46 and 7-1-6.47 NMSA 1978. 
SECTION 12 amends Taxation Section 7-14-10 NMSA 1978 (being Laws 1988, Chapter 73, Section 20, as amended) in Subsection A to insert a date and percentage as follows:
A. prior to July 1, 2035: (1) fifty-five. This change decreases the distribution to the General Fund from fifty-nine and thirty-nine hundredths percent to fifty-fie and thirty-nine hundredths percent.
Paragraph 4 and Subsection B are inserted as follows: 
(4) four percent to the trade ports development fund; and B. on and after July 1, 2035: (1) fifty-nine and thirty-nine hundredths percent to the general fund; (2) twenty-one and eighty-six hundredths percent to the state road fund; and (3) eighteen and seventy-five hundredths percent to the transportation project fund." 
SECTION 13 amends Public Purchases and Property Section 13-1-98 NMSA 1978 (being Laws 1984, Chapter 65, Section 71, as amended by Laws 2023, Chapter 149, Section 2 and by Laws 2023, Chapter 174, Section 1 insert an exemption to the procurement code. II is inserted as follows:
II. agreements and contracts entered into pursuant to the Trade Ports Development Act; and …
SECTION 14 makes the effective date of this Act July 1, 2025.
 

 Taxation Section 7-14-10 NMSA 1978 (being Laws 1988, Chapter 73, Section 20, as amended) does not have distributions to a Trade Ports Development Fund.

Public Purchases and Property Section 13-1-98 NMSA 1978 (being Laws 1984, Chapter 65, Section 71, as amended by Laws 2023, Chapter 149, Section 2 and by Laws 2023, Chapter 174, Section 1) does not have an exemption for the Trade Port Development Act. 

 House Bill 19 is amended by the Commerce and Economic Development Committee as follows:
In Section 1. SHORT TITLE now reads Sections 1-11 of this act may be cited as the "Trade Ports Development Act” to show that a new paragraph has been added in this Act.
An addition of Paragraph (13) in Section 8D reads as follows:
D. A public-private partnership agreement shall:
(13) provide that operations and maintenance of a trade port project are to be performed by the public partner except for broadband, telecommunications and energy infrastructure components of a trade port project; and". 
Renumber the succeeding paragraph accordingly. 
Following Section 9, a new Section 10 is inserted, as follows:
SECTION 10. [NEW MATERIAL] APPLICABILITY OF CERTAIN OTHER LAWS.--The construction of a trade port project pursuant to a public-private partnership agreement is a public work for the purposes of the Public Works Minimum Wage Act, the Subcontractors Fair Practices Act and the Public Works Apprentice and Training Act.". 
Renumber the succeeding sections accordingly. 

 House Bill 19a (HB 19a) is substituted by the House Taxation and Revenue Committee as CS/HB 19a as follows:
CS/HB 19a changes the title to delete these items from the original title of HB 19a:
PROVIDING FOR DISTRIBUTIONS PURSUANT TO THE TAX ADMINISTRATION ACT; 
CHANGING A DISTRIBUTION OF THE MOTOR VEHICLE EXCISE TAX;

CS/HB 19a changes the title of Section 1 to read :
SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 11 of this act may be cited as the "Trade Ports Development Act”. 
CS/HB 19a, Section 8, Subsection D(13) is inserted:
(13) provide that operations and maintenance of a trade port project shall be performed by the public partner except for broadband, telecommunications and energy infrastructure components of the trade port project; and
CS/HB 19a inserts Section 10 and renumbers the bill as follows: 
SECTION 10. [NEW MATERIAL] APPLICABILITY OF CERTAIN OTHER LAWS.--The construction of a trade port project pursuant to a public-private partnership agreement is a public work for the purposes of the Public Works Minimum Wage Act, the Subcontractors Fair Practices Act and the Public Works Apprentice and Training Act.
HB 19a, Section 11 and 12 are deleted: 
SECTION 11. A new section of the Tax Administration Act —DISTRIBUTION—GROSS RECEIPTS TAX—TRADE PORTS DEVELOPMENT FUND.
SECTION 12. Section 7-14-10 NMSA 1978 (being Laws 1988,Chapter 73, Section 20, as amended) DISTRIBUTION OF PROCEEDS.