House committee advances bill aimed at designating trade port districts, funding public-private projects

Yahoo

30-01-2025

Jan. 29—A bill allowing the New Mexico Economic Development Department secretary to designate trade port districts and create a path for the state to enter into public-private partnership agreements that would finance projects in those areas gained key approval from a House committee on Wednesday.
The House Commerce and Economic Development Committee moved House Bill 19, called the Trade Ports Development Act, through on a 9-0 vote.
Bill sponsor Rep. Patricia Lundstrom, D-Gallup, told committee members the legislation comes at a time of increasing onshoring and reshoring, processes in which companies either move to or back to the United States. In New Mexico, she said, the state has three major interstates, two Class 1 railroads and passenger air service which could potentially be divided into districts with "the purposes of trade and distribution" — ultimately attracting capital and jobs.
"The state of New Mexico needs to get in the game," Lundstrom said. "And right now we aren't ... when it comes to that kind of activity."
Lundstrom said if passed, HB19 and its associated trade ports development fund could generate revenue of more than $550 million. The fund would take a percentage of new revenue distributions from the motor vehicle excise tax and gross receipts tax over fiscal years 2026 through 2035, which would then go toward a fund administered by the EDD.
The department would dole out grants and loans to finance trade port projects — subject to private partners matching or exceeding the "monetary obligation" of the state — and to Native American tribes, nations and pueblos working with private partners on projects, according to a legislative analysis of the bill.
Representatives from the economic development group New Mexico Idea, the Brotherhood of Locomotive Engineers and Trainmen New Mexico, the I-40 TradePort Corridor — an initiative aimed at creating an efficient logistics system from New Mexico to Los Angeles' seaports complex — and local chambers of commerce all voiced their approval for HB19.
"This positions New Mexico as a key player in regional and national commerce, leveraging our geographic advantages to attract new business, create high-quality jobs and strengthen our transportation network," said Rio Rancho Regional Chamber of Commerce President and CEO Jerry Schalow.
Rep. Marian Matthews, D-Albuqerque, called the bill "really impressive" and "hopefully, a model for something that we can do in various places around the state."
Rep. Gail Armstrong, R-Magdalena, asked if designated trade port districts are to be determined.
"Those that want to do it and feel like they meet the criteria would actually put an application together for the Economic Development Department for them to come out and do an assessment," Lundstrom said.
Armstrong said for her, it's a concern that some areas are not already designated. But she ultimately gave the bill a thumbs up.
"I want this. I am for this," Armstrong said. "I was concerned about that, but ultimately, it's good for New Mexico. And overall, that's what we all need to be concerned about — is what's good for New Mexico."