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Committee advances bill to create trade‑port districts and public‑private framework after amendment

2659150 · March 15, 2025
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Summary

A bill to create trade‑port districts and enable public‑private partnerships moved forward 9–0 after members agreed to strike a broad procurement exemption and seek narrower language in the next committee.

House Bill 19, presented by Representative Lundstrom on behalf of Representative Bunsham, would establish a statutory framework for "trade port districts": geographic districts designed to coordinate infrastructure use, public incentives and public‑private partnerships to expand freight, logistics and trade‑related economic development across New Mexico.

Representative Lundstrom and cosponsor Representative Lauren said the proposal would allow regions with existing assets — including Dona Ana, Bernalillo and McKinley counties — to plan trade‑port projects, establish advisory committees, set criteria for projects, and identify guidelines for potential public‑private partnership (P3) agreements, including clawbacks and feasibility requirements.

Supporters including county officials and chambers of commerce emphasized potential benefits for rural communities that have suffered job losses in energy and industry. Peter Campos of the Gallup‑McKinley County Chamber said assessments identify transportation and logistics as central to his region’s economic potential. "House Bill 19 would help our community by helping to build strategies and opportunities around our existing economic assets," he told the committee.

Committee members focused discussion on a procurement exemption in a late-drafted section that would have broadly exempted trade‑port projects from the state Procurement Code. Several senators, led by Senator Wirth, argued a blanket exemption risked eroding procurement oversight. Rob Black, the governor’s designee for Economic Development, said the challenge was the Procurement Code’s limits on long‑term contracts that P3 partners often require; long contract terms can be necessary to secure private capital for multi‑decade infrastructure.

The sponsor agreed to strike the broad Section 12 exemption and the committee adopted an amendment removing that section, with the committee then passing the bill as amended 9–0. Committee members asked sponsors and the Economic Development Department to develop narrower language (for example, targeted exemptions for long‑term contracts over a set number of years or narrowly tailored carve‑outs tied to business plans) before the measure appears in Senate Finance and Judiciary.

Why it matters: Supporters argued the bill would allow New Mexico to coordinate regional trade and logistics investments and attract private capital through P3 arrangements, potentially spurring jobs and infrastructure in outlying counties. Critics warned that broad procurement carve‑outs could reduce oversight and allow outcomes that do not protect public interests.

What’s next: The committee sent the bill forward as amended 9–0. Sponsors and the Economic Development Department will draft narrower procurement/P3 language for Senate Finance and potentially Judiciary to consider.