House committee advances trade‑port bill offering tax‑backed infrastructure fund and public‑private partnership authority

Representative Lundstrom presented House Bill 19 to the committee as a multifaceted economic‑development measure to designate trade‑port districts, provide financing for site and infrastructure readiness, and allow a P3 process for large logistics projects.

Lundstrom described the measure as a way “to utilize existing assets” — interstates, class‑1 railroads and airports — and to position New Mexico for reshoring and supply‑chain activity. The bill would create trade‑port districts by application, establish an advisory committee to the Economic Development Department, and set standards for designation including cost‑benefit analysis and financing plans.

An amendment adopted in committee clarified roles and extended existing public‑work laws to P3 development in trade ports: construction of a trade‑port project pursuant to a P3 agreement would be treated as a public work under the Public Works Minimum Wage Act, the Subcontractors Fair Practices Act and the Public Works Apprenticeship and Training Act. The amendment also specified that operations and maintenance responsibilities rest with the public partner except for broadband telecommunications and energy infrastructure components.

The bill would create a Trade Port Development Fund in the state treasury and direct a portion of gross‑receipts tax revenue (the bill text would reallocate 4 percent of gross receipts that otherwise flow to the general fund) into a suspense fund dedicated to trade‑port infrastructure. It also would direct part of the motor‑vehicle excise tax to the fund on a 10‑year sunset. During committee discussion Representative Lundstrom and other members said preliminary estimates project roughly $550 million could be generated over a 10‑year window from the combined sources, though specifics depend on final allocations and legislative action.

The bill contains procurement exemptions for trade‑port projects and a P3 authorization that would require private partners to provide financing plans, guarantees or letters of credit, performance and payment security, and clawback or recapture provisions. The sponsor said the P3 tool is an incentive because large logistics infrastructure — additional rail tracks, transloading capacity and sewer/water lines — can be costly and time consuming to build.

The committee heard extensive public support from economic‑development groups, labor unions and local governments. Jason Espinosa of New Mexico IDEA said, “We stand in strong support of the legislation.” Clem Harris of the Brotherhood of Locomotive Engineers and Trainmen, Bill Lee of the Gallup‑McKinley County Chamber, and representatives of chambers and private developers from Bernalillo, Rio Rancho and Gallup all testified in favor of the bill’s potential to attract investment and jobs in rural and urban areas alike. Labor groups including AFSCME, the Carpenters Union and the Building and Construction Trades Council said they supported the bill once the sponsor incorporated language to preserve prevailing‑wage and apprenticeship requirements via the amendment.

After testimony and committee questions about tribal participation, appropriations for administration, and district designation criteria, the committee voted to advance HB19. The committee reported a do‑pass as amended motion (final tally reported by the chair: 9 yes, 0 no).

Next steps: the bill will proceed to subsequent committees for consideration and any fiscal and appropriation details will be negotiated as it moves through the legislature.