H 188 ECONOMIC TRANSITION DIVISION

Rep Angelica Rubio

Actions: [2] HGEIC/HAFC-HGEIC [4] DP/a-HAFC

Scheduled: Not Scheduled

 House Bill 188 (HB 188) creates the Economic Transition Division within the Economic Development Department. Expands the membership of the Sustainable Economy Advisory Council. Enacts the Transition Act. Makes appropriations.
 

 House Bill 188 (HB 188) creates the Economic Transition Division within the Economic Development Department. Expands the membership of the Sustainable Economy Advisory Council. Enacts the Transition Act. Makes appropriations.

SECTION 1 amends Executive Department Section 9-15-4 NMSA 1978 (being Laws 1983, Chapter 297, Section 4, as amended) to add Subsection G, which adds division seven, the Economic Transition Division, to the Economic Development Department.

SECTION 2 amends Executive Department Section 9-15-58 NMSA 1978 (being Laws 2021, Chapter 42, Section 1) insert in Subsection C that the Sustainable Economy Advisory Council (Council) shall advise the the director of the Economic Transition Division. Subsection C(2) specifying the advisory council members is amended to increase from two to three the representatives of disproportionately impacted communities and inserts:
(6) to add one representative of organizations that operate apprenticeship programs.
(7) to add two representatives of worker organizations representing workers in communities in transition as defined in Paragraph (1) of Subsection B of Section 3 of this 2023 act; and 
(8) to add two representatives of higher education workforce development programs.

SECTION 3 adds a new section of the Economic Development Department Act to provide the duties of the Economic Transition Division (Division).
The Division shall take the following actions to support impacted communities, communities in transition and workers in transition:
(1) provide programmatic support to fulfill recommendations of the Sustainable Economy Task Force (Force) and implement the recommendations of the New Mexico Clean Energy Workforce Development Study; 
2) support economic transition;
(3) identify public and private funding sources; 
(4) coordinate state agencies and coordinate with the federal government; 
(5) provide administrative, logistical, research and policy support to the Force and the Council; 
(6) administer the Economic Transition Fund and provide grants, loans and other financial assistance for economic transition projects and eligible entities; 
(7) provide technical assistance to identify funding streams; and 
(8) receive and report on state, federal and other funding. 

B. Provides definitions as used in this section.

SECTION 4 adds new material which creates the Economic Transition Act (Act) as Sections 4 through 7. 

SECTION 5 adds new material to provide definitions as used in the Act

SECTION 6 adds new material ECONOMIC TRANSITION ACTION PLAN
A. On or before December 31, 2024, the division, in consultation with the Force and the Council, shall prepare and publish an Economic Transition Action Plan (Plan). 
B. The Plan shall include the 15 items specified.
C. In Plan, the division shall: (1) require community feedback and public engagement; (2) focus on rural areas, disproportionately impacted communities and communities in transition; and (3) include opportunities for virtual participation. 

SECTION 7 adds new material to create the Economic Transition Fund and require an annual report.
A. The Economic Transition Fund (Fund) is created in the state treasury. The division shall administer the Fund. Balances in the Fund at the end of any fiscal year shall not revert to the General Fund. 
B. Money in the Fund may be used to provide grants and loans for financing workforce development, apprenticeship programs, training programs and economic support programs approved by the secretary. A definition of “economic support program” is included in this subsection.
C. Money in the Fund may be used pursuant to Subsection B of this section only for grants or loans to an eligible entity. 
D. Money the Fund may be used for administrative and reimbursable costs incurred by the department subject to the legislative appropriation process. 
E. Disbursements from the Fund shall be made by warrant of the Secretary of Finance. 
F. By December 1, 2023, and by December 1 of each year thereafter, the secretary shall provide a report regarding the items specified in this Subsection.

SECTION 8 makes appropriations:
A. $885,000 from the General Fund to the Economic Development Department for expenditure in Fiscal Year 2024 to establish the Economic Transition Division of the department and to implement the Economic Transition Act. Any unexpended or unencumbered balance remaining at the end of Fiscal Year 2024 shall revert to the General Fund. 
B. $2,500,000) from the General Fund to the Economic Development Department for expenditure in Fiscal Year 2024 and subsequent fiscal years to support community engagement by the Force and the Council. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund. 
C. $10,000,000 from the General Fund to the Fund for expenditure in Fiscal Year 2024 and subsequent fiscal years to provide assistance to workers and communities in transition pursuant to the Act. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the General Fund. 

SECTION 9 provides an effective date of July 1, 2023. 

 House Bill 188 (HB 188) is amended by the House Government, Elections and Indian Affairs Committee as follows.

In SECTION 2, Subsection C(6), which specifies the members of the Sustainable Economy Advisory Council, is amended to insert “registered” for an organization that operates apprenticeship programs.

In SECTION 3 of the Economic Development Department Act under the Economic Transition Division duties Subsection B(1) is amended to insert in the definition of “community in transition”
to include economic disruption by the closing of an electric generation facility. 

Subsection B(5) "eligible entity" is amended to include a pre-apprenticeship program and an integrated education and training program;

In SECTION 5, Definitions as used in the Economic Transition Act, Subsection A is amended to include “economic disruption by the closing of an electric generation facility” in the definition of   “a community in transition”.

In SECTION 7, in which the Economic Transition Fund is created, Subsection B, which specifies how the money in the fund may be used to provide grants and loans for financing, inserts “economic transition projects” .