Summary:

 House Bill 276 (HB 276) creates the Public-Private Partnership Fund and the Public-Private Partnership Program; requires the Local Government Division of the Department of Finance and Administration, in consultation with the New Mexico Finance Authority, to provide grants to public partners to complete broadband projects and transportation projects; requires rulemaking; allows appropriations from the Public-Project Revolving Fund to be made to the Public-Private Partnership Fund; exempts public-private partnership agreements from the procurement code; and makes an appropriation. 

Legislation Overview:

 House Bill 276 (HB 276) creates the Public-Private Partnership Fund (Fund) and the Public-Private Partnership Program (Program).
Definitions are provided as follows:

(1) "authority" means the New Mexico Finance Authority (Authority); 
(2) "broadband project" means a project to develop, repair, replace or maintain the state facilities or infrastructure used to provide internet, including any other item directly related to a system capable of internet protocol or other formatted data;
(3) "division" means the Local Government Division of the Department of Finance and Administration (Division); 
(4) "private partner" means an individual, a foreign or domestic corporation, a general partnership, a limited liability company, a limited partnership, a joint venture, a business trust, a public benefit corporation, a nonprofit entity or other private business entity or any combination thereof; 
(5) "public partner" means the state or any of its branches, agencies, departments, boards, instrumentalities or institutions and all political subdivisions of the state;
(6) "public-private partnership" means an arrangement between one or more public partners and one or more private partners for the development of a broadband project or a transportation project; and
(7) "transportation project" means studies, planning, design, construction and maintenance of transportation infrastructure located in this state. 
The Fund is created as a non-reverting fund in the State Treasury and consists of distributions from the Public Project Revolving Fund, appropriations, income from investment of the Fund, gifts, grants and donations. Money in the Fund is to be appropriated to the Division, and the Division is to administer the Fund and the Program. 

The Division, in consultation with the Authority, is to evaluate and provide grants to fund proposed transportation projects and broadband projects. 

A public partner must apply to receive a grant. The criteria on which grants will be evaluated are detailed. 

The Division must promulgate rules to administer the Program, including specified procedures.

The Authority must (1) evaluate the financial risks of the proposed transportation project or broadband project; and (2) promulgate rules as necessary to recommend projects to the Division. 

Money in the Fund may be used to cover the administrative costs of the Authority in relation to the Fund and Project.

Section 6-21-6.1 NMSA 1978 is amended to allow for appropriations from the Public-Project Revolving Fund to be made to the Public-Private Partnership Fund.

Public-private partnership agreements are exempted from the Procurement Code.
 

Current Law:

 The Public-Private Partnership Program and Fund are not in existence at this time.