New Mexico Register / Volume XXXVII,
Issue 2 / January 27, 2026
NOTICE OF PROPOSED RULEMAKING AND PUBLIC HEARING
The New Mexico Economic Development
Department (“Department”) will hold a public hearing on Thursday,
February 26, 2026, from 11:00 – 12:00 a.m.
The hearing will be conducted in person at the following location:
Thursday, February 26, 2026, 11:00-12:00 a.m.
Mountain Time
Mabry Hall located in the
Jerry Apodaca Education Building, 300 Don Gaspar Ave., Santa Fe, NM 87501
The purpose of the rule
hearing is to obtain input and public comment on proposed new rules relating to 12.13.1 NMAC,
Trade Ports Development Act, Laws 2025, Ch. 86 (House Bill 19 Approved April 8,
2025).
Copies of the proposed rule may be accessed online at https://edd.newmexico.gov/about-us/public-notices/ or contact Department staff at info@edd.nm.gov (505) 827-0300.
The Department will accept
written public comments on the proposed rule beginning January 27, 2026. Please submit written comments on the
proposed rule to the Department via electronic mail at info@edd.nm.gov or by regular
mail at 1100 S. Saint Francis Dr., Santa Fe, New Mexico, 87505. Written
comments must be received no later than 5 p.m. on February 26, 2026. Comments received prior to the rule hearing
will be posted to the Department website at
https://edd.newmexico.gov/about-us/public-notices/ . Interested persons will
also be given the opportunity to present their comments during the rule
hearing.
Individuals who require this
information in an alternative format or need any form of auxiliary aid to
attend or participate in this meeting are asked to contact the Department Staff
as soon as possible at info@edd.nm.gov or (505) 827-0300. The Committee requests advance notice to
provide required special accommodations at least one week prior to the meeting
or as soon as possible.
Statutory Authority: Legal authority for this rulemaking may be found in the Trade Ports Development Act, Section 9-15F-1 et seq., NMSA 1978, specifically 9-15F-6.
Proposed Rule:
This is a new Rule,
12.13.1 NMAC, Sections 1 through 18, effective March 24, 2026.
12.13.1.1 ISSUING
AGENCY: Economic Development Department.
[12.13.1.1 NMAC - N,
xx/xx/2026]
12.13.1.2 SCOPE: All public
partners and private partners applying for Strategic Economic Development Trade
Ports Development Act funds through the Economic Development Department.
[12.13.1.2 NMAC - N,
xx/xx/2026]
12.13.1.3 STATUTORY
AUTHORITY: Section 9-15F-6, NMSA 1978.
[12.13.1.3 NMAC - N, xx/xx/2026]
12.13.1.4 DURATION: Permanent.
[12.13.1.4 NMAC - N,
xx/xx/2026]
12.13.1.5 EFFECTIVE
DATE:
xx/xx, 2026 unless a later date is cited at the end of a section.
[2.95.1.5 NMAC - N, xx/xx/2026]
12.13.1.6 OBJECTIVE:
A. Section
9-15F-3, NMSA 1978, provides that a private partner or a public partner may
propose a specific geographic area for designation as a trade port district.
B. Section 9-15F-4, NMSA 1978,
provides standards to approve proposed trade port grants, loans, and
public-private partnership agreements, which include but are not limited to the
effect the project will have on the further the development of a trade port,
the cost-effectiveness and financial feasibility, the net environmental impact,
and the projected time frame for completion.
C. Section 9-15F-5, NMSA 1978, creates
the trade ports advisory committee, establishes the membership of the
committee, and provides that the department shall provide necessary
administrative services to the committee.
D. Section 9-15F-6, NMSA 1978,
provides that the committee is granted authority to recommend approval or
disapproval of specific geographic areas to be designated as trade port
districts, proposed public-private partnership agreements for a trade port
project, applications for grants or loans from the trade ports development
fund, and consult with state agencies on technical issues relevant to the trade
ports advisory committee’s consideration of an application.
E. Section 9-15F-7, NMSA 1978,
provides that the secretary is granted the authority to review and approve or
disapprove specific geographic areas to be designated as trade port districts,
proposed public-private partnership agreements for a trade port project,
applications for grants or loans from the trade ports development fund, and
consult with state agencies on technical issues relevant to the secretary’s
consideration of an application, and take all other actions necessary to
implement the Trade Ports Development Act, including entering into join powers
agreements and retaining legal counsel and experts when appropriate.
F. Section
9-15F-9, NMSA 1978, creates the trade ports development fund which consists of
appropriations, gifts, grants, donations, income from investment of the fund,
payments of principal and interest on loans made from the fund and any other
money distributed or otherwise allocated to the fund. Income from the fund shall be credited to the
fund and provides that the department shall administer the fund.
[12.13.1.6 NMAC - N, xx/xx/2026]
12.13.1.7 DEFINITIONS:
A. “Act” means the Trade Ports Development Act, Sections 9-15F-1
through 9-15F-13, NMSA 1978, as the same may be amended and supplemented.
B. “Application”
means a written document made publicly available by the department and filed
with the department for the purpose of evaluating a public partner’s or private
partner’s application for grants and loans from the trade port development
fund.
C. “Committee” means the trade ports advisory committee created to recommend approval
or disapproval of applications for grants and loans from the trade ports
development fund.
D. “Department” is the economic development
department.
E. “Feasibility
Study Grant” means a grant award for the purpose of studying the costs and
benefits of entering into a public-private partnership for a proposed trade
port project.
F. “Match
requirement” means a private partner’s matching funds that exceed the
public partner’s monetary obligation for the public-private partnership
agreement.
G. “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 a
combination thereof.
H. “Public
partner”
means the state and the state’s branches, agencies, departments, boards,
instrumentalities or institutions, public universities and related agencies,
special purpose district, public improvement districts, tax increment
development districts, and all political subdivisions of the state and their
agencies, instrumentalities and institutions, including a department, an
agency, an institution of higher education, a board or a commission.
I. “Public-private
partnership” means an arrangement between one or more public partners and one or more
private partners for the development of a trade port project pursuant to the
act.
J. “Public-private
partnership agreement” means a contract between one or more public partners and one or more
private partners in connection with the development of a trade port project.
K. “Secretary” means the secretary of
economic development.
L. “State board
of finance”
means the department of finance and administration board of finance division.
M. “Trade port” means a multimodal system
of facilities and services in a given location with the logistical capacity to efficiently manage cargo and
enhance national supply chain resiliency by facilitating the movement and redistribution
of goods and commodities to other locations.
N. “Trade port
corridor”
means a strategic route or network that facilitates the efficient movement of
goods and services across borders.
O. “Trade ports
development fund” means the fund created in the state treasury by Section 9-15F-9 NMSA
1978.
P. “Trade port
district” means
a distinct geographic area subject to the approval of the secretary pursuant to
the requirements of the act within which proposed trade port projects may be
approved for grants or loans.
Q. “Trade port project” means a project subject to the approval of
the secretary pursuant to the act that creates or modifies infrastructure for
the construction of buildings or other facilities that support the functions of
a trade port within an approved trade port district.
R. “Trade port
regional infrastructure accelerator” means a designation by the United States
department of transportation as a trade port regional infrastructure
accelerator to assist entities in developing improved infrastructure priorities
and financing strategies for local projects.
[12.13.1.7 NMAC - N,
xx/xx/2026]
12.13.1.8 ELIGIBILITY
AND PRIORITIZATION POLICIES: The secretary, in consultation with the committee,
will develop policies and consider a variety of factors in reviewing proposed
public private partnerships for a trade port project, specific geographic areas
to be designated as trade port districts, and applications for grants or loans
from the fund for trade port projects.
The committee shall give priority to proposed public-private
partnerships that meet the requirements of Section 9-15F-8 NMSA 1978. The committee shall give priority to proposed
specific geographic areas to be designated as a trade port district that meets
the requirements of Section 9-15F-3 NMSA 1978.
In considering whether to approve a proposed grant, loan and
public-private partnership agreement, the secretary shall consider the criteria
set forth in Section 9-15F-4 NMSA 1978.
The secretary, in consultation with the committee, shall establish
policies for prioritization of loans and grants.
[12.13.1.8 NMAC - N,
xx/xx/2026]
12.13.1.9 PRE-APPLICATION AND APPLICATION
PROCESS:
A. Prior to
initiating the preparation of an application, a public partner or
public-private partnership is encouraged to schedule a “pre-application
conference” to discuss the proposed project with department staff, the
secretary, as well as consultants and/or professionals that the department may
propose. The secretary may require a pre-application conference as needed, at
his/her sole discretion. The purpose of this conference is to [allow the
applicant and department staff to discuss areas of strength and opportunities
of the application in order to optimize the application review process].
B. Applications must be submitted at
least [eight (8)] business days prior to the committee’s upcoming meeting to be
considered during the upcoming meeting.
C. The
application review process commences when an applicant files a completed
application with the department. The department shall endeavor to review and
evaluate each completed application within [ninety (90)] days of receipt to
allow the committee, department staff, and the secretary to perform a thorough
review. The chair may call a special meeting of the committee to expedite an
application as needed, [or at the secretary’s request].
[12.13.1.9 NMAC - N,
xx/xx/2025]
12.13.1.10 REVIEW AND APPROVAL PROCESS:
A. The committee shall review specific
geographic areas to be designated as trade port districts, proposed
public-private partnership agreements for a trade port project, and
applications for grants or loans from the trade ports development fund, and
make recommendations to the secretary.
B. Upon
the recommendation of the committee, the secretary shall:
(1) determine whether further information is needed to make a
final decision; or
(2) determine whether the recommendation of the committee
should be accepted.
C. All
determinations by the secretary shall be considered final.
[12.13.1.10 NMAC - N,
xx/xx/2026]
12.13.1.11 TRADE PORT DISTRICT PROPOSAL,
APPLICATION, REVIEW AND DESIGNATION CRITERIA:
A. The committee, in consultation with the secretary and the
department, will administer an outreach program to public and private partners
and notify applicants regarding proposals for specific geographic areas to be
considered for designation as a trade port district.
B. Proposals
for specific geographic areas to be considered as a trade port district shall
meet the criteria set forth in the policies established by the secretary and consistent with the Act.
C. A public partner or public partner partnership
requesting the designation of a trade port
district for a certain geographical area shall submit an application to
the committee and the secretary that includes:
(1) Public partner information;
(2) Private partner information;
(3) Market and geographical analysis, including:
(a) Proximity to a
designated federal interstate highway or other four-lane vehicular highway;
(b) Proximity to an airport that can
provide national and international passenger and air freight service;
(4) List of existing infrastructure suitable
for redevelopment or expansion;
(5) Project
overview, including:
(a) Legal description of
the land to be included, including information regarding ownership;
(b) Beneficial impact on economically
disadvantaged communities;
(c) Availability of a public partner
capable of coordinating development activities,
(d) Ability to use any available economic
development incentive programs for projects;
(e) Technological feasibility;
(f) Projected time frame,
(6) Financial
plan, including cost-effectiveness and financial feasibility.
(7) Partnership
and governance;
(8) Impact and workforce development;
(9) Environmental and compliance, including a description of
the environmental impact and mitigation measures; and
(10) Supporting documentation as requested by the secretary in
consultation with the committee.
D. The
committee will complete the initial evaluation of the geographic area proposals
and shall make a recommendation to the secretary for consideration. The secretary may consult with other agencies
and experts as deemed appropriate in order for the secretary to make a final
decision.
[12.13.1.11 NMAC - N,
xx/xx/2026]
12.13.1.12 TRADE PORT PROJECTS, REVIEW AND
APPROVAL PROCESS: For all proposed trade port projects, in deciding
whether to approve a proposed grant, loan and public-private partnership
agreement, the secretary shall consider, at a minimum, the criteria set forth
in Section 9-15F-4 NMSA 1978, as may be amended and supplemented from time to
time.
[12.13.1.12 NMAC - N,
xx/xx/2026]
12.13.1.13 PUBLIC-PRIVATE PARTNERSHIP
AGREEMENTS, APPROVAL, RESTRICTIONS:
A. A public partner is authorized to enter into public-private
partnership agreements with a private partner to provide economic and
administrative efficiencies in connection with the development of trade port
projects. Prior to entering into a
public-private partnership agreement, a public partner shall provide the
committee with all information required by the act and policies established by
the secretary.
B. In
addition to the provisions required by the act, a public-private partnership
agreement shall meet the criteria contained in policies established by the
secretary in consultation with the committee, including clawback provisions
specific to each public-private partnership agreement as determined by the
secretary.
C. A
public-private partnership agreement for a trade port project shall not become
effective until it receives preliminary approval by the secretary pursuant to
the act and final approval by the state board of finance.
D. The
attorney general shall, as requested by the secretary, enforce the clawback or
recapture provision in a public-private partnership agreement in the event of a
default on the agreement.
[12.13.1.13 NMAC - N,
xx/xx/2026]
12.13.1.14 TRADE PORTS DEVELOPMENT FUND
APPLICATIONS, REVIEW: a public partner or public private partnership
requesting funding from the trade ports
development fund for a trade port project shall submit an application to
the committee and the secretary that includes:
A. Public
partner information;
B. Private
partner information;
C. Project
overview;
D. Project
narrative;
E. Financial
plan;
F. Partnership
and governance;
G. Impact
and workforce development;
H. Environmental
and compliance, including a description of the environmental impact and
mitigation measures;
I. Supporting
documentation; and
J. A
certification by the applicant that all information is true and correct.
[12.13.1.14 NMAC - N,
xx/xx/2026]
12.13.1.15 ADMINISTRATIVE COSTS: Money
in the trade ports development fund may be used for administrative fees and
reimbursable costs incurred by the department, the state board of finance and
the department of transportation, subject to the legislative approval process.
[12.13.1.15 NMAC - N,
xx/xx/2026]
12.13.1.16 ADMINISTRATION OF THE TRADE PORTS
DEVELOPMENT FUND:
A. Pursuant to Section 9-15F-9 NMSA 1978, the trade ports
development fund is created in the state treasury and shall be administered by
the department for the purposes of carrying out the provisions of the act,
including the planning, renovation or construction of trade ports and
associated facilities and infrastructure.
B. The
trade ports development fund consists of appropriations, gifts, grants,
donations, income from investment of the fund, payments of principal and
interest on loans made from the fund and any other money distributed or
otherwise allocated to the fund. Income from the trade ports development fund
shall be credited to the fund. Money in the trade ports development fund shall
not revert or be transferred to any other fund at the end of the fiscal year.
C. Money
in the trade ports development fund may be used to make grants of up to two
hundred fifty thousand dollars ($250,000) to a public partner for the purposes
of studying the costs and benefits of entering into a public-private
partnership for a proposed trade port project.
D. Money
in the trade ports development fund may be used to provide grants and loans for
financing a trade port project through a public-private partnership agreement,
provided that the private partner provides funds that match or exceed the
public partner’s monetary obligation for the public-private partnership
agreement, and the public partner certifies to the secretary that the public
partner has taken all action necessary to approve the public-private
partnership agreement and that the agreement contains all terms and conditions
required by Subsection D of Section 9-15F-8 NMSA 1978 of the act.
E. Money
in the trade ports development fund may be used pursuant to Subsections A and C
of 12.13.1.14 NMAC only for grants or loans to a public partner for a trade
port project.
F. Money
in the trade ports development fund may be used for grants or loans to an
Indian nation, tribe or pueblo that has entered into a partnership with a
private partner for the development of a trade port project only if:
(1) The agreement between the Indian nation, tribe or
pueblo and the private partner is approved by the secretary; and
(2) The grant or loan application is approved by the
secretary.
[12.13.1.16 NMAC - N,
xx/xx/2026]
12.13.1.17 REPORTING: Beginning
December 1, 2026, and by December 1 of each year thereafter, the secretary
shall provide a report to the governor and the legislative finance committee
regarding:
A. trade
port districts and trade port projects approved by the secretary;
B. a
description of the businesses and industries participating in each approved
trade port district and trade port project;
C. grant
and loan applications approved by the secretary;
D. public-private
partnership agreements approved by the secretary;
E. the
status of the trade ports development fund; and
F. any
recommended changes to the act.
[12.13.1.17 NMAC - N,
xx/xx/2026]
12.13.1.18 AMENDMENT OF RULES: This rule may be amended or repealed at any time by
the department.
[12.13.1.18 NMAC - N,
xx/xx/2026]
HISTORY OF 12.13.1 NMAC: [RESERVED]