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 10:00 – 11:00 a.m.
The hearing will be conducted in person at the following location:
Thursday, February 26, 2026, 10:00-11:00 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 2.95.1 NMAC,
Strategic Economic Development Site Readiness Act, Laws 2025, Ch. 70 (Senate
Bill 169 Approved April 7, 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 Strategic Economic Development Site Readiness Act, Section 6-25B-1 et seq., NMSA 1978, specifically 6-25B-5.D.
Proposed Rule:
This is a new Rule, 2.95.1
NMAC, Sections 1 through 16, effective March 24, 2026.
2.95.1.1 ISSUING
AGENCY: Economic Development Department.
[2.95.1.1 NMAC - N,
xx/xx/2025]
2.95.1.2 SCOPE: All public partners
and private partners applying for Strategic Economic Development Site Readiness
Act funds through the Economic Development Department.
[2.95.1.2 NMAC - N,
xx/xx/2025]
2.95.1.3 STATUTORY
AUTHORITY: Section 6-25B-5, NMSA 1978.
[2.95.1.3 NMAC - N, xx/xx/2025]
2.95.1.4 DURATION: Permanent.
[2.95.1.4 NMAC - N,
xx/xx/2025]
2.95.1.5 EFFECTIVE
DATE:
xx/xx, 2025 unless a later date is cited at the end of a section.
[2.95.1.5 NMAC - N, xx/xx/2025]
2.95.1.6 OBJECTIVE:
A. Section
6-25B-3, NMSA 1978, provides that the department may enter into contracts with
public partners and private partners for site characterization studies of
proposed economic development sites to determine the suitability of such sites
for certification as a strategic economic development site.
B. Section 6-25B-4, NMSA 1978,
creates the strategic economic development site advisory committee and provides
that the department shall provide necessary administrative services to the
committee.
C. Section 6-25B-5, NMSA 1978,
provides that the committee is granted authority to recommend approval or
disapproval of applications for grants or loans from the site readiness fund,
or to make recommendations for funding from the public project revolving fund
or other potential funding sources to public and private partners to assist in
the evaluation of proposals for site characterization studies or proposed
economic development sites to assess the suitability of a proposed strategic
economic development site for development by a public partner or private
partner, and to promulgate rules necessary to carry out the provisions of the
act.
D. Section 6-25B-7, NMSA 1978, provides
that the department shall administer the site readiness fund and recover from
the fund the costs of administering the fund.
[2.95.1.6 NMAC - N, xx/xx/2025]
2.95.1.7 DEFINITIONS:
A. “Act” means the Strategic
Economic Development Site Readiness Act, Sections 6-25B-1 through 6-25B-8, 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 site
readiness fund, the public project revolving fund and other potential funding
sources.
C. “Committee” means the strategic economic development site advisory committee
created to recommend approval or disapproval of applications for grants and
loans from the site readiness fund, the public project revolving fund and other
potential funding sources.
D. “Department”
is the economic development department.
E. “Economic
development site” means a site for proposed economic development that
promotes economic activity and job creation based on criteria developed by the
department, but excludes general housing development, affordable housing, lands
with known environmental contaminations, and other criteria as may be
determined by the department that do not provide economic base job development
opportunities.
F. “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.
G. “Public partner” means the state and the
state’s branches, agencies, departments, boards, instrumentalities or
institutions, public improvement district, tax increment development district,
and all political subdivisions of the state and their agencies, instrumentalities
and institutions, including a department, an institution of higher education, a
board or a commission, and includes Indian nations, tribes and pueblos.
H. “Public project revolving fund” means the fund created in
and administered by the New Mexico finance authority pursuant to Section
6-21-6, NMSA 1978, as the same may be amended and supplemented.
I. “Secretary” means the secretary of
economic development.
J. “Site characterization study” means the study of proposed
economic development sites conducted pursuant to the provisions of Subsection C
of Section 6-25B-3, NMSA 1978, to determine the suitability of such sites for
certification as a strategic economic development site.
K. “Site pre-development project” means a designated
strategic economic development site project that will enhance the readiness of
the strategic economic development site, and may include: (1) surveying,
engineering, planning and architectural work required in advance of
construction on site development and building construction; (2) environmental
assessments and remediation; (3) public infrastructure improvements necessary
prior to the start of site development and building construction, including
roads and utilities; (4) site preparation, including landscaping and drainage
improvements; and (5) government permitting.
L. “Site
readiness fund” means the fund
created in the state treasury by Section 6-25B-7, NMSA 1978 and 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 allocation to the fund.
M. “Strategic Economic Development Site” means a site designated as
a strategic economic development site by the secretary, upon the review and
recommendation of a site characterization study by the strategic economic
development site advisory committee.
[2.95.1.7
NMAC - N, xx/xx/2025]
2.95.1.8 PRE-APPLICATION AND APPLICATION
PROCESS:
A. Prior to
initiating the preparation of an application, a public or private partner is
encouraged to schedule a “pre-application conference” to discuss the proposed
site with department staff, the secretary, and [], 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 committee 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 department’s
request].
[2.95.1.8 NMAC - N,
xx/xx/2025]
2.95.1.9 REVIEW AND APPROVAL PROCESS:
A. The
committee shall review applications for site characterization studies and for
grants or loans from the site readiness 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.
[12.13.1.9 NMAC - N,
xx/xx/2026]
2.95.1.10 ELIGIBILITY
AND PRIORITIZATION FOR STRATEGIC ECONOMIC DEVELOPMENT SITE PROPOSALS: The committee will develop and consider a variety of
factors in reviewing and evaluating strategic economic development site
proposals to determine which proposals to recommend to the secretary as a
strategic economic development site qualified to receive a grant or loan from
the site readiness fund or whether to recommend funding from the public project
revolving fund or other available funding source. The committee shall establish
policies for prioritization of strategic economic development sites.
[2.95.1.10 NMAC - N,
xx/xx/2025]
2.95.1.11 SITE
CHARACTERIZATION STUDIES OF PROPOSED STRATEGIC ECONOMIC DEVELOPMENT SITES,
CONTRACTS:
A. The secretary will accept for consideration proposals
for site characterization studies of proposed strategic economic development
sites to determine the suitability of such sites for certification as a
strategic economic development site.
B. If the secretary determines that a proposed site is appropriate for a
site characterization study, the department and a public partner or a private
partner may enter into a contract to determine the suitability of proposed
economic development sites for certification as a strategic economic
development site. The contract to
determine suitability of a proposed economic development site shall define the
roles and responsibilities of the department and the public partner or private
partner, provide clawback or recapture provisions
determined by the department, if applicable, that protect the public investment
in the event of a default on the contract; and assess the suitability of a
proposed economic development site for development by a public partner or private
partner, taking into consideration those characteristics set forth in policies
approved by the department and consistent with the act.
C. The
department will monitor the terms of the contract and enforce or cause to be
enforced all terms and conditions thereof.
In the event of default under a contract to determine suitability of
proposed economic development sites, the department may enforce its rights by
suit or mandamus and may utilize all other available remedies under state and
applicable federal law.
D. The
department shall review contracts to determine suitability of proposed economic
development sites from time to time and determine whether the use of site
readiness funds is a prudent expenditure of public funds and report to the
legislature annually on that determination.
[2.95.1.11 NMAC - N,
xx/xx/2025]
2.95.1.12 SITE CHARACTERIZATION STUDIES OF
PROPOSED STRATEGIC ECONOMIC DEVELOPMENT SITES, REVIEW AND APPROVAL PROCESS:
A. The committee shall review site characterization
studies and recommend the designation of proposed strategic economic
development sites for consideration by the department.
B. The
committee will complete an initial evaluation of the site characterization
study promptly upon receipt. The
committee may rely on the advice of other state agencies and county and local
governments on technical issues relevant to the committee’s consideration of
proposed strategic economic development sites and applications for grants and
loans from the site readiness fund. The
committee will make a recommendation to the department on each site
characterization study.
C. Upon
the recommendation of the committee, the secretary shall:
(1) determine whether there needs to be further study of the
characteristics of proposed economic development sites; or
(2) determine whether the proposed economic development site
should be designated as a strategic economic development site.
[2.95.1.12 NMAC - N,
xx/xx/2025]
2.95.1.13 STRATEGIC ECONOMIC DEVELOPMENT
SITE PRE-DEVELOPMENT PROJECTS, REVIEW, PRIORITIZATION AND APPROVAL PROCESS:
A. Upon designation as a strategic economic development
site, the secretary may solicit proposals from public partners and private
partners for site pre-development projects that will enhance the readiness of
the strategic economic development site.
Site pre-development projects may include:
(1) surveying, engineering, planning and architectural work
required in advance of construction on site development and building
construction;
(2) environmental assessments and remediation;
(3) public infrastructure improvements necessary prior to the
start of site development and building constructions, including roads and
utilities;
(4) site preparation, including landscaping and drainage
improvements; and
(5) governmental permitting.
B. The
committee shall review each complete and compliant pre-development project
application from a public or private partner associated with a strategic
economic development site and provide a recommendation to the secretary
regarding potential funding through the site readiness fund or whether the
application should be recommended for funding from the public project revolving
fund or other available funding sources.
C. Following the committee review, the secretary shall determine which
proposed site pre-development projects will receive funding from the site
readiness fund, at what amount, and for what purposes.
[2.95.1.13 NMAC - N,
xx/xx/2025]
2.95.1.14 ADMINISTRATION OF THE SITE
READINESS FUND:
A. Pursuant
to Section 6-25B-7, NMSA 1978, the site readiness fund is created in the state
treasury and shall be administered by the department to provide grants and
loans for financing site pre-development projects.
B. Money
from repayments of loans made by the department shall be deposited in the site
readiness fund. The site readiness fund
shall also consist of any other money appropriated, distributed or otherwise
allocated to the site readiness fund for the purposes of the act.
C. Money in the fund shall be used for the purpose of carrying out the
provisions of the act, including site characterization studies of proposed
economic development sites and site preparations of designated strategic
economic development sites.
D. Disbursements
from the site readiness fund shall be made by warrant of the secretary of
finance and administration pursuant to vouchers signed by the secretary of the
department or the secretary’s authorized representative.
E. The
department may establish procedures to administer the site readiness fund and
to recover from the site readiness fund administrative and reimbursable costs
incurred by the department for originating grants and loans, subject to the
legislative appropriation process.
[2.95.1.14 NMAC - N,
xx/xx/2025]
2.95.1.15 REPORTING: Beginning
October 1, 2026 and each October 1 thereafter, the
secretary shall provide a report to the governor, the legislative finance committee
and the appropriate interim legislative committees regarding:
A. The
number and location of proposed economic development sites that have been
approved for site characterization studies;
B. The
number and location of strategic economic development sites that have been
approved by the secretary;
C. The
number and location of site pre-development projects that have been approved by
the secretary, including those that have been approved for funding, in whole or
in part, through grants and loans from the site readiness fund, the public
project revolving fund or other funding resources;
D. The
status of the site readiness fund; and
E. Recommended
changes to the act.
[2.95.1.15 NMAC - N,
xx/xx/2025]
2.95.1.16 AMENDMENT OF RULES: This rule may be amended or repealed at any time by
the department.
[2.95.1.16 NMAC - N,
xx/xx/2025]
HISTORY OF 2.95.1 NMAC: [RESERVED]