New Mexico Legislature ECONOMIC AND RURAL DEVELOPMENT COMMITTEE 2017 INTERIM FINAL REPORT Legislative Council Service 411 State Capitol Santa Fe, New Mexico 87501 (505) 986-4600 www.nmlegis.gov TABLE OF CONTENTS Interim Summary Work Plan and Meeting Schedule Agendas and Minutes Endorsed Legislation INTERIM SUMMARY Economic and Rural Development Committee 2017 Interim Summary The Economic and Rural Development Committee (ERDC) was created by the New Mexico Legislative Council for the 2017 interim and met six times in communities throughout the state. The committee traveled to Ruidoso, Mescalero, Cimarron, Truth or Consequences, Hernandez and Chama; held a joint meeting with the Mortgage Finance Authority Act Oversight Committee in Santa Teresa; and held two meetings in Santa Fe. The ERDC's focus for the 2017 interim was on issues that have the potential to spur and support economic development in the state. As in previous years, the committee heard presentations on broadband deployment and ways that the state and telecommunications carriers are furthering the goal of full deployment. Health care in rural communities was another topic that received much attention, as was the development and regulation of renewable energy industries. Some other topics explored by the committee included legalization of recreational cannabis, economic contributions of the film industry, the value-added agriculture industry and the economic opportunities and challenges within the Dona Ana County-Mexico border region. Over the interim, the committee considered methods to improve the efficiency of construction permitting and inspection processes and explored ideas for supporting in-state industries and smaller businesses through the Procurement Code. The committee also heard about opportunities for legal reform to foster more predictability for businesses in assessing potential legal liabilities. The committee heard programmatic updates from state agencies whose missions have an impact on economic development, including the Economic Development Department, the Workforce Solutions Department and the Tourism Department. In addition, the committee received detailed updates on the progress of the Rapid Workforce Development Fund and the activities of Spaceport America. The New Mexico Legislative Council tasked the committee in the 2017 interim with receiving reports and updates on the work that had been undertaken by the Jobs Council in previous interims. To that end, the committee received an in-depth report on the work of the Jobs Council and learned of its legislative recommendations on retiree recruitment, solo workers, soft skills and broadband for business. The committee endorsed six pieces of legislation, including three bills to appropriate funds to programs recommended by the working groups of the Jobs Council; an appropriation for New Mexico-grown fresh fruits and vegetables for school meals and juvenile detention centers; an appropriation for aquifer mapping in Colfax, Harding, Mora and Union counties; and a memorial addressing investment in and economic development of frontier communities. WORK PLAN AND MEETING SCHEDULE 2017 APPROVED WORK PLAN AND MEETING SCHEDULE for the ECONOMIC AND RURAL DEVELOPMENT COMMITTEE Members Sen. Benny Shendo, Jr., Chair Sen. Richard C. Martinez Rep. Debbie A. Rodella, Vice Chair Rep. Matthew McQueen Sen. Jacob R. Candelaria Sen. Michael Padilla Rep. Rebecca Dow Sen. John Pinto Sen. Ron Griggs Rep. Jane E. Powdrell-Culbert Rep. Tim D. Lewis Rep. Nathan P. Small Rep. Rick Little Rep. Candie G. Sweetser Rep. Patricia A. Lundstrom Sen. Pat Woods Advisory Members Rep. Eliseo Lee Alcon Sen. Mark Moores Rep. Gail Armstrong Sen. Mary Kay Papen Rep. Alonzo Baldonado Rep. William "Bill" R. Rehm Sen. Craig W. Brandt Rep. Patricia Roybal Caballero Sen. William F. Burt Rep. Angelica Rubio Rep. George Dodge, Jr. Rep. Patricio Ruiloba Rep. Kelly K. Fajardo Rep. Nick L. Salazar Rep. Joanne J. Ferrary Sen. William E. Sharer Rep. David M. Gallegos Rep. James E. Smith Rep. Bealquin Bill Gomez Sen. Elizabeth "Liz" Stefanics Rep. Yvette Herrell Sen. Bill Tallman Rep. D. Wonda Johnson Rep. Linda M. Trujillo Sen. Carroll H. Leavell Rep. Bob Wooley Rep. Sarah Maestas Barnes Rep. Monica Youngblood Rep. Rod Montoya 2017 Approved Work Plan The Economic and Rural Development Committee (ERDC) was created by the New Mexico Legislative Council on June 5, 2017. During the 2017 interim, and as time permits, the ERDC proposes to explore and discuss major areas and specific issues affecting economic and rural development as follows: A. business development resources and state-supported strategies; B. workforce development and education, including: 1. the importance of a mixed delivery early childhood development system; and 2. developing vocational education; C. infrastructure, utilities and basic needs in New Mexico communities, including: 1. broadband deployment in rural communities; 2. energy infrastructure, including plans for future development and renewable energy; 3. rural access to health care and health care industry employment; and 4. building business infrastructure for rural grocery stores and retail or service- oriented businesses under the Local Economic Development Act or other government-sponsored initiatives; D. regulation and licensing, including: 1. revisions to the Procurement Code to provide preferences for small businesses; 2. barriers to occupancy of vacant buildings in rural communities; 3. recommendations from the Construction Industries Division of the Regulation and Licensing Department and other stakeholders on how to streamline permitting and inspection processes at the state and local levels; and 4. the effects of state personnel staffing levels on the issuance of permits and licenses; E. taxes and financial incentives, including: 1. a report on the Native fuel tax; 2. tax credits and incentives for businesses and related economic impacts; and 3. a report on the lodger's tax; F. reports from state agencies and political subdivisions, including: 1. the work of the Jobs Council; 2. current and proposed programs and 2018 legislative priorities of the Economic Development Department and its associated divisions; 3. current and proposed programs and 2018 legislative priorities of the Workforce - 2 - Solutions Department, including detailed reporting on the Rapid Workforce Development Fund and its effectiveness in training and preparing employees and recruiting companies to the state; 4. current and proposed programs and 2018 legislative priorities of the Regulation and Licensing Department and its associated divisions; 5. current and proposed programs and 2018 legislative priorities of the Tourism Department; 6. updates and legislative priorities of the Taxation and Revenue Department; 7. the initiatives and recent activities of Spaceport America; 8. an update from the Independent Hearing Office on its effectiveness in efficiently resolving tax disputes; 9. a report from the Legislative Finance Committee on duplicative state agency services and overlapping regulations; and 10. efforts and opportunities to coordinate newly proposed state agency programs; G. additional topics relating to rural and economic development in the state, including: 1. economic opportunities around the Gallup transportation loading facility; 2. the future of copper mining; 3. value-added agricultural industries; 4. capital outlay needs of the Cumbres and Toltec Scenic Railroad; and 5. New Mexico's legal environment for businesses and opportunities for reform; and H. proposed economic-development-related legislation. - 3 - Economic and Rural Development Committee 2017 Approved Meeting Schedule Date Location June 15 Santa Fe July 26-27 Ruidoso August 31-September 1 Cimarron September 14-15 Truth or Consequences; Santa Teresa (joint meeting with the Mortgage Finance Authority Act Oversight Committee) October 2-3 Hernandez; Chama November 6-7 Santa Fe - 4 - AGENDAS AND MINUTES Revised: June 13, 2017 TENTATIVE AGENDA for the FIRST MEETING of the ECONOMIC AND RURAL DEVELOPMENT COMMITTEE June 15, 2017 State Capitol, Room 311 Santa Fe Thursday, June 15 1:00 p.m. Call to Order and Introductions —Senator Benny Shendo, Jr., Chair 1:15 p.m. (1) Economic Development Department (EDD) Update —Barbara Brazil, Deputy Cabinet Secretary, EDD 2:30 p.m. (2) 2017 Interim Work Plan and Meeting Schedule 3:30 p.m. Adjourn MINUTES of the FIRST MEETING of the ECONOMIC AND RURAL DEVELOPMENT COMMITTEE June 15, 2017 State Capitol, Room 311 Santa Fe The first meeting of the Economic and Rural Development Committee was called to order by Senator Benny Shendo, Jr., chair, on June 15, 2017 at 1:06 p.m. in Room 311 of the State Capitol in Santa Fe. Present Absent Sen. Benny Shendo, Jr., Chair Rep. Matthew McQueen Rep. Debbie A. Rodella, Vice Chair Sen. John Pinto Sen. Jacob R. Candelaria Rep. Rebecca Dow Sen. Ron Griggs Rep. Tim D. Lewis Rep. Rick Little Rep. Patricia A. Lundstrom Sen. Richard C. Martinez Sen. Michael Padilla Rep. Jane E. Powdrell-Culbert Rep. Nathan P. Small Rep. Candie G. Sweetser Sen. Pat Woods Advisory Members Rep. Eliseo Lee Alcon Rep. Gail Armstrong Rep. Kelly K. Fajardo Rep. Alonzo Baldonado Rep. Joanne J. Ferrary Sen. Craig W. Brandt Rep. David M. Gallegos Sen. William F. Burt Rep. Bealquin Bill Gomez Rep. George Dodge, Jr. Sen. Mary Kay Papen Rep. Yvette Herrell Rep. William "Bill" R. Rehm Rep. D. Wonda Johnson Rep. Patricia Roybal Caballero Sen. Carroll H. Leavell Sen. Elizabeth "Liz" Stefanics Rep. Sarah Maestas Barnes Sen. Bill Tallman Rep. Rod