requirements; restrictions. A. To provide economic and administrative efficiencies in connection with the development of trade port projects, a public partner is authorized to enter into public- private partnership agreements. B. Prior to entering into negotiations regarding the use of a public-private partnership agreement as a method of implementing a proposed trade port project, the public partner shall publish in a newspaper of general circulation its interest in considering such an agreement, and such publication shall include a description of the scope of the proposed trade port project. C. Prior to entering into a public-private partnership agreement, a public partner shall: (1) undertake a cost-benefit analysis of a public-private partnership trade port project in comparison with a traditional public-partner-managed project; (2) conduct a public hearing relating to the proposed public-private partnership held in accordance with the Open Meetings Act [Chapter 10, Article 15 NMSA 1978]; (3) demonstrate that the proposed trade port project serves an important public purpose and fulfills an important public need; and (4) demonstrate that the proposed trade port project will comply with applicable state and federal law. D. A public-private partnership agreement shall: (1) define the roles and responsibilities of the public partners and the private partners; (2) provide clawback or recapture provisions that protect the public investment in the event of a default on the agreement; (3) provide a finance plan detailing the financial contributions and obligations of the public partners and the private partners; (4) require a private partner to provide, or cause to be provided, performance and payment bonds as required pursuant to Section 13-4-18 NMSA 1978; (5) require a private partner to provide guarantees, letters of credit or other acceptable forms of security, the amount of which may be less than one hundred percent of the value of the proposed trade port project based on the determination of the public partner or, for public-private partnership agreements requiring approval pursuant to the Trade Ports Development Act, based on the determination by the secretary; (6) specify how revenue will be collected, accounted for and audited; (7) specify how debts incurred on behalf of the public partner or private partner will be repaid; (8) address how the public partners and private partners will share the management and risks of the trade port project; (9) provide that, in the event of an uncured default, the public partner may: (a) elect to take over the trade port project, including the succession of all right, title and interest in or to the project, subject to any liens on revenue previously granted by the private partner; and (b) terminate the public-private partnership and exercise any other rights and remedies that may be available, where such right to terminate may also be exercised by the secretary if the secretary finds it is in the public interest to do so; (10) specify the term of the public-private partnership agreement, which shall not exceed thirty years; (11) limit a private partner from seeking injunctive or other equitable relief to in any way restrict a public partner from developing, constructing or maintaining a trade port project, except that the public-private partnership agreement may provide for reasonable compensation to the private partner for an adverse effect resulting from development, construction, operation and maintenance of another trade port project of a public partner; (12) provide for the protection of proprietary information of the private partner; (13) provide that operations and maintenance of a trade port project shall be performed by the public partner, except for broadband, telecommunications and energy infrastructure components of the trade port project; (14) provide provisions for termination of the public-private partnership agreement, including the cessation of the powers and duties of the private partner; and (15) provide project benchmarks or deliverables that must be satisfied prior to the disbursement of public funds. E. A public-private partnership agreement for a trade port project shall not become effective until it receives preliminary approval by the secretary, pursuant to Subsection C of Section 7 [9-15F-7 NMSA 1978] of the Trade Ports Development Act, and final approval by the state board of finance. F. The attorney general shall, as requested by the secretary, enforce a clawback or recapture provision in a public-private partnership agreement in the event of a default on the agreement. History: Laws 2025, ch. 86, § 8.
‹ Prev All New Mexico sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.