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An Act Relating To Public Projects; Enacting The Public-private Partnerships Act; Allowing The State And Local Governments To Enter Into Long-term Partnerships With Private Sector Partners To Facilitate Public Projects; Providing Powers And Duties; Prescribing Penalties.

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MOD HB 299

Legislative URL:
HB 299 on
Emergency Clause:
[5] HTPWC/HJC-HTPWC [23] DP/a-HJC [28] DP [33] PASSED/H (38-27)- SJC/SFC-SJC API.

Related Legislators

Bill Sponsor:

Related Documents

HTPWC Committee Report
HJC Committee Report
Final House Vote
Fiscal Impact Report

This bill enacts the Public-Private Partnerships Act, allowing the state and local governments to enter into long-term partnerships with private sector partners to facilitate public projects.


A “public-private partnership” is defined as an agreement between one or more public partners and one or more private partners for the design, development, financing, construction, operation or maintenance of a public project.


“Public project” includes, in part, airports, railways, subways or other transportation facilities and roads; utility and telecommunications infrastructure; dams and reservoirs; sewerage or water treatment facilities; power generating plants, pump stations, natural gas compressing stations or similar facilities; sewer, water, gas or other pipelines; transmission lines; improvements necessary or desirable to any unimproved state- or locally owned real estate; or, recycling facilities or solid waste management facilities that produce electric energy derived from solid waste.


The General Services Department must, in consultation with the State Purchasing Agent, the New Mexico Finance Authority, the Economic Development Department, the Department of Finance and Administration, and the Office of the State Engineer, develop guidelines to implement the provisions of the Public-Private Partnerships Act, including the process that the department will follow with respect to the public-private partnership agreements.


Before a public-private partnership can be established, the General Services Department must review and approve all public-private partnership agreements that include a total public project cost greater than $50,000,000 or a partnership term that is longer than 35 years.


Included among the many issues the public partner is required to consider before entering into a public-private partnership are the compatibility of the public project with local and regional land and water plans; benefits to the public, including improvements in economic growth, job creation, public safety and quality of life; green building design and construction certification by a nationally recognized organization; and innovations in energy efficiency or generation.


If the partnership ends, the project reverts to the public partner for public use.


This bill may be a positive step toward completing public projects that could not be done by state and local governments alone due to a lack of funding. On the other hand, the bill may raise concerns about the extent of a private partner’s control over facilities and infrastructure that are historically owned by public entities.