1. A. The economic development department shall establish a development training program that provides quick-response classroom training, in-plant training and skill-enhancement training to furnish qualified workforce resources for new or expanding industries, nonretail service sector businesses and film and multimedia production companies in New Mexico that have business or production procedures that require skills unique to those industries. Training shall be custom designed for, and based on the special requirements of, each company or preemployment training program for the film and multimedia industry. The program shall be operated on a statewide basis and shall be designed to assist any area in becoming more competitive economically.

2. B. There is created the "industrial training board" composed of:

   1. (1) the director of the economic development division of the economic development department;
   2. (2) the director of the instructional support and vocational education division of the public education department;
   3. (3) the director of the governor's office of workforce training and development;
   4. (4) the executive director of the commission on higher education;
   5. (5) an employee of the workforce solutions department;
   6. (6) one member from organized labor appointed by the governor; and
   7. (7) one public member from the business community appointed by the governor.
3. C. The industrial training board shall establish policies and promulgate rules for the administration of appropriated funds and shall provide review and oversight to ensure that funds expended from the development training fund will generate business activity and give measurable growth to the economic base of New Mexico within the legal limits while preserving the ecological state of New Mexico and its people. In expending money from the fund, except that for film and multimedia production companies and preemployment training programs for that industry, the board shall employ a preference for training or instructional services for trainees who meet the criterion in Subparagraph (a) of Paragraph (3) of Subsection F of this section over training or instructional services for trainees who meet the criterion in Subparagraph (b) of that paragraph.

4. D. Subject to the approval of the industrial training board, the economic development division of the economic development department shall:

   1. (1) administer all funds allocated or appropriated for industrial development training purposes;
   2. (2) provide designated training services;
   3. (3) regulate, control and abandon any training program established under the provisions of this section;
   4. (4) assist companies requesting training in the development of a training proposal to meet the companies' workforce needs;
   5. (5) contract for the implementation of all training programs;
   6. (6) provide for training by educational institutions or by a company through in-plant training, at that company's request; and
   7. (7) evaluate training efforts on a basis of performance standards set forth by the industrial training board.
5. E. The instructional support and vocational education division of the public education department shall provide technical assistance to the economic development department concerning the development of agreements, the determination of the most appropriate instructional training to be provided and the review of training program implementation.

6. F. Except as provided in Section 21-19-7.1 NMSA 1978 for film and multimedia production companies and preemployment training programs for that industry, the state shall contract with a company or an educational institution to provide training or instructional services in accordance with the approved training proposal and within the following limitations:

   1. (1) payment shall not be made for training in excess of one thousand forty hours of training per trainee for the total duration of training;
   2. (2) trainees shall be guaranteed full-time employment with the contracted company upon successful completion of the training;

   3. (3) trainees shall be of legal status for employment and:

      1. (a) have resided within the state for at least one year at any time before the start of the training program; or
      2. (b) have resided within the state for at least one day at any time before the start of the training program if the salary of the job guaranteed to the trainee upon successful completion of the training is at least: 1) sixty thousand dollars ($60,000) for a job performed in, based in or within ten miles of the external boundaries of a municipality with a population, according to the most recent federal decennial census, of sixty thousand or more or a job performed in or based in an H class county; or 2) forty thousand dollars ($40,000) for a job performed in or based in a municipality with a population, according to the most recent federal decennial census, of less than sixty thousand or for a job performed in or based in the unincorporated area, not within ten miles of the external boundaries of a municipality with a population of sixty thousand or more, of a county other than an H class county;
   4. (4) payment for institutional classroom training shall be made pursuant to any accepted training contract for a qualified training program;
   5. (5) payment shall not be made pursuant to any accepted training contract for rental of facilities unless facilities are not available on site or at the educational institution;
   6. (6) trainees shall be eligible under the federal Fair Labor Standards Act of 1938, as amended, and shall not have terminated a public school program within the past three months except by graduation;
   7. (7) persons employed to provide the instructional services shall be exempt from the minimum requirements established in the state plan for other state vocational programs;
   8. (8) payment shall not be made for training programs or production of Indian jewelry or imitation Indian jewelry unless a majority of those involved in the training program or production are of Indian descent; and

   9. (9) if a company hires twenty or more trainees, payment shall not be made for training in a municipality with a population, according to the most recent decennial census, of more than forty thousand or in a class A county, unless the company:

      1. (a) offers its employees and their dependents health insurance coverage that is in compliance with the New Mexico Insurance Code [59A-1-1 NMSA 1978]; and
      2. (b) contributes at least fifty percent of the premium for the health insurance plan for those employees who choose to enroll in it; provided that the fifty percent employer contribution shall not be a requirement for the dependent coverage that is offered.

History: Laws 1983, ch. 299, § 1; 1989, ch. 354, § 2; 1991, ch. 21, § 34; 1993, ch. 135, § 1; 1997, ch. 71, § 1; 1999, ch. 155, § 1; 2003, ch. 352, § 1; 2003, ch. 353, § 1; 2003, ch. 360, § 3; 2005, ch. 102, § 1; 2017, ch. 40, § 1; 2021, ch. 96, § 1.

ANNOTATIONS

Cross references. — For Workforce Training Act, see 21-13A-1 NMSA 1978 et seq.

For the federal Fair Labor Standards Act, see 29 U.S.C.S. § 201 et seq.

The 2021 amendment, effective June 18, 2021, allowed for the reduction of the residency requirement for the workforce development training program of the economic development department when the training provided is for high-wage jobs in certain locations of the state; in Subsection C, after "New Mexico and its people", deleted "For fiscal years 2018 through 2022"; and in Subsection F, Subparagraph F(3)(b), deleted "for fiscal years 2018 through 2022".

The 2017 amendment, effective June 16, 2017, temporarily allowed for the reduction of the residency requirement for the workforce development training program of the economic development department when the training provided is for high-wage jobs in certain locations of the state, provided a preference for training or instructional services for trainees who have resided within the state for at least one year in the expenditure of money from the development training fund, and revised the composition of the industrial training board; in Subsection A, after "furnish qualified", deleted "manpower" and added "workforce"; in Subsection B, Paragraph B(2), after "director of the", added "instructional support and", in Paragraph B(5), after "employee of the", added "workforce solutions", and after "department", deleted "of labor"; in Subsection C, after "oversight to", deleted "assure" and added "ensure", after "legal limits", added "while", and added the second sentence; in Subsection D, Paragraph D(4), after "companies’", deleted "manpower" and added "workforce"; in Subsection E, after "The", added "instructional support and"; in Subsection F, Paragraph F(2), deleted "training applicants" and added "trainees shall be guaranteed full-time employment with the contracted company upon successful completion of the training", added new paragraph designation "(3)" and redesignated former Paragraphs F(3) through F(5) as Paragraphs F(4) through F(6), respectively, in Paragraph F(3), added "trainees", after "shall", deleted "have resided within the state for a minimum of one year at any time prior to the commencement of the training program and", and after "employment", added "and", and added new Subparagraphs F(3)(a) and F(3)(b), in Paragraph F(6), deleted "all applicants" and added "trainees", deleted former Paragraph F(6), in Paragraph F(9), after "municipality", deleted "having" and added "with", after "population", deleted "of more than forty thousand", after "decennial census", added "of more than forty thousand", and after "or", added "in", and in Subparagraph F(9)(b), after "contributes", deleted "not less than" and added "at least", after "health insurance", added "plan", and after "choose to enroll", added "in it".

The 2005 amendment, effective April 4, 2005, added in Subsection A requirement that the economic development department establish programs for class room training and skill enhancement training to furnish qualified manpower resources for film and multimedia production companies and added the provision that training shall be costumed designed for pre-employment training programs for the film and multimedia industry; modified Subsection B by removing the director of the job training division of the labor department as a member of the board and substituting the director of the governor's office of workforce training and development and adding an employee of the department of labor as a member of the board; provided in Subsection F that except as provided in Section 21-19-7.1 NMSA 1978 for film and multimedia production companies and pre-employment training programs for that industry, the state shall contract for the provision of training and instructional services and that training applicants shall have resided in the state for a minimum of one year at any time prior to commencement of the training program; and deleted the exception in Subsection F(2) for waiver of residency requirement prior to July 1, 2004.

Compiler's notes. — Laws 2005, ch. 102 is contingent upon an "appropriation for development training in the General Appropriations Act of 2005". The General Appropriations Act of 2005 does not provide for an appropriation for development training, but rather authorizes use of cash balances in the "development training fund". The actual appropriation of funds from the "development training fund" is provided by 21-19-11 NMSA 1978 and not the General Appropriations Act of 2005. Section 21-19-11 NMSA 1978 provides that "Money appropriated to the fund or accruing to it through gifts, grants, repayments or bequests shall not be transferred to any other fund or be encumbered or disbursed in any manner except as provided in Section 21-19-7 NMSA 1978." Laws 2005, ch. 33, Subsection D of § 4 of the General Appropriations Act of 2005 provides as follows: "Notwithstanding Section 21-19-7 NMSA 1978 and Section 21-9-7.1 NMSA 1978, the economic development department may use up to five percent of the cash balances in the development training fund as of December 31, 2004 for skill-enhancement training and pre-employment training programs for the film and multimedia industry." This is not actually an appropriation by an authorization to use funds appropriated by Section 21-19-11 NMSA 1978. The prohibition against using funds for another purpose is found in 21-19-11 NMSA 1978 and not 21-19-7 or 21-9-7 NMSA 1978.

The 2003 amendment, effective January 1, 2004, in Subsection A, deleted "the particular company" and "shall be" following "designed for" in the second sentence; and added Paragraph F(9).

The 1999 amendment, effective June 18, 1999, added the proviso at the end of the introductory language in Paragraph F(2) and added Subparagraphs F(2)(a) through F(2)(d).

The 1997 amendment, effective April 8, 1997, made a minor stylistic change in Subsection B; substituted "economic development division of the economic development department" for "vocational education division of the state department of public education" in Subsection D; added Subsection E and redesignated former Subsection E as F; and substituted "of legal status for employment" for "citizens of the United States" in Paragraph F(1).