House Bill 352, sponsored by Rep. Jason Harper, R- Rio Rancho unanimously passed the Senate floor today.
The bill will requires mandatory “clawback” provisions in contracts involving companies that receive taxpayer money and then renege on their agreements.
The bill has received bipartisan support and was cosponsored by Rep. Nate Gentry and Rep. Brian Egolf. It unanimously passed the House last month.
“I’m grateful to my colleagues in the House and Senate for passing this legislation and for their support to protect the investments of New Mexico taxpayers,” said Rep. Harper, in an emailed statement.
The legislation is aimed at preventing a situation like when Hewlett-Packard of Rio Rancho recently laid off 200 workers, placing HP below their agreed-upon staffing requirements, and they are required to pay the city a clawback of only around $71,000, and no clawback was in place for the state’s $6 million investment.