2015 Legislature
FOCUS REPORT
FOCUS Report 2015
ACI Battled Partisanship in 2015 Legislature
By Dr. Beverlee McClure
ACI President and CEO
The 2015 Legislative session was
one of the most divisive and gridlocked in New Mexico history.
Many in New Mexico’s businesses
community assumed that the new
Republican-controlled House would
mean new opportunities for business.
But in many ways, the newly divided
legislature only meant bad news. The
partisanship and division was evident
on both sides, and the number of
bills that ultimately passed both
houses was a record low.
Still, there were many new opportunities for change this session, and
ACI capitalized on these at every
turn.
As you will see in this year’s legislative scorecard and bill summary,
Inside:
ACI was successful in moving much
of our priority legislation forward in
both the House and the Senate.
While many other associations struggled to get their bills heard, ACI’s
extensive groundwork paid off. By
working closely with both chambers
and with both D’s and R’s, ACI
fared better than most in navigating
the ugly partisanship that stalled other proposals this session.
And many ideas—right to work, improvements to unemployment insurance, headquarters incentives, and
others—came to the forefront this
year and started conversations that
will not end with the legislative session. Only days since the closing
gavel, ACI is already working on
taking the lead and continuing the
conversation in 2016. New Mexico’s future is a marathon, not a
ACI’s 2015 Legislative Scorecard
Senate
House
FOCUS on Committees
2015 FOCUS Priority Bill Summary
FOCUS on the Issues
Anti-Business Legislation
The Budget
Capital Outlay
Independent Hearing Officers
Procurement Reform
Right to Work
Tax Package
Worker’s Compensation
2015 Legislature by the Numbers
FOCUS on the Governor
Bill Catalog
ACI Investors
How a Bill Becomes Law
sprint, and
with our
members we
are equipped
to continue
working for
change in the
long haul.
None of this
would be
possible
without our members.
This year’s FOCUS report is a valuable tool for you as a leader to evaluate what happened this year and help
us prepare for 2016. We look forward to hearing from you, and to
working together in the year ahead
for a stronger, more prosperous New
Mexico.
2015 Legislative Scorecard:
3-5
3
4-5
6-7
8-12
12
10
10
8
8
13
13
14
9
14
16-17
18
15
Here you can see how your legislator voted on the 29 bills
tracked by ACI as FOCUS priorities. Because the majority of the action to kill or promote a bill happens in committee, scores include both floor and committee votes.
Keep in mind, ACI tracked hundreds of other bills during
the legislative session; FOCUS bills are selected as our
key priorities and as indicators of friendliness to business.
Reading the Scorecard:
Legislators: (D/R) indicates party; (*) indicates a freshman.
Bills in black type were supported by ACI.
Bills in red type were opposed by ACI.
Vote supported by ACI
Vote opposed by ACI
Sponsorship supported by ACI
Sponsorship opposed by ACI
Position changed between committee and floor
e
Excused– no vote cast
a
Absent– no vote cast
The Voice of New Mexico Business
Page 2
Vol. XXV
SB 553: Wkrs Comp/Intox.
SB 537: Sunshine Portal
SB 413: Angel Investment
SB 374: Enviro. Covenants
SB 356: Ind. Hearing Office
SB 233: Temp. Disability
SB 194: Admin. Proc. Act.
SB 183: RTW
SB 164: Job Training
152: Health Security
HB 250: Return to Work
HB 238: Wkrs Comp/Intox.
HB 130: RFP Reviews
HB75: RTW
FOCUS Scorecard 2015: Senate
a
Sue Wilson Beffort (R-19)
Craig W. Brandt (R-40)
William F. Burt (R-33)
Sen. Cervantes added an amendment to HB 238 that ACI opposed
because of its negative impact upon business. The vote on that
amendment was not recorded.
Pete Campos (D-8)
Jacob Candelaria (D-26)
e
Joseph Cervantes (D-31)
Carlos R. Cisneros (D-6)
a
Lee S. Cotter (R-36)
e
e
Phil A. Griego (D-39)
Ron Griggs (R-34)
e
e
Yes votes on SB 152 were on a
motion to pass without recommendation, which moves the bill forward (and are thus opposed by
ACI) but do express concern over
the bill.
Stuart Ingle(R-27)
Daniel A. Ivey-Soto (D-15)
Gay G. Kernan (R-42)
Carroll H. Leavell (R-41)
e
Linda M. Lopez (D-11)
Richard C. Martinez (D-5)
HB 238 and SB 553 were companion bills introduced in the House
and Senate.
Cisco McSorley (D-16)
Mark Moores (R-21)
e
Howie C. Morales (D-28)
e
George K. Munoz (D-4)
See pp. 6-7 for a full picture of
action taken on FOCUS bills in
committee, as well as key committee votes.
Steven P. Neville (R-2)
Bill B. O'Neill (D-13)
Gerald Ortiz y Pino(D-12)
Michael Padilla (D-14)
e
e
e
e
e
e
Mary Kay Papen (D-38)
William H. Payne (R-20)
John Pinto (D-3)
e
Cliff R. Pirtle (R-32)
Nancy Rodriguez (D-24)
Sander Rue (R-23)
e
e
John C. Ryan (R-10)
Clemente Sanchez (D-30)
Michael S. Sanchez(D-29)
e
John M. Sapien (D-9)
William E. Sharer (R-1)
e
Benny Shendo, Jr. (D-22)
e
John Arthur Smith (D-35)
William P. Soules (D-37)
*Mimi Stewart (D-17)
Lisa A. Torraco (R-18)
e
e
e
e
e
e
Peter Wirth (D-25)
Pat Woods (R-7)
The Voice of New Mexico Business
Vol. XXV
Page 3
FOCUS Report 2015
SB 537: Sunshine Portal
SB 356: Ind. Hearing Office
SB 233: Temp. Disability
HB 312: LEDA
HB 286: HQ Operations
HB 250: Return to Work
HB 238: Wkrs Comp/Intox.
HB 130: RFP Reviews
HB75: RTW
HB 55/80: Project Wages
FOCUS Scorecard 2015: House of Representatives
*David E. Adkins (R-29)
Eliseo Lee Alcon (D-6)
*Deborah A. Armstrong
a
Alonzo Baldonado (R-8)
Paul C. Bandy (R-3)
Cathrynn N. Brown(R-55)
Gail Chasey (D-18)
HB 312, funding for
LEDA, was ultimately
included in the budget
passed by the House
and Senate and signed
by the Governor (see
page 10).
S. Clahchischilliage (R-4)
Zachary J. Cook (R-56)
a
HB 286 was tabled in
the House Ways and
Means Committee, but
was included in the Tax
Package, SB 386. SB
386 was created as a
tax package by the
House Ways and Means
Committee. (see page
13).
a
*Randal S. Crowder(R-64)
*Jim Dines (R-20)
George Dodge, Jr. (D-63)
Brian Egolf (D-47)
Nora Espinoza (R-59)
Candy Spence Ezzell
Kelly K. Fajardo (R-7)
David M. Gallegos (R-61)
Doreen Y. Gallegos(D-52)
e
Miguel P. Garcia (D-14)
It is important to note
that HB 75 was brought
for a floor vote with an
amendment attached
which proposed to increase the statewide
minimum wage to $8
an hour.
a
S. Garcia Richard (D-43)
Nate Gentry (R-30)
*Bealquin Bill Gomez(D-34)
Roberto J. Gonzales (D-42)
Jimmie C. Hall (R-28)
e e
Dianne Miller Hamilton(R-38)
Jason C. Harper (R-57)
e
Yvette Herrell (R-51)
Dona G. Irwin (D-32)
a
e
e
*Conrad James (R-24)
*D. Wonda Johnson (D-5)
Larry A. Larrañaga (R-27)
Tim D. Lewis (R-60)
*Rick Little (R-53)
Georgene Louis (D-26)
Patricia Lundstrom(D-9)
The Voice of New Mexico Business
Page 4
Vol. XXV
FOCUS Report 2015
James Roger Madalena (D-65)
Antonio Maestas (D-16)
e
SB 537: Sunshine Portal
SB 356: Ind. Hearing Office
SB 233: Temp. Disability
HB 312: LEDA
HB 286: HQ Operations
HB 250: Return to Work
HB 238: Wkrs Comp/Intox.
HB 130: RFP Reviews
HB75: RTW
HB 55/80: Project Wages
FOCUS Scorecard 2015: House of Representatives (continued)
e
*Sarah Maestas Barnes(R-15)
*Stephanie Maez (D-21)
e
W. Ken Martinez (D-69)
e
a
*Javier Martínez (D-11)
Bill McCamley (D-33)
Terry H. McMillan (R-37)
*Matthew McQueen (D-50)
*Rod Montoya (R-1)
*Andy Nunez (R-36)
a
Paul A. Pacheco (R-23)
e
e
Jane E. Powdrell-Culbert(R-44)
William "Bill" R. Rehm(R-31)
Dennis J. Roch (R-67)
Debbie A. Rodella (D-41)
*G. Andres Romero (D-10)
P. Roybal Caballero(D-13)
*Patricio Ruiloba (D-12)
Nick L. Salazar (D-40)
e
e
e
e
a
Tomás E. Salazar (D-70)
*Larry R. Scott (R-62)
James E. Smith (R-22)
a
a
S. Williams Stapleton(D-19)
Jeff Steinborn (D-35)
James R.J. Strickler (R-2)
*James G. Townsend(R-54)
Don L. Tripp (R-49)
Carl Trujillo (D-46)
Christine Trujillo (D-25)
Jim R. Trujillo (D-45)
Luciano "Lucky" Varela(D-48)
e
e
e
e
e
e
Bob Wooley (R-66)
Monica Youngblood
a
*John L. Zimmerman(R-39)
The Voice of New Mexico Business
Vol. XXV
Page 5
FOCUS Report 2015
FOCUS on Committees
As shown below, the vast majority of
what happens to a bill happens in committee. ACI works extensively in the
committee process, both to block jobkilling legislation, and to make sure
pro-business bills move forward. Of
the 24 bills supported by ACI as FOCUS priorities, ten were killed by one
of three Senate Committees: Public
Affairs (5), Judiciary (3), and Conservation (2).
The House, too, had its share of stalled
pro-business proposals, with five
FOCUS priorities dying in House
committees.
Bills can die either by a vote to table,
or simply because they are never
brought up for discussion or a vote in
the committee. Because neither of
these are recorded (unlike a motion to
pass a bill) it is difficult to hold individual legislators accountable for bills
that fail in a particular committee.
Still, it is important to recognize which
committees as a whole are friendly to
and opposed to business.
Bill Progress in Committees
Bill Progressed
Bill Died Bill Referred, Never Heard
Cmte
Cmte
Floor
Cmte
Cmte
Floor
Gov
Bills Supported by ACI as FOCUS Priorities:
HB 55/80: Public Works Project Wages
HBEC HTPWC House
SJC
SFC
HB75: Right to Work
HBEC
HJC
House
SPAC
SJC
HB 130: Procurement Review
HGEIC
HBEC
House SCORC
Senate†
HB 238: Workers’ Comp/Intoxication
HJC
HBEC
House SCORC
SJC
not heard
HB 250: Workers’ Comp/Return to Work
HBEC
HJC
House SCORC
SJC
HB 261: Angel Investment Min. & Sunset HWMC* HAFC
*HB 286 and SB 413/HB 261 were rolled
HB 286: Single Sales Factor/HQ
HBEC* HWMC
into the tax package that was never brought
HB 312: LEDA Implementation
HBEC** HAFC
for a vote in the Senate.
HB 395: Venue Shopping
HSCAC
HJC
HB 498: Preemption/Wage & Leave
HRPAC HBEC
**HB 312 and SB 164 were included in the
SB 103: Right to Work
SPAC
SJC
budget that was passed by both chambers
SB 164: Job Training
SCORC** SFC
and signed into law by the Governor.
SB 183: Right to Work
SPAC
SJC
SB 184: No STB in Certain Counties
SCONC
SFC
SB 194: Proposing & Changing Rules
SRC
SJC
Senate
HJC
SB 233: Temporary Disability Benefit
SCORC
SJC
Senate
HJC
House
signed
SB 356: Independent Hearing Office
SPAC
SJC
Senate HWMC
House
signed
SB 374: Uniform Enviro Covenants
SCONC
SJC
SB 413: Angel Investment Min. & Sunset
SCORC*
SFC
SB 421: Local Govt Zoning & Commissions SCONC
SJC
SB 537: Sunshine Portal State Contract Info SPAC
SJC
Senate HGEIC
HJC
House
signed
SB 553: Workers Comp./Intoxication
SCORC
SJC
not heard
SB 664: Right to Work
SPAC
SJC
†HB 130 passed the House and Senate,
Bills Opposed by ACI as FOCUS Priorities:
but was rejected in conference committee.
HB 21: Supplemental Income Tax
HRPAC HWMC
See the story on page 8.
SB 56: Unitary combined Tax Reporting
SCORC
SFC
‡ The Senate Public Affairs Committee
SB 57: Unitary Restaurant Tax Reporting
SCORC
SFC
‡
passed SB 152 without recommendation.
SB 152: Health Security Act
SPAC
SJC
The Voice of New Mexico Business
Page 6
Vol. XXV
FOCUS Report 2015
Key Committee Votes
Senate Judiciary Committee
HB 250: Workers’ Compensation/
Return to Work
ACI Position: Supported Do Pass Motion
Voted For Do Pass Motion
(pro-business position)
Sen. William H. Payne (Ranking Member)
Sen. Ron Griggs
Sen. John C. Ryan
Voted Against Do Pass Motion
(anti-business position)
Sen. Richard C. Martinez (Chair)
Sen. Joseph Cervantes (Vice Chair)
Sen. Linda M. Lopez
Sen. Cisco McSorley
Sen. Michael A. Sanchez
Sen. Lisa A. Torraco
Sen. Peter Wirth
Senate Public Affairs Committee
HB 75: Right to Work
ACI Position: Opposed Motion to Table
Voted to Table
(anti-business position)
Sen. Gerald Ortiz y Pino (Chair)
Sen. Jacob Candelaria
Sen. Daniel Ivey-Soto
Sen. Bill O’Neill
Sen. Mimi Stewart
Voted Against Motion to Table
(pro-business position)
Sen. Craig Brandt (Ranking Member)
Sen. Ron Griggs
Sen. Gay Kernan
Senate Corporations and Transportation
Committee
SB 56: Unitary Combined Tax Reporting
ACI Position: Supported Motion to Table
Voted to Table
(pro-business position)
Sen. Phil Griego (Chair)
Sen. Clemente Sanchez (Vice Chair)
Sen. William E. Sharer (Ranking Member)
Sen. Lee S. Cotter
Sen. Mark Moores
Sen. Mary Kay Papen
Sen. Sander Rue
Voted Against Motion to Table
(anti-business position)
Sen. Michael Padilla
Sen. Mimi Stewart
Senate Conservation Committee
SB 184: No STB in Certain Counties
ACI Position: Opposed Motion to Table
Voted to Table
(anti-business position)
Sen. Peter Wirth (Chair)
Sen. Benny Shendo, Jr. (Vice Chair)
Sen. Joseph Cervantes
Sen. Phil Griego
Sen. William P. Soules
Voted Against Motion to Table
(pro-business position)
Sen. John C. Ryan (Ranking Member)
Sen. William H. Payne
Sen. Pat Woods
Sen. William E. Sharer (bill sponsor)
(did not vote)
Speaker Tripp and House Committee Leadership deserve kudos from the New
Mexico business community this year for making the committee process more accessible to New Mexicans. The status quo had been long delays and frequent schedule
changes that made it difficult or impossible for New Mexicans to participate. House
committees this year were reliable and punctual. As a result, New Mexicans taking
the time to testify on a bill or sit in on a committee meeting were able to do so with
much greater access and convenience.
The Voice of New Mexico Business
Vol. XXV
Page 7
FOCUS Report 2015
FOCUS on the Issues
Procurement Reform
Procurement Reform was a key priority for ACI during the 2015 legislative
session, and a key legislative victory.
In 2014, ACI member businesses expressed concerns that New Mexico
companies were not being given a fair
chance to compete for state contracts.
Through a series of public inquiries,
ACI discovered that it is extremely
difficult or impossible to access information on factors used in awarding
state contracts, or even the percentage
of state dollars spent with New Mexico
businesses versus out-of-state companies. Research has shown substantial
economic benefits to in-state procurement, as up to 60% of money spent instate is reinvested in the local economy, benefiting other local businesses
and spurring local job creation.
ACI helped to author and introduce
two key procurement bills to improve
transparency and accountability with
regard to how New Mexico tax dollars
are spent: SB 537, and HB 130.
SB 537 is a bipar tisan bill to enhance
the Sunshine Portal by publishing information on state contracts, including
whether state contracts went to New
Independent Hearing
Office
One of ACI’s key victories this session
was Senate Bill 356, a bill to introduce
an independent hearing office separate
from the Taxation and Revenue Department. The bill was sponsored by Senator Jacob Candelaria (D-26) and Rep.
Jason Harper (R-57).
Making sure that tax issues are handled
with accountability and fairness is a top
concern of New Mexico businesses,
and a top priority for ACI. Independent hearing officers ensure that taxpayers, whether individuals or businesses,
receive a fair hearing in front of a neutral, independent decision maker. This
is good for business, good for individuals, and good for our state.
Currently, the State Taxation and Reve-
Mexico or out-of-state companies,
ACI’s other priority legislation was
copies of the contracts. SB 537 was
HB 130, a bill to str engthen the pr osponsored by Sen. Sander Rue (R-23),
curement process in New Mexico and
who also
modernize the
introduced
state’s definiACI’s procurement reform bills
the original
tion of small
addressed transparency and the need to business. The
Sunshine
reinvest taxpayer dollars in New Mexico. bill improved
Portal legislation, along
upon the state
with Rep. Stephanie Garcia Richard
procurement process by allowing the
(D-43). After passing both houses
state standards and specifications comwith broad bipartisan support, the bill
mittee to conduct monthly reviews of
was signed into law. This will mean
RFPs coming from the state and make
more accountability in the way state
recommendations to state agencies.
tax dollars are spent, and better investFurther, the bill updates the state defiment for New Mexico.
nition of small business, which currently excludes any business with over
$1.5 million in annual revenues, a
threshold set in the 1980s. The proposed legislation would amend the
definition to include businesses with
fewer than 150 employees.
HB 130 passed both chambers with
overwhelming bipartisan support.
However, the Administration was unsupportive of the proposal throughout
Sen. Sander
Rep. Stephanie
the process, and as a result, concurRue Sponsored Garcia Richard
rence on amendments was not reached
SB 537
sponsored SB
in conference committee and the bill
537 and HB 130
died. ACI will continue to support this
proposal as a top priority.
nue Department (TRD) uses an internal
hearing officer system for handling
administrative protests, raising concerns about accountability and transparency. SB 356 creates an Administrative Hearings Office administratively
attached to the Department of Finance
and Administration and separate from
TRD. The bill also creates procedures
for tax protests, motor vehicle administrative hearings, and amends several
definitions. This legislation will create
a more fair appeal process for taxpayers in New Mexico.
Candelaria, whose district includes
parts of Albuquerque’s west side, said
that the bill is about protecting New
Mexicans. “This is a bipartisan proposal,” Candelaria said. “We can all
agree that New Mexicans deserve a
fair, transparent hearing process to re-
Sen. Jacob Candelaria and Rep.
Jason Harper sponsored ACI’s
SB 356
solve their tax disputes. This bill removes even the appearance of a conflict of interest, so that New Mexicans
can have every confidence in the hearing process, and so that disputes are
resolved fairly and openly.”
SB 356 was signed into law after receiving broad bipartisan support.
The Voice of New Mexico Business
Page 8
Vol. XXV
FOCUS Report 2015
The 2015 New Mexico Legislature
By the Numbers
16 87 0
ACI-supported bills
became law
Anti-business bills
opposed by ACI
423
ACI blocked
Bills tracked
by ACI
Based on
Member Input
12 major tax increase bills, saving NM businesses
$152,115,000
18 94
In FY 2016 alone
Freshmen Legislators
Returning Legislators
$50,000
Taxpayer cost per day for a special legislative session
1949
The last time the New Mexico
State Legislature passed fewer
bills than it did in 2015
Became Law
10 24
of
Pro-business FOCUS priority bills
blocked by the
Senate Public Affairs,
Conservation, and Judiciary
Committees
FY 2015 Budget
$37.5 million
Funding for LEDA (“Closing Fund”)
$7.5 million
Funding for JTIP
$2.5 million
Recurring JTIP funding
$1.18 million
Funding for the New Mexico Partnership, the marketing arm of New
Mexico’s economic development efforts.
$1.25 million
Increase for tourism marketing
funding
The Voice of New Mexico Business
Vol. XXV
Page 9
FOCUS Report 2015
The Budget
One of the greatest victories for business in 2015 was the passage of considerable new funding for key recommendations of the Legislative Jobs
Council. ACI’s Dr. Beverlee McClure
is a member of the Jobs Council, and
ACI has advocated for the Jobs Council’s recommendations of reinvesting
state funds in economic development
efforts. This year, those efforts paid
off:
LEDA
The budget passed with bipartisan support and signed by the Governor included $37.5 million in funding for
LEDA, the Local Economic Development Act, commonly referred to as the
“closing fund.” The Jobs Council has
recommended a total of $50 million for
LEDA. With broad partisan tensions
throughout the session and crippling
loss of expected funds with the sudden
drop in oil prices just before the session opened, the $37.5 million allocated in the budget represents a major
victory for job growth in New Mexico.
This funding goes towards attracting
new business and jobs from out of
state, and to helping local businesses
grow—for example, Santa Fe Brewing
Co. was able to access LEDA funding
to help it expand and add jobs. ACI
has been a constant advocate of a di-
Capital Outlay
In the final hours of the 2015 session,
the legislature failed to pass a $264
million capital outlay bill, and the future of that spending remains uncertain.
Capital outlay is a package of funding
for a broad array of projects, such as
improvements and new construction of
senior centers, schools, libraries, and
other community buildings; waste
management projects; community undertakings, infrastructure projects, and
other initiatives. The list of requested
capital outlay projects for 2015 includ-
versified approach to economic development. New Mexico must attract new
business and jobs, but in doing so we
must not forget about the companies
already investing here. It is vital that
any economic development policy
helps New Mexico businesses grow,
and gives them every reason to keep
their jobs and investment in New Mexico.
Major funding increases for
JTIP, LEDA, and marketing
efforts send a clear message:
New Mexico is committed to
investing in businesses that
invest in New Mexico.
Last year, only $15 million was appropriated for LEDA. With that number
more than double for the coming year,
New Mexico has not only expanded
opportunities to invest in job-creators
here, but also sends a clear message
that we are open for business and committed to investing in businesses that
invest in New Mexico.
JTIP
The budget also included $7.5 million
in funding for JTIP, the Jobs Training
Incentive Program, $2.5 million of
which is designated as recurring fund-
ed over 5700 individual projects
throughout the state. While some capital projects are funded in the budget
that was passed by both chambers and
signed into law by the governor, the
lack of a capital outlay bill this session
still leaves an immense funding shortage at a vital time for New Mexico’s
economy. In addition to the local
needs left unfunded without the passage of this bill, New Mexico contractors, builders, and related industries
will be hit hard by the unexpected loss
of a quarter-billion dollars in projects.
The uncertainty and loss of funding
will cost the state thousands of jobs,
ing. Recurring funding for JTIP is
itself a major accomplishment, as it
means a strong future for this important program.
According to the New Mexico Economic Development Department, JTIP
“funds classroom and on-the-job training for newly-created jobs in expanding or relocating businesses for up to 6
months,” helping to offset the cost of
creating new jobs and helping employers invest in New Mexicans. Since its
creation, JTIP has supported the creation of 43,000 jobs in nearly 1,300
businesses statewide.
Marketing
The budget also included $1.18 million
for the New Mexico Partnership, the
marketing arm of New Mexico’s economic development efforts, and a
$1.25 million increase for tourism marketing funding. ACI supports both
investment in local businesses, and
recruitment to bring outside business
here. This year’s budget includes a
strong mix of funding for both goals.
Note: Part of the budget deal between
the House and the Senate was the tax
package, SB 386, that was never
passed. SB 386 included a number of
key ACI initiatives. See p. 13 for more
information on this important bill and
why it still needs to be passed.
with an especially severe impact on
local businesses who rely on in-state
projects. Some have estimated that
this year’s capital outlay bill equates to
jobs for 6500 New Mexicans.
A special session costs taxpayers approximately $50,000 per day. With
thousands of jobs and hundreds of millions of dollars in reinvestment in New
Mexico on the line, ACI has advocated
for a special session, but holds that an
agreement must be reached ahead of
time to curb costs to taxpayers and
avoid a fruitless partisan battle. Without a special session, new funding will
not be available until July of 2016.
The Voice of New Mexico Business
Page 10
Vol. XXV
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ACI Memberships can cost less than a dollar a
day, and make a true difference in our state.
ACI membership gives you:
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your
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in-the-know on the latest proposals, legislative
happenings, events, and regulatory news
 Access: (for you and an unlimited number of
your employees) to serve on ACI’s policy committees, join members-only legislative calls,
contact ACI’s lobbyists directly, and more
 In addition, ACI members can attend ACI
events, receive special discounts with New
Mexico companies, and more!
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301-400
$4,500
4-10
$400
401-500
$5,500
11-25
$650
501-600
$6,900
26-50
$900
601-700
$8,000
51-75
$1,200
701-800
$9000
76-100
$1,500
801-900
$10,000
101-150
$1,900
900-1000
$11,000
151-200
$2,600
1000 +
$12,000
The Voice of New Mexico Business
Vol. XXV
Page 11
FOCUS Report 2015
Anti-Business
Legislation
One of ACI’s historic strengths has
been our ability to block bad legislation. That was especially true this
session, where the early days of the
session were spent testifying against a
flurry of misnamed and misguided
proposals that would have hurt business. This year, not a single ACIopposed bill became law.
Every anti-business bill
opposed by ACI this year was
prevented from becoming law.
The Process
As bills are introduced throughout the
session, ACI’s FOCUS Committee
(made up of ACI members) meets
weekly to review every new bill introduced and compare these against the
priorities outlined by ACI’s policy
committees in the prior months. It is
either determined that ACI will watch,
support, or oppose these bills, or remain neutral (if a bill has no impact
on business or on ACI’s member priorities).
Many anti-business proposals had
positive-sounding titles and stated
goals that make it difficult for legislators and the public to understand the
bill’s real consequences. Because of
ACI’s constant, direct engagement
with members during the legislative
session, we are able to quickly identify potential problems with such bills,
disseminate information, and voice
employers’ concerns before these bills
become law.
Results
Of the 423 pieces of legislation ACI
tracked during the 2015 legislative
session, 86 were identified by ACI
members as anti-business bills, and
were opposed by ACI. Not a single
Tax Increases
one of these became law. Eighty-four
Tax Increases that ACI helped
of these bills died in the legislature,
defeat in 2015
most of them never passing a single
included:
chamber. While floor votes get most
of the publicity, a bill is assigned to a
HB 16: Surtax on
number of committees and must be
Certain Corporations
voted out of each before making it to a
(Rep. McCamley)
floor vote. It is here that most bills
HB 21: Phased-In
Supplemental Income Tax
live or die, and it is here that ACI is
(Rep. Roybal Caballero)
most effective. Using data, member
HB 110: New Tax Bracket &
testimony, and the direct engagement
Income Tax rates
of our member businesses, ACI is able
(Rep. McCamley)
to educate legislators in committee
HB
137:
Reduce Income Tax &
hearings on the negative impacts of
Create
New Brackets
misguided legislation.
Only two bills opposed by ACI made
it to the Governor’s desk: SB 105,
County Gross Receipts for School
Improvements, and SB 114, Local
Government Special Fuels Taxes.
Both were vetoed. Both of these bills
would have meant higher taxes for
businesses in New Mexico, killing
jobs and impeding growth.
Minimum Wage Increases
ACI helped defeat a number of
minimum wage increases in 2015,
including:
HB 20: Raise Minimum Wage
(Rep. Varela)
HB 138: Increase Minimum
Wage
(Rep. Garcia)
HB 360: Increase Minimum
Wage & Annual Increase
(Rep. Roybal Caballero)
SB 10: Raise Minimum Wage
(Sen. C. Sanchez)
SB 350: Increase Minimum
Wage & Index to Inflation
(Sen. Campos)
SB 432: Increase Minimum
Wage & Annual Increases
(Sen. Soules)
SJR 9: Increase & Index
Minimum Wage
(Sen. Soules)
(Rep. Miguel Garcia)
HB 495: Corporate Tax
for PreSchool Programs
(Rep. Roybal Caballero)
HB 239: Repeal Capital
Gains Deduction
(Rep. Christine Trujillo)
Other Bills ACI Opposed
None of the following made it out
of the legislature:
HB 111 / SB 697: Shared
Renewable Energy
Facility Operations
(Rep. Gonzales / Sen. Wirth)
HB 180 – Minimum Wage Act
“Employee” Definitions
(Rep. Maez)
HB 331 / SB 609 – ABQBernalillo Water Authority
Board Election
(Rep. Romero / Sen. Ortiz y Pino)
SB 145 – Use of Credit Info for
Employee Recruitment
(Senator O’Neill)
SB 152 – Health Security Act
(Senator Morales)
SB 351 – Dairy Workers in
Minimum Wage Act
(Sen. Stewart)
SB 583 – Criminal Offender
Employment Eligibility
(Sen. O’Neill, Rep. Baldonado)
The Voice of New Mexico Business
Page 12
Vol. XXV
FOCUS Report 2015
Right to Work
Right to Work has long been a priority for ACI, and this year the issue
took center stage. ACI was actively
working for right-to-work long before
the session began, helping to elect
many of the pro-business representatives whose votes shifted the discussion, and organizing business leaders
statewide to unite on key priorities.
What was striking about the debate on
right-to-work was the overwhelming
emotion that surrounded the issue.
ACI listened to hours of testimony
from the opposition, and the union
members who showed up by the hundreds to oppose the bill genuinely
believe (wrongly) that right-to-work
will mean lost benefits, an end to their
union memberships, and lost opportunities.
The reality is the opposite: Michigan
“The Tax Package”
In the final moments of the legislative
session, New Mexicans lost out as numerous important bills were abandoned. The most publicized was the
capital outlay bill, and ACI has actively called for a special session to get it
passed. But New Mexico shouldn’t
forget about another bill that also
needs to be on any special session
agenda: Senate Bill 386, a bipartisan
package of tax code improvements.
Some have said we should ignore all
other legislation to focus only on capital outlay. But this kind of thinking
holds our state back. The tax package
was created as part of a bipartisan deal
already agreed upon by the House and
Senate. New Mexico’s tax system
needs to be improved, and this session
Democrats and Republicans worked
together to identify improvements and
assemble a strong proposal that will
benefit our state. There is no reason
not to finish the job and pass the bill.
The package contained a number of
key proposals that ACI championed
this year for one simple reason: they
will help our economy and create bet-
and Indiana , the most recent states to
become right-to-work, have both added over 140,000 jobs each in less than
two years. Job growth is consistently
faster in right-to-work states, and site
selectors continue to point to New
Mexico’s non-right-to-work status as
a key factor keeping us off many lists
for new jobs.
proposals this year.
It was especially concerning that
many opponents of right-to-work—
legislators and activists alike—
acknowledged the difficulty of finding
good jobs in New Mexico, but still
argued for the status quo. The cognitive dissonance is saddening and displays much of the
After passing the
reason New MexHouse with biMany opponents of right-to-work ico continues to
partisan support,
rank at the bottom
acknowledged the difficulty of
the measure was
of the nation. We
finding good jobs in New Mexico, recognize our
assigned to three
committees in the but still argued for the status quo. weaknesses, but
Senate—usually
insist on doing
anything more
everything the
than two is a death sentence for a
same way. ACI, by contrast, is combill—and tabled without delay in the
mitted to fighting this stagnancy
Senate Public Affairs Committee. As
through education, engagement, and
you will notice in the Legislative
advocacy, which we did this session
Scorecard, Senate Public Affairs was
at every turn and will always continue
a graveyard for many pro-business
to do.
ter opportunities for New Mexicans.
One piece addresses the way New
Mexico taxes headquarters. You might
have noticed there aren’t many regional or national companies headquartered
here. That’s because New Mexico
uses an outdated tax structure that penalizes headquarters who expand here
by increasing their tax burden as additional New Mexicans are hired. In
other words, we actually encourage
these businesses not to invest in New
Mexico. The proposed change would
keep jobs here, instead of rewarding
employers for moving jobs out of
state. Headquarter operations bring
jobs, opportunities, and expanded revenue for local small businesses—which
means even more jobs and more opportunities for New Mexico.
Another proposal included in the package improves the Angel Investment
Tax Credit. One of the most significant
problems faced by small businesses
and entrepreneurs here is lack of access to capital. Companies needing a
little extra money to start a new business, hire another employee, or buy
new equipment just can’t get the funds
they need to reinvest in the state. Ex-
panding the Angel Investment Tax
Credit creates more incentive for investors to keep their money here, instead of investing in companies outside
the state. That means more jobs get
created here, more jobs stay here, and
New Mexicans have more opportunities to succeed.
The package also includes a deduction
for energy companies, whom New
Mexico currently places at a seven
percent disadvantage compared to other states. As a result of this disadvantage, energy companies can save
money by moving away, despite our
ideal location as a center of energy
innovation. New Mexico has lost
thousands of jobs and hundreds of millions of dollars to other states because
of this issue alone. Until a fix is enacted, our state will continue to bleed jobs
and money that be staying here.
A special session is needed, but let’s
make sure we make the most of
it. New Mexicans shouldn’t have to
wait another year for fixes to some of
the simplest problems holding our state
back—especially when we already
have those solutions ready to go.
The Voice of New Mexico Business
Vol. XXV
Page 13
FOCUS Report 2015
Workers’ Comp and
Workplace Issues
Three key workplace issues proposals
were backed by ACI this session, and
one of the three ultimately became
law.
Senate Bill 233 pr ovides clear definitions for temporary disability payments, and was signed into law after
being passed by both houses. The bill
provides a maximum lifetime period
for temporary disability payments,
FOCUS on the
Governor
As shown in the scorecard below, ACI
tracked 20 bills that made it to the governor’s desk: 18 pro-business bills ACI
supported, and 2 anti-business bills
ACI opposed. Of the 18 pro-business
bills, 16 became law, one was pocketvetoed, and one was vetoed. Of the
two bills opposed by ACI, both were
vetoed.
ACI worked effectively with various
administration officials during the session. For example, Cabinet Secretary
Celina Bussey of the New Mexico
Department of Workforce Solutions
was helpful in discussions about unemployment insurance rates. The Secretary even agreed to join a call and
which have previously been extended
without limit at a major potential cost
to employers. Without limitation, insurance premiums for employers are
difficult to set, especially for New
Mexico’s self-insured employers. The
passage of this bill is an important
achievement for New Mexico’s jobcreators.
House Bill 238 and its companion
bill Senate Bill 553 both passed the
House and the Senate Corporations
and Judiciary Committees, but were
never heard on the Senate Floor. The
bills proposed to limit worker’s compensation for employees who are under the influence of alcohol or drugs
when injured.
House Bill 250 would have requir ed
employees on worker’s compensation
to return to work if their employer
offers them a job with equal or higher
pay which they are medically capable
of doing.
ACI will continue to advocate for
these proposals in future legislative
sessions.
take questions from ACI members
statewide. ACI has taken the lead on
this issue, and will continue to work
closely with Secretary Bussey on a
proposal to address high unemployment insurance rates faced by New
Mexico businesses.
Secretary Tom Clifford of the Department of Finance and Administration,
and Secretary Demesia Padilla of the
Taxation and Revenue Department
were also helpful and lent their support
to ACI’s efforts, particularly on ACI’s
headquarter incentive bill (HB 286)
and independent hearing office bill
(SB 356).
Unfortunately, the Administration was
not supportive of ACI’s robust oversight and transparency measures introduced in HB 130, State Procurement
Committee & Reviews. ACI believes
that this bill—which would have updated the definition of small business
and added accountability measures for
state contracting—is important. ACI
will continue working on this important issue.
Governor’s Scorecard 2015
Actions taken on ACI-tracked bills that made it to the Governor’s desk: A “thumbs up” reflects an action by the Governor
(signature or veto) supported by ACI, while a “thumbs down” reflects an action opposed by ACI.
Bills in red were opposed by ACI as anti-business; bills in black were supported by ACI as pro-business.
HB 38: Forest & Watershed Restoration Act
SB 302: Admin & Accounting Svc. Gross Receipts
HB 121: Use of Nurse Educators Fund
SB 319: County IRB Projects & Complaint Process
HB 383: Fin. Assurance for Abandoned Oil Wells
SB 52: Extend Port of Entry Overweight Zones
SB 352: Utility Economic Development Rates
SB 356: Tax Administrative Hearings Office Act
SB 153: Streamline Teacher Admin. Licensure
SB 379: Child Care Assistance Accountability Act
SB 226: Public Water Use & Landowner Protection
SB 480: State Purchasing Expenditure Codes
SB 233: Temporary Disability Benefit Changes
SB 241: Certain Liquor License Transfer Limits
SB 276: State Engineer Hearing Locations
SB 537: Sunshine Portal State Contract Info
SB 552: Drinking Water System Financing
SB 105: Gross Receipts. for School Improvements
SB 291: Capital Outlay Reauthorizations
SB 114: Local Government Special Fuels Taxes
The Voice of New Mexico Business
Page 14
Vol. XXV
FOCUS Report 2015
The Legislative Process In New Mexico
BILL DRAFTED
All bills follow the same path through the legislature. Any bill can be introduced in the house or the
senate. The bill is assigned a number, read twice, printed and referred to the proper committee.
BILL REVIEWED
Each bill is reviewed by one or more committees in each house. The committees can approve the
bill, amend it, forward it to the next committee with no recommendation, or kill the bill by tabling it.
BILL INTRODUCED
If a bill passes its committee hearings, it will be considered by the full house where it was
introduced. The bill is placed on that house’s calendar, which means it is formally scheduled for its
third reading and a final vote.
BILL INTRODUCED
TO 2ND HOUSE
If it passes, the bill moves to the other house and repeats the entire process. If approved in the
same form, it goes to the Governor to be signed or vetoed. If each house passes a different bill,
they form a conference committee to work on a compromise. If the committee agrees on a
compromise, the bill goes back to the house and senate for a final vote.
GOVERNOR’S
DESK
NOT SIGNED
Bills that pass both houses go to
the Governor to be signed or
vetoed. The governor can sign
the bill, making it law, veto it or
veto portions of it, if it contains
an appropriation.
If the governor doesn’t sign or veto a bill within
three days—and if the legislature is still in
session—it becomes law. Once the legislature
has adjourned, the Governor has 20 days to
sign bills. Unsigned bills are pocket-vetoed. The
legislature can pass a bill over the Governor’s
veto with a two-thirds vote in each house.
BILL SIGNED
Signed bills typically become law 90 days after
the legislature adjourns. However, the
legislature can specify an emergency, which
makes the bill effective when the Governor
signs it, or a later date for the law to go into
effect.
50th Legislature, First Session, 2011 Legislative Almanac
The Voice of New Mexico Business
Vol. XXV
Page 15
FOCUS Report 2015
Bill Catalog: Key Bills ACI Tracked and Where They Ended Up
*Indicates a bill supported or opposed by ACI as a FOCUS Priority
Bills Supported by ACI:
Economic Development
SB52: Extend Port of Entry Overweight Zones (M.K. Papen): This bill
extended the overweight zone from border crossings to 12 miles with
approval of the Department of Safety (and with the exception of
manufactured homes) in the case of emergencies. The department will
guide the transportation with respect to a route appropriate for size and
weight. Permits will be valid for no more than one year and with a fee
of no more than $250.This extension is necessary to encourage and
increase our border enterprise.
Passed both the House and the Senate; signed into law by the Governor.
SB69: Resident Business Set-Aside Act (M. Padilla): This bill modeled
the federal procurement process in that it required the state to award
33% of certain contracts to resident businesses. The bill had stringent
guidelines to qualifications for a resident business, as well as penalties
for falsely filing as a resident business. In addition, the bill called for
agencies to annually report the number of contracts that the dollar
amount to resident versus out-of-state businesses.
Passed the Senate on a 21-18 vote but was not brought up for consideration in the House.
Special thanks to Anthony Trujillo, owner & CEO of Holman’s USA and
ACI Executive Committee member for serving as the expert witness, and
for his constant assistance on this bill.
*HB75: Employee Preference Act (D. Roch): This bill was a comprehensive Right to Work bill impacting the private and the public sector. A
committee substitute for the bill was introduced by Rep. Nate Gentry
and approved by the committee. The substitute bill increased the
minimum wage to $8 with a 6 month training wage of $7.50.
Tabled by the Senate Public Affairs Committee on a party-line vote.
*HB130: State Procurement Committee & Reviews (S. Garcia Richard):
This bill proposed to expand the state procurement standards and
specification committee from 11 to 13 members, adding two more
private sector representatives, and requires the committee to meet
monthly and review requests for proposals and notify the relevant
agency of its concerns and recommendations on how to remedy those
concerns.
Passed both the House and the Senate, but ran out of time in conference committee.
SB160: Implement Local Economic Development Act (M.K. Papen):
This bill appropriated $50 million from the general fund to the Economic
Development Department (EDD) for the purpose of funding projects
pursuant to the Local Economic Development Act (LEDA). In addition to
being an ACI priority, this funding is also a Jobs Council Priority.
Given a do pass by the Senate Corporations Committee, blocked by the
Senate Finance Committee.
*SB164: Job Training (Rep. K. Martinez, Sen. M.K. Papen): This bill
proposes a $12 million appropriation from the general fund to the
development training fund for expenditure in fiscal year 2016 and
subsequent fiscal years for the Job Training Incentive Program (JTIP),
administered by the Economic Development Department. Note: HB2
contains a $7.5M appropriation for JTIP.
$7.5 million was ultimately appropriated for JTIP in the budget sent to
the Governor’s desk.
SB193: PRC Jurisdiction Over Local Phone Carriers (M. Padilla): The
companion bill to HB 626, this bill amended the New Mexico Telecommunications Act to substantially reduce Public Regulation Commission
(PRC) authority over “incumbent local exchange carriers” serving more
than 50 thousand access lines (telephone lines) within the state (and
thereby releasing certain incumbent carriers from the higher level of
regulation adopted in 1985 prior to the large-scale introduction of
wireless communications and the elevated need for broadband internet
access). The bill made extensive changes to the definitions section of
the act and redefines its purpose by extending to all consumers and
carriers in the state “the benefits of the regulatory flexibility previously
provided only to incumbent rural telecommunications carriers” and by
adding greater investment in broadband infrastructure in the explanation of legislative intent.
Given a do pass by the Senate Corporations Committee but blocked by
the Senate Judiciary Committee.
*SB183: Employee Preference Act (W. Sharer): This bill is a comprehensive right-to-work bill that impacts the private and the public sector.
Right to Work will be beneficial to the New Mexico workforce. Statistics
over the last 20 years have shown a greater increase in jobs in those
states are Right to Work vs. New Mexico and others states that are not.
Right to Work status is also documented as a determining factor for
companies expanding operations for economic based jobs to new
states. There is consensus among economic development professionals
that many site selectors will never even consider non-right-to-work
states. Private sector employees have the right to organize and participate in unified representation in the work place; however, organized
labor union membership should be voluntary and no employee should
be required to join a union as a condition of employment, which
subjects them to full union dues and to union rules and fines.
Blocked by the Senate Public Affairs Committee.
SB241: Certain Liquor License Transfer Limits (P. Griego): This bill
impacted the transferability of quota liquor licenses statewide. It
allowed dispenser’s licenses which are currently restricted in under
quota local option districts to be able to transfer out of such districts;
allowing the license to be sold and moved to another location. It further
allowed liquor licenses to transfer into local option districts already over
quota. This bill helped transfer stranded liquor license to rural areas and
help with economic development and tourism.
Passed both the House and the Senate and was signed into law by the
Governor.
HB261: Angel Investment Credit Minimum Investments (J. PowdrellCulbert): This bill, a companion bill to SB 413, increased the annual
amount of Angel Investment Credits that can be issued to an aggregate
$2M and eliminates some restrictions on the type and number of
investments that can be made and still be eligible for the Angel Investment credits. The credit percentage remains at 25%, but the amount of
a qualified investment increases to $250K from $100K.The bill also
extended the December 31, 2016 sunset date on the credit to December 31, 2012. The credit remains non-refundable, but the carry-forward
period is extended to 5 years from the current 3 years. The bill also
contained several other provisions.
Rolled into SB 386 by the House Ways and Means Committee as part
of the tax package that ran out of time in the final hour of the legislative session (see p. 13 for details).
*HB286: Single Sales Factor for Corporate Income (C. James): The bill
provided a tax incentive for businesses that are headquartered in New
Mexico, encouraging retention and expansion of current headquarters
operations, as well as the addition of new jobs. The bill defines
“headquarters operation” by function, not size: the center of operations
of a business.
HB 286 was rolled into SB 386 by the House Ways and Means Committee as part of the tax package that ran out of time in the final hour
of the legislative session (see p. 13 for details).
HB299: Public Private Partnership Act (L. Larranaga): This bill enacted
the Public-Private Partnership Act (PPPA) to allow state and local
governments to enter into long-term agreements with private sector
partners to facilitate public projects such as schools, hospitals, recreational facilities, parking lots, roads, habitat restoration, dams, water
treatment facilities, pipelines, transmission lines, recycling facilities, etc.
Passed the House and was blocked by the Senate Judiciary Committee.
*HB 312: Local Economic Development Act Implementation (W.K.
Martinez, M.K. Papen): This bill appropriates $50 million from the
general fund to the Economic Development Department (EDD) for the
purpose of funding projects pursuant to the Local Economic Development Act (LEDA). LEDA is a key Jobs Council priority and a top priority
for ACI.
$37.5 million was ultimately appropriated for LEDA in the budget sent
to the Governor’s desk.
SB413: Angel Investment & Minimum & Sunset (C. Sanchez): This bill, a
companion bill to HB 261, amended provisions of the Angel Investment
Credit by clarifying the number of investments that would qualify for
the credit, extending the sunset date, increasing the total amount of
annual credits that may be issued to two million dollars ($2,000,000)
and increasing the carry forward to five years. This provided a mechanism for greater private investment into companies in our state to
enhance job growth and retention. This helped address the lack of
capital available in New Mexico, which is the number one concern of
entrepreneurs that ACI has met with across the state.
Rolled into SB 386 by the House Ways and Means Committee as part
of the tax package that ran out of time in the final hour of the legislative session (see p. 13 for details).
*SB537: Sunshine Portal State Contract Info (S. Rue, S. Garcia Richard):
This bill requires the following information to be placed on the Sunshine
Portal Act regarding state contracts: the name of the recipient of the
contract; the purpose of the contract; the amounts expended on the
contract; a copy of or an internet web site link to a copy of the contract
document, including amendments; and a copy of or an internet web site
link to a copy of a resident business, resident veteran business, resident
contractor and resident veteran contractor certification used in the
award of a contract. This bill will create better transparency with the
procurement process and help insure more in-state companies are
given a fair chance to compete.
Passed the House and the Senate with overwhelming bipartisan
support; was signed into law by the Governor.
HB 626: PRC Telecom Jurisdiction (J.E. Smith) The companion bill to SB
193, this bill also amends the New Mexico Telecommunications Act to
substantially reduce Public Regulation Commission (PRC) authority over
“incumbent local exchange carriers” serving more than 50 thousand
access
lines (telephone lines) within the state (and thereby releasing certain
incumbent carriers from the higher level of regulation adopted in 1985
prior to the large-scale introduction of wireless communications and the
elevated need for broadband internet access). The bill makes extensive
changes to the definitions section of the act and redefines its purpose
by extending to all consumers and carriers in the state “the benefits of
the regulatory flexibility previously provided only to incumbent rural
telecommunications carriers” and by adding greater investment in
broadband infrastructure in the explanation of legislative intent.
Passed the House but was blocked by the Senate Judiciary Committee.
Regulatory and Government
HB 55/80: Public Works Project Wages Through Survey (N. Espinoza, C.
Pirtle, W. Rehm): This bill was put forth to effectively repeal SB33 that
was passed in the 2009 legislative session. This bill proposed to determine wage rate and fringe benefit rates on public works projects
through a survey process conducted by the director. The bill was to
delete Subsection B of the statute, in which the director must use the
prevailing rates of collective bargaining agreements that exist in the
locality of the project.
Passed the House but was blocked by the Senate Judiciary Committee.
HB87: Water Quality Control Commission Meetings (C. Ezzell): This bill
required the Water Quality Control Commission to set a time and place
for hearings relating to regulations or water quality standards. Currently, the Commission meets in Santa Fe and it is difficult for business
people to have input into the process. This moves the meetings to the
area impacted by the rule being promulgated by the Commission.
Passed the House on a unanimous vote and was given a do pass by the
Senate Corporations Committee, but was blocked by the Senate
Judiciary Committee.
*SB194: Requirements for Proposing & Changing Rules (D. Ivey-Soto):
This bill revised the State Rules Act regarding the requirements for
proposing, adopting, amending or repealing rules. The bill requires
agencies to follow the Administrative Procedures Act (APA) when
promulgating rules. Implementing the APA has been a long-time priority
for ACI. We believe this will standardize the process and make it easier
for businesses and individuals to have a voice in the regulatory process.
Passed the Senate but was blocked by the House Judiciary Committee.
*SB356: Tax Administrative Hearings Office Act (J. Candelaria, J.
Harper): This bill creates the Administrative Hearings Office administratively attached to the Department of Finance and Administration (DFA),
and separate from the Taxation and Revenue Department (TRD). This
legislation moves the hearing bureau of the TRD to DFA and establishes
the position of a chief hearing officer. The bill also creates procedures
for tax protests, motor vehicle administrative hearings, and amends
several definitions. This legislation will create a more fair appeal process
for taxpayers in New Mexico.
Passed both the Senate and the House with overwhelming bipartisan
support, and was signed into law by the Governor.
HB366: Oil & Gas Preemption (N. Gentry): This bill delineated the
powers and duties of the Oil Conservation Commission and EMNRD’s Oil
Conservation Division, to expressly declare the state’s exclusive jurisdiction and authority over all matters relating to oil and gas operations.
This bill prevented future reductions in revenue that could be caused by
county or municipal regulations restricting oil and gas operations.
Passed the House but was blocked by the Senate Conservation Committee.
Workplace Issues
*SB233: Temporary Disability Benefit Changes (P. Woods/C. Trujillo):
This bill amended the workers’ compensation act and the New Mexico
occupational disease disablement law to change temporary disability
benefits, providing for lifetime maximum period. 700 weeks (13.5 years)
has been considered “temporary disability.” Recent court cases have
extended this definition to an unlimited amount of time. Without
limitation, insurance premiums for employers may increase and reserves may be difficult to set, especially for New Mexico’s self-insured
employers.
Passed both the Senate and the House, and was signed into law by the
Governor.
*HB238: Worker’s Comp Benefits & Intoxication (D. Roch, J. Cervantes): This bill amended the Workers' Compensation Act to provide that
compensation benefits under the Workers' Compensation Act are to be
reduced by the degree to which an employee was intoxicated or under
the influence of alcohol and/or a drug. The companion bill in the Senate
was SB 553: Workers’ Comp Benefits & Intoxication (J. Cervantes).
Passed the House, the Senate Judiciary Committee, and the Senate
Corporations Committee, but was not brought for a vote on the Senate
floor.
*HB250: Worker’s Comp Return to Work & Benefits (R. Crowder): This
bill clarified language to address recent court rulings which the Workers’
Compensation Administration (WCA) believes adversely impacts the
return to work provisions and formulaic design of the Workers’ Compensation Act. The bill attempted to restore balance to the workers’
compensation system and clarify a worker’s entitlement to disability
benefits when an injured worker (1) returns to work earning the at
injury wage, (2) refuses to accept a return to work offer from an employer, or (3) engages in misconduct or is terminated for cause unrelated to the work injury after returning to work following an injury. The bill
also provided for bad faith penalties against an employer who terminates a worker for pre-textual reasons to avoid payment of benefits.
Passed the House on a unanimous vote, and passed the Senate
Corporations Committee, but was blocked by the Senate Judiciary
Committee.
HB 482: Reduce Some Unemployment Benefits (L. Larranaga): This bill
proposed changes that would reduce an individual's weekly benefit
amount from fifty-three and one half percent (53½%) to forth-five
percent (45%) for insured work paid to the individual in that quarter;
and amends (B)(1) by adding that no benefit computed may be less than
ten percent or more than forty-five percent of the state's average
weekly wage for all insured work.
Failed on the House Floor in a 25-39 vote. ACI has already taken the
lead on continuing the conversation in the interim to identify potential
legislative solutions.
Agriculture and Food
HB564: Right to Farm and Operations as Nuisance (B. Wooley): This bill
revises current law regarding Agricultural Operations Deemed Not a
Nuisance. Agricultural operations are deemed "not a nuisance" if at the
time the operation began, and it has been in operation for more than a
year, there are no nuisance issues. The change in language removes the
one-year of operation language. This bill would ensure the availability of
a safe, abundant, and cost-effective local food supply.
Passed the House and the Senate Conservation Committee, but was
blocked by the Senate Judiciary Committee.
Education
HB41: School Grade Promotion & Retention (M. Youngblood): The bill
The Voice of New Mexico Business
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FOCUS Report 2015
was part of the administration’s educational reform package and restricts
promotion of students who are not academically proficient in reading
before third grade. The bill also called for intensive remediation for those
students and intervention prior to the third grade. The legislation provided for assistance for students in fourth through eighth grade, but did not
require a delay in their promotion. School districts are required to create
an alternative program for students deemed in need of assistance.
Passed the House on a 38-30 vote but was blocked by the Senate Public
Affairs Committee.
HB71: Streamline Teacher & Administrator Licensure (T. Lewis): This bill
was also part of the administration’s education reform package. This
legislation changes to the three-tiered licensure system for school
administrator (principal and assistant principal) license. The bill decreased the administrator license from a nine-year license to a five-year
license and changes the pathway to school administration. Pursuant to
the bill, administrator licenses will be granted to level two teacher
applicants who have completed or are participating in a Public Education
Department-approved administrator preparation program and hold a
current level two license.
Passed the House on a 38-24 bipartisan vote and was given a do pass by
the Senate Education Committee, but was blocked by the Senate Public
Affairs Committee
SB153: Streamline Teacher Administrative Licensure (S. Beffort): The bill
decreased the administrator license from a nine-year license to a fiveyear license and changes the pathway to school administration. Pursuant
to the bill, administrator licenses will be granted to level two teacher
applicants who have completed or are participating in a Public Education
Department-approved administrator preparation program and hold a
current level two license.
Passed both the House and the Senate; signed into law by the Governor.
HB181: Adjunct Instructors Act (C. James): This bill allowed for the
certification and contracting of adjunct instructors in the public school
code. The act requires background checks for instructors but other
provisions of the School Personnel Act shall not apply to adjunct instructors. This bill allowed the state to take advantage of New Mexico’s talent
and will allow industry professionals to share their expertise with students in the classroom.
Passed the House on a 31-21 vote and was given a do pass by the
Senate Education Committee, but was blocked by the Senate Judiciary
Committee.
Taxation
*SB184: No STB Projects in Certain Counties (W. Sharer): This bill
enacted a new section of the Severance Tax Bonding Act to forbid
severance tax bonds from being issued to benefit projects in counties
that have enacted ordinances that increase costs by 25% or more to oil,
gas, carbon dioxide, or geothermal industries. Severance tax dollars are
generated by the extractive industries. Counties who ban the extractive
industries currently continue to benefit from the proceeds of counties
who support the industries. This would have still allowed counties the
power to ban or heavily regulate drilling, however, it would also withhold
them profiting from other counties.
Blocked by the Senate Conservation Committee.
Water & Land Use
SB276: State Engineer Hearing Locations (C. Pirtle/B. Wooley): This bill
specified that a state engineer hearing can only be held in the county in
which the water right at issue is adjudicated, licensed or permitted,
unless the parties and the state engineer agree to another site for the
hearing. ACI believes that this provides greater access to the hearing
process for our members.
Passed the House and the Senate; signed into law by the Governor.
SB313: Water Rights Review & Court Hearings (S. Neville): Similar to
SB276, this bill amended statues to protect certain constitutional rights
and to minimize the cost and delay to water rights owners by ensuring
the right to de novo review, providing for expedited determination of
water rights, and clarifying the scope of district court review and the
procedures for appeals to and from district court. ACI believes that a
more streamlined, accessible, and transparent process is crucial.
Blocked by the Senate Conservation Committee.
Bills Opposed by ACI:
Economic Development
HJR3: Economic Development Tax Incentives, CA (B. McCamley): This
constitutional amendment proposed to amend Article 8 the Constitution
of New Mexico by adding a new section that required that an economic
development tax incentive that becomes effective after January 1, 2017
may not be in effect for more than ten years after its effective date
without subsequent legislative action. The new section defined an
economic development tax incentive as a credit, deduction, rebate,
exemption or other tax benefit for the primary solution purpose of
promoting economic development or offering an advantage to a particular industry or type of business to do business in New Mexico.
As a reminder, a constitutional amendment does not require the Governor’s signature. ACI supports total reform of the tax code including a
review of incentives. We do not believe this should be constitutionally
mandated.
Blocked by the House Business and Employment Committee.
SB131: Local Gov't IRB Notices & Impacts (M. Stewart): This bill made
several changes to the IRB process including removing the requirement
that the county assessor open the process for comments for those
impacted by the bond. Other proposed changes would make IRBs less
attractive to private entities and harm economic development efforts.
Blocked by the Senate Education Committee.
Agriculture and Food
HB275: Separate Reporting of Tax Expenditures (D. Armstrong): This bill
would require all taxpayers who reduce tax liabilities by taking advantage
of a tax expenditure to separately report that tax expenditure to the
Taxation and Revenue Department. The bill was not specific about what
constitutes a tax expenditure. However TRD is instructed in the bill to
promulgate regulations as to which tax expenditures would be affected
by separate reporting.
This bill added greater regulation and administrative burden to business,
including small businesses.
Blocked in the House Ways and Means Committee.
Health Care
SB12: Obesity & Weight Reduction Weight Reduction Insurance Coverage (J. Candelaria): This bill enacted a new section of the Health Care
Purchasing Act that requires health insurers to cover obesity prevention,
screening and treatment for weight reduction. While we applaud what
the sponsor is trying to accomplish, mandated benefits increase cost
which will be passed on to the consumer. Additionally, the language is
extremely broad and will also increase the cost to the state to implement. Many of the services listed are already included in coverage if the
employer group wants them to be.
We would prefer to see this kind of coverage incentivized, not mandated.
Blocked by the Senate Corporations and Transportation Committee.
HB81: Patient Safe Staffing Act (Christine Trujillo): This bill’s title makes it
sound like a good piece of legislation. However, passage of this bill would
take New Mexico's hospitals away from making outcome-based health
care policy decisions and replace it with a mandated quota system that is
disconnected from needs of the patient and the hospital. Additionally,
mandated staffing legislation stifles innovation and quality care and can
even lead to the unintended consequence of increasing costs to the
patient. Staffing decisions are best made at the local hospital by
healthcare professionals who understand the patients' needs.
Blocked by the House Regulations and Public Affairs Committee.
HB17: Health Care Coverage and ID Card Requirements (B. McCamley):
This bill required the issue of an identification card to the primary
insured, and allows the plans to issue identification cards to individuals
covered under the primary insured’s coverage. The bill provides what
must be on the identification card (name, number, contact information)
and when the health plan must issue the card (within 30 days of effective
date of insurance, or of any change of information). HB 17 required that
by July 1, 2015, the Secretary of General Services must adopt rules to
establish machine readability standards for these identification cards.
The implementation of this legislation will be extremely costly and will
soon be archaic as hospitals and doctor offices become more dependent
on Electronic Health Records and other forms of IT.
Passed the House but was not brought forward for a vote in the Senate.
Taxation
HB16: Surtax on Certain Corporations (B. McCamley): This bill imposed a
1% Corporate Income Tax on corporations that pay their CEOs or other
senior officers more than 100% of the average annual salary of all other
non-upper management employees.
Blocked in the House Regulatory and Public Affairs Committee.
HB21: Phased-In Supplemental Income Tax (P. Caballero): This bill
imposed an additional 0.3% tax on single individuals, married filing
separately, and estates and trusts on taxable income in excess of $100K
in 2016. Married filing jointly, surviving spouse and head of households
would be taxes at the same rate on taxable income in excel of $150K. The
tax rate increases to .8% in 2017, 10% in 2018. This bill would have a
negative impact on small businesses, most of which pay PIT.
Blocked in the House Regulatory and Public Affairs Committee.
*SB56: Unitary Corporation Combined Tax Reporting (P. Wirth): This bill
amended the Corporate Income and Franchise Tax Act to require a
unitary corporation subject to corporate income tax (CIT) to file a combined return. Current law permits combined filing, but only requires it for
unitary corporations that provide retail sales of goods in a facility of more
than 30 thousand square feet that do not also have nonretail operations
in New Mexico with at least 750 employees. As this bill required combined reporting for all corporations, the bill struck the requirements
specific to these corporations. The provisions of SB 56 apply to taxable
years beginning on or after January 1, 2016.
Blocked in the Senate Corporations and Transportation Committee.
*SB57: Unitary Corporation Restaurant Tax Reporting (P. Wirth): This bill
amended the Corporate Income and Franchise Tax Act to require a
restaurant that is a unitary corporation to file a combined return. The bill
defines a restaurant as a coffee shop, cafeteria or other eating establishment that gives or sells food, including kitchens and catering facilities in
which food is prepared on the premises for serving elsewhere or a bar
area within or attached to the premises. "Restaurant" does not include a
private or public school cafeteria. Current law permits combined filing,
but only requires it for unitary corporations that provide retail sales of
goods in a facility of more than 30 thousand square feet that do not also
have nonretail operations in New Mexico with at least 750 employees.
The provisions of SB 57 apply to taxable years beginning on or after
January 1, 2016.
Blocked in the Senate Corporations and Transportation Committee.
SB75: Limit Spaceport Bond & Tax Authority (L. Cotter): This bill removed the bonding ability of the Spaceport Board and limits the fund
allocation for bonds sold prior to July 1, 2015. In effect, this legislation
would override the communities who voted to tax themselves to support
and grow the Spaceport. Further, even the introduction of SB 75 will
make it more difficult to attract new customers to the Spaceport as it
gives the appearance that the New Mexico legislature is not fully supportive of the endeavor at a time when the New Mexico Spaceport
Authority is very actively seeking new customers that will create new
jobs in the State of New Mexico.
Blocked by the Senate Finance Committee.
*HB110: New Tax Bracket & Income Tax Rates (B. McCamley): This
legislation expanded current income tax brackets and created a new
5.9% bracket for taxable incomes in excess of $60K for single filers, $90K
for married filing jointly and head of households, and $45K for married
filing single. This bill would have a negative impact on small businesses,
most of which pay PIT.
Blocked by the House Regulatory and Public Affairs Committee.
*HB137: Reduce Income Tax & Create New Brackets (M. Garcia): This bill
reduced rates in existing income tax brackets and creates three new
brackets on higher incomes. The increased rate is as high as 7.1%.
Blocked by the House Regulatory and Public Affairs Committee.
HB158: Gross Receipts Tax & Deductions (B. McCamley): This bill amended the Gross Receipts Tax and Compensating Act to repeal selected gross
receipts tax and compensating tax exemptions and deductions. To offset
the revenue gains from these expansions of the taxable gross receipts
base, the bill reduced the state gross receipts tax rate by 1/10 percent,
from 5.125 percent to 5.025 percent. The provisions of this bill appear
intended to be approximately revenue neutral to the general fund. That
is, the general fund revenue generated by the repeals is used to offset
the general fund revenue loss resulting from the GRT rate reduction.
However, the expansion of the taxable gross receipts base, combined
with unchanged local government taxing authority, would result in
increased revenue to the state’s municipalities and counties. Additionally, ACI supports comprehensive reform.
Blocked by the House Regulatory and Public Affairs Committee.
Regulatory and Government
HM1: ENMRD Website Oil & Gas Info (P. Caballero): This memorial
resolves that EMNRD’s Oil Conservation Division (OCD) post on its
website information related to the number of active and inactive wells in
New Mexico, the number of inspectors, the number of violations of the
Oil and Gas Act, the actions taken in response to violations, a list of oil
and gas facilities fined for violations, the cash balance in the Oil and Gas
Reclamation Fund, and expenditures from the fund. HM1 also resolves
that OCD present this information with recommendations to address
public concerns about the impact of drilling for oil and gas on groundwater to relevant interim legislative committees and the governor.
This memorial would have cost over $400,000 to the state to implement and be costly to producers across the state. It was blocked by the
House Energy, Environment and Natural Resources Committee.
Minimum Wage
SB10: Raise Minimum Wage (C. Sanchez): This bill increased the minimum wage to $8.30 an hour. The bill does call for a lower rate of $7.50
for trainee employees during a training period that lasts no longer than
six months.
Blocked by the Senate Public Affairs Committee.
HB20: Raise Minimum Wage (L. Varela): This bill raised the minimum
wage to $10.10 per hour, and provides for the minimum wage to be
increased in accordance to the consumer price index on an annual
basis.
Blocked by the House Regulatory and Public Affairs Committee.
HB138: Increase Minimum Wage (M. Garcia): This bill proposed the
exact same increase to $10.10 per hour with the difference of phasing it
on over a period of time. The wage would be increased based on the
consumer price index on an annual basis.
Blocked by the House Regulatory and Public Affairs Committee.
HB180: Minimum Wage “Employee” Definitions (S. Maez): This bill
proposed to cover individuals 18 years old or younger under the New
Mexico Minimum Wage Act. The Act excludes individuals under the age
of 18 from the definition of “employee,” thereby permitting employers to
pay them less than the statewide minimum wage. This bill would have
forced employers to raise the wage for workers under 18.
Blocked by in its first committee, House Regulatory and Public
Affairs.
Water & Land Use
HB111: Shared Renewable Facilities Operations (R. Gonzales): This bill's
stated purpose was to promote the construction and operation of
"shared renewable energy facilities”, requires investor-owned utilities to
allow shared renewable energy facilities to operate in their areas, and
provide a potential exemption from the Public Utility Act's jurisdiction for
shared renewable energy facilities.
Affordable rates are important to the business community and ACI does
not believe it’s fair for some people to benefit from net metering because they are a subscriber of a Shared Renewable Facility while others
have to pay for the subscribers cost to use the grid. ACI believes it’s
important that we all contribute to the use of the grid since we all are
beneficiaries of the electric infrastructure. ACI also believes reliable
electricity is important for the business community and the economy.
Our electric companies are regulated at the State and Federal level to
make sure they provide a reasonable rate and reliable electricity to
consumers. This bill allows an entity to generate electricity and sell to
customers and not be regulated. How will we ensure that consumers are
protected, especially if they are not able to deliver what is expected?
Blocked by the House Energy, Environment, and Natural Resources
Committee.
The Voice of New Mexico Business
Vol. XXV
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FOCUS Report 2015
Principal Investors
Patron Investors
Supporting Investors
Associate Investors
Affiliate Investors
The Voice of New Mexico Business
Page 18
Vol. XXV
FOCUS Report 2015
About ACI
Members of ACI represent small and large businesses from every region and business sector of New Mexico. Through our policy committees, ACI develops a robust policy agenda that reflects
the needs of the statewide business community. The agenda is
revised twice annually, so that our recommendations always
reflect the very latest developments in the state. And our policy
positions always come straight from New Mexico businesses.
We then work year-round—at the legislature in Santa Fe,
through the interim session, and with countless local and regional governments, councils, and committees—to promote our policy agenda and ensure that New Mexico’s job creators are carefully considered in every decision made in the state.
As a testament to ACI’s respected position as the voice of New
Mexico business, ACI is often called upon to represent the business community ACI was the only business advocacy group in
the state to be invited to serve on the well-known Legislative
Jobs Council that has been so central in statewide dialogue on
economic development and job creation.
As an ACI member, you ensure that your business is not forgotten in the rules, legislation, and regulations that impact you every day.
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Agriculture and Food
Economic Development and Research & Development
Education and Workforce Development
Energy and Extractive Industries
Entrepreneurship
Environment
Federal
Health Care
Regulatory Reform and Government Accountability
Taxation
Water and Land Use
Work Place Issues and Legal Reform
Thank you for your support and involvement in
ACI. Your voice is what empowers us to make an
impact, and your engagement is the only way New
Mexico will achieve a brighter economic future.
ACI offers the following policy committees for members to participate in and to prepare priorities for the legislative session:
New Mexico Association of Commerce and Industry
2014 - 2015 Officers & Executive Committee
PRESIDENT
Beverlee McClure
Association of Commerce
and Industry
Albuquerque, NM
BOARD CHAIR
Dan Girand
Mack Energy
Roswell, NM
FIRST VICE CHAIR
Doug Cox
Atkinson & Co., Ltd
Albuquerque, NM
SECOND VICE CHAIR
Lillian Montoya
Christus St. Vincent Regional Medical
Center
Santa Fe, NM
SECRETARY
Walter Bolic
Delta Dental Plan of NM
Albuquerque, NM
TREASURER
Janice Torrez
Blue Cross Blue Shield of NM
Albuquerque, NM
IMMEDIATE PAST CHAIR
Paul DiPaola
US Bank
Albuquerque, NM
FOCUS CHAIR
Allison Kuper Smith
Kuper, Smith, & Associates LLC
Las Cruces, NM
GOVERNMENT AFFAIRS CHAIR
Danny Jarrett
Jackson Lewis P.C.
Albuquerque, NM
MEMBERSHIP/MARKETING
CHAIR
Leean Kravitz
Fidelity Investments
Albuquerque, NM
AT LARGE MEMBERS
JR Allison
Old Republic Title Insurance
Rio Rancho, NM
Brian Brichford
Hewlett-Packard Company
Rio Rancho, NM
John Chavez
Sandia Peak Tram Company
Albuquerque, NM
Valerie Dodd
CenturyLink
Albuquerque, NM
Ben Jaime
Xcel Energy-Hobbs
Hobbs, NM
Chris Stagg
Taos Ski Valley, Inc.
Taos, NM
T. Greg Merrion
Merrion Oil & Gas
Farmington, NM
David Seely
Kirtland Federal
Credit Union
Albuquerque, NM
Derrick Jones
Lovelace Rehabilitation
Hospital
Albuquerque, NM
Steve Perich
Dekker/Perich/Sabatini
Albuquerque, NM
David Seely
Kirtland Federal Credit
Union
Albuquerque, NM
Don Tarry
Public Service
Company of NM
Albuquerque, NM
Anthony D. Trujillo
Holman’s USA LLC
Albuquerque, NM
Tony Trujillo
FreeportMcMoRan Inc.
Silver City, NM
The Voice of New Mexico Business
Vol. XXV
Page 19
New Mexico Association of Commerce and Industry
PO Box 9706
Albuquerque, NM 87119-9706
505-842-0644
[email protected]
@ACINewMexico
ACINewMexico
facebook.com/ACINewMexico
New Mexico Association of Commerce and Industry