February 8, 2008 

SB283 - Gross Receipts Reporting sponsored by Sen. Griego would require persons providing architectural, engineering, legal or independent audit services to report their receipts for gross receipts tax purposes at the location of the project for which the services are rendered was tabled yesterday in Senate Finance.  ACI opposed this bill after hearing from our members the cost of implementing such an accounting system and the difficulty in complying with such an accounting rule.

SM53 - Regulatory and Administrative Law Study sponsored by Sen. B. Sanchez calls upon the Legislative Council to create a 10-member legislative interim Regulatory Process and Administrative Law Committee to study the concerns of citizens having difficulty with the regulatory process and to assure compliance with legislative mandates.  The committee will also determine how best for New Mexico to comply with the Administrative Procedures Act since we are the only state that does not require our agencies to do so.  The Memorial passed Senate Judiciary by a 6 – 4 vote.  Thanks go to Art Hull and Allison Kuper for covering this committee. [BILL]

HB62 - Health Solutions Act sponsored by Rep. Heaton and HB214 - Health Security Act sponsored by Rep. Gonzales will both be heard again today in House Judiciary Committee.  Currently HB62 is a committee substitute that does not include employer mandated payments.  We will keep you updated on possible changes. [HB62-BILL] [HB214-BILL] 

February 6, 2008 

HB147 - Health Care Authority Act sponsored by Rep. Picraux was amended on the House floor and passed by a vote of 56-6.  This bill creates a Health Care Authority as an advisory board to develop a comprehensive plan for accessible and affordable health care services for all New Mexicans by January 1, 2009. The Authority sunsets in 2014. ACI did not take a position on this bill. The companion bill, SB225 sponsored by Sen. Feldman is now on the Senate Finance Calendar. [HB147-BILL] [SB225-BILL]

SB430 - Creating the Legislative Health Committee sponsored by Sen. Jennings received a do pass from the Senate Public Affairs Committee and now moves to the Senate Floor for a vote.  ACI stood in support of this bill which abolishes the Legislative Health and Human Services Committee and the Welfare Reform Oversight Committee replacing them with two separate legislative bodies: (1) a 14-member Legislative Health Committee to conduct a continuing study of all health care in New Mexico and to conduct a continuing review and study of the laws governing health programs; and (2) a 12-member Legislative Human Services Oversight Committee to examine laws related to welfare reform and conduct a continuous study of programs, agencies, policies, issues and needs related to human services programs generally. [BILL]

HB583: Video and TV Tax for Public Education sponsored by Rep. Chasey was tabled in House Business and Industry Committee.  This bill proposed a one percent excise tax on retailers selling televisions, video games and video game equipment. Also tabled was HB619: Soft Drinks Subject To Gross Receipts Tax sponsored by Rep. Gutierrez.  This bill would have done away with the gross receipts tax deduction on soft drinks by removing them from the food category.  ACI stood in opposition to both bills.

February 5, 2008 

HB626: Equalizes Oil and Gas Emergency School Tax Rates sponsored by Rep. Mimi Stewart was killed in the House Education Committee by a 10-2 vote. HB 626 proposed to increase the Emergency School Tax on oil and CO2 from 3.15% to 4%. In addition, this bill would have increased the Emergency School Tax on stripper wells from 2% to 4%. The purpose of this proposed tax increase was, along with other industry tax increases, to increase the school funding formula in the state of New Mexico. Special thanks go to T.J. Trujillo for standing in opposition to this tax increase on behalf of ACI.

HB311- Gross Receipts Tax Hike for Public Schools sponsored by Rep. Gonzales was tabled by the House Taxation and Revenue Committee. This bill proposes an increase in the GRT from 5% to 5.5% with the increase being earmarked for Public Schools. This bill, like HB 626 and others, seeks to find revenue sources for the additional $340 million recurring dollars needed to fund the new Public School Funding Formula. ACI and others have asked for time to work with the Task Force to seek revenue sources that do not negatively impact employers. [BILL]

HB293 - Tax Exclusion for Temporary Staffing Firms sponsored by Rep. Taylor was temporarily tabled by the House Taxation and Revenue Committee after much debate. ACI will work with the sponsor on clarifying amendments that define temporary staffing firms and exactly who the tax exclusion will apply to. We appreciate Duane Trythall for his support and his willingness to serve as ACI’s expert witness. [BILL]

HB62 - Health Solutions New Mexico Act sponsored by Rep. Heaton. The bill heard by the House Judiciary Committee was the committee substitute from the House Health and Government Affairs Committee. The House Judiciary Committee heard the amendments and debated each. One amendment restores the employers’ mandated payment into the fund if they employ five or more by 2010 and for employers of three or more employees by 2011. One concession was made in the amendment and that is to allow the employer to deduct the cost of an employee who is participating in the SCI fund, as well as costs for a qualified wellness program or health care related costs. The committee did not act on the amendments and instead will hear all health care bills and consider them together. One thing to note, the mandated insurance coverage requirement, still intact in the bill, cannot be accomplished without individual mandated coverage that is enforced. The committee also heard testimony that the Massachusetts plan that the Governor is patterning his after is $400 million short as employers stopped paying for private providers and instead paid into the fund since it was less expensive. [BILL]

HB214 - Health Security Act sponsored by Rep. Gonzales is identical to SB3 carried by Sen. Cisneros. HB214 was also heard by the House Judiciary Committee and after two hours of debate and testimony was temporarily tabled in order for the committee to consider all bills together. One thing I would like to point out to our business community on this bill is that the people in support show up in large numbers prepared to speak and state their case. The Governor has gone on record that he will veto this bill if it were to get to his desk. No other state in the United States has adopted such a system which is modeled after the Canadian system. [BILL]

SB391 - Changes to Medical Insurance Pool Act sponsored by Sen. Jennings was heard in the Senate Chambers. This bill makes a number of changes to the Medical Insurance Pool Act regarding eligibility and exclusions, and to prohibit a lifetime maximum benefit for policies issued by the pool. The bill passed on the Senate floor by a vote of 38-0. [BILL]

HB37 - Electronic Medical Records Act sponsored by Rep. Wirth was heard in the House Chambers on Monday. This bill requires the New Mexico Telehealth and Health Information Technology Commission to develop plans for implementing electronic insurance and medical record systems, provides for legal effectiveness of electronic medical records and establishes rules for disclosure of electronic medical records. This bill passed on the floor by a 51-10 and now goes to the Senate Public Affairs Committee.   [BILL]

February 4, 2008 

On Friday, the House Appropriations Committee gave a do pass to HB 62: Health Solutions Act sponsored by Rep. Heaton.  The bill heard by the Appropriations Committee was a committee substitute from the House Health and Government Affairs Committee.  This substitute, in short, removed the employer mandated payment into the Healthy Workforce Fund and charged the Health Care Authority with studying the cost and the impact of individual mandates.  Though the intent was to propose amendments that restored the bill to its original content, the Appropriations Committee did not hear the amendments.  The bill, instead of going to the House floor for a vote, now moves to the House Judiciary Committee. [BILL]

SJR 7 - Legislative Approval of Executive Rules sponsored by Sen. Ingle is ruled germane by the Senate Rules Committee. This Joint Resolution proposes: 

"An amendment to the constitution of New Mexico to allow the Legislature to enact laws that prohibit Regulatory Rules of the Executive Branch from taking effect until reviewed and approved by the appropriate interim or standing committees of the Legislature and to allow the Legislature to enact laws that empower the appropriate interim or standing committees of the Legislature, after reviewing an adopted Regulatory Rule, to annul the Rule if the Committee finds that the Executive Branch was not authorized to adopt the rule." 

ACI will continue to support this Joint Resolution. Unfortunately, the environmental advocacy groups have made opposing any regulatory initiatives as their number one priority.  These resolutions will be advantageous to advocacy groups as well as to businesses.  The resolution now moves to Senate Judiciary Committee.  [BILL]

On Saturday, the companion resolution to SJR 7, HJR 12 - Legislative Review of Regulatory Rules, CA sponsored by Rep. Foley was given a do pass by House Judiciary and now moves to House Voters and Elections Committee.  [BILL]

Rep. Foley has also introduced HR 2 - Requiring Public House Conference Committee Meetings. This resolution proposes that the House adopt a rule prohibiting members from participating in any conference committee meeting closed to the public. This Resolution will be heard by House Rules Committee, the first of two committee referrals. ACI will stand in support of this Resolution. [BILL]

Rep. Heaton’s HB 399 - Coal Mine Rescue Devices passed the House Floor by a vote of 61-2 and now has been referred to the Senate Conservation Committee.  This bill amends the Mining Safety Act to require only persons underground in a coal mine, rather than persons underground in any mine, to wear or keep within immediate reach a self-contained rescue device approved by the State Mine Inspector. The bill specifically requires all underground mines to have permanently lighted caches of self-contained rescue devices, adequate to protect a miner for one hour or longer, placed throughout the mine in a manner approved by the State Mine Inspector. ACI supports this bill.  [BILL]

February 1, 2008 

Progress on Regulatory Process! 

Yesterday, by unanimous vote, the House Business and Industry Committee passed HB310 - Regulatory Impact Statements sponsored by Rep. Berry. This bill proposes that before adoption of any agency rule that would have an economic impact of $25,000 or more, the agency must complete a regulatory impact statement.  This statement is basically a cost-benefit analysis comparing action to inaction.   The bill now moves to House Judiciary and then to House Appropriations.  We are very pleased to have moved this bill through the process. [BILL]

We are very excited that several other regulatory bills have been introduced:

SB 528 - Interim Regulatory Process and Administrative Law Committee introduced by Sen. B. Sanchez, Sen. M. Sanchez, Sen. Smith, Sen. J. Taylor, and Sen. Robinson. This bill creates the joint interim Legislative Regulatory and Administrative Law Committee, composed of 10 voting members appointed by the Legislative Council. Five members are appointed from the House and five from the Senate, with at least two from the minority party in each body. This committee will: (A) conduct a continuing study of the benefits and challenges of existing agency regulatory process and structure; (B) review the model Administrative Procedures Act and other regulatory process legislation; (C) recommend any necessary legislative action to improve regulatory processes, including a time line for implementation of any recommended changes; and (D) make a full report of its findings and recommendations. [BILL]

This bill has two committee referrals.  ACI will stand in support of this legislation.

SB 535 – Model Regulatory Process Legislation sponsored by Sen. B. Sanchez. This bill revises the current Commission for the Promotion of Uniformity of Legislation in the United States by requiring the commissioners to study model administrative procedure laws and regulatory process legislation. The director of the Administrative Law Division of the State Commission of Public Records is added to the Commission and specific duties outlined including annual reports to the Legislature by the first of November of each year. This bill also has two committee referrals. ACI will stand in support of this legislation. [BILL]

HB 614 – Economic Impact and Legislative Review of Executive Rules introduced by Rep. Dan Foley. This bill is similar to Rep. Berry’s HB310 in requiring an agency to conduct an economic impact study of the costs, benefits, and impacts of the proposed rules. Specifically the study shall include the following factors: (1) the need for the proposed rule; (2) the number and identity of municipalities, counties or other entities that will be impacted by the proposed rule; (3) the cost of compliance with the proposed rule; (4) the anticipated benefit derived from compliance with the proposed rule; (5) the nature of complaints or comments received from the public concerning the proposed rule; (6) the complexity of the proposed rule; and (7) the extent to which the proposed rule overlaps, duplicates or conflicts with other federal, state and local government rules.

Additionally, the bill calls for the legislature to approve any rule before adopted that has a negative fiscal impact of $20 million or more. ACI stands in support of this bill which has three committee assignments.  [BILL]

Rep. Foley also introduced HJR 12 – Legislative Approval of Executive Rules which is identical to Sen. Ingles’ SJR 7. Since these joint resolutions are identical, they do not have to cross over. In other words, if each passes their respective body, then we will see this constitutional amendment on the ballot. This resolution has three committee proposals. ACI will stand in support of HJR 12 as we will for SJR 7.  [BILL]

January 31, 2008

Today’s blog was going to focus on new legislation, however today’s headline “Do Nothing Legislature”  changed the subject of today’s commentary.  First, let me say that neither this Governor or the Legislature have done nothing in regards to health care coverage.  In addition to expanding Medicaid coverage to 100% in 2007, the state has five additional state programs.   Those are detailed here (What New Mexico Offers).

Secretary Hyde and the sponsor Rep. Heaton have both stated that of the 400,000 uninsured, 50% (or more) qualify for one of the state programs.  Of the 200,000 remaining, another 50% have access to health care coverage but opt out.  That leaves us with about 100,000 people we need to focus our attention on and to help, plus the 200,000 we need to help with outreach.

We had three bills heard yesterday in House and Industry Committee:

HB21 - Prohibits Abusive Mortgage Practices, Rep. Lundstrom [bill]
HB21 was tabled on an 8-2 vote by the committee after much debate.  The intent of this bill was to protect home buyers from predatory practices. However, it effectively eliminates interest-only loans and other types of loans that are beneficial to qualified buyers.

HB293 - Tax Exclusion for Temporary Staffing Firms, Rep. Taylor [bill]
HB293 received a do Pass.  The bill now moves to Tax and Revenue Committee. This bill is a "fix" for the tax law that now allows employee leasing companies this exemption, but not temporary staffing firms.  If passed, Temp Firms would no longer have to pay gross receipts tax on the wages of the temporary worker.  This tax, of course, is currently being passed on to the business utilizing the temp worker.

HB310 - Regulatory Impact Statements, Rep. Berry [bill]
HB310 was temporarily tabled.  A sub-group was formed to work out technical issues and the bill will be heard again on Thursday.  State employees spoke against the bill. The bill proposed that before adoption of any agency rule that would have an economic impact of $25,000 or more, the agency must complete a regulatory impact statement.  This statement is basically a cost-benefit analysis comparing action to inaction. The Fiscal Impact Review of this bill from different agencies was thick and negative. ACI is supporting this bill.

In regards to SB3 - Health Security Act, Sen. Cisneros received a do Pass by Senate Public Affairs.  This is also known as the Single-Payer bill. The bill now moves to Senate Corporation and Transportation.  Those supporting this bill are well-organized and turn out in large numbers. ACI stands in opposition to this bill. [bill]

SB225 - Health Care Authority Act, Sen. Feldman received a do Pass in Senate Public Affairs. This bill creates a Health Care Authority as a new state agency and appropriates $600,000 (GF) for expenditure in FY 2009 and FY 2010 to establish and implement the new agency. This bill now too moves to Senate Finance. The mirror bill (HB147) carried by Rep. Picraux received a do pass as amended by House Health and Government Affairs. This bill now moves to House Appropriations.  We are currently not taking a position on either bill. [SB225 Bill / HB147 Bill]

SB160 – Bans Municipal Real Property Transfer Tax, Sen. Grubesic received a do Pass by Senate Finance. This bill adds taxes on the transfer of real property to the list of taxes that municipalities are barred from enacting. This bill now heads to the Senate Floor. [bill]

HB62 – Health Solutions Act, Rep Heaton is now a committee substitute bill with significant changes.  Unfortunately none of those changes include removing the employer mandates.  This bill will continue to be debated in House Health and Government Affairs today and ACI will continue to stand in opposition. [bill]

Today is the last day for bill introduction.  I will provide you an overview of new bills or bills not mentioned previously in the blog that impact business for tomorrow’s update.

Yesterday in Senate Corporations and Transportation, SB57: Regulatory Process Task Force sponsored by Sen. B. Sanchez and Rep. Berry was tabled.  There was lots of misinformation regarding the bill and environmental groups organized against it.  The Senators received calls and emails from these groups against the bill.  It is unfortunate since a standardized process and an independent hearing process would also help advocacy groups.  These groups cannot always be guaranteed the same access under all administrations.  It is also a lesson learned to us as business community.  We must also make those calls and send emails to help our sponsors who are carrying our bills.

Today, we have three bills in House Business and Industry Committee:

HB21 – Prohibits Abusive Mortgage Practices, Rep. Lundstrom
HB21 was temporarily tabled in House Business and Industry Committee.  The intention of this bill was to protect home buyers from predatory practices. However, it effectively eliminates interest-only loans and other types of loans that are beneficial to qualified buyers. (Members have called and emailed concerns regarding this bill). A subcommittee of Rep. Gardner, Rep. Trujillo, and Rep. Lundstrom reviewed amendments proposed by the New Mexico Banker’s Association, the New Mexico Independent Banker’s Association, and ACI.  We understand that independent mortgage companies as well as self-employed investors still have concerns and we hope those get represented in the committee. 

HB293 – Tax Exclusion For Temporary Staffing Firms, Rep. Taylor
This bill is a “fix” for the tax law that now allows employee leasing companies this exemption, but not temporary staffing firms.  If passed, Temp Firms would no longer have to pay gross receipts tax on the wages of the temporary worker.  This tax, of course, is currently being passed on to the business utilizing the temp worker.  This is an ACI priority and we will stand in support.

Here is a summary of the different Health Care proposals that are currently being considered.  This summary was provided in Sunday’s Senate Public Affairs Committee.  Please note that the summary for HB62 does not contain the employer mandate portion in the summary.  However, it is our understanding that a committee substitute for this bill will be introduced tomorrow in the House Health and Government Affairs Committee.  We will keep you posted on the outcome of the meeting. 

Yesterday, there were only five committee members in the Senate Public Affairs committee:  Sen. Feldman (chair), Sen. Ortiz y Pino, Sen. Cisneros, Sen. Morales, and Sen. M. Garcia.  SB 3: Health Security Act was given a “do pass” by this sub-committee.  However, it will take a vote of the full committee to actually move this bill out and to Senate Finance.  Sen. Garcia was not present for the vote, so only four members of this committee voted on this bill.

Download Summary Here (PDF)

January 25, 2008

In House Health & Government Affairs, we expected to continue to hear debate on HB 62: Health Solutions Act.  Instead, however, the majority of the committee time was spent on HB 147: Health Care Authority Act sponsored by Rep. Picraux. The Health Care Authority Act creates a Health Care Authority and appropriates $600,000 to establish and implement the new agency. The bill requires the newly created authority to develop a comprehensive plan for accessible and affordable health care services for all New Mexicans by January 1, 2009. The bill also transfers all existing commission personnel, property and contracts of the New Mexico Health Policy Commission to the Health Care Authority on September 1, 2008. The authority is only created through 2014 at which time it will sunset if not extended by the legislature.

This bill takes the concept of the Health Care Authority in HB 62: Health Solutions Act without the other initiatives and gives the Authority specific responsibilities and a limited life.  In effect, it does not create a regulatory body, but a body designed to create an action plan.  With some amendments, it is possible that ACI could support this bill.  However, at the end of the committee, Rep. Picraux was instructed by Chair Stewart to work with Rep. Heaton, Sec. Hyde and others to roll HB 147 into HB 62.  We will know the outcome of that discussion on Saturday.  There is a mirror bill, SB 225 sponsored by Sen. Feldman.

HB 8: Development Training Projects sponsored by Speaker Lujan received a do pass by House Business & Industry and will now be heard by House Appropriations.  The bill Provides $10 million in non-reverting funds to the Economic Development Department for development training programs that provide quick-response classroom training, in-plant training and skill enhancement to furnish qualified work force resources for new or expanding industries in New Mexico. ACI supports this bill.

Rep. Wirth’s Electronic Medical Records Act (HB 37), supported by ACI and one of the Governor’s initiatives, received a do pass in Health and Government Affairs.  The bill requires the New Mexico Telehealth and Health Information Technology Commission to develop plans for implementing electronic insurance and medical record systems, provides for legal effectiveness of electronic medical records and establishes rules for disclosure of electronic medical records. The bill now moves to House Judiciary.

Rep. Lundstrom’s HB 21: Prohibits Abusive Mortgage Practices was temporarily tabled yesterday in House Business and Industry Committee.  The intention of this bill was to protect home buyers from predatory practices and we appreciate her efforts with this. However, it effectively eliminated interest-only loans and other types of loans that are beneficial to qualified buyers—members called and emailed with concerns. A subcommittee of Rep. Gardner, Rep. Trujillo, and Rep. Lundstrom has been formed to review the amendments proposed by the New Mexico Banker’s Association, the New Mexico Independent Banker’s Association, and ACI.

HB148:  Income Tax Credit: Employer Wellness Program introduced by Rep. Picraux (Identical to SB148, Sen. Snyder) received a do pass by House Health and Government Affairs.  The bill now heads to House Tax and Revenue. This bill provides a nonrefundable personal or corporate income tax credit for employers who provide wellness programs for employees. ACI supports this bill.

SB110:  Economic Development Department Manufacturing, Sen. Garcia is now moving to Senate Finance after receiving a Do Pass by Senate Corporations and Transportation.  The bill appropriates $1.3 million (GF) to the Economic Development Department to contract for manufacturing extension services. Appropriation is contingent on receiving money from the National Institute of Standards and Technology to operate the center. ACI supports this bill.

Yesterday afternoon in the Senate Corporations Committee, several bills ACI supported received a do pass.  SB 160: Prohibit Municipal Property Tax Transfer sponsored by Sen. Grubesic prevents municipalities from imposing a levy on a real estate transfer, thus increasing the closing costs and in effect creating a double taxation situation. The bill now heads to Senate Finance. 

Sen. Snyder's tax credit bills, SB 115 Income Tax Credit for Employee Health Care Premiums and Sen. Komadina's SB 148 Income Tax Credit for Wellness Programs received a do pass and will now be heard by Senate Finance. The $1 million appropriation to the Economic Development Department for expansion of Business Incubators, SB 86 sponsored by Sen. Leavell, is now also headed to Senate Finance.

Rep. Ezzell has introduced HB 281: Right to Work Act.  This Act will prohibit making union membership and payment of union dues a mandatory condition of employment or promotion.  So far, this bill has only been referred to House Rules to determine if it is germane.  ACI supports this bill and if it is not germane for this 30-day session, we hope to see it introduced again in the 60-day session.

A long time ACI position from our Education Committee has been to permit community college board elections to be on the same date as the school district elections in order to save money and increase voter turnout.  Rep. Wirth has introduced HB 249 that proposes this.  The bill will be heard tomorrow morning in House Education committee and if passed, will go to House Voters and Elections. 

January 23, 2008

We have had priority bills supporting our priorities introduced. Sen. M. Sanchez has introduced SB 264 Campaign Contribution Limits. This bill effectively limits contributions for candidates for state office to the $2,300 cap of federal candidates. This bill has three committee referrals.

Rep. Taylor has introduced HB 293: Tax Exclusion for Temporary Staffing Firms. This bill is a “fix” for the tax law that now allows employee leasing companies this exemption, but not temporary staffing firms. If passed, Temp Firms would no longer have to pay gross receipts tax on the wages of the temporary worker. This tax, of course, if currently being passed on to the business utilizing the temp worker. This bill has two committee referrals.

$2 million will be appropriated to the Public Education Dept. for the expansion of career-educational and vocational training programs if Rep. Berry’s HB 255/SB 170, Sen. B. Sanchez’s: High School Vocational Training passes. This bill has two committee referrals.

In regards to Regulatory Reform, Rep. Berry is proposing that before adoption of any agency rule that would have an economic impact of $25,000, the agency must complete a regulatory impact statement. This statement is basically a cost-benefit analysis comparing action to inaction. ACI will be supporting HB 310. This bill has three committee referrals.

HB 267: Government Can’t Use Penalty Money was introduced by Rep. Gardner. This bill prohibits a state agency, the governor or the Legislative Finance Committee from submitting a budget request, proposal or recommendation that authorizes an agency to expend money derived from penalties assessed by that agency in the same year. Also prohibits agency budget increase requests if the funding source is from penalties assessed by that agency during the same fiscal year. The goal is to prevent agencies from using penalty money as a revenue source. So far, this bill has only been referred to the House Rules Committee to determine if it is germane.

SB 57, Regulatory Process Task Force (Sen. B. Sanchez/Rep. Berry), has been ruled germane. This bill will next go to Senate Corporations & Transportation Committee.

We will keep you posted on the schedule. We will be back later in the day with the update on the committee action on HB 62.

January 22, 2008 

We have a busy week ahead of us.  Committee meetings start Monday morning with full schedules on both the House and Senate side.  We will be attending the House Taxation & Revenue Committee meeting at 1:30 in Room 317 to voice our opposition to HB 57 Mandatory Combined Filing sponsored by Rep. Wirth.  We have confirmed the attendance of some of our members negatively impacted by this legislation.  We will keep you posted on the outcome.

The Governor's HealthSolutions Plan (HB 62) will be heard by the House Health & Government Affairs Committee on Wednesday, January 23 at 8 a.m. in Room 309.  We will be present to voice our opposition to placing the burden of Universal Healthcare on the backs of employers.

In regards to Regulatory Reform, we want to let you know that Sen. Stuart Ingle has introduced SJR 5.  The resolution proposes "AN AMENDMENT TO THE CONSTITUTION OF NEW MEXICO TO ALLOW THE LEGISLATURE TO ENACT LAWS THAT PROHIBIT REGULATORY RULES OF THE EXECUTIVE BRANCH FROM TAKING EFFECT UNTIL REVIEWED AND APPROVED BY THE APPROPRIATE INTERIM OR STANDING COMMITTEES OF THE LEGISLATURE."

Note that Joint Resolutions must pass both the Senate and the House and do not require the signature of the Governor. This Resolution has two committee assignments.  ACI will support this Resolution.

Our legislative reception is Monday night at the Eldorado Hotel, followed by Business Day on Tuesday.  I hope to see you there.  Additionally, don't forget our teleconference today at 10:30. 

We got our wish-Sen. Snyder has introduced SB 115 that provides for a nonrefundable credit against personal or corporate income tax to employers of 50 or fewer employees who provide health insurance for their employees. The bill has two committee referrals.  While the credit is only for our smaller employers, it is definitely a start in the right direction.

Sen. Komadina introduced SB 148 and Rep. Picraux introduced HB 148 which provides a tax credit for employers who provide a wellness program.  The credit is equal to 50% of the amount an employer expends on a qualified wellness program.  The credit is $200 each for the first 200 employees and $100 each for every employee in excess of 200 (people not pounds).  Each bill has two committee referrals.

We think these bills reflect the right kind of thinking-let's provide employers incentives for providing health care insurance and wellness programs.

While we are talking about tax credits, there is a proposal to expand the amount of the high-wage jobs tax credit.  Sen. B. Sanchez has introduced SB 174 that will expand the credit depending on where the job is performed and the wages paid.  The percentages of the credit will be scaled based on the salary and the population, allowing our employers in smaller communities a better opportunity to benefit from the credit.  The bill has three committee referrals. ACI supports this bill.

In regards to Regulatory Process and to Water (two of our priorities), Sen. Papen has introduced SJM 8 that requests the State Engineers and the Administrative Office of the Courts to explore ideas to improve the water rights adjudication process.  Recommendations will be due to the legislature by December 1, 2008.   Sen. Papen is also recommending a $1 million appropriation (SB 65) to the Local Government Planning  Fund to plan for water and wastewater system development, long-term water management, water conservation, etc.  This bill has three committee referrals.

Rep. Wirth has proposed Mandatory Combined Filing in his bill, HB 51.  This bill would require unitary members of corporate groups to file state income tax returns on a combined basis, starting with returns for the 2008 year.

Since the 1960's, New Mexico has allowed corporations to chose among three methods for filing and calculating corporate income tax. The express reason for allowing three methods has been to provide an economic development incentive that allows taxpayers to, legally, minimize their New Mexico corporate income tax, thus setting New Mexico apart from other states competing for the same businesses. Requiring qualifying corporate groups to use only the "unitary combined filing" for corporate income tax has numerous significant disadvantages for New Mexico. 

ACI opposes this bill.  We understand that it is aimed at "big business," but we respectively remind everyone that big businesses are big employers.  We have no way to measure how many future jobs may be lost if we lose this incentive, thus offsetting any additional revenue that may be generated.  This bill has two committee referrals.

The House and the Senate have adjourned and will not meet again until Monday.  The House Appropriations and Finance Committee, chaired by Rep. Saavadra, is the only committee scheduled to meet on Friday. I'll be back on Monday with more updates.  Also, for our ACI members, beginning Monday, podcasts will be available as will our teleconference call at 10:30 a.m. and every Monday thereafter.  This will allow our members to interact with us and hear directly updates regarding the session.

The Session has officially started with many bills already introduced. This is the first year for "pre-filing" which means that legislators could introduce their bills prior to the first day.  Though it is good for those of us tracking bills to have the opportunity to see legislation earlier, it also means we really do have to hit the proverbial ground running.

It is The Year of Health Care, so let's start with this issue. Today, Rep. John Heaton along with Speaker of the House Ben Lujan and House Majority Leader Ken Martinez introduced HB 62, the Health SOLUTIONS New Mexico Act, for Governor Bill Richardson. As anticipated, this bill was introduced in the House and has two committee referrals. We are awaiting the fiscal impact report.  Overall, our greatest concern is that New Mexico does not have the economies of scale to effectively implement universal health care coverage. We are concerned that the cost of the Health SOLUTIONS Plan and who bears the burden of that cost is unknown. 

Additionally, this Plan does not guarantee additional coverage for the uninsured and penalizes New Mexicans for providing jobs. We do not believe that healthcare should be tied to employment.  ACI's position on various parts of this bill can be found in our Legislative Positions posted on this website.

On the Senate side, we have several Health Care bills. Sen. Cisneros has introduced SB 3, the Health Security Act, which is the single payer bill.  This bill has been given four committee assignments.  ACI opposes this bill as we do not consider this a solution that provides coverage as well as provide for a healthy economy.

Sen. Beffort has introduced a series of bills relating to Health Care, including SB 39 which provides a tax credit for health insurance.  The tax credit is not for employers who provide the coverage, however, but for individuals who live in a household below the federal poverty line.  Let's hope for someone to introduce a tax credit for employers who provide coverage for their employers.

ACI has long been a proponent of fair and equitable regulatory treatment of privately owned businesses in New Mexico.  In our state, more public policy is established through rules and regulations than through the legislative process. Currently, we are the only state in the nation that does not require agencies to follow the Uniform Administrative Procedures Act when developing rules and regulations. We are excited that SB 57 sponsored by Sen. B. Sanchez and Rep. Berry has been introduced on the Senate side and has two committee referrals.  This is a bill that ACI proposed during the interim that would create a task force comprised of business and agency people to:

1. identify the challenges that New Mexicans face navigating regulatory intra- and interagency processes;
2. identify the goals of a regulatory framework;
3. identify processes necessary to carry out specific state agencies' purposes;
4. determine whether areas could be improved to enhance consistency, predictability and other identified goals;
5. review the 2008 model Administrative Procedures Act to be released by the national conference of commissioners on uniform state laws;
6. review rulemaking and adjudicatory and accountability systems in other states;
7. consider whether the proposed model act should apply to most, if not all, state agencies;
8. consider whether broad-based reform will enhance consistency and predictability and meet the goals necessary to serve the citizens and businesses of New Mexico more effectively;
9. identify strategies for improving the essential rulemaking and adjudicatory functions of state agencies in order to carry out legislative mandates effectively; and
10. determine any necessary legislative action to improve regulatory processes and develop a strategy and time line for implementation of any recommended changes.

These legislators and their committee are committed to changing regulatory process. Also, we are hearing that other bills will be introduced in regards to this subject, so stay posted. 

Also of note to businesses:

HB 8 sponsored by Speaker Lujan provides $10 million in non-reverting funds to the Economic Development Dept. for development training programs that provide quick-response classroom training, in-plant training and skill enhancement to furnish qualified work force resources for new or expanding industries in New Mexico. The bill calls for 2/3 of the money to be expended for training in urban areas and the other 1/3 in rural areas across the state. This bill has two committee referrals.

ACI supports this bill and recognizes the need for workforce and customized training in both our Education and Work Place Issues priorities.