Pub. 15 2018 Issue 4

2 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S Wouldn’t it be something if this concept were applied equally across the financial services industry, including community banks, credit unions and others? PRESIDENT’S MESSAGE JOHN S. GULAS NMBA PRESIDENT Los Alamos National Bank SPENDING FRENZY A s we begin the New Year, I’d like to recap the state-wide tour that John Anderson and I took to touch base with many of you. We closed out 2018 with a road trip that passed through Alamogordo, Carlsbad, Roswell, Clovis, Farmington, Santa Fe and Albuquerque. It was a wonderful opportunity to meet with bankers and legislators from each corner of the state. The conversations were dynamic and fruitful, and addressed the various concerns facing the banking industry. After touring through our state’s expan- sive deserts, scenic mesas and snow-capped peaks, and meeting with so many passionate leaders, I’m optimistic for what 2019 has in store. The legislative has begun, and legislators from both parties expressed that cooperation will be the rallying cry for this session. Leg- islators indicated that there will be a backlog of bills, but feel confident in their ability to work with the Governor elect, Michelle Lujan Grisham. Up for discussion will most likely be a State Bank bill. This topic will generate a lively conversation, but the sentiment among both legislators and bankers seems to suggest that a State Bank does not favor the interest of New Mexico’s banks, banking customers, nor eco- nomic growth. Another item of interest up for debate in- volves Alcohol Licensing in New Mexico. A bill will likely be introduced to reduce the cost of a full alcohol license. This will impact individu- als that paid the existing price for the license, and the banks that have relied on those values to collateralize loans. The bill may include a program to “condemn” existing licenses with compensation paid over a period of years; this may have some potential, but in the end, com- pensating individuals who paid in full for their license will be a challenge. Another interesting topic up for debate is a tax bill that could impact our economy through a reduced gross receipts tax. The most popular proposal discussed involves the elimination of exceptions in favor of a 2% GRT tax. Ultimately, the proof will lie in the final calculation, but if accomplished, a vast number of exceptions to the GRT would be eliminated. This has the potential to create a much fairer application of the tax. Wouldn’t it be something if this con- cept were applied equally across the financial services industry, including community banks, credit unions and others? As we traveled across New Mexico our con- versations were as diverse as the state’s geogra- phy – as will be the other topics slated for this session, including the legalization of marijua- na, funding for education and infrastructure improvements. This could shape up to be a very interesting 60 days. n