Pub. 17 2020 Issue 1

Issue 1 • 2020 5 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 move through the process. However, this limitation does not apply to proposed constitutional amendments, which can be introduced in any legislative session, require only a majority vote in both chambers, and are not subject to approval or veto by the Governor. Memorials and resolutions are also allowed in the short session. Election year: The 70 members of the NewMexico House of Representatives and 42 members of the Senate will stand for reelection this year. There are nine legislators who have announced they will not seek reelection either because they are retiring or seeking other elected offices. The list includes: • Rep. Paul Bandy (R-Aztec, House District 3) • Rep. Abbas Akhil (D-Albuquerque, House District 20) • Rep. Jim Trujillo (D-Santa Fe, House District 45) • Rep. Joseph Sanchez (D-Alcalde, House District 40) • Rep. Tomas Salazar (D-Las Vegas, House District 70) • Sen. John Sapien (D-Corrales, Senate District 9) • Sen. Bill Payne (R-Albuquerque, Senate District 20) • Rep. Gregg Schmedes (R-Tijeras, House District 22) • Rep. David Gallegos (R-Eunice, House District 61) Legislation Approved by the Legislature and Governor: Budget: The Governor signed a $7.6 billion state budget. State spending will increase by approximately $536 million or 7.6% over the current year’s budget. The state’s reserves will increase to $1.9 billion or approximately 25% of the state’s annual general fund spending. The budget includes 4% pay raises for most state employees and $58 million to support re - visions to the Public Employees Retirement Association to set it on a path to solvency. Forty-five percent of all new recurring expenditures go toward education. The budget includes $180 million for project planning, design, construction and equip- ment for road projects across the state. However, the Governor vetoed from the General Appropriations Act a total of $150 million in general fund capital projects. That money will now go to the state’s reserve account. The Governor also vetoed SB 232, legislation that would have appropriated $50 million to a variety of local projects. That $50 million will instead be part of the state’s general fund reserve account (HB 2). Early Childhood Trust Fund ($320 million): The fund will make distributions beginning July 2022 for expand - ing prekindergarten, home visits, and other programs to serve the state’s young children and their families (HB 8). Solar: The bill reinstates the tax credit for homeowners who install solar panels. It offers a 10% income tax credit on the cost of solar equipment and installation with a cap of $6,000. The law sunsets in eight years and is limited to $8 million per year (SB 29). NM Private Equity Investment Program: The bill allows the State Investment Council to raise the cap from nine to 11% on investments from the Severance Tax Permanent Fund into the NM Private Equity Investment Program. The program targets New Mexico startup companies with the potential for rapid growth and job creation (SB 136). Lodgers’ Tax: The bill allows local governments to collect the Lodgers’ Tax after 30 days, if the premises rented are not the vendees’ household or primary residence (HB 117). Public Records: The bill removes a requirement that the state must wait 180 days before publicly disclosing information pertaining to claims against the state government (SB 64). Professional licensure: The bill provides that a person who is qualified for an occupational or professional license remains qualified regardless of citizenship or immigration status (SB 137). Prescription Drugs: The bill authorizes the New Mexico Department of Health to establish a program to import cer- tain prescription drugs from Canada through a wholesaler for resale to New Mexico consumers (SB 1). Census: The bill appropriates funds to achieve a com- plete count for the federal 2020 census. It is estimated that a 1% undercount of New Mexico’s population in 2020 would result in a $780 million loss of federal funds over a 10-year period (SB 4). Retirement: The bill creates the New Mexico Work and Save Act, which allows for a voluntary savings program for the private sector and nonprofit employees, as well as self-em - ployed individuals, through a retirement savings plan pur- chased through a web-based marketplace established and maintained by a board established under the Act (HB 44). Capital Outlay: The Legislature approved a $528 million capital outlay package, which includes 1,500 separate items for funding. The Legislature utilized its entire severance tax bonding capacity and also included $137 million in general fund spending. The bill is 134 pages (SB 341). GO Bonds: The Legislature approved $195 million in gen- eral obligation bonds for projects, including funding for higher education, senior centers and libraries. Legislation that was NOT approved by the Legislature includes: • Authorization to create a state bank; • Elimination of the state income tax on Social Security; • Legalization of the adult recreational use of cannabis; • Omnibus state taxation reform package; • Ban on hydraulic fracturing; • Conservatorship liability; • Increase in the gasoline tax to combat climate change; • Foreclosure prevention counseling; • Eviction Prevention Act; • Legislative term limits; • Parental paid family and medical leave; • A constitutional amendment to allow the state to tap into the Permanent Fund for early childhood education programs; • Salaries for legislators. New Mexico is the only state in the U.S. that does not provide salaries for its leg - islators with Colorado paying the highest at $40,242 per year; and • Blockchain Technology Task Force. n