2025 Legislative Update #9
2025 Legislative Update #9
KEY ISSUES AFFECTING
Commerce-Collaboration-Community
Commerce-Collaboration-Community
- PAID FAMILY & MEDICAL LEAVE HOUSE FLOOR VOTE
- LAST MINUTE $500 MILLION $$$ TAX INCREASE
BREAKING NEWS
HOUSE VOTES 38 TO 31 APPROVES
PAID FAMILY & MEDICAL LEAVE
WELCOME CHILD & FAMILY WELLNESS LEAVE ACT
This afternoon (02/28/25) the New Mexico House of Representatives voted to approve and move forward HB 11 - The Paid Family & Medical Leave Act – Renamed the Welcome Child & Family Wellness Act.
We first want to thank these 3 remarkable and responsible legislators Representing McKinley County
Representative Patty Lundstrom Representative Martha Garcia Representative Wonda Johnson
THANK YOU FOR VOTING NO!
Representatives Lundstrom and Johnson have been real fighters and allies with the business community and their employees. They have joined with us and have been responsible for helping us stop this bill in the past. Representative Martha Garcia, with not even two full days under her belt listened to our reasoning and stood her ground. Thank you Representatives for your service and dedication to McKinley County. Our three Representative were joined by Representatives Matthews and Sanchez.The election last November has taken its toll. There are too few legislators willing to find middle ground and represent the will of those they serve. Too many legislators now choose Party over the People, and today’s vote is proof. Despite over 70,000 opposition emails, displayed on the House floor, never mind that HB 11 still has no permanent funding source, the sponsors say they will figure that out later, and despite the fact that the bill’s fiscal impact report says it will be bankrupt in a very short time…they vote to move it forward. It’s these types of irresponsible decisions that continually hold New Mexico back. If you were planning on opening or expanding your business in New Mexico, and you took a look at the legislative landscape, the only certainty you’d find is UNCERTAINTY and that’s an additional risk you probably wouldn’t be willing to take.
The bill now heads to the Senate where it will be difficult to stop…but you can count on us to remain in the fight. More to come in our next update.
LAST MINUTE TAX BOMB IS FAST TRACKED OUT OF COMMITTEE
Late yesterday afternoon, the House Energy, Environment and Natural Resources Committee gave a 7-4 nod of approval to House Bill 548, sponsored by Reps. Nathan Small (D-Doña Ana) and Meredith Dixon (D-Bernalillo). This late-introduced bill (it was introduced right at the bill introduction deadline) seeks to impose a 25% tax increase on every barrel of oil produced on state lands, raising nearly a half a billion dollars in new state revenues. The new revenues would go to the general fund for more spending on state programs and projects. As you might imagine, we are not at all supportive, especially when over the past three years there have been billions and billions of dollars in new money rolling into the state. Yes, those billions can be largely attributed to the oil and gas industry.'Punishment to an Out-of-Favor Industry'
That's how the New Mexico Oil and Gas Association (NMOGA) characterized HB 548. NMOGA made it absolutely clear this will be huge negative impact on oil field economics, making it less attractive for investment and decreasing production and jobs. In fact, marginal production would likely shut down, lowering state revenues. Along with the Greater Albuquerque Chamber, New Mexico Chamber of Commerce, the Santa Fe Chamber of Commerce we are in strong opposition to this unwarranted tax increase. In committee, only three speakers were allowed in the committee room and two online, but many people in the committee room raised their hands in opposition. More and more we see committee chairs limiting public comment. It seems they have forgotten they are in office to serve, and in session, in the peoples house, they should be willing to listen to all who make the drive, take the time to make their voice count. That’s another topic for another day in our legislative updates. None-the-less, the only support came from the Sierra Club
Why is a Tax Increase Needed?
Reps. Rod Montoya (R-San Juan) and Mark Murphy (R-Chaves) hammered on this question repeatedly. The answer from Representative Small was "making life more affordable for New Mexicans." (well he obviously failed to pay attention in his economics class). When pressed further, Small said he was worried about federal cuts to Medicaid for which the state might have to make up, or maybe more tax reductions to working families. We are more inclined to believe the reasoning provided by Representative Murphy who suggested the tax increase would be used for paid family and medical leave. As we've reported, HB 11 (the paid family and medical leave bill) has no dedicated funding source for nearly $200 million annually in expenses. We think Murphy hit the nail on the head. This would explain why a last-minute bill of this magnitude is being rushed through the Legislature with zero stakeholder input and zero consideration by an interim committee that most always vets major tax proposals before they are introduced during a session.
Cuts to Medicaid may or may not occur, so it would be premature to enact a tax increase. As Gov. Michelle Lujan Grisham has indicated, if Medicaid cuts are made, she'll call a special session to deal with it. In the meantime, HB 548 could undergo interim committee investigation, giving stakeholders a chance to participate.
