HOUSE APPROVES MAJOR BEHAVIORAL HEALTH BILL,
SENDS IT BACK TO SENATE
After three hours of debate and an attempted amendment, the House sent Senate Bill 3 back to the Senate for concurrence in amendments on a vote of 44-23. Both chambers must agree on exactly the same version of a bill. SB 3 was amended in the House, so it must be returned for Senate agreement, or concurrence. In this case, that’s probably a slam dunk. However, if the Senate should refuse the House amendments, then a conference committee would be appointed to work out the differences. If that happens, we’ll give you a little more information on that process.
Rebuilding the state’s behavioral health system is no easy task. Senate Majority Leader Peter Wirth (D-Santa Fe) and Senate Minority Leader Bill Sharer (R-San Juan) have teamed up on Senate Bill 3 to create a new, locally based infrastructure complete with guardrails, measurements and accountability. SB 3 is part of a package of three bills, Senate Bills 1, 2 and 3. SB 1 would create a $1 billion trust fund to ensure a long-term funding source. It should be on the House floor soon. SB 2, a specific appropriations bill for projects, will be folded into the budget bill. This package of three bills has been a heavy lift for Sens. Wirth, Sharer and George Muñoz (D- Cibola, McKinley & San Juan). It’s an impressive effort, and New Mexicans will benefit greatly from their leadership.
Rep. Rebecca Dow (R-Doña Ana, Sierra & Socorro) offered an amendment to put the Health Care Authority in the position of coordinating the startup of the regional committees rather than the Administrative Office of the Courts. She thinks the executive, not the judicial, branch should play that role. The amendment was debated extensively but ultimately tabled on a vote of 39-28. We’ll continue to keep you informed on the progress of this legislation, which the Chamber strongly supports.
SENATE FINANCE GETS BILL TO STOP TAX LIGHTNING
ON MULTI-FAMILY HOUSING
One key solution to the housing shortage is to encourage construction of affordable multifamily housing. Senate Bill 186 aims to prevent tax lightning on multifamily housing units like apartment buildings.
Tax lightning, or the rapid increase of assessed values for taxation, could increase rent for low-income housing and depress construction of new housing. Senate Majority Leader Peter Wirth (D-Santa Fe) presented the bill today before the Senate Tax, Business and Transportation Committee.
J.D. Bullington spoke for the Greater Albuquerque Chamber of Commerce:
“If multifamily property valuation is immediately brought to current and correct levels, there will be tax lightning striking all over the state, with the costs appearing in monthly rents and negatively affecting the economics of constructing new units. We must have a lot more units in order to attract and house workers. SB 186 resolves this dilemma without taking away revenue from local governments; in fact local revenues are likely to increase. We would appreciate your ‘yes’ vote on SB 186.”
The bottom line is without SB 186 passing, construction or renovation of multifamily housing will be stalled, and large spikes in monthly rents are likely.
Sen. Debbie O’Malley (D-Bernalillo) didn’t like that “the industry” was at the hearing advocating for the bill, saying that it seemed self-serving that the Apartment Association and the Real Estate Association were advocating for the bill. We’re a bit puzzled to hear that, as these various industry groups represent constituents who are creating jobs and providing affordable housing.
Actually, it’s exactly what we do on behalf of Chamber members. We advocate for policies that help us grow the economy and make New Mexico more competitive.
Nobody opposed the bill in the audience, and it passed on a 9-1 vote. O’Malley voted for the bill reluctantly, and Rep. Natalie Figueroa, the lone no vote, said she could be convinced to support the legislation (it moves next to Senate Finance) on the Senate floor.
MOTOR VEHICLE EXCISE TAX ON THE ROAD AGAIN
– TO THE OMNIBUS TAX PACKAGE
New Mexico is a large state with lots of roadways and, therefore, lots of upkeep challenges. Our roads are, after all, the arteries through which our economic lifeblood flows. We told you a few weeks ago about an effort to redirect more of the motor vehicle excise tax toward the road fund so we can do a better job of maintaining our roads and bridges. Today, legislators in the Senate Tax Committee heard another version in Senate Bill 289, Motor Vehicle Excise Tax Distributions, sponsored by Sen. Bobby Gonzales (D-Los Alamos, Rio Arriba, Santa Fe & Taos).
The Chamber has long been a supporter of dedicating road-related revenue to roads, where it belongs, and we strongly support these multiple efforts to direct funding to our roads, highways and bridges.
J.D. Bullington drove the Chamber’s position in committee and told legislators:
“This bill puts Motor Vehicle Tax payments where they belong: back into our roads and transportation projects. This change will ensure a recurring source of revenue to get, and keep, our roads and bridges in safe traveling shape. To date the road and transportation funds have relied on revenue from gasoline and diesel taxes, commercial trucking fees, and vehicle registration fees. These have not kept pace with the increase in costs to repair and build roads.”
The bill heard today moves 65% to the road fund, 25% to the transportation project fund, and leaves 10% in the general fund for other spending priorities.
As with the previous bill, legislators discussed the bill and heard testimony. But instead of voting on a “do-pass” motion, they held the bill for consideration in the larger tax package.
We’ll let you know what happens down the road!
AROUND THE ROUNDHOUSE
Session Hits Halfway Mark – Meet the ‘Dummy Bills’
When the session hits the halfway point, it means that the deadline for introduction of bills has been reached and no new bills can be introduced starting tomorrow. Meet generic bills – kind of the Swiss army knife of legislation. Commonly referred to as “dummy bills” (they’re really pretty smart because they can do a lot of things), you can think of these as a “shell” or a placeholder. If an issue comes up and a piece of legislation needs to be introduced after the deadline, a substitute for the generic bill is amended into this placeholder. It then becomes a real live bill.
Can anyone introduce a dummy bill? Yes, but only a specific number is allowed, and they’re given to leadership on both sides of the aisle and committee chairs. So, if I’m Sen. Marvelous but a junior member, then I’d have to go to Sen. Bigtime to request a generic bill. They’re not used that often, but they can be used at very strategic points of the session.
So how do I recognize a dummy bill? They will simply have a title that says “Relating to the Public Peace, Safety and Welfare.” The bills are introduced with the chair or leader’s name on them. Like in baseball, they sit in the bullpen until a new pitcher is needed. When they are amended with a substitute, then usually. the sponsor’s name is changed from “Sen. Bigtime” to ”Sen. Marvelous.”
If you want more information about how these and other bills are drafted in the proper form, click here to see the Legislative Drafting Manual. It’s on the legislative website under publications – there’s a whole bunch of neat stuff.
Want To Be a Trust-Fund Baby? You Are!
So, your bank account doesn’t look like you’re a trust-fund baby? On a personal level that might be. However, as a citizen of New Mexico you are. Over the years, the Legislature has created a number of permanent and trust funds. What are these and how do they help you? You can think of these as savings or investment funds that earn interest. That interest is used to help pay for government programs and services. How do you benefit? Your taxes would be a heck of a lot higher if the earnings from investments weren’t contributing to the state budget.
Take, for example, the Severance Tax Permanent Fund created way back in 1973 with an initial deposit of $7 million. Its value now? A whopping $9.7 billion! The earnings impact to the budget is about $500 million per year – that’s half a billion dollars we all don’t have to pay in taxes. See, you are a trust-fund baby. So are your children, your grandchildren and generations from now. It’s money that is a long-term source of funding for schools, capital improvements, early childhood care and education and more. This is called creating intergenerational wealth – a legacy to be handed down so long as the funds aren’t raided.
Think New Mexico, in its very excellent policy report, discusses how to tackle health care problems and advocates for creating a health care trust fund. In that discussion, there is an excellent picture of the existing funds. (To read the entire report, click here).
As you can see from the Early Childhood Education and Care Fund, it doesn’t take that long (if the stock market cooperates) to grow investments and realize significant earnings. It is really visionary to tuck away significant amounts of the robust state revenues. Oil and gas revenues currently support nearly half of the general fund. The wonderful success of that industry, however, mighty not last forever. The permanent and trust funds allow the state to rely increasingly on earnings from funds and less on current revenue from whatever sources. You, indeed, are a trust-fund baby.
Treasure Trove of Art – in a Capitol?
Many people envision the inside of a state capitol building to be austere, even cold, intimidating and uninviting. If you’ve been in the Roundhouse, you know it’s quite the opposite. It feels like New Mexico, and part of the reason is that there’s a treasure trove of artwork. The marvelous works are through the efforts of the Capitol Arts Foundation. Here’s a bit of insight into the collections displayed, according to JB Luxe Beat Magazine:
As you stroll through the Roundhouse on your free, self-guided tour, you’ll be mesmerized by the artwork and this showcase of immense creativity. We have the Capitol Arts Collection to thank for the bounty of eye candy that bedecks the walls of this hallowed place. The foundation, which was created in 1991, started with only 14 art pieces and 17 furniture groupings. Today, there are over 600 hundred pieces, including paintings, photography, works on paper, sculpture, mixed media, textiles, ceramics and glass works, as well as furniture.
Over 500 contemporary, established and emerging New Mexico artists and artisans are represented, and most of the pieces have been donated or are on loan. This incredible museum-quality assemblage offers a beautiful glimpse of the Land of Enchantment and is currently valued at over $6 million.
Our Capitol building is unique and beautiful in many ways. Next time you have family in town and are looking for something to do, take them on a tour of the Roundhouse; they’ll be amazed – especially if you buy them lunch.
SIGNING OFF FROM SANTA FE
The session’s half over now – the gavel has fallen on bill introductions. The latest count is a total of 1189 bills, 622 in the House and 567 in the Senate. About par for the course in a 60-day session. Only the “feed bill” has made it all the way to the governor’s desk; however, two bills have now passed both chambers. We know that there will be a House floor session sometime Saturday, it’s yet to be determined whether it’s morning or afternoon. We expect House Bill 11, Family Wellness/Welcome Child, to be debated (that’s what we all used to call Paid Family and Medical Leave). There’ll be some fireworks on that one. Hold onto your socks now – this is a biggie – tomorrow is, wait for it, national sticky bun day! Throw caution to the wind and go for it! Hope you have a superb evening; we’ll see you tomorrow.
