NMRA End of Session Report 2015

New Mexico Retail Association

Table of Contents

Budget/Finance 2 Commerce 3-8 Health Care and Human Services 9-11 Judiciary 12 Legislature/Elections 13 Taxation 14-17 Transportation 18-19

New Mexico Retail Association

Budget/Finance

HB 2: General Appropriations Act of 2015 Sponsor: Larry A. Larrañaga

Notable appropriation increases include education, early childhood initiatives, public health, workforce development and economic growth, public safety, and the protection of vulnerable citizens. Targeted increases included enrollment and utilization growth in the Medicaid program, at-risk student funding in public and higher education, healthcare workforce development, substance abuse, behavioral health, higher entry-level minimum teacher salaries, and job creation.

In summary, funding for public schools increased $36.6 million, or 1.3 percent, including $6.7 million for minimum salary increases for entry-level teachers and $5.9 million for initiatives targeting early childhood education, teacher quality, and school improvement. Funding for higher education increased nearly $9.8 million, or 1.2 percent including $6.1 million for instruction and general (I&G) formula funding; $2.4 million for research and public service projects, special schools, athletics, and public television, and healthcare workforce expansion; and nearly $1.1 million for student financial aid programs and adult basic education.

The bill increases funding for early childhood initiatives nearly $15.1 million, a 6.4 percent increase over FY15 appropriations. Total funding for early childhood initiatives is $251.1 million, including $15 million for early literacy programs, $23.7 million for the K-3 Plus extended school year program, $51.1 million for prekindergarten, $14.3 million for home visits to families with infants, and $96.6 million for childcare assistance.

New Mexico Retail Association

Commerce

HB 85: Commercial code and voidable transactions Sponsor: Eliseo Lee Alcon

House Bill 85, for the Courts, Corrections and Justice Committee, amends two uniform acts that have been adopted in New Mexico: the Uniform Commercial Code (UCC) and the Uniform Fraudulent Transfer Act. In addition to the numerous technical changes that are made, including provisions for electronic activities, the substantive changes include: -As to all types of leases for goods only (not real property), clarifies to which other section of article 2A a lessor should refer regarding damages for breach of a lease, which can occur when a lessee refuses to accept the leased goods, fails to make payments on the lease, repudiates the lease or otherwise fails to perform the bargain in a manner that impairs the value of the lease (Section 1); and -As to processing of negotiable instruments, particularly payment orders (like a bank check) cancellations and amendments, allows the designation of different cut-off times for different categories of these items (Section 3). -Changes name to Uniform Voidable Transactions Act (UVTA) (Section 9); -Clarifies that the presumption of insolvency does not apply when a debt remains unpaid due to a bona fide dispute, and that otherwise the presumption of insolvency imposes on the debtor the burden of proving the nonexistence of insolvency is more probable than its existence (Section 10); -Clarifies the creditor has the burden of proof (by a preponderance of the evidence) when seeking to void a transfer or obligation in certain circumstances (Sections 12 and 13); -Clarifies (1) that a recipient of transferred goods can defend against voiding a transaction that transferred goods to the recipient if the recipient exchanged fair value for them; (2) that a creditor can void a transaction only against a party that received the goods directly from the debtor or received and passed them on to another party; (3) allows voiding of a transaction when the enforcement of a security interest involves acceptance of factored collateral; and (4) burdens of proof for various matters related to creditors voiding transactions (Section 16); -Adds a new section determining a debtor's location (residence, only place of business or chief executive office), which in turn determines the law governing enforcement of the Act (Section 19); and -Adds a new section governing protected series organizations, a business form in which more than one distinct entity is formed as part of a larger business enterprise. Risks and liabilities are attributed to a component part rather than the greater whole when incurred by that component, and to the whole series when they are incurred by the series (Section 21).

3 The effective date of Sections 1 through 7 of HB 85 (UCC changes) is July 1, 2015; for Sections 8 through 23 (UVTA changes), it is January 1, 2016.

HB 204: Liquor excise tax distributions Sponsor: Carl Trujillo

House Bill 204 reconciles two 2014 amendments to the same section of the Tax Administration Act concerning the distribution of the liquor excise tax. The bill clarifies the distribution of the liquor excise tax to the local DWI Grant Fund (LDWI) will be made in an amount equal to 46 percent from July 1, 2015 through June 30, 2018. The bill also changes the ending date of the distributions to the lottery tuition fund from July 1, 2017 to read “through June 30”of the same year.

HB 213: Child-resistant nicotine liquid packages Sponsor: Sarah Maestas Barnes

House Bill 213 requires that any product containing nicotine liquid, such as e-cigarette liquid, offered for sale in New Mexico, must be contained in child-resistant packaging. HB 213 allows the attorney general to bring a civil action in district court for violation of these provisions. Violation of the provisions of HB 213 may include a permanent or a temporary injunction, restraining order and a penalty of up to $1,000. The bill defines "child-resistant" and "nicotine liquid container" in Section C, subsection 1 and 3.

HB 243: Liquor licenses and definitions Sponsor: Debbie A. Rodella

House Bill 243: -Expands the definition of alcohol to include frozen and powdered forms. Other states have passed legislation to ban or regulate powdered alcohol. -Clarifies that small brewers may fill growlers for sale for off-site consumption. This is allowed but not specified under current law. -Allows craft distillers and small brewers to have three off-site premises, just as winegrowers are allowed under current law. -Allows winegrowers to also fill and sell wine or cider in growlers, just as small brewers are allowed under current law. -Adds an additional two weeks to the required notice for public hearings for liquor license approval at the local option district level. It also encourages, but does not require, the local option district to add website notification of the public hearing. Before this bill was signed by the Governor, notice must be published in the newspaper twice, for a period of two consecutive weeks, prior to the public hearing held in the local option district. -Allows retailers, such as small independent grocers, to form purchasing pools or cooperative in order to bulk purchase alcohol in order to be more price competitive with the larger chains. -Defines “cider” to mean “alcoholic beverage made from the normal alcoholic fermentation of the juice of sound, ripe apples that contains not less than one-half of one percent alcohol by volume and not more than seven percent alcohol by volume.”

HB 335: Liquor control tasting permit violations Sponsor: Jim R. Trujillo

House Bill 335 changes the way penalties are handled for violations of the Liquor Control Act that occur at tasting events off of the license holders normal licensed premises. Tastings are conducted on a licensed premise for the purpose of promoting the product to the public. Tastings are done in quantities of 1.5 ounces or less for beer and wine and 0.5 ounces or less for spirits. The bill provides for a fine of up to one thousand ($1,000) dollars and restriction on issuance of tasting permits for up to two months for a first violation. A second violation within one year would carry a fine of up to two thousand ($2,000) dollars and restriction on issuance of tasting permits for up to six months. A third violation within one year of the first violation would carry a fine of up to five thousand ($5,000) dollars, restriction on issuance of tasting permits for up to one year and the violation would count against the liquor license held by the licensee. Currently, any violation of the Liquor Control Act counts against the main liquor license. Pursuant to NMAC 15.10.61.8, three violations in a twelve-month period could result in revocation of the license. The bill still provides for sanctions for violations of the Liquor Control Act, but does not immediately impact the main liquor license for a violation at a tasting event.

HB 478: Staggered liquor license renewal dates Sponsor: Jim R. Trujillo House Bill 478 amends the Liquor Control Act by changing the expiration date for certain license types. Dispenser, canopy, and retailer license expiration dates will not change. Restaurant, club, wholesaler, and manufacturer licenses will now expire on October 31 of each year. Non-resident, out-of-state manufacturers and importers who ship alcohol to New Mexico wholesalers but do not sell directly to the public and do not have a physical corporate presence in the state- Gallo Wines, Miller, Coors, etc., and common carrier, transportation, and shipping companies license expiration date will remain June 30 of each third year. All other license types shall expire on February 28 of each year. The bill also specifies the dates renewal applications for each type of license are due.

The Liquor Control Act currently allows for proration of license fees for retailer, dispenser, restaurant, club, and public service licenses. Proration is still allowed for these license types, but the language in the bill is updated to account for the differing expiration dates.

The bill also slightly changes language to clarify that licenses shall not be renewed when a license holder is delinquent in the payment of gross receipts taxes from the sale of alcohol, which is the current practice.

HB 478 contains a temporary provision to ensure that there is no loss of revenue during the first year while changing the expiration and renewal dates.

5 HB 489: Internet wine sales Sponsor: Dona G. Irwin

House Bill 489 allows winegrower licensees to accept and fulfill wine orders placed via an internet website, whether the financial transaction related to the order is administered by a licensee or a licensee's agent.

SB 189: Good Samaritan Law Sponsor: Sue Wilson Beffort

Senate Bill 189 defines "good Samaritan" as: -a person who provides emergency AED services to a person "in need of defibrillation" rather than a person "in apparent cardiac arrest," -a person who acts without compensation and "without willful, wanton or reckless behavior that is the cause of injury or death" and -"person" to mean "an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture or any legal or commercial entity."

SB189 amends Section 24-10C-3 NMSA 1978 which introduces a new standard under the Cardiac Arrest Response Act, by which civil liability can be imposed on a “good Samaritan." Immunity is now extended from civil liability for those rendering emergency care or treatment by the use of an automated external defibrillator (AED), under the provision that these persons have acted within reasonable care and in compliance with the act.

SB 238: Craft brewer licenses Sponsor: Sue Wilson Beffort

Senate Bill 238 amends the Liquor Control Act, 60-7A-12C NMSA 1978 to allow a licensed New Mexico small brewer or winegrower that also holds a dispenser or restaurant license to additionally hold a Small Brewer and Winegrowers Limited Wholesaler License. They may do so by holding an interest in a legal entity, directly or indirectly through an affiliate, which holds a restaurant or a dispenser's license and the Small Brewer and Winegrowers Limited Wholesaler's license issued pursuant to the Liquor Control Act.

Before the enactment of SB 238, small brewers that do not have a dispenser or restaurant license may apply for and receive a wholesaler license to self-distribute the products they manufacture. Small brewers license to self-distribute the products they manufacture. Small brewers that hold a restaurant or dispenser license currently are barred from obtaining a wholesaler license. Revenue from additional wholesaler licenses will be generated. The fee per license is $1,000 annually.

New Mexico has a 3-tiered system for the regulation of alcohol. There is a manufacturing tier, a distribution/wholesaler tier and a retail tier. Many of the ownership disclosure requirements and various prohibitions are aimed at preventing a system known as a “tied house” where the bar owner also makes and distributes the alcohol he sells in his bar, creating a monopoly for a single alcohol manufacturer.

6 SB 241: Certain liquor license transfer limits Sponsor: Phil A. Griego

Senate Bill 241 impacts the transferability of quota liquor licenses statewide. It would allow dispenser's licenses, which are currently restricted in under quota local option districts to be able to transfer out of such districts; allowing the license to be sold and moved to another location. It would further allow liquor licenses to transfer into local option districts already over quota.

SB 300: Alcohol sales at municipal golf courses Sponsor: Jacob Candelaria, Antonio "Moe" Maestas

Senate Bill 300 amends Section 60-6A-10(G) NMSA 1978 to allow municipal golf courses to sell distilled spirits, as well as beer and wine. Currently, municipal golf courses holding a governmental liquor license can only sell beer and wine.

Additionally, SB 300 allows state museums to sell distilled spirits, as well as beer and wine. Currently, state museums holding a governmental liquor license can only sell beer and wine.

SB 352: Utility economic development rates Sponsor: Stuart Ingle

Senate Bill 352 allows gas and electric utilities to offer economic development rates with or without the existing requirement for excess capacity, but only without this requirement under the following conditions: -the economic development rate offered must not be lower than the incremental cost of providing the service to the economic development rate customer as determined by the Public Regulation Commission (PRC); and -an economic development rate approved for any customer shall last no longer than four years, except that PRC may approve the rate for up to 12 additional months if it finds the additional period is necessary to attract a particular economic development rate customer to New Mexico.

SB 352 also adds language to the definition for "incremental cost" to include in the economic development rate all additional costs necessary to serve that customer and prohibits the PRC from allowing the utility to recover the difference between revenues received from an economic development rate customer and the rate that customer otherwise would have paid from other customers.

SB 433: Include e-cigarettes in Tobacco Products Act Sponsor: John C. Ryan

Senate Bill 433 prohibits the sales of e-cigarette and nicotine liquid containers to minors and requires nicotine liquor containers to be sold in child-resistant packaging. The definition of a "child-resistant" package is defined in this bill to be "significantly difficult for children under five years of age to open or obtain a toxic or harmful amount of the substance contained therein within a reasonable time and not difficult for normal adults to use properly." It further states a

7 "nicotine liquid container" does not include a pre-filled cartridge sealed by the manufacturer and not intended to be opened by the consumer.

In addition, SB 433 prohibits the online internet sale of e-cigarette and nicotine liquid containers to minors in New Mexico. The bill provides for penalties for violations of the act.

New Mexico Retail Association

Health Care and Human Services

HB 274: Prescription synchronization Sponsor: Deborah Armstrong

House Bill 274 amends sections of the Health Care Purchasing Act, the Public Assistance Act, and the New Mexico Insurance Code to allow synchronization of prescriptions. Individuals insured in group and individual health plans and medical assistance recipients will be allowed to fill or refill a prescription for less than a thirty-day supply of the prescription drug, and pay a prorated daily copayment or coinsurance.

HB 274 prohibits individual and group health insurance policies as well as the medical assistance program (the State Medicaid program including medical assistance managed care plans) that offer a prescription drug benefit from denying coverage for the filling of a chronic medication when it is is made in accordance with a plan to synchronize multiple prescriptions for the insured. The bill also requires insurers to allow pharmacies to override any denial indicating that a prescription is being refilled too soon for the purposes of medication synchronization.

The bill does not allow managed care organizations or other insurers to prorate dispensing fees paid to pharmacies that fill prescriptions for the purpose of synchronizing prescriptions.

SB 121: Vaccine Purchasing Act Sponsor: Bill B. O'Neill, Terry H. McMillian

Senate Bill 121 establishes a statewide vaccine-purchasing program under which DOH purchases vaccines for all New Mexico children. It creates a vaccine purchasing fund and requires reporting to OSI of the number of insured children, which information is relayed by OSI to DOH as the basis for DOH invoicing each health insurer and group health plan for vaccines purchased by the State for their covered children. The bill provides penalties for failure to report the number of insured children or to timely reimburse, and provides an appeal process. The bill also carries an emergency clause.

SB 323: Safe disclosure of certain health information Sponsor: Mark Moores

SB 323 amends sections of the Health Information System Act to provide for the safe disclosure of information related to specifically identifiable data sources. The Department of Health (DOH) is allowed to release or disseminate aggregate data including those data that pertain to a specifically identifiable hospital or other type of health facility. SB 323 also enacts a new section

9 of the Health Information System Act to establish a health information system advisory committee.

SB 323 amends the Health Information System statute. In 24-14A-3, the bill changes the term provider to “health care practitioner.” It clarifies 24-14A-6 that provider data is available only if it is aggregated and publicly disseminated by the DOH and states these are public records if the release does not violate any privacy laws concerning individually identifiable health information.

Any person may obtain any aggregated data publicly disseminated by the DOH. SB 323 includes section 3 and Sections 24-14A-6 and 24-14A-7 NMSA 1978 in the exception of health information accessibility to the public.

SB 323 inserts a line in the title that allows for providing for the posting of information for public access. The bill creates section 5 of the Health Information Systems Act pertaining to the establishment of a web site by January 1, 2018, which ensures public access. Posted on this site is information that is allowed under the Health Information Systems Act. DOH shall post and update on a regular basis, cost, quality and such other information.

SB 325: Health agreement no-compete provisions Sponsor: Stuart Ingle

SB 325 limits non-compete provisions in health care practitioner agreements. Section 1 describes a health care practitioner as a dentist, osteopathic physician, physician, podiatrist and certified registered nurse anesthetist. Section 2 limits the enforceability of non-compete provisions for certain healthcare practitioners when an employment contract expires or employment is terminated.

Section 3 provides that the limitations do not apply to agreements requiring practitioners working less than three years to repay loans, relocation expenses, signing bonuses, recruiting, education and training expenses. Section 3 also provides that nondisclosure provisions relating to confidential information and trade secrets are not limited by the act nor are non-solicitation provisions with respect to patients and employees for one year or less after employment ends.

Section 4 allows contracts to contain a provision for reasonable liquidated damages but specifically voids as a penalty unreasonably large liquidated damages provisions. Section 5 provides that the act does not apply to a practitioner that is a principal of a practice against whom a party to an agreement seeks to enforce a non-compete provision.

This bill may enhance the availability of primary care providers in underserved areas of the state. NMPSIA notes relaxing non-compete enforcement may foster competition and the trickle-down effect may be improved provider payment rates, which would positively impact claims costs.

SB 367: Optometrist prescribing powers Sponsor: Michael S. Sanchez

Senate Bill 367 gives the Board of Optometry the authority to determine what constitutes the practice of optometry in accordance with the provisions of the Optometry Act and to grant the

10 board jurisdiction to exercise any other powers and duties pursuant to that act.

SB 367 gives optometrists increased authority to prescribe pharmaceutical agents for the diagnosis and treatment of disease of the eye or adnexa including hydrocodone, hydrocodone combination medications, and epinephrine auto-injections. However, optometrists shall not prescribe any other controlled substance classified in schedule I and II pursuant to the Controlled Substances Act.

The bill also repeals section 61-2-10 NMSA 1978, which states the Board of Optometry shall issue certification for the use of topical ocular pharmaceutical agents to licensed optometrists.

New Mexico Retail Association

Judiciary

SB 107: Court civil judgment action language Sponsor: Richard C. Martinez

Senate Bill 107 amends Section 37-1-3 NMSA 1978 removing the reference of “any judgment of any court not of record” or magistrate courts and clarifies the time limit to file an action on a magistrate court civil judgment.

SB 510: Crime victim reparations time and fees Sponsor: Bill B. O'Neill

Senate Bill 510 applies the crime victim reparation fee to those convicted of a misdemeanor or felony offense. It also amends Section 31-22-8 NMSA 1978 within the Crime Victims Reparation Act (CVRA) to expand the list of crimes to which the CVRA applies. Reparation to victims may be made including stalking, assault against a household member, and battery against a household member. The bill also removes the crimes of aggravated arson and aggravated stalking from the list, and requires the currently included crime of dangerous use of explosives to result in bodily harm.

The bill also amends Section 31-22-14 NMSA 1978 to permit the Crime Victims Reparation Commission to extend the time for filing an application for reparation for good cause shown by a claimant or a victim. Section 3 of the bill creates a mandatory crime victims reparation fee, to be assessed based on the following schedule:

-Felony conviction: $75.00 fee -Misdemeanor: $50.00 fee

SB 510 requires these fees to be deposited in the Crime Victims Reparation Fund.

New Mexico Retail Association

Legislature/Elections

HB 155: Lobbyist employer registration Sponsor: Jeff Steinborn

House Bill 155 makes the following changes to the Lobbyist Registration Act: -Increases the lobbyist registration fee from $25 to $50 per year for each of the lobbyists' employers; -Requires expenditure statements and lobbying expense reports to include the cumulative total of expenditures incurred by the lobbyist or their employer listed by each recipient, indicating the amount spent and a description of the expenditure by category; -Lowers from $500 to $100 the amount of aggregate contributions that triggers mandatory reporting of identification information for other contributors; -Clarifies that reporting requirements apply to any lobbyist, including employers of lobbyists who themselves engage in lobbying; -Requires registration and expenditure statements and lobbying expense reports to be posted on the SOS website in searchable and downloadable formats at least monthly throughout the year and as expeditiously as possible when the Legislature is in session; and -Requires reports to be preserved online for at least 10 years.

SB 643: Voter registration requirements Sponsor: Lisa A. Torraco

Senate Bill 643 requires the Secretary of State to begin allowing electronic updates to existing voter registration certificates by January 1, 2016, and requires the SOS to allow for electronic submission of new voter registration certificates by July 1, 2017.

Under SB 643, the information required for electronic voter registration will be the same as that required for paper-form voter registration. Additionally, electronic voter registration will require the person's full New Mexico driver's license number or state identification card number. SB 643 requires the SOS, in conjunction with the county clerks, to “adopt rules establishing a uniform and nondiscriminatory process to match the information contained in the voter registration election management system with the database” of MVD or the federal social security administration for electronic certificates of registration.

New Mexico Retail Association

Taxation

HB 67: Property tax schedule change requests Sponsor: Jim R. Trujillo

House Bill 67 amends NMSA 1978, Sections 7-38-77 and 7-38-78 to expand the grounds for which a property owner may request a change to a property tax schedule. In addition to a number of non-substantive revisions, the amendments effect two main changes:

-First, the bill amends current law to allow for changes to a property tax schedule to correct certain "obvious errors," whereas the current version covers only "obvious clerical errors." The term "obvious errors" is defined so as to exclude "errors in the method used to determine the valuation for, or a difference of opinion in the value of, the property subject to property taxation." -Second, the bill adds specific grounds for which property owners may request changes to their tax schedules: (1) to correct the description of the property, even if the correction results in a change to the amount of tax due; (2) to correct data entry errors on the part of the county assessor; and (3) to correct the application of exemptions.

The authority to change the Assessor's values contained in the tax roll does not include disagreements regarding method (such as the agricultural special method) or a difference in opinion of the value of a property. HB 218: Delinquent tax electronic levy warrants Sponsor: David M. Gallegos, Clemente Sanchez

House Bill 218 amends Sections 7-1-31 and 7-1-32 NMSA 1978 to allow for the collection of delinquent property taxes by electronic warrant of levy. Aside from a number of non-substantive revisions, the amendments effect one primary change and two minor changes:

-First, the bill amends current law to allow for service of a warrant of levy in electronic format on a financial institution. Under the provisions in this bill, a warrant of levy may be served on a financial institution as long as it complies with the Electronic Authentication of Documents Act and the Uniform Electronic Transactions Act. -In addition, the amendments contain the following minor changes to current law: (1) whereas current law requires "the secretary or secretary's delegate or any sheriff" to serve warrants of levy, the amendments expand this list to include a "certified law enforcement

14 employee of the department of public safety"; and (2) the amendments allow for a warrant of levy to be signed electronically.

The effective date of this act is July 1, 2015.

HB 475: Tax and Revenue Dept. info to NMFA Sponsor: Jimmie C. Hall

House Bill 475 provides that the Tax and Revenue Department (TRD) may prepare a report for the use of New Mexico Finance Authority (NMFA) concerning the amount of municipal and county gross receipts taxes and governmental gross receipts tax paid by every government entity in the state. TRD may refuse to provide this information. Note that this permission does not extend to taxpayer-specific data for the municipal and county gross receipts taxes, but does permit TRD to release taxpayer specific information regarding Governmental Gross Receipts taxpayers.

The effective date of the act is July 1, 2015.

SB 104: Installments for delinquent property taxes Sponsor: William E. Sharer

Senate Bill 104 amends Section 7-38-62 NMSA 1978 to allow the Taxation and Revenue Department to authorize county treasurers to act as its agents in accepting delinquent payments of taxes, penalties, interest, or costs due to the department, including payments made pursuant to an installment agreement authorized by Section 7-38-68. SB 208: Fraud against taxpayers definitions Sponsor: William H. Payne

Senate Bill 208 amends the Fraud Against Taxpayers Act, NMSA 1978 Section 44-9-2 to add “political subdivisions” to the act. The bill defines “political subdivision” as a political subdivision of the state or a charter school.

The bill also includes “charter school” under the definition of “employer.”

Sections 44-9-3 through 44-9-10 and Section 44-9-12 are all amended to incorporate political subdivisions appropriately for the purpose of false claims and permit political subdivisions to investigate or bring suit, at the discretion of the attorney general, in the instance of a false claim.

SB 270: Tobacco fund distributions Sponsor: John Arthur Smith

This bill allows the Legislature to appropriate all of the funds the state receives pursuant to the Tobacco Master Settlement Agreement, rather than depositing 50 percent of the funds into the tobacco settlement permanent fund and the remaining 50 percent in the tobacco settlement program fund for appropriation by the Legislature.

15 SB 279: Sustainable building tax credits Sponsor: Peter Wirth, Carl Trujillo

Senate Bill 279 proposes extensive changes to the Sustainable Building Tax Credit, first enacted in 2007, and significantly amended in Laws 2013, Ch. 92.

-Allows the current sunset to take effect. Projects must have been completed by the end of CY 2016 and certified within 2016's $5,000,000 cap. -The existing 7-2-18.19 NMSA 1978 is not repealed. Projects certified under the provisions of current law will continue to be claimed pursuant to existing provisions. Thus projects whose payouts conform to the 25% rule will continue as current law. Because the provisions of the new sustainable building tax credit are sufficiently similar to the old provisions, most projects built prior to December 31, 2016, but not certified because of the 2016 cap will be eligible for certification pursuant to the new provisions. -These credits will be based (as the current credits) on the Leadership in Energy Development (LEED) or Build Green New Mexico classifications and certification levels. The tax credits per square foot for commercial projects are the same as in current law and range from as much as $6.25 per square foot for the first 10,000 square feet of a project rated LEED-NC Platinum to a minimum of $.30 per square foot for LEED-CI Silver projects of 50,000 to 500,000 square feet. -Tax credits per square foot for residential projects are reduced by about 40% from current law and range from as much as $6.50 per square foot for LEED H Platinum or Build Green NM Emerald to a minimum of $3.00 per square foot for LEED-H Silver or Build Green NM Silver. In all cases, the maximum creditable square footage has been reduced from 3,000 square feet to 2,000 square feet. -Requires a three-part test for certification: (1) LEED or Build Green NM silver, gold, platinum or emerald specifications; (2) a HERS (Home Energy Reduction Standard) rating of 60 or less; and (3) low-flow internal water fixtures and some drip irrigation if appropriate. -The credit is similarly limited to $25,000 per year or 25 percent of the approved credit, whichever is more. The credit is nonrefundable, but may be carried forward for 7 years. -The bill retains the total $5,000,000 cap, but reallocates this total among residential, commercial and manufactured homes. The commercial cap increases from $1 million to $1.25 million; the manufactured housing cap decreases from a maximum $1.25 million to a fixed $375,000; the residential cap increases from a minimum of $2.25 million to a fixed $3.375 million. EMNRD is allowed to shift any unused credit among the three categories. -Credits for a single individual or corporation who completes multiple projects in the course of a year will be applied and limited based on each project, not on the total credits approved for all projects. (This reverses a provision of Laws 2013, Ch. 92, § 1). -Retains the provision that a project eligible for a solar market development tax credit (7- 2-18.14 NMSA 1978) is not eligible for this credit unless the solar market development credit has not been claimed and will not be claimed. -Retains requirement for eligibility for manufactured housing to be EPA Energy Star compliance and to have been constructed to current HUD Zone 2 and New Mexico construction codes.

16 -Requires a renovation project to have reduced energy consumption by 60% compared to DOE and EPA averages and that the building has achieved a HERS rating of 60. -Adds a water conservation requirement for the indoor plumbing fixtures and requires any landscaping to have included the provision of drip irrigation. -TRD is required to report to the Legislature beginning in 2019 and every three years on the annual aggregate amount of credits in the various categories with other data necessary for the Legislature to determine whether the credit is effective in performing the purpose for which it was created. -This bill establishes a sunset date for the new provisions of December 31, 2026.

SB 565: Limit film production tax credit Sponsor: William H. Payne

Senate Bill 565 clarifies and limits direct production expenditures that may be eligible for the film credit and adds TV pilots to the types of productions eligible for the enhanced 5% credit over and above the 25% basic credit.

In many respects, the bill seeks to provide incentives to encourage production companies to hire New Mexico crew and performing artists, to patronize New Mexico production facilities and to purchase goods and services from New Mexico vendors. Specifically, the bill would, (1) limit eligible payments to nonresidents, and (2) require some shooting at “qualified production facilities,” such as New Mexico sound stages or film-designated standing sets.

This bill amends the existing film production tax credit program eligibility by addressing the gap from June 19, 2015 to January 1, 2016 in the original bill.

New Mexico Retail Association

Transportation

HB 377: Vehicle international registration plan Sponsor: Roberto "Bobby" Gonzales

House Bill 377 amends several sections of the Motor Vehicle Code to comply with new International Registration Plan (IRP) rules related to interstate registration of motor carriers.

The IRP member jurisdictions (including New Mexico) adopted a new collection model called the Full Reciprocity Plan (FRP) in Ballot 384 at the end of 2013. HB 377 makes conforming amendments to New Mexico's IRP statutes that align with changes adopted by the IRP members (the 48 contiguous United States, the District of Columbia and the ten Canadian provinces).

SB 52: Extend port of entry overweight zones Sponsor: Mary Kay Papen

Senate Bill 52 amends Section 66-7-413 NMSA 1978 to extend the overweight zone at ports of entry on the border with Mexico from six miles to 12 miles. The extension of the overweight zone will exempt trucks exceeding the 80,000 pound limit, but below 96,000 pounds, from the requirement to demonstrate that their load cannot be reduced when they receive an overweight permit. The provisions of SB 52 will affect the ports of entry at Santa Teresa, Columbus, and Antelope Wells and does not include any roads to the east of Santa Teresa.

Additionally, SB 52 expands the power of a local authority to limit the size and weight of vehicles traveling on roads within their jurisdiction that pass by an“educational or medical facility or on streets that are not designed or constructed for heavy weight vehicles.”

SB 125: Change county road speed limits Sponsor: Pat Woods, Dennis J. Roch

Senate Bill 125 lowers the maximum speed limit for county roads without a posted speed limit from 75 miles per hour to 55 miles per hour and corrects all references to the department of transportation.

SB 622: Multiple-trip permit for some vehicles Sponsor: William F. Burt

Senate Bill 622 provides a definition and exemption for a certain class of vehicles called Specialized Haul Vehicles (SHVs) from the weight limitations specified in Section 66-7-410

18 NMSA 1978 and establishes an independent set of weight limits for this vehicle class. SB 622 provides for yearly“multi-trip”permits to be issued for the use of SHVs on the state and national highway systems.

Senate Bill 622 removes a notwithstanding provision for Section 66-7-413 NMSA 1978 that provides a procedure for issuance of oversize load permits.