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NMRA End of Session Report 2015

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NMRA End of Session Report 2015 New Mexico Retail Association NMRA End of Session Report 2015 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 1 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. 2 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.” 4 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.
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