New Mexico Municipal League

LEGISLATIVE BULLETIN

VOL. 2018-1 JANUARY 19, 2018 A Long Start to a Short Session

Governor Susana Martinez delivered her State-of-the-State address on Tuesday, the opening day of the Second Session of the 53rd Legislature. In her opening remarks, she said she had considered not giving the speech this year, but because the legislature sued her (concerning her vetoes of 10 bills without explanations), she decided she would give the speech. Before she began, immigration rights activists unfurled banners from the House gallery urging passage of the DREAM Act. During her nearly one-hour speech, she laid out several issues she wants the legislature to address during this 30-day session that is normally concerned with finance and taxation matters. She called for an overhaul of the state’s taxation system, but did not give specific items for the legislature to focus on. She stressed the state’s improving economic status, specifically mentioning the Facebook project in Los Lunas, and making job training incentives a permanent feature of the state’s budget.

Another topic she pressed was crimes and punishment. Again she called for reinstatement of the death penalty for the murder of a child, police officer or corrections officer. She also called for re-instating the return-to-work provision for retired law enforcement and corrections officers. Another issue she said is hurting the state is the “catch-and-release” problem brought in part by a Constitutional Amendment passed last year by voters concerning pre-trial release and bail options. She has repeatedly called for a repeal of that amendment and tougher sentencing guidelines for the state’s courts.

Education was a prominent theme in her speech. She cited improving graduation rates and again derided “social promotion” practices instead of holding back under-performing students.

There are bills that were “pre-filed” prior to the legislature convening this week that are of municipal interest.

Senate Bill 49, Tax Reform, introduced by Senator , would overhaul the state’s tax system. The bill proposes elimination of most gross receipts exemptions and deductions. This will vastly broaden the tax base for both municipalities and counties as well. All local option gross receipts taxes for the municipalities are collapsed into a re- formulated municipal gross receipts tax. The maximum municipal gross receipts tax rate is 0.50%, imposable in increments of 0.05%. Similar changes occur for counties. In addition, the decades-old distribution (currently at 1.225%) to municipalities from the state gross receipts tax is eliminated. All this happens January 1, 2018. Part of the gross receipts tax broadening is repeal of the exemption for wages, converting all wage-earners into gross receipts taxpayers. They will also be subject to municipal and county gross receipts taxes.

House Bill 98, Local Election Act, introduced by Representatives Paul Bandy and James Smith and Senator Daniel Ivey-Soto, would make major changes to New Mexico’s election laws. The bill enacts the Local Election Act and establishes the first Tuesday after the first Monday in November for local elections. It also requires the county clerk to administer local elections instead of the municipal clerk.

House Bill 38 and Senate Bill 14, both titled Wireless Consumer Advanced Infrastructure introduced by Representatives James Smith and Debbie Rodella and Senators and preempts local authority over rights-of-way for wireless communications sitings.

Senate Bill 1, Nurse Licensure Compact introduced by Senators and , passed the Senate and the House. The bill, which would continue New Mexico’s participation in a nationwide nursing compact, now goes to the Governor.

The League staff will be monitoring numerous pieces of legislation that will be introduced in the first two weeks of this session.

LEAGUE OFFICE PARKING DURING THE SESSION

Because of the demand for parking around the Capitol during the session, we must protect the availability of parking for our municipal officials and staff. In order to reduce the possibility of accidents, a few areas in our lots are designated by signs as “NO PARKING” AREAS.” If you are visiting the session and need to park in the League lots, please help us by observing the following rules:

1. Do not park in the areas designated as “NO PARKING” zones. 2. Obtain a League Parking Permit from the reception desk and leave it on the rear-view mirror of your car so that it’s easily visible. 3. DOUBLE PARKING OR PARKING BEHIND ANOTHER CAR IS NO LONGER PERMITTED IN OUR LOTS.

YOUR LEGISLATIVE BULLETIN

This is the first in the series of weekly League Legislative Bulletins designed to communicate with municipal officials, legislators and the Executive Branch of state government. This year the League will publish the Bulletin electronically and will not distribute a printed copy. We will post the Bulletin on Friday mornings on the League’s website under the listing of “Publications.” We will then e-mail a link to the document to our membership through our list serve that we use to distribute The Municipal Reporter.

Municipal officials who receive the Bulletin include all mayors, commissioners, councilors, trustees, managers, clerks, municipal judges, police chiefs and many other municipal officials.

The Legislative Bulletin contains: ♦ a brief review of all bills of municipal interest of which we have received a copy since the prior Bulletin (it will save you and us time if you make a note of the House or Senate Bill number you are interested in); ♦ a brief analysis of key legislative developments of the past week; ♦ detailed explanations of key municipal bills; and, perhaps, ♦ an Action Call if any important municipal bill is scheduled to be heard in committee or on the floor of either house.

Your legislator can be reached by name through the Legislative Switchboard: (505) 986-4300 in Santa Fe. For those of you on line, the Legislature's web site also contains the e-mail addresses of those legislators who use the service. That address is: http://www.nmlegis.gov. Also check the League’s web site (www.nmml.org) for League information.

CAPITAL PROJECT FUNDING BILLS

Capital outlay project requests in recent years have not been introduced as legislative bills, but submitted as “capital outlay requests.” All approved requests are then included in a major capital outlay bill for final passage. In past years we have reported these requests as we received the printed copies. The legislature will track all capital outlay requests electronically only. Therefore, we are no longer able to report the requests for you as we had in the past. However, the good news is that all requests will be listed on the legislative web site at nmlegis.gov (click on Capital Outlay). Each request is listed under the appropriate county and then alphabetically by title and includes the description of the request along with the dollar amount. Legislative Council Service will be updating the information every Tuesday and Friday evenings so the new introductions will be available for you early on Wednesdays and Saturdays. As always, you can contact your legislators directly to find out when your project will be scheduled for hearing.

BIOGRAPHY OF A BILL

A bill is introduced by a sponsoring legislator on the floor of either house, numbered by the clerk and referred for consideration to one or more committees of that house. The deadline for introduction of all bills except appropriations bills or bills requested by the Governor (special messages) is Noon on the 15th day of a 30-day session (January 31).

2 Committee recommendations usually determine the success or failure of a bill. A bill may be amended in committee or on the floor at any point in the process — sometimes changed so severely that its own author would not recognize it — or a substitute measure with the same number and general subject matter may be put in its place. If you are interested in a particular bill, do not be dismayed if it seems to sit for a long time in committee, particularly in a tax, finance or appropriations committee. Bills which ask for money or for taxing authority often lie dormant until the last few days of a session and then move with unbelievable speed. If a bill passes successfully through its committee referrals, it returns to the floor of the house in which it was introduced for floor consideration. If it passes that house, it goes to the other house. However, it may also be tabled, referred again or defeated. In the second house the bill is again considered in one or several committees and it may again be amended or substituted. If it gets through its committee assignments, it returns to the floor of that house for consideration and may from there be referred, tabled, passed or defeated. If the bill passes the second house and it has been amended or substituted by the second house, the originating house must concur or fail to concur with the changes. If the originating house fails to concur, a conference committee representing both houses is appointed to decide what to present to both houses for acceptance. A bill that has been passed in some agreed-upon form by both the House and the Senate goes to the Governor for signature. The Governor may choose to sign or to veto the bill. If the bill contains an appropriation, the Governor may veto portions if she wishes (line item veto); if it does not, she may only veto the entire bill. If vetoed, 2/3 of the House and 2/3 of the Senate must vote in favor of the bill in order to override the veto. If the veto override fails, the bill is dead. Most bills do not reach the Governor's desk before the Legislature adjourns (Noon, February 15). The Governor has 20 days following the close of the session (Noon, March 7) to sign, veto or fail to sign (pocket veto) any bill that he did not act on during the session. Any bill is much more likely to have died in committee or on the floor before even reaching the Governor's desk. In New Mexico, no more than 1/4 to 1/3 of bills introduced ever make it all the way to enactment. The historic trend in New Mexico is for more and more introductions each succeeding session.

ABBREVIATION CODE

HB House Bill SB Senate Bill HCR House Concurrent Resolution SCR Senate Concurrent Resolution HJR House Joint Resolution SJR Senate Joint resolution HJM House Joint Memorial SJM Senate Joint Memorial HM House Memorial SM Senate Memorial

* Contains Emergency Clause (effective immediately on Governor's signing) CA - Constitutional Amendment (requires approval by statewide electorate)

HOUSE COMMITTEES HEEC Enrolling and Engrossing HAFC Appropriations and Finance HPRF House Pre-file HAWC Agriculture and Water Resources HBIC Business and Industry SENATE COMMITTEES HCPAC Consumer and Public Affairs SCC Committee's Committee HEC Education SCONC Conservation HENRC Energy, Environment and Natural Resources SCORC Corporations and Transportation HHHC Health and Human Services SCW Committee of the Whole HJC Judiciary SEC Education HLEDC Labor and Economic Development SFC Finance HRC Rules and Order of Business SIAC Indian and Cultural Affairs HLELC Local Government, Elections, Land Grant & SJC Judiciary Cultural Affairs SPAC Public Affairs HSIVC State Government, Indian & Veterans Affairs SRC Rules HTRC Taxation & Revenue SPRF Senate Pre-file HTPWC Transportation, Public Works & Capital Improvements HCW Committee of the Whole

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Bill Introductions through Wednesday, January 17, 2018 (Includes Pre-Filed Bills)

HB 21 LAW ENFORCEMENT PROTECTION FUND DISTRIBUTIONS (Gentry) Amends §29-13-7; until June 30, 2021, provides a law enforcement retention payment of $7,500 provided that: 1) the distribution is requested by a municipality or county law enforcement agency with a staffing vacancy rate of at least 10 percent to retain a law enforcement officer who is certified, performs primarily patrol duties, has at least 20 years of actual service credit and has not previously received a retention payment; 2) the municipal ort county agency provides a matching fund of $7,500; and 3) the distribution and matching fund shall not constitute the officer’s base salary or wages and shall not be used to determine a pension for PERA. Effective 7/1/18. HRC

HB 31 PEACE OFFICERS IN VICTIM OF CRIMES ACT (Rehm) Amends §31-26-3 to add to the definition of criminal offense aggravated assault, assault with intent to commit a violent felony, battery and aggravated battery upon a peace officer. HRC

HB 34 DWI BLOOD QUANTUMS & IGNITION INTERLOCKS (Rehm) Amends §66-8-102; sets levels of controlled substances in a person’s blood that renders them unable to drive a motor vehicle; specifies limits for amphetamine, cocaine, heroin, marijuana and methamphetamine; requires ignition interlocks for violation of controlled substance levels. Effective 7/1/18. HRC

HB 35 LIQUOR EXCISE TAX DISTRIBUTIONS (Trujillo, C.) New material creates the Drug Court Fund; makes a distribution of 45 percent of the Liquor Excise Tax to the new fund; directs a five percent distribution currently to the Lottery Tuition Fund to the new Drug Court Fund. Effective 7/1/18. HRC

HB 38 WIRELESS CONSUMER ADVANCED INFRASTRUCTURE (Smith, J. and Rodella) New material creates the Wireless Consumer Advanced Infrastructure Investment Act; defines “small wireless facility” as a facility whose; 1) antennas are, or could fit, inside an enclosure with a volume of six cubic feet or less; and 2) other ground- or pole-mounted equipment is 28 cubic feet or less but does not include electric meters, concealment elements, telecommunications demarcation box, grounding equipment, power transfer switch, vertical cable runs. Sets a maximum fee that a municipality or county (the authority) may assess the wireless provider’s use of rights-of-way if; 1) the authority is allowed under law to charge such fee; 2) the authority charges other communications providers for their use of the right-of- way; and 3) the rate or fee is competitively neutral, is not in the form of a franchise based on revenue and does not exceed $250 multiplied by the number of small wireless facilities placed by a provider in the rights-of-way. An authority is limited in its exercise of zoning, land use, planning and permitting authority and police power for the installation, modification and replacement of wireless support structures and utility poles; an authority’s power to control the design engineering, construction or operation of a small wireless facility in an interior structure or on the site of a campus, stadium or athletic facility not owned or controlled by the authority is limited to its authority to enforce compliance with applicable codes. HRC

HB 49 MUNICIPAL RECALL ELECTION (Roch) Amends §3-14-16; requires a district court to hold probable cause hearings on allegations of malfeasance or misfeasance in office or a violation of the oath of office for elected officials in a commission-manager form of government; if the district court determines probable cause exists, recall petitions may be circulated; upon verification of the petitions by the municipal clerk, a recall petition may be called. An official removed by recall cannot run for the same office until after the end of the term from which the official has been removed. The vacated office shall be filled in the same manner as an office vacated in any other manner. HRC

HB 54 INCREASE DWI PENALTIES (Lewis) Amends several section; increases the fee to fund community for prevention of DWI from $75 to $100 for a first conviction, $200 for a second and $300 for a third and subsequent conviction; makes a felony DWI subject to sentencing under an habitual offender; makes driving under a license suspended or revoked for a DWI a fourth degree felony; a person who commits homicide by vehicle or great bodily harm by vehicle while under the influence of who is guilty of reckless

4 driving is guilty of a second degree felony; a person convicted of a first aggravated DWI is sentenced to 80 hours of community service, a second is 160 hours and a third is 240 hours; increases jail time for fourth and subsequent convictions. HRC

HB 55 FIRE FIGHTER SURVIVOR SCHOLARSHIP BENEFITS (Lewis) Amends §21-21F-3; adds a survivor of a corrections department to the list of eligible survivors for scholarship benefits; eligible institutions includes any public institution of higher learning in any state; “cost of attendance” means price of attendance, tuition and fees, books and supplies, room and board, transportation and any additional costs for a program in which a student is enrolled; if the eligible institution is not in New Mexico, the amount of the scholarship shall not exceed the average cost of attendance at a New Mexico institution. Effective 7/1/18. HRC

HB 58 ANIMAL SHELTER STANDARDS OF CARE (Ferrary) Amend §77-1B-5. The Animal Sheltering Board shall adopt and enforce infrastructure and operating standards for animal shelters and euthanasia agencies; the standards shall be consistent with the Association of shelter Veterinarians’ guidelines for standards of care in animal shelters. HRC

HB 60 RAISE MINIMUM WAGE (Roybal Caballero) Amends §50-4-22; prior to January 1, 2019, the minimum wage is $7.50 per hour; beginning January 1, 2019, the minimum wage is $15 per hour; includes annual cost of living increases. HRC

HB 64 PET FOOD FEE FOR ANIMAL PROGRAMS (Trujillo, C.) New material in the New Mexico Commercial Feed Act imposes $100 on each brand name or product of pet food that is distributed in New Mexico; proceeds are to go to the Statewide Spay and Neuter account of the Animal Care and Facility Fund; fee exemptions include prescription diet food prescribed by a veterinarian or pet food manufactured by a person whose revenue from the sale of the food does not exceed $500,000 per year. The $100 fee is repealed July 1, 2028. Effective 7/1/18. HRC

HB 71 DWI SUSPECT BLOOD TESTING (Maestas Barnes) Amends §66-8-111; it no longer requires the court to find that the DWI resulted in great bodily harm or that the person committed another felony while DWI to issue a search warrant authorizing chemical tests based upon the officer's written affidavit that there is probable cause as to that person’s DWI. It makes technical changes throughout; expands the need for a written notice of revocation and a right to be heard for those requests for chemical tests to include those under Section 66-8-111 NMSA 1978. Effective 7/1/18. HRC

HB 79 THANKSGIVING SATURDAY GROSS RECEIPTS (Gallegos, Neville) New material creates a gross receipts tax deduction for sales of tangible personal property on the first Saturday after Thanksgiving; sales must be made by a seller that employs no more than 25 people in the previous fiscal year; stated purpose of the bill is to increase sales of small local businesses. Effective 7/1/18. HRC

HB 81 TRADITIONAL HISTORIC COMMUNITY QUALIFICATIONS (Gonzales) Amends §§3-2-3 and 3-7-1.1; removes the qualification of being in a Class B County with population of 95,000 for designating urbanized territory and traditional historic communities. Effective 7/1/18. HRC

HB 82 REDUCE QUARTERLY WORKERS’ COMP FEE (Crowder) Amends §52-5-19 to reduce the quarterly employee workers’ compensation fee from $2 to $1.50. HRC

HB 89 LOS LUNAS MEDICAL CENTER CEMETERY SURVEY (Baldonado) Appropriates $4,000 to the Department of Health to create a survey of the fenced cemetery at the Los Lunas Medical Center in preparation for potential transfer of the cemetery to another entity. HRC

HB 93 DRINKING WATER SYSTEM FINANCING (McCamley) Appropriates $1.8 million from the Public Project Revolving Fund to the Drinking Water State Revolving Fund to provide matching funds for federal Safe Drinking Water Act projects. Effective 7/1/18. HRC

5 HB 95 BROADBAND ACCESS UNFAIR TRADE PRACTICES (McCamley) New material in the Unfair Practices Act make it unlawful for a person providing broadband internet access to: 1) block lawful content, applications or services; 2) impair or degrade lawful internet traffic on the basis of content; 3) engage in paid prioritization; 4) unreasonably interfere or disadvantage an end user’s ability to select, access and use broadband; or 5) fail to disclose upon request accurate information regarding network practices, performance and commercial terms of its broadband internet access to allow consumers to make informed choices regarding internet services. HRC

HB 98 LOCAL ELECTION ACT (Bandy) Enacts the Local Election Act that provides for a single election day and uniform procedures for local government elections. One of the cornerstone features of the bill is the repeal of the Municipal Election Code and the consolidation of certain portions of that code into the State Election Code. The effect of that is to have a single election process for state and local elections. The bill is applicable to all municipalities, including home rule municipalities, and municipalities operating under a territorial or special charter.

Under the bill, all local regular elections will be held on the first Tuesday in November of each odd numbered year. The bill would contract the time in which a person can declare candidacy for any office. The current bill would limit declarations of candidacy to those person who were registered to vote at the time the election proclamation was filed with the Secretary of State. The bill makes a special provision for ballot questions that are not on the general election ballot. For those questions that are not on the general election ballot, all elections shall be conducted by mail.

The Bill would compress the current election calendar significantly. Under the Bill, the proclamation calling the election must be filed by the 90th day preceding the election and posted in the Secretary of State’s office 75 days prior to the election. Candidate filing day (declaration day) is on the 70th day preceding the election from 9:00 am to 5:00 pm. A person may only declare for one position in the same local government, but may file for a position in more than one local government. This sets up a scenario where one individual might be a declared candidate for several positions; all to be voted on the same day. The bill also specifically states that the declaration of candidacy cannot be amended after it has been filed. Write-in candidate declaration day is on the 63rd day preceding the election under substantially the same terms as general declaration day. The bill adds a special provision for unopposed write-in candidates that requires them to obtain a minimum number of votes (at least 10% of the total number of ballots cast for that office or 200.

The number of local government questions that may be on the ballot is limited. Ballot questions are limited to those that will fit on a single page ballot using both sides. This includes all elections for offices and questions. Both must fit on a single page. Questions are placed on the ballot in the order submitted to the county clerk. If a proposed question requires a second ballot page the local government(s) requesting the measure would be required to pay the costs of the second ballot page.

A candidate may appoint a challenger for each polling place. Additionally, the canvasing board for local elections will be conducted by the board of county commissioners. Canvassing will be completed no later than 10 days after the election with certificates of election to be issued by the 21st day following the election rather than the current 6th day.

Municipalities will be assessed an annual fee to cover the costs and expenses of the county clerk and secretary of state. That fee is $250 per $1 million of the local government’s operating expenses. For municipalities that have a top-two runoff provision, the assessment is $500 per million on general operating expenses. It is unclear what is meant by “general operating expenses.” There is no cap to the amount of the assessment, but municipalities with less than $100,000 in general operating expenses are not assessed.

Municipalities may “opt-out” of the Local Election Act by passing an ordinance no later than January 1 of the year in which the next local election is to be held. All provisions of the Local Election Act apply to the municipality opting out, and the date of the election for those municipalities will be the first Tuesday in June of odd numbered years. There is also a provision concerning municipalities that have

6 implemented voter identification processes. The effect of this provisions seems to be that the municipality must “opt-in” to the Local Election Act and amend its voter identification practice to mirror that provided under the state election code. HRC

*HB 99 PUBLIC PROJECT REVOLVING FUND PROJECTS (Lundstrom, Candelaria) Authorizes the following municipal projects from the Public Project Revolving Fund: Albuquerque-Bernalillo County Water Utility Authority – building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Albuquerque - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste, rail spur and special assessment districts; Angel Fire - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste, special assessment districts; Aztec - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Bernalillo - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste, special assessment districts; Bloomfield - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Capitan - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Eastern Plains Council of Governments - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste, facilities acquisitions; Edgewood - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Estancia - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Eunice - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Folsom - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Grenville - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Hope - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Las Cruces - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste, special assessment districts; Las Vegas - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Los Alamos - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste, special assessment districts; Milan - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Mosquero - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Pecos - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Portales - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Raton - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Roy - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; San Ysidro - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste; Taos Ski Valley - building, equipment, infrastructure, debt refinance, road, land acquisition, water, wastewater, water rights and solid waste. EMERGENCY CLAUSE. HRC

HB 117 LIBRARIAN & HISTORIC PRESERVATION FUND (Armstrong) Amends §§18-2-4 & 18-6-8; authorizes the state librarian and the state historic preservation officer to solicit and receive funds or property for programs administered by the two departments. HRC

HB 119 CONFIDENTIAL SUBSTITUTE ADDRESS ACT (Dow, Ivey-Soto) New material creates the Confidential Substitute address Act; a victim of domestic violence may apply to the Secretary of State to have a confidential mailing address that may be different from the victim’s regular address; the confidential address is not subject to the Inspection of Public Records Act. Effective 7/1/18. HRC

HB 121 OIL & GAS FUND TO CARLSBAD BRINE WELL FUND (Brown) Same as SB 66. HRC

HB 123 WATER FUND MONEY TO CARLSBAD BRINE WELL FUND (Brown) Same as SB 63. HRC

7 HB 124 ROAD FUND TO CARLSBAD BRINE WELL FUND (Brown) Same as SB 64. HRC

HB 125 CORRECTIVE FUND TO CARLSBAD BRINE WELL FUND (Brown) Same as SB 62. HRC

HB 126 OIL & GAS FUND TO CARLSBAD BRINE WELL FUND (Brown) Same as SB 65. HRC

HB 128 BROADBAND COMPONENT GROSS RECEIPTS (Trujillo, C.) New material provides for a gross receipts and compensating tax deduction for broadband telecommunications network facilities components before July 1, 2028. Effective 7/1/18. HRC

*HB 137 LAW ENFORCEMENT RETURNING TO WORK (Herrell) Amends §10-11-8; certified law enforcement officers, state police and corrections officers who have retired on or before December 31, 2016 may be employed by an affiliated employer if the retired members has not been employed by the affiliated employer or retained as an independent contractor for at least 90 days from the date of retirement; retired member’s pension shall continue; retired member shall not become a member during employment; retired member shall not accrue service credit; retired member and employer shall make contributions; period of employment is limited to five years. An affiliated employer in a Class A County with a population of 600,000 or a municipality with a population of 50,000 within a Class A County may not employ a number of retired members that exceeds 10 percent of the employer’s authorized police force; an employer within those Class A Counties and municipalities shall employ retired members only at ranks below sergeant and shall not promote subsequently employed retired members above the rank of sergeant at any time during the subsequent employment. EMERGENCY CLAUSE. HRC

HJR 1 CA: LAND GRANT FUND DISTRIBUTIONS (Maestas, Martinez, J.) Proposes to amend Article 12, Section 7 of the New Mexico Constitution to make additional distributions from the Permanent Fund in fiscal years 2020 and 2021 for public school education programs and early childhood educational services. The distributions are subject to approval of the U.S. Congress. HEC/HJC

HJR 2 CA: LAND GRANT FUND FOR PUBLIC SAFETY (Ely) Proposes to amend Article 12, Section 7 of the New Mexico Constitution to make an additional one-half percent distribution from the Permanent School fund for criminal justice and public safety purposes. HCPAC/HLELC/HJC

HJR 3 CA: SEVERANCE TAX FUND FOR PUBLIC SAFETY (Ely) Proposes to amend Article 8, Section 10 of the New Mexico Constitution to distribute an additional one-half percent from the Severance Tax Permanent Fund for criminal justice and public safety purposes. HCPAC/HLEDC/HJC

HJR 4 CA: STATE REDISTRICTING COMMISSION (Trujillo, C., Moores, Maestas Barnes) Proposes to add a new section to Article 20 of the New Mexico Constitution to create a Redistricting Commission that would adjust boundaries of all districted federal, state and local offices following each federal decennial census; members of the commission shall be provided by law. HLELC/HSIVC/HJC

HJM 5 REVIEW OTHER STATES’ WORKERS COMP TRENDS (Crowder) Requests the Workers’ Compensation Administration to commission in 2018 a study on national trends in Workers’ Compensation issues and other states’ responses to those issues, including information on such topics as return-to work, opioids-use, and effects of post traumatic stress disorder claims. HLEDC

HJM 9 PUBLIC SAFETY DATA NEEDS (Stapleton) Requests the Department of Public Safety to convene a statewide public safety framework that would: 1) examine the needs of municipalities and counties to address crime; 2) consider changes to the Criminal Code to move toward internal consistency; 3) gather accurate data across agencies to develop a more scientific-based model that reflects accurate crime patterns and helps inform decisions; and 4) address stable and adequate funding to build and sustain a holistic criminal justice system based on the state’s circumstances, background and needs. The task force is to include representatives of the Department of Public Safety, municipal and county law enforcement agencies, the Corrections Department, the Public Defender Department, the district Attorney, University Police, Tribal Police and any other relevant parties. HCPAC

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SB 4 ASSISTED OUTPATIENT TREATMENT ACT FUNDING (Papen) Appropriates $1 million from the General Fund to the Department of Health to distribute to participating municipalities and counties that have entered into memoranda of understanding with their respective district courts pursuant to the Assisted Outpatient Treatment Act. SCC/SPAC/SFC

SB 8 INTERAGENCY PHARMACEUTICAL PURCHASING COUNCIL (Steinborn) New material creates the Interagency Pharmaceuticals Purchasing Council to review and coordinate cost-containment strategies for the procurement of pharmaceuticals and pharmacy benefits and the pooling of risk for pharmacy service by constituent agencies; two of the 11 members of the council are to be officers of, or representative of organizations that represent county, municipal or local government entities that participate in consolidated purchasing of pharmaceuticals or pharmacy benefits with other agencies. SCC/SPAC/SJC

SB 9 ECONOMIC IMPACT OF UTILITY ABANDONMENT (Neville) Amends §62-9-5; requires the Public Regulation Commission to consider the economic impact on New Mexico’s energy-producing communities in the proposed abandonment of a public utility facility. SCC/SCONC/SCORC

SB 14 WIRELESS CONSUMER ADVANCED INFRASTRUCTURE (Candelaria, Gould) Same as HB 38. SCC/SCORC/SJC

SB 17 GROSS RECEIPTS FOR CERTAIN NONPROFITS (Cisneros) Amends §7-9-29; removes the exemption from gross receipts taxes for receipts of a prime contractor that are derived from operating a facility in New Mexico designated as a national laboratory by an act of Congress. Effective 7/1/18. SCC/SCORC/SFC

SB 18 IMPOSITION OF AVIATION LANDING FEES (White) Amends §64-1-16; an airport facility that receives funds under the Aviation Act may charge landing fees for aircraft used in commercial activities for compensation or for general aviation aircraft that weighs more than 12,500 pounds. Effective 7/1/18. SCC/SCORC/SPAC

SB 23 LOCAL GOVERNMENT PLANNING FUND – GF (Candelaria) Appropriates $1.5 million from the Public Project Revolving Fund to the Local Government Planning Fund to make grants to qualified entities to evaluate and estimate the costs of implementing the most feasible alternatives for infrastructure, water or wastewater public projects or to develop water conservation plans, long-term master plans, economic development plans or energy audits and to pay the costs of the local government planning program. Effective 7/1/18. SCC/SPAC/SFC

SB 26 DWI TESTING REQUIREMENTS (Ivey-Soto, Ferrary) Amends §§§66-8-102, 111, 111.1; aggravated DWI includes refusing a chemical breath test; if a person refuses a chemical breath test, a search warrant is required from a municipal judge, magistrate or district judge to authorize chemical testing; a written notice of revocation and right to a hearing shall not be considered a temporary driver’s license. Effective 7/1/18. SCC/SPAC/SJC/SFC

SB 28 ABOVE GROUND STORAGE TANK DEFINITIONS (Kernan) Amends several sections of the Hazardous Waste Act and the Ground Water Protection Act to makes definitions of Above Ground Storage Tank, Underground Storage Tank and Tank Tester to conform with federal law. SCC/SCONC/SJC

SB 34 LOCAL OPTION LIQUOR LICENSE FOR NM PRODUCTS (Soules) Amends §60-6A-4 to allow a local option district to approve the issuance of a restaurant license for either the sale of beer and wine only or the sale of beer and wine and of spirituous liquors distilled and bottled in New Mexico by holding an election on either option or both options; license shall be limited to geographic locations such as: 1) enterprise zones; 2) a tax increment development district; 3) an arts and cultural district; 4) a MainStreet; 5) a business improvement district; 6) a frontier community; or 7) any other geographic location that has

9 been identified by the MainStreet program coordinator or other local government as a location in need of revitalization or economic development improvement; fee for a combine beer and wine and spirituous liquor license is $2,000 annually. Effective 7/1/18. SCC/SRC/SCORC

SB 44 PRESUME CERTAIN VIOLATIONS AS FLIGHT RISK (Martinez) New material states that when setting bail or other conditions of release a person charge with leaving the scene of an accident shall be presumed to be a flight risk. SCC/SPAC/SJC/SFC

SB 45 TRANSFER & CHANGE PROCUREMENT (Tallman) Requires the Department of Finance and Administration to collect and maintain information on the amount of state agency contracts awarded to in- state and out-of-state contractors; transfers procurement-related functions to the General Services Department; requires a state purchasing agent to post its intent to award a sole-source contract on its website 30 days prior to the award; set new limitations on emergency procurement. Effective 7/1/18. SCC/SPAC/SJC

SB 49 TAX REFORM (Sharer) SB 49 is a broad reform of the state and local tax structure. This review discusses only the portions affecting local governments, particularly municipalities.

GROSS RECEIPTS TAXES SB 49 proposes elimination of most gross receipts exemptions and deductions. This will vastly broaden the tax base for both municipalities and counties as well. All local option gross receipts taxes for the municipalities are collapsed into a re-formulated municipal gross receipts tax. The maximum municipal gross receipts tax rate is 0.50%, imposable in increments of 0.05%. Similar changes occur for counties. In addition, the decades-old distribution (currently at 1.225%) to municipalities from the state gross receipts tax is eliminated. All this happens January 1, 2018.

Part of the gross receipts tax broadening is repeal of the exemption for wages, converting all wage-earners into gross receipts taxpayers. They will also be subject to municipal and county gross receipts taxes.

FISCAL IMPLICATIONS Little information is available about the scope of the reformed municipal gross receipts tax base on a municipality-by-municipality basis. (There is more information ascertainable for counties.) All that is known is that, come January 1, 2018, no municipal GRT rate may exceed 0.5%. It is likely that for many, perhaps a majority of, municipalities will see a decline in the total municipal gross receipts tax revenues. Note: if additional operating budget impact is estimated, assumptions and calculations should be reported in this section.

SIGNIFICANT ISSUES (1) The transition to the reformed municipal GRT regime is not automatic. To receive any gross receipts tax revenues after January 1, 2018, each municipality must enact an ordinance imposing some increment of reformed municipal GRT. As the bill is written, none of these ordinances can become effective before July 1, 2018 since the tax itself does not exist until January 1, 2018. Therefore EVERY municipality will receive NO municipal gross receipts revenue from March through August 2018. (2) Even assuming point (1) above is resolved, many municipalities have dedicated proceeds from one or more of their gross receipts tax impositions to the payment of bonded indebtedness, including coverage covenants. It is not clear that the revenues from the reformed municipal gross receipts tax will cover both the debt repayment obligations and the associated coverage requirements. This may force at least technical defaults. (3) Even if the debt repayment obligations can be covered, the remainder of gross receipts tax proceeds flowing the municipal general fund may be insufficient to even minimally fund the municipality’s core functions. (4) The problem of adequacy of revenue is compounded by two additional fiscal blows to municipalities: (a) the municipal distribution at §7-1-6.4 is subsumed into the reformed municipal GRT, as if it were another local option GRT. This revenue stream currently is a sizeable chunk of the gross receipts-derived revenues of every municipality; and (b) the hold harmless distributions to local governments are summarily cut out--and not just for the larger municipalities and counties.

10 The repeal of these distributions makes it highly likely that total municipal tax revenues in MOST municipalities will be seriously eroded, threatening delivery of police, fire, justice, health and other core functions--even if the municipalities enact the maximum 0.5% tax.

PERFORMANCE IMPLICATIONS Severe performance downgrades are possible for many municipalities.

ADMINISTRATIVE IMPLICATIONS This bill significantly broadens the number of taxpayers subject to the state and local gross receipts taxes. Virtually all New Mexico working age adults will be required to register and be instructed in the art of filing gross receipts tax returns. Further, employers will have to be advised on how to withhold gross receipts tax in addition to income tax from their employees. There is no appropriation in this bill to fund the extraordinary outreach/training programs that TRD will have to conduct to achieve even minimal success in registrations and withholding. SCC/SCORC/SFC

*SB 54 CAPITAL OUTLAY PROJECT PUBLICATION (Rue) New material requires the Legislative Council Service to publish within 30 days of adjournment of a session in which a capital outlay bill is passed on its website a searchable listing of all projects in the bill that specifies: 1) those authorized for funding and the name of each person, whether a legislator or the governor, whose requests results in the appropriation and what portion of the funding is attributable to those persons; and 2) if vetoed, the same information. EMERGENCY CLAUSE. SCC/SRC/SFC

SB 60 NO E-CIGARETTE PRODUCTS TO MINORS (McSorley) Amends §§30-49-2, 5 & 9 to prohibit the sale of e-cigarettes to persons under 21, except those 18 years of age or older in the military; requires signage that states if a person who is 21 years or less purchases tobacco products, they may be subject to a fine of up to $100 or up to 48 hours of community service; a person who sells tobacco products to a minor may be subject to a criminal misdemeanor. SCC/SPAC/SJC

SB 62 CORRECTIVE FUND TO CARLSBAD BRINE WELL FUND (Leavell) On July1 in 2019, 2020, 2021 and 2022, makes a distribution of $3 million from the Corrective Action Fund to the Carlsbad Brine Well Remediation Fund. SPRF

SB 63 WATER FUND MONEY TO CARLSBAD BRINE WELL FUND (Leavell) On July 1 in 2019, 2020, and 2021 makes a distribution of $1.5 million from the Water Project Fund to the Carlsbad Brine Well Remediation Fund. SPRF

SB 64 ROAD FUND TO CARLSBAD BRINE WELL FUND (Leavell) Appropriates $1 million in fiscal year 2019 and subsequent years from the State Road Fund to the Carlsbad Brine Well Remediation Fund. SPRF

SB 65 OIL & GAS FUND TO CARLSBAD BRINE WELL FUND (Leavell) Appropriates .11 percent of net proceeds of the Oil & Gas Conservation Fund to the Carlsbad Brine Well Remediation Fund. SPRF

SB 66 OIL RECLAMATION FUND TO CARLSBAD BRINE WELL FUND (Leavell) Beginning July 1, 2019, a distribution of $2 million from the Oil & Gas Reclamation Fund is made to the Carlsbad Brine Well Fund; the annual distribution shall continue until the Secretary of Energy, Minerals and Natural Resources certifies that all obligations of the contract to remediate the Carlsbad Brine Well is complete. SPRF

SB 68 RELEASE OF CERTAIN TAX INFOR (Cisneros) Amends several sections: claims for certain tax credits for several business is authorization by the taxpayer to reveal the identity of the taxpayer and the amount of the credit; requires state departments involved in the credits to compile annual reports on the credits, their aggregate amounts and the number of persons claiming the credits; gross receipts tax exemptions for certain non-profits do not apply to receipts of a prime contractor that are derived from operating a facility in New Mexico designated as a national laboratory by the U.S. Congress; requires amounts for certain deductions to be reported separately in a manner required by the Taxation and

11 Revenue Department; the separate reporting requirements apply to certain businesses including out-of- state sales, website developers, newspaper sales, software development, publication sales, accounting services, prescription drugs and oxygen and others. Repeals several sections. Effective 7/1/18. SPRF

SB 69 CANCELLATION OF BID & RFP INVITATIONS (Ivey-Soto) Amends §13-1-131 concerning rejection of bids and requests for proposals; if the second bid or RFP is rejected, the central purchasing office may purchase the property or services on the open market, provided that a determination containing the reason for the second cancellation shall also be made a part of the procurement file; and provided further that the previous two invitations for bid or request for proposal were each posted for at least 30 days before being cancelled. SPRF

SB 72 SOUTHWEST NM WATER PROJECTS (Morales) New material appropriates the following from the New Mexico Unit Fund from 2019 through 2023: 1) $12 million to implement the regional water project providing bulk water to communities of Hurley, Bayard, Santa Clara, Silver City and intervening public drinking water systems; 2) $34 million for Water Trust Board-approved water supply projects in southwest New Mexico Regional Water Planning area; 3) $3.5 million to contract with the Bureau of Geology and Mineral Resources at New Mexico Institute of Mining and Technology to collect ground water and geologic data in the Mimbres Basin Aquifer System; and 4) $500,000 to evaluate and plan alternatives for the City of Deming for a remote well in the Mimbres Basin; all projects shall require at least 10 percent, but no more than 20 percent, in matching funds by the local project sponsor. SPRF

SB 80 WATER SYSTEM STATEMENTS TO ENVIRONMENT DEPT. (Griggs) New material makes it unlawful for an owner or operator of a public water system subject to the Environmental Improvement Act to: 1) make a false statement, representation or certification of fact to the protection of public health in an application; 2) falsify any device or record to monitor or track information related to a public system; 3) falsify or conceal material facts as to the public health; and 4) make or use a document with the knowledge that the document contains false information; a person who knowingly violates the provisions is guilty of a fourth degree felony. SPRF

*SB 94 GENERAL OBLIGATION BOND PROJECTS (Cisneros) Authorizes the sale of Capital Projects General Obligation Bonds for: 1) senior citizen facilities statewide ($10.77 million); 2) library acquisitions ($9.717 million); 3) purchase of school buses ($2.173 million); 4) construction and improvements of roads in Department of Transportation Districts 1 through 6 ($49.482 million); 5) capital improvements at institutions of higher learning, state special schools and tribal schools ($94.454 million). EMERGENCY CLAUSE. SPRF

SB 95 METRO REDEVELOPMENT CODE CHANGES (Cisneros) Modifies the Metropolitan Redevelopment Code (Section 3-60A NMSA 1978) by expanding the Code’s applicability to counties and local governments instead of exclusively to municipalities. Counties are provided with duties and powers to undertake eligible projects such as creative enterprises, cultural facilities, and public infrastructure. SPRF

SB 99 AIRCRAFT TRAINING CONSTRUCTION GROSS RECEIPTS (Burt, Griggs) New material ; prior to July 1, 2022, receipts from construction services to implement a fighter aircraft pilot training mission project at a New Mexico military installation pursuant to contracts entered into with the United States Department of Defense may be deducted from gross receipts, provided the installation is located in a Class B County with a population greater than 60,000 according to the latest decennial census. Effective 7/1/18. SPRF

SJR 2 CA: LAND GRANT FUNDS FOR EDUCATION (Padilla) Same as HJR 1. SRC/SFC

SJR 5 CA: REGISTER ALL QUALIFIED ELECTORS TO VOTE (Ivey-Soto) Proposes to amend Article 7, Section 1 of the New Mexico Constitution; if the legislature requires the registration of qualified electors as a requisite for voting, the state shall ensure that all qualified electors are registered to vote for each election, except for those who affirmatively choose not to be registered, and that the vote of the

12 qualified elector shall not be excluded from being counted for failure of the state to provide for the qualified elector’s voter registration on or before the election. SRC/SJC

SJR 6 CA: STATEWIDE MILLAGE FOR PUBLIC SCHOOLS (Stewart) Proposes to amend Article 8, Section 2 of the New Mexico Constitution to raise the statewide millage rate from 20 to 22 mills; two mills of the increase is dedicated to public schools through the state equalization guarantee distribution. SPRF

SJM 3 AUTONOMOUS VEHICLES IN NEW MEXICO (White) Requests the Department of Transportation to create and lead an Autonomous Vehicle Committee to review the current and developing technology for autonomous vehicle operation and existing state policy and statutes that may be relevant to autonomous vehicle operation; recommends membership from several state departments but does not mention a municipal member, only other stakeholders. SRC/SCORC

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