Sponsor(s) Summary of Bill AED Position

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1 Bills AED Is Watching in the 2019 New Mexico Legislature Updated 1/28/19 BUDGET/APPROPRIATIONS HB 2 HB 333 General Appropriation Act of 2019 SB 254 General Appropriation Act of 2019 SB 280 Capital Outlay Expenditures Sponsor(s) Summary of Bill AED Position Patricia Lundstrom Roberto Gonzales John Arthur Smith Carlos Cisneros Jim Trujillo The FY 2020 budget bill includes: $5 million from the general fund in the EDD budget for JTIP. $3 million special appropriation for JTIP. $1.4 million from the general fund in the EDD budget for the New Mexico Partnership. $4 million special appropriation for LEDA. (Also see SB 254.) Both bills referred to House Appropriations & Finance Committee. The FY 2020 budget bill includes: $5 million from the general fund in the EDD budget for JTIP. $3 million special appropriation for JTIP. $1.4 million from the general fund in the EDD budget for the New Mexico Partnership. $4 million special appropriation for LEDA. Referred to Senate Finance Committee. Appropriates $3.5 million from the general fund for LEDA. Referred to Senate Finance Committee. 1

2 ECONOMIC DEVELOPMENT HB 37 No LEDA Funds for Water Rights Purchases HB 123 Economic Development Corporation Act Funds HB 126 Economic Development Grant Fund Appropriation HB 155 and SB 113 Local Economic Development Taxes Sponsor(s) Summary of Bill AED Position Miguel Garcia Excludes the purchase, lease, grant or conveyance of water rights from the permissible uses of LEDA funds. Facebook received $10 million in LEDA to purchase water rights in Water rights were included in the Project Participation Agreement with the village of Los Lunas as an allowable LEDA expense. The LEDA funding was used for a water treatment facility for the village. Referred to House Agriculture & Water Resources; scheduled for 1/29/19. Harry Garcia Appropriates $2 million from the general fund to the Economic Development Department for operation of the New Mexico Partnership in FY Candie Sweetser The Economic Development Grant Act was established by the Legislature in 2014 to provide matching state grants to local and regional economic development agencies to hire economic development staff. Under the Act, economic development organizations can apply for grants for up to 50% of the cost to hire economic development professionals. Although the Act was passed, money was never appropriated. HB 126 appropriates $1.5 million to the Economic Development Grant Fund for FY 2020 and subsequent fiscal years. Balances in the fund are nonreverting. Referred to House Commerce & Economic Development; scheduled for 1/25/19. Rebecca Dow (HB 155) Liz Stefanics (SB 113) Allows municipalities and counties to increase GRT to up to five-eighths of 1 percent (with voter approval) to cover the costs of administration of contracts related to LEDA projects. Allows municipalities and counties to use up to $250,000 or 20% of the revenue collected from infrastructure GRT for promotion and administration of or professional contracts related to LEDA projects. HB 155 referred to House Commerce & Economic Development Committee; scheduled for 1/28/19. SB 113 referred to Senate Corporations & Transportation Committee. 2

3 HB 165 Modifying High Wage Jobs Tax Credit HB 203 Economic Development Finance and Ag Enterprises HB 228 Solo-Worker Program HM 16 Economic Development Innovation Task Force Candie Sweetser Among other changes: Defines eligible employer as an employer that would be eligible to receive JTIP funds under FY 2019 policies. Reduces from 48 weeks to 44 weeks the length of time each position must be filled in order to be considered a qualifying job. Eliminates provision that an employer must be expanding for five years in order to be eligible. States that if eligibility requirements are not met in a qualifying period, then only that qualifying period becomes ineligible (instead of all subsequent qualifying periods) Adjusts the credit rate from 10% of the wage to 8-1/2% of the wages, not to exceed $12,750 per job per qualifying period. Referred to House Commerce & Economic Development Committee; scheduled for 1/28/19. Nathan Small Expands the Economic Development Finance Act to include agricultural enterprises, making for-profit or nonprofit agricultural enterprises eligible entities under the Act. Bill was placed on the rocket docket on 1/17/19. Approved by House Judiciary Committee on 1/21/19 Approved by full House on 1/23/19 on a 69 to 0 vote. Referred to Senate Corporations & Transportation Committee; scheduled for 1/28/19. Harry Garcia Appropriates $1.3 million from the general fund to the Economic Development Department for use by the solo-worker program in FY Andrea Romero Asks the Secretary of Economic Development to form an Economic Development Innovation Task Force by May 1, The task force will recommend permanent, recurring sources of funding for economic development programs; discuss workforce issues; identify ways to address the shortage of quality commercial and industrial properties; and discuss concepts in economic development. The task force will consist of the Economic Development Secretary, the Workforce Solutions Secretary or designee, the Secretary of Higher Education or designee, one member of a public post-secondary educational institution alumni association, the CEO of the New Mexico Partnership, four members of New Mexico IDEA, and four members of the Legislature. 3

4 SB 151 Economic Development & Tax Info Reporting The task force will report to the LFC and the Revenue Stabilization and Tax Policy Committee by Oct. 15, Referred to House State Government, Elections & Indian Affairs Committee. Bill Tallman Requires the recipients of LEDA funding to report job creation data and information about capital investment. Requires the Economic Development Department to provide information to state economists in order to evaluate economic development incentives. TAXATION / TAX REFORM HB 6 Tax Changes HB 219 Make Angel Investment Credit Refundable Sponsor(s) Summary of Bill AED Position Jim Trujillo Sheryl W. Stapleton Javier Martinez Susan Herrera Antonio Maestas Nathan Small Among other provisions, the bill: Amends personal income tax brackets and creates new PIT brackets (see pp of bill PDF). New top rate of 6.5% vs. the current 4.9%. Requires combined reporting for corporations that are part of a unitary group (see pp of bill PDF). Taxpayers would have the option to use water s-edge combined reporting or worldwide combined reporting. Reduces state GRT rate from 5.125% to 4.625% (see p. 98 of bill PDF). Provides that compensating tax rate shall be imposed at same rate as GRT (see p. 101 of bill PDF). Provides for taxation of certain internet sellers by both the state and local governments. Repeals certain tax expenditures (see page 12 of fiscal impact report). Provides for taxation of nonprofit and for-profit hospitals at the same rate. Increases the gasoline sales tax from 17 cents per gallon to 27 cents per gallon beginning July 1, Referred to House Taxation & Revenue Committee. Scheduled for 1/25/19. Amends the Angel Investment Credit to state that if the credit exceeds the income tax liability for the taxable year, the excess shall be refunded to the taxpayer. 4

5 HB 247 Increase Corporate Income Tax Rates HB 288 Rural Infrastructure Tax Credit HB 335 Create New Top Income Tax Bracket SB 6 Tax Determination of In-State Sales SB 11 Gross Receipts for Nonprofit Organizations Christine Chandler D. Wonda Johnson Patricia Lundstrom Daymon Ely Peter Wirth Jason Harper Carlos Cisneros Increases corporate income tax rate as follows: For net income not over $500,000, rate would be 4.8% for taxable years beginning 1/1/20. For net income over $500,000 but not over $1,000,000, rate would be $24,000 plus 6.4% of excess over $500,000 for taxable years beginning 1/1/20 (an increase from 6.2% of excess). For net income over $1,000,000, rate would be $56,000 plus 6.9% of excess over $1,000,000 for taxable years beginning 1/1/20 (an increase from $24,000 plus 6.2% of excess) and $56,000 plus 7.6% of excess over $1,000,000 for taxable years beginning 1/1/21 (an increase from $24,000 plus 6.2% of excess). Allows a taxpayer who makes a qualified investment in a commercial enterprise project located in a non-class A county to claim a tax credit in an amount not to exceed 30% of the cost of the qualified investment against the taxpayer s modified combined tax liability. Amount cannot exceed $1 million per qualified investment for not more than three qualified investments in a taxable year. For tax years beginning Jan. 1, 2020, creates a new tax bracket for married individuals filing separately with incomes over $157,500 ($7, plus 5.9% of excess over $157,500); married individuals filing jointly with incomes over $315,000 ($15,027 plus 5.9% of excess over $315,000; and single individuals with incomes over $210,000 ($10, plus 5.9% of excess over $210,000). Changes the definition of in-state sales to include the sale, rental, lease or license of real or tangible property that is located in the state, services that are delivered to a location in the state, and intangible property that is used in the state. Scheduled for 1/28/19. Excludes contractors that operate a national laboratory in New Mexico from the GRT exemption for nonprofit organizations. Approved by Senate Corporations & Transportation Committee on 1/24/19. Referred to Senate Finance Committee. 5

6 SB 39 Solar Market Development Tax Credit SB 98 Additional Upper- Tier Tax Brackets SB 129 Tax Protests and Administrative Hearings Office SB 208 Broadband Facility Component Gross Receipts SB 335 Combined Tax Reporting Mimi Stewart Bill O Neill Jacob Candelaria Jason Harper Michael Padilla Peter Wirth Melanie Stansbury Creates a Solar Market Development Income Tax Credit that allows a taxpayer who installs a solar system in a residence, business or agricultural enterprise after Jan. 1, 2019, to apply for a tax credit of 10% of the purchase and installation costs, not to exceed $6,000. Adds new personal income tax brackets beginning with the 2020 tax year: For married individuals filing separately with taxable income over $187,500, tax would be $8, plus 8.2% of excess over $187,500. For married individuals filing joint returns with taxable income over $375,000, tax would be $17,967 plus 8.2% of excess over $375,000. For single individuals with taxable income over $250,000, tax would be $11, plus 8.2% of excess over $250,000. Modifies the terms governing tax protests and proceedings, including: TRD must acknowledge protests with 21 days. If the protest was improperly filed, TRD must inform the taxpayer and provide the taxpayer 21 days to correct the deficiency. If the taxpayer requests an informal conference to resolve the disputed issues, TRD must hold the meeting with 60 days of the request. TRD also must provide a written report to the taxpayer that discusses its response to the taxpayer s protest with 30 days of the date of the informal conference. Within 180 days after the receipt of a protest, TRD must request a formal administrative hearing that includes a detailed description of the issues, including any issues that might have been resolved during an informal conference. Creates gross receipts and compensating tax deductions for broadband telecommunications network facilities components in order to promote the deployment of broadband services in New Mexico. Arizona, Utah, Colorado and Texas do not tax telecommunications equipment. Requires corporations that are part of a unitary group to file a tax return as a worldwide combined group or use water s-edge reporting. Base income of the combined group is calculated by combining income or loss of the members included in the return. 6

7 SB 352 Data Center Gross Receipts Michael Padilla To encourage the construction of data centers in New Mexico, this bill: Provides gross receipts tax and compensating tax deductions for data centers. To receive the GRT deduction, the taxpayer must apply to the Economic Development Department for a certificate of eligibility that entitles the taxpayer to receive a NTTC issued by the Taxation and Revenue Department. Creates a special method of valuation for property tax purposes for certain data center property. Property that is part of a data center and is subject to valuation for property taxation purposes will be valued at 5% of the original cost. MINIMUM WAGE HB 31 Phased-in Minimum Wage Increase HB 46 Increase Minimum Wage Sponsor(s) Summary of Bill Miguel Garcia Increases the state minimum wage from $7.50 per hour to $10 per hour immediately upon enactment; to $11 per hour on July 1, 2020; to $12 per hour on July 1, 2021; and then adjusted annually for cost of living on July 1 of each successive year. Removes the minimum wage exception for tipped employees. Approved by House Labor, Veterans and Military Affairs Committee on 1/23. Patricia Roybal Caballero Increases the state minimum wage to $7.50 per hour immediately upon enactment; to $15 per hour on Jan. 1, 2020; and then adjusted annually for cost of living on Jan. 1 of each successive year. Removes the minimum wage exception for tipped employees. 7

8 LABOR LAW HB 85 Union Security Agreements HB 213 Paid Family Leave and Medical Leave Act HB 264 Paid Family Medical Leave Act Sponsor(s) Summary of Bill Daymon Ely Allows union membership to be required as a condition of employment. Establishes that the state has exclusive jurisdiction to prohibit union security agreements. Prevents a city, county, home rule municipality or other political subdivision of the state from prohibiting membership in a labor organization as a condition of employment in New Mexico. Referred to House Labor, Veterans and Military Affairs Committee. Scheduled for 1/29/19. Patricia Roybal Beginning Jan. 1, 2020, requires employers to deduct $2 per calendar quarter Caballero from each employee s pay and remit those deductions to a Paid Family and Medical Leave insurance fund operated by the Department of Workforce Solutions. Beginning July 1, 2021, allows eligible employees to take up to 12 weeks of family leave or medical leave during a 12-month period. The leave may be used intermittently during the 12-month period or all at once. Provides calculations of the paid leave compensation an employee is eligible to receive, which varies based on the employee s average weekly income. The maximum biweekly paid leave compensation an employee can receive is 120% of the state average weekly wage multiplied by two. Requires the Department of Workforce Solutions to review claims for leave and issue leave compensation to eligible employees. Claims will be paid from the Paid Family and Medical Leave insurance fund. Referred to House Commerce & Economic Development Committee, House Judiciary Committee, House Appropriations & Finance Committee. Christine Chandler Establishes a Paid Family and Medical Leave Trust Fund. Beginning July 1, 2020, employees will contribute to the trust fund 1/2 of one percent of the employee s earnings up to maximum earnings of $60,000. Beginning July 1, 2020, employers will contribute to the trust fund 4/10 of one percent of each employee s earnings up to maximum earnings of $60,000. Employers who provide coverage by a privately run leave program can apply for a waiver that exempts them from the program. 8

9 Beginning Jan. 1, 2021, eligible employees may apply for paid leave equal to 100% of the compensation that would be paid to an employee earning minimum wage, plus 67% of the employee s average earnings per week that is greater than the minimum wage compensation. The maximum amount of weekly leave compensation cannot exceed the annual mean wage of all occupations in New Mexico for the most recent year. Eligible employees may take a maximum of 12 weeks of paid leave during any 12-month period. The leave may be taken intermittently instead of all at the same time. Referred to House Commerce & Economic Development Committee, House Judiciary Committee, House Appropriations & Finance Committee. OTHER HB 286 Public-Private Partnerships Act SB 30 Invest in Tech Research Collaborative SB 35 Market N.M. to Retirees Sponsor(s) Summary of Bill AED Position Patricia Lundstrom Roberto Gonzales Jim Trujillo J. Powdrell-Culbert Clemente Sanchez Michael Padilla Michael Padilla Allows the state and local governments to enter into partnerships with private sector partners to facilitate public projects. Referred to House Labor, Veterans and Military Affairs Committee, House Judiciary Committee. Directs the State Investment Council to invest 0.25% of the market value of the severance tax permanent fund in N.M. businesses that are approved by the Technology Research Collaborative in order to create job opportunities and support new, emerging or expanding businesses. Referred to Senate Corporations & Transportation Committee; scheduled for 1/25/19. Appropriates $1 million to the Economic Development Department to develop and implement a campaign to attract retirees to New Mexico. Referred to Senate Corporations & Transportation Committee; scheduled for 1/25/19. 9

10 SB 87 Encourage Use of N.M. Software Developers SB 169 LLC Articles with Info for Every Member Bill Tallman Kelly Fajardo Clemente Sanchez Appropriates $1.3 million to the Economic Development Department to develop and implement a marketing campaign to encourage companies and government agencies outside the state to contract with software developers located in the state. Requires that articles of organization for limited liability companies include the name and address of each member. SB 176 Consumer Information Privacy Act Michael Padilla Gives consumers the right to: Request that a business disclose the types of personal information about the consumer that the business has collected or sold for business purposes, the sources from which the personal information was collected, the purpose for which the information was collected or sold, the third parties to which the personal information was sold, and the specific pieces of personal information that the business has collected about that consumer. Request that a business delete any personal information about the consumer that the business has collected from the consumer. Opt out of the sale of the consumer s personal information. Requires businesses that collect personal information to: Disclose the types of information that is collected and how it will be used, including whether the information might be sold. Provide a privacy policy that describes consumers rights. Comply with a consumer s request to delete personal information or request to opt out of the sale of personal information. Train employees about the business s privacy practices. 10

Sponsor(s) Summary of Bill AED Position

Sponsor(s) Summary of Bill AED Position Bills AED Is Watching in the 2019 New Mexico Legislature Updated 1/25/19 BUDGET/APPROPRIATIONS HB 2 HB 333 General Appropriation Act of 2019 SB 254 General Appropriation Act of 2019 SB 280 Capital Outlay