of the fifty-fourth legislature second session, 2020 and · 2020. 10. 2. · first special session,...

HIGHLIGHTS OF THE

FIFTY-FOURTH LEGISLATURE SECOND SESSION, 2020

AND

FIFTY-FOURTH LEGISLATURE FIRST SPECIAL SESSION, 2020

»«

NEW MEXICO LEGISLATIVE COUNCIL SERVICE

OCTOBER 2020

Effective Dates ▸ Acts carrying an emergency clause - immediately upon signature by the governor ▸ All other acts - Fifty-Fourth Legislature, Second Session: May 20, 2020 (or at a date specified in the act) Fifty-Fourth Legislature, First Special Session: September 20, 2020 (or at a date specified in the act)

New Mexico Legislative Council Service 411 State Capitol

Santa Fe, New Mexico 87501 (505) 986-4600

www.nmlegis.gov 202.217861

http://www.nmlegis.gov

CONTENTS

FIFTY-FOURTH LEGISLATURE, SECOND SESSION, 2020 Introduction AGING ............................................................................................................................................................. 1 ANIMALS ......................................................................................................................................................... 1 APPROPRIATIONS AND FINANCE ........................................................................................................... 2 General Appropriation Act ................................................................................................................ 2 Feed Bill .............................................................................................................................................. 5 Other Appropriations ........................................................................................................................ 5 Public Finance..................................................................................................................................... 5 New Mexico Finance Authority ......................................................................................................... 6 Capital Outlay ..................................................................................................................................... 7 BUSINESS AND ECONOMIC DEVELOPMENT ...................................................................................... 8 CHILDREN AND FAMILIES ........................................................................................................................ 9 CONSTITUTIONAL AMENDMENTS ...................................................................................................... 10 COURTS, CRIMINAL LAW, LAW ENFORCEMENT AND PUBLIC SAFETY ................................... 11 EDUCATION ................................................................................................................................................ 13 Public Schools ................................................................................................................................... 13 Public School Capital Outlay ........................................................................................................... 15 Post-Secondary Education ................................................................................................................ 15 EMPLOYMENT AND LABOR .................................................................................................................... 16 ENERGY, ENVIRONMENT AND NATURAL RESOURCES ................................................................ 17 HEALTH AND HUMAN SERVICES ......................................................................................................... 18 LOCAL GOVERNMENT AND SPECIAL DISTRICTS ............................................................................ 21 MILITARY AND VETERANS' AFFAIRS .................................................................................................... 21 MOTOR VEHICLES AND TRANSPORTATION..................................................................................... 22 PROFESSIONAL AND OCCUPATIONAL LICENSURE ....................................................................... 22 PUBLIC OFFICERS AND EMPLOYEES .................................................................................................... 23 REGULATION AND LICENSING ............................................................................................................. 24 STATE GOVERNMENT .............................................................................................................................. 25 Entities .............................................................................................................................................. 25 Legislature ......................................................................................................................................... 26 Open Records ................................................................................................................................... 26 Property and Procurement ............................................................................................................... 27 TAXATION .................................................................................................................................................... 27

FIFTY-FOURTH LEGISLATURE, FIRST SPECIAL SESSION, 2020 OVERVIEW ................................................................................................................................................... 33

APPENDICES

APPENDIX A — DATA ON LEGISLATION ............................................................................................ 38 APPENDIX B — APPROPRIATIONS AND REVENUE ......................................................................... 40 Table 1 - Summary of General Fund Appropriations ....................................................................... 40

Table 2 - General Appropriation Act of 2020 ................................................................................... 41 Table 3 - General Appropriation Act of 2020 and Other Reductions and Changes ...................... 48 Chart 1 - General Fund Appropriations - Fiscal Year 2021 ......................................................... 55 Chart 2 - General Fund Appropriations - Fiscal Year 2020 ......................................................... 55 Chart 3 - Total State Budget from All Funding Sources - Fiscal Year 2021 ................................ 56 Chart 4 - Total State Budget from State vs. Federal Funding Sources - Fiscal Year 2021 ........... 56 Chart 5 - Federal Funds by Category - Fiscal Year 2021 ............................................................... 57 Chart 6 - Top 15 General Fund Appropriations by Agency/Distribution - Fiscal Year 2021 .... 57 Table 4 - General Appropriation Act Vetoes ..................................................................................... 58 Table 5 - Bills Affecting General Fund Revenue ............................................................................... 62 Table 6 - Bills Affecting Other State Revenue ................................................................................... 63 Table 7 - Bills Affecting Local Government Revenue ....................................................................... 65 Table 8 - Legislative Authorization for New Mexico Finance Authority Public Project Revolving Fund Projects ........................................................................................ 66 Table 9 - Legislative Authorization for New Mexico Finance Authority Water Project Fund Projects.......................................................................................................... 67 APPENDIX C — CAPITAL OUTLAY ....................................................................................................... 69 Table 10 - 2020 Capital Outlay Projects by Category (summary) ..................................................... 69 Table 11 - 2020 Capital Outlay Projects by County (summary) ........................................................ 70 Table 12 - 2020 Capital Outlay Projects by Agency (summary) ........................................................ 71 Table 13 - 2020 Capital Outlay Projects by County (detail) .............................................................. 73 Table 14 - 2020 Capital Outlay Project Reversions by County (detail) .......................................... 104 Chart 7 - 2020 Capital Outlay Projects ....................................................................................... 107 Chart 8 - 2020 General Obligation Bond Projects .................................................................... 107 Table 15 - 2020 General Obligation Bond Projects by Question and County (detail) ................. 108 Table 16 - 2020 Capital Outlay Reauthorizations (detail) ............................................................... 111 APPENDIX D — EFFECTIVE DATES OF LAWS 2020 ........................................................................ 131 APPENDIX E — CONCORDANCE ....................................................................................................... 145

INDICES BILL INDEX ............................................................................................................................................. 151 GENERAL INDEX .................................................................................................................................. 152

"I've seen dark skies, never like this/ walked on some thin ice, never like this/ I've told you white lies, never

like this/ looked into true eyes, never like this"

-It's in the Way That You Use It, Eric Clapton

Over the course of time, language evolves. New words creep into the lexicon, while other words

become so overused that the gravity originally associated with them begins to fade. It is too early tell how

history will look back on the year 2020 and the word "unprecedented". It may be true that the word has

been tossed about entirely too often, but it is also true that few other words are quite as apt.

The story of the New Mexico Legislature in 2020 is impossible to tell without using terms like

unprecedented and some of the new terms. First, however, it is important to establish some legislative

context. At the conclusion of the 2020 regular session, the legislature had taken the required step of

crafting a budget: a nearly $8.38 billion package of recurring and nonrecurring spending (an 8.3%

increase over the previous year's budget, made possible largely because of increased revenue due to oil and

gas activity in the southeastern corner of New Mexico) that included nearly $2 billion in operating

reserves. Also passed were a $320 million Early Childhood Education and Care Fund, created as a

compromise between groups seeking to increase the distribution from the Land Grant Permanent Fund

and others who warned such an increase could harm the corpus of that fund; a heavily compromised, yet

still controversial, extreme risk protection order bill, which allows courts to order the temporary seizure of

firearms from individuals deemed a danger to themselves or others; solvency measures for the Public

Employees Retirement Association; and a $422.9 million capital outlay package. A normal Highlights

publication would outline these measures, and many others, in much greater detail. However, predicting

the future is a risky endeavor in any year, and unprecedented events were just around the corner.

It is important to understand some basics regarding New Mexico's budget and income sources.

The oil and gas industry provides a significant portion of income for the state and for local governments.

Fluctuations in the price per barrel of oil can have drastic impacts on the state's budget: every $1.00

change in the price per barrel can translate into a $10 million change in revenue to New Mexico. Despite

some warning signs that oil and gas activity was showing signs of slowing down, the budget crafted during

the regular session relied heavily upon oil drilling and production, and prices, remaining at close to 2019

levels.

As the regular session wound down, news of a deadly new virus that began in Wuhan, China,

began to circulate. A global health alert was quickly issued. Extremely contagious and much deadlier than

the common flu, the novel coronavirus SARS-CoV-2, which causes COVID-19 (also known colloquially as

the coronavirus) had already begun moving from Asia to Europe and the United States by the time the

session ended. In response, governments began issuing shelter-in-place or stay-at-home orders to their

citizens, as well as often closing down businesses deemed non-essential. As people stayed home and off of

First Special Session, 2020

Introduced: House bills - 16 Senate bills - 21 Passed - 7 Enacted - 7

Introduced Passed Enacted Vetoed

House 378 55 56 2

Senate 291 38 31 2

Total 669 93 87 4

0

100

200

300

400

500

600

700

800

BILL ACTION SUMMARIES

Regular Session, 2020

the roads and factories closed, world oil

consumption dropped sharply. In response,

in early March, OPEC and Russia tried to

negotiate production limits to stabilize oil

prices, which Russia ultimately backed away

from, causing Saudi Arabia to increase

production, cut oil prices and flood global

markets — a potentially crushing blow to

New Mexico's largely oil revenue-dependent

budget.

Cognizant of the global situation, yet

still within her 20-day period to sign or veto

legislation, the governor used her line-item

veto authority to strike some funding from

the budget, along with much of the General

Fund money set aside for capital outlay.

Unfortunately, the worst was yet to

come. A few weeks later, the coronavirus

began sweeping across the United States.

The response varied wildly across all levels of

government, with expert guidance often

contradicted by politicians. In mid-March,

Governor Lujan Grisham declared a public

health emergency, first closing schools, then

ordering state government employees to begin working at home and eventually closing all non-essential

businesses. In keeping with health-related protocols, the State Capitol was also closed to the public.

While the measures succeeded at slowing the spread of the virus, the effects on New Mexico's economy

were devastating, and yes, unprecedented. With the crucial oil and gas component of the state's revenue

stream already on life support, gross receipts tax revenue suffered as well, falling well short of projections.

The question about a special session to address budget solvency evolved fairly quickly from "if" to

"when" to "how". Aside from the governor's public health order prohibiting gatherings of more than five

people, the confluence of the virus's highly contagious nature, the high percentage of legislators classified

as high risk to develop serious (and even fatal) symptoms from the virus and the widely held sentiment

that the Roundhouse functions as something of a virus-laden petri dish when the legislature is in session

made the prospect of holding a conventional special session a dangerous one. However, the notion of the

physical presence of members is one that arises in numerous instances in both the Constitution of New

Mexico and the rules of both the House of Representatives and the Senate (which could only be changed

to allow for any kind of remote participation by convening in Santa Fe with a minimum of two-thirds of

the membership of each chamber in attendance).

As luck would have it, 2020 is also an election year. As March gave way to April and crept toward

May, concerns about how to safely hold the primary election scheduled for early June began to grow. The

New Mexico Supreme Court considered the question of allowing mail-in voting, asking both the governor

and legislature about the viability of an almost immediate special session. In response, the governor said

that she had no plans to call one quite so quickly, while the legislature expressed some doubt about how,

exactly, it could meet safely and resolve the highly charged issue of mail-in voting without a significant

amount of planning and negotiation. In turn, the court allowed for a modest expansion of absentee

voting procedures for the primary election. The Supreme Court also heard arguments on a challenge to

the New Mexico Legislative Council's direction to close the State Capitol to the public during the special

session. A narrow 3-2 vote by the justices kept the doors closed to the public.

Once the dust finally settled on the primary election, the presiding senate president pro tempore,

the chairs of the powerful Senate Finance Committee and the Senate Corporations and Transportation

Committee (which typically reviews all proposed changes to tax laws), two members of the Senate

appointed by the governor and another two senators were all defeated, likely leading to a dramatic shift in

the landscape of the Senate in 2021.

About the same time New Mexico's governmental branches grappled with a special session and

primary voters cast their ballots, people around the world (many of whom still remained at home) watched

an entirely different scene unfold. News reports and (in at least one case) disturbing video of African

Americans being killed by law enforcement officers drove thousands upon thousands into cities across the

country to protest racial injustice, the vast majority of which were peaceful but with a small percentage

that turned violent on which the media, the public and public officials focused. By the time the governor

called the legislature into a special session in mid-June, social justice issues had joined budget solvency and

election issues on the list of bills to consider.

While special sessions always entail certain unique elements, the 2020 special session could very

well be in a class by itself. Convening on June 18, the First Special Session of the Fifty-Fourth Legislature

began with each chamber changing its rules to keep members and staff as safe as possible, albeit with

somewhat different approaches. The House allowed members to participate via remote, electronic means,

while the Senate required members to be in the building, but not necessarily in the chamber. Somewhat

controversially, the building complex remained closed to both the public and lobbyists. For the first time,

public input on proposed legislation was relegated to either emailed comments or video conferencing

platforms. Another first was the sight of staff and members alike lined up in the various halls of the

Roundhouse, all waiting to have lengthy swabs shoved into at least one nostril as part of testing protocols.

The curtain rose on the special session with a number of items outlined by the governor's

proclamation. These included several technical approaches to budget solvency, along with a number of

social justice measures, election fixes and expansion of the public health emergency laws that allowed the

governor to take the steps she initially did to shut down the state. As with most other sessions, a number

of bills not included in the governor's proclamation were also introduced. And, as 2020 would have it,

the first day's webcasts were continually interrupted by a corrupted database file on the outside vendor's

server that hosted the legislature's webcasts.

The First Special Session of the Fifty-Fourth Legislature lasted about four days (the latter three

without webcast problems). Of the 37 bills introduced, seven passed. In order to help keep state

government solvent, bills reducing funding to state government agencies and programs, transferring

money, eliminating most raises for state employees, sweeping severance tax bond revenue and voiding

inactive capital outlay projects (among other solvency measures) were passed. To address some of the

social justice issues outlined in the governor's proclamation, the New Mexico Civil Rights Commission

was created, and a bill requiring law enforcement officers to wear body cameras was passed. Taxpayer

issues were addressed through passage of a bill waiving penalty and interest fees for certain state taxes due

from April 15 to July 15, as well as doubling a distribution to cities and counties for gross receipts taxes

collected by the state. Help for small businesses affected by months of being shut down was addressed in

the Small Business Recovery Act of 2020. Several temporary changes to the Election Code in anticipation

of the November general election were also approved. All seven of the bills passed by the legislature

during the special session were signed by the governor, although she did partially veto two.

A global health pandemic, spreading like wildfire and killing hundreds of thousands, plunging

both global and local economies into chaos; stay-at-home orders for huge swaths of the world's population;

larger and longer-lasting protests for racial justice; injection of terms like "social distancing" and "flattening

the curve" into everyday conversations; special sessions featuring participants either wearing masks or using

video conferencing software; virtual birthday parties and commonplace use of remote learning and the

postponement or outright cancellation of any number of traditional events… all without modern

precedent. Hyperbole is a cherished, time-honored form of communication in legislative circles, and yet

even there, "never like this" and "unprecedented" were seldom exaggerations in 2020.

The Highlights is an annual publication of the Legislative Council Service (LCS) that summarizes

much, but not all, of the legislative action during each session. The omission of certain legislation or

issues should not be interpreted as an indication that those are not important; each is important to

someone. Many issues in the Highlights defy single-topic categorization, so every effort has been made to

organize and cross-reference the contents. A complete listing of bills that passed is included in the

Concordance located in Appendix E.

FIFTY-FOURTH LEGISLATURE SECOND SESSION, 2020

Legislative Council Service - Highlights 2020 1

AGING In the one bill related to aging that was enacted into law, House Bill 225 (Chapter 8) creates the

"Kiki Saavedra Senior Dignity Fund", named for Henry Kiki Saavedra, the long-time state representative

and former House Appropriations and Finance Committee chair who passed away in 2019 and advocated

for providing opportunities for senior citizens. Administered by the Aging and Long-Term Services

Department, the fund is intended to pay for services for New Mexico senior citizens, including

transportation, food security, physical and mental health, assistance with appointments and care

coordination. To begin paying for services, the General Appropriation Act of 2020 (GAA) has allocated

$7.3 million for the fund.

ANIMALS This year the legislature passed and the governor signed two bills regarding animals: one bill

reinforces a federal ban on the sale of animals and animal parts from certain internationally protected

species; and a second bill increases the funding available for in-state spay and neuter programs.

Trafficking in endangered species can be a highly lucrative enterprise in which animals and

animal parts from throughout the world are trafficked into the United States. The United States belongs

to the Convention on International Trade in Endangered Species of Wild Fauna and Flora, which

controls the international trade in endangered species and in parts or products of those species. While

the treaty covers both plants and animals, New Mexico's Wildlife Trafficking Act, enacted by Senate Bill

75 (Chapter 77), is concerned only with endangered animals that are listed in Appendix 1 of the treaty,

such as lions, elephants and rhinoceroses. In particular, the act prohibits the sale and purchase of these

endangered species or their parts or products. However, it does not govern hunters who have federal

permits issued by the United States Fish and Wildlife Service that allow them to bring into the country

parts of animals they have lawfully killed. A violation of the act is a criminal misdemeanor that may result

in a fine of up to $1,000 and a jail sentence of up to one year. In addition, violators of the act are subject

to civil penalties not to exceed $10,000 or three times the total value of the covered animal species or

covered animal part or product, whichever is greater. Any commissioned law enforcement officer is

empowered to enforce the criminal provisions of the act, and civil enforcement may be enforced by any

agency or political subdivision of the state that employs commissioned law enforcement officers or by any

person authorized by the attorney general.

For a number of years, the Board of Veterinary Medicine has been grappling with an over-

population of homeless cats and dogs around the state. To decrease the burden on local animal welfare

agencies, Senate Bill 57 (Chapter 69) increases funding for spay and neuter programs in the state and for

AGING


the costs of administering the Animal Sheltering Act by imposing a fee on commercially sold dog and cat

food.

APPROPRIATIONS AND FINANCE Just as during the 2019 legislative session, optimism was high during the 2020 session because of

record-setting oil revenues the state continued to receive from the extractive industry. Due to such

optimism, the state budget was increased, though at a lower percentage than in the previous year's budget,

and an agreement was made between the legislature and executive to provide significant funding for early

childhood education and care services. But, since much of the state budget is dependent on the extractive

industry, which is historically volatile and subject to substantial booms and busts, the legislature passed a

budget that kept reserves at an estimated 25% of recurring appropriations, the high end of what state

economists recommended prior to the beginning of the session. This money in reserves will be needed,

because shortly after the session ended, oil prices fell significantly, causing the governor to veto $150

million in General Fund spending, $110 million in capital outlay projects and nearly $50 million in local

road projects. The day the governor vetoed this funding is the same day she declared a public health

emergency after multiple New Mexico residents tested positive for COVID-19, the disease caused by the

new coronavirus, and the same day the World Health Organization recognized the outbreak of the disease

as a pandemic.

Due to worsening economic conditions from the pandemic and plummeting oil and gas prices,

the legislature convened in a June special session and passed House Bill 1, which makes a number of

adjustments to the GAA and is detailed in the Fifty-Fourth Legislature, First Special Session section of these

Highlights. What follows in this section is what is appropriated in the GAA from the regular session.

General Appropriation Act

After action taken by the governor, the GAA, enacted in House Appropriations and Finance

Committee Substitute for House Bills 2 and 3 (Chapter 83, p.v.), appropriates nearly $8.38 billion in

recurring and nonrecurring spending in fiscal year (FY) 2020 and FY 2021, an increase of 8.3% over the

General Appropriation Act of 2019. In FY 2021, appropriations to agencies for operating expenses total

over $7.5 billion, a year-over-year increase of 9.23%. The GAA also allocates $63 million to provide a 4%

salary increase for state government employees and employees at the state's higher education institutions,

as well as a 7% increase in pay for judges. Additionally, $94.2 million is appropriated to provide an

average 4% salary increase for public school personnel.

Public School Support; Other Education

The "Public School Support" category receives the most recurring General Fund appropriations of

any category of the GAA at $3.37 billion, which includes funding for the state equalization guarantee

APPROPRIATIONS AND FINANCE


distribution that finances K-12 public education as

well as the public school personnel salary increases

noted above. The appropriation also includes

nearly $120 million for the K-5 Plus Program,

$71.4 million for extended learning time

programs and $30 million for school districts and

charter schools to purchase culturally and

linguistically appropriate instructional materials

for eligible students.

In the "Other Education" category, $47.2

million is appropriated from the General Fund in

FY 2021. Of that amount, $14.9 million is

appropriated for the operating budget of the

Public Education Department, $1.1 million is

allocated to regional education cooperatives and $31.2 million is provided for special appropriations to

the Public Education Department. See the Education section of these Highlights for a more detailed

summary of public school initiatives funded in the GAA.

Higher Education

The GAA appropriates $905.5 million from the General Fund for New Mexico's public post-

secondary educational institutions and the Higher Education Department. The Higher Education

Department receives just under $48.5 million, including $12 million for the Opportunity Scholarship

Program, and the two largest universities in the state are allocated more than 60% of the funding, with the

University of New Mexico and New Mexico State University set to receive $338.1 million and $216.6

million, respectively.

Judiciary

Judicial agencies are appropriated $332.9 million, resulting in most agencies receiving about a

10% increase from their FY 2020 appropriations. None receive more than an 18% increase, but those

whose budgets are boosted over 10% are the Fifth, Tenth, Eleventh, both Division I and Division II, and

Twelfth Judicial District Attorneys. Other agencies with notable gains over their FY 2020 allotments

include the New Mexico Supreme Court at 5.5%, the Court of Appeals at 7.4% and the Administrative

Office of the Courts at 9.7%. Only the New Mexico Compilation Commission's budget remains flat.

General Control

General control agency General Fund appropriations increase just under 10% to $156.6 million

for FY 2021. The Office of the Governor's budget is raised 12.7% to $4.58 million, the appropriation to

the New Mexico Sentencing Commission is more than doubled from $549,600 in FY 2020 to $1.24


Legislative

0.3% General Government

8.7%

Human Services

26.1%

Higher Education

11.4%

Judiciary

4.2%

Public Schools

43.1%

Public Safety

6.3%

GENERAL FUND APPROPRIATIONS*

Fiscal Year 2021

$7,938,619.6

*Includes appropriations in Chapter 1 (Feed Bill) and portions of Sections 4, 8 and 12 of Chapter 83 (GAA) .


million in FY 2021 and while the appropriation to the Public Employees Retirement Association is

reduced from $77 million in FY 2020 to $54.6 million in FY 2021, a fund transfer of $55 million is made

in Section 10 of the GAA to the association's retirement fund in FY 2020 due to the passage of pension

solvency reforms in Senate Bill 72, which is discussed in the Public Officers and Employees section of these

Highlights.

Commerce and Industry

In the "Commerce and Industry" category, agencies receive an increase of almost 14% in FY 2021

appropriations, which total close to $69 million, as compared to FY 2020, which totaled just under $61

million. Agencies with the biggest growth are the Spaceport Authority, which is appropriated more than

$2.6 million, a 166% increase over its $985,400 FY 2020 appropriation, and the Border Authority, which

receives $450,100, a 40% increase. The Tourism Department and the Economic Development

Department, the agencies with the highest budgets in this category, each get a 10% increase. Also

included under this category is just under $1 million for the State Ethics Commission.

Health, Hospitals and Human Services

An overall increase of 13.75% is provided for health, hospitals and human services agencies, for a

total of almost $2.1 billion. The Human Services Department receives the largest share, by far, at over

$1.22 billion, a 10% increase, followed by the Department of Health at $318.2 million, a 1.7% increase,

and the Children, Youth and Families Department at $223.6 million, a 27.6% decrease due to the

transfer of duties to the new Early Childhood Education and Care Department, which is slated to receive

more than $206.6 million. The only other agency that is allocated less funding in this category in FY 2021

is the Veterans' Services Department, at $5.4 million, a 5.7% decrease from FY 2020.

Public Safety

Public safety agencies are appropriated $496.5 million in FY 2021, a 7.5% increase from FY 2020.

The Corrections Department, receiving more than $343 million, a 7% increase, and the Department of

Public Safety, receiving nearly $135 million, more than an 8% increase, together account for the vast

majority of the funding under this category.

Other Appropriations and Fund Transfers

The Department of Transportation does not normally receive appropriations from the General

Fund but instead relies on funding from the Federal Highway Administration and the State Road Fund.

However, the GAA appropriates $180 million from the General Fund to the Department of

Transportation in FY 2020 for acquisition of rights of way, planning, design, construction, equipment and

statewide rest area improvements and to match federal and other state funds for projects, as well as for a

variety of projects named in Section 9 of the GAA that are divided among the six transportation districts

in the state.

Other significant special appropriations in the GAA for FY 2020 include $51.7 million to the



Computer Systems Enhancement Fund for system replacements or enhancements, $20 million to the

Higher Education Department for financial aid for low-income students and $17 million to the Office of

the State Engineer for the interstate stream compact compliance and water development program to

develop and fund a water management pilot project for the lower Rio Grande for fiscal years 2020

through 2023.

In addition to the fund transfer to the Public Employees Retirement Association, another notable

fund transfer of $320 million in FY 2021 is made from the General Fund to the Early Childhood

Education and Care Fund, created by House Bill 83, which is summarized later in this section under the

Public Finance subheading.1

Feed Bill

House Bill 1 (Chapter 1), known as the "feed bill" because it funds the legislative session,

appropriates $24.2 million from the General Fund to the legislature and legislative agencies for

expenditure in FY 2020 and FY 2021. Of that amount, $5.5 million provides for the operations of the

2020 legislative session, and the remainder supports interim activities and year-round operational costs of

the legislative agencies that include the LCS ($6.4 million), Legislative Education Study Committee (nearly

$1.5 million), Legislative Finance Committee ($4.6 million), house and senate chief clerks' offices ($1.5

and $1.6 million, respectively, including additional funding for leadership staff) and Legislative

Information System ($1.3 million) for non-salary expenses. The bill also includes funding of $19,100 for

the Senate Rules Committee's interim expenses.

Other Appropriations

The United States Constitution requires a federal census to be undertaken every 10 years. This

population count serves as the basis for ensuring fair political representation and for the distribution of

federal funds. Senate Bill 4 (Chapter 2) appropriates $8 million to the Department of Finance and

Administration for the department to conduct outreach efforts to achieve a statewide complete count in

the upcoming 2020 census.

Public Finance

Over the last several years, early childhood development has been a topic at the forefront of the

legislative sessions. Perennially, questions are raised regarding funding for early childhood programs.

Introduced as a governor-endorsed bill, House Bill 83 (Chapter 3) creates the Early Childhood Education

and Care Fund, which consists of excess money from federal mineral leases and oil and gas emergency

school taxes once state reserves have reached a level of 25% or more of the aggregate recurring


______________

1In Section 10 of the GAA, the language states that the transfer is to the "early childhood endowment fund", which is not the correct name of the fund. In House Bill 83, the fund in question is created as the "early childhood education and care fund".


appropriations from the General Fund. The Early Childhood Education and Care Fund then provides an

annual distribution for early childhood education and care services and programs.

While the Industrial Revenue Bond Act and the County Industrial Revenue Bond Act already

included electric generation facilities in their definitions of what constitutes a project, House Bill 50

(Chapter 14) amends both acts to also include electric transmission facilities as eligible projects.

Additionally, the bill requires industrial revenue bond and county industrial revenue bond projects to

make payments to the state in an amount equal to 5% of the in-lieu tax payments made to the local

government. Payments are also required to be made to local school districts in the amount that would

have been received in property taxes for the fully developed project.

House Bill 207 (Chapter 31) changes the name of the "Local Government Transportation Project

Fund" to the "Transportation Project Fund", and it allows money from the fund to be used for

transportation infrastructure for Indian nations, tribes or pueblos located wholly or partially in New

Mexico.

If the balance of the General Fund Operating Reserve at the end of a fiscal year is less than 1% of

aggregate General Fund appropriations for that year, House Bill 341 (Chapter 34) provides that the

Department of Finance and Administration is authorized to transfer from the Tax Stabilization Reserve to

the General Fund Operating Reserve the amount necessary to bring the balance to 1% of those

appropriations.

Senate Bill 136 (Chapter 75) allows the State Investment Council to authorize investments in

New Mexico private equity funds and New Mexico businesses of up to 11% of the market value of the

Severance Tax Permanent Fund.

New Mexico Finance Authority

Several bills make appropriations from the Public Project Revolving Fund (PPRF), which is

administered by the New Mexico Finance Authority (NMFA), for infrastructure, water and wastewater

projects. House Bill 47 (Chapter 59) allocates $2 million from the PPRF to the Local Government

Planning Fund for qualified entities to develop plans for infrastructure, water and wastewater projects. In

Senate Bill 69 (Chapter 70), $2.5 million is appropriated from the PPRF to the Drinking Water State

Revolving Loan Fund to provide state matching funds for federal Safe Drinking Water Act of 1974

projects. Also, Senate Bill 103 (Chapter 42) allocates $5 million from the PPRF to the newly created

Cultural Affairs Facilities Infrastructure Fund to pay the costs of Cultural Affairs Department facilities

and exhibits. The bill adds the Cultural Affairs Facilities Infrastructure Fund to the list of funds that may

receive legislative appropriations from the PPRF and removes outdated provisions regarding

appropriations from the PPRF to other funds. Lastly, $1.8 million is appropriated from the PPRF to the

Wastewater Facility Construction Loan Fund in House Bill 167 (Chapter 62) for the state's required



matching funds for federally sponsored projects and to carry out the purposes of the Wastewater Facility

Construction Loan Act.

Additionally, the NMFA has received legislative approval for public infrastructure projects around

the state in two bills. House Bill 27 (Chapter 57) authorizes the NMFA to make loans or grants from the

PPRF to 18 qualified entities for building, equipment, infrastructure, debt refinance, road, land

acquisition, water, wastewater, water rights and solid waste projects. Senate Bill 19 (Chapter 68)

authorizes the NMFA to make loans or grants from the Water Project Fund to 34 qualifying public

entities for water projects. Lists of the projects authorized in these bills may be found in Table 8 and Table

9, respectively, in Appendix B.

Capital Outlay

House Taxation and Revenue Committee Substitute for House Bill 349 (Chapter 81, p.v.)

authorizes $422,892,207 in capital outlay project expenditures for FY 2020 through FY 2024. The bill

includes $352,334,507 in severance tax bond projects and $42,909,700 in General Fund appropriations,

while other state fund appropriations in the bill total $27,648,000 and include appropriations from the

Public School Capital Outlay Fund, the Penitentiary Income Fund, the Equipment Replacement

Revolving Funds, the Oil and Gas Reclamation Fund and the Educational Retirement Fund. However,

the governor vetoed a total of $99,907,440 in General Fund appropriations and $9,621,651 in severance

tax bond appropriations, citing a sudden drop in gas and oil prices and the looming economic impact of

the global coronavirus pandemic.

Nearly $173.2 million in projects to the Local Government Division of the Department of

Finance and Administration in 33 counties is included in the bill. For a range of water and wastewater

system improvement projects, the Department of Environment receives close to $52 million, including $4

million for a water system decontamination project in Curry and Otero counties and a combined $3.6

million for a dam and a diversion channel in Dona Ana County. Furthermore, almost $43.2 million is

appropriated to the Capital Program Fund for capital improvements at Department of Public Safety,

Workforce Solutions Department, Department of Health and Children, Youth and Families Department

facilities, as well as for improvements to state-owned facilities under the purview of the Facilities

Management Division of the General Services Department. The governor vetoed a $2 million

appropriation for statewide master planning for state-owned buildings under the oversight of the Facilities

Management Division.

Public Education Department projects receive almost $24 million in the bill, including a heavy

volume of projects aimed at improving individual school security systems and nearly $9 million from the

Public School Capital Outlay Fund to replace school buses, although the governor vetoed language

included in some school projects, particularly for charter schools, to eliminate funding for purposes other



than security enhancements for those schools. Capital project appropriations to the Indian Affairs

Department dropped to roughly $12.7 million from a record $75 million last year, while appropriations to

the Interstate Stream Commission topped $14 million, including $9 million to the Indian Water Rights

Settlement Fund. In addition, the Department of Information Technology and the Department of

Transportation each receive just over $11 million in the bill.

Senate Finance Committee Substitute for Senate Bill 207 (Chapter 84), the 2020 Capital

Projects General Obligation Bond Act, includes three ballot initiatives to seek voter approval for the

issuance of general obligation bonds for capital improvements and acquisitions totaling $198,491,400 for

senior centers, libraries and higher education. Institutions of higher education, special schools and tribal

schools would receive $155,973,967 in the proposed initiative. Improvements and acquisitions for senior

centers total $33,017,433 in the bill, and $9.5 million is identified for library capital improvements and

resource acquisitions.

House Taxation and Revenue Committee Substitute for House Bill 355 (Chapter 82, p.v.)

reauthorizes 118 prior-year appropriations to extend the time of expenditure, change the administering

agency or expand or change the purpose of the original appropriation. Seventy-eight percent of the

reauthorizations included in the bill, or 92 projects, extend the time of expenditure for those

appropriations. Of those reauthorizations, 11 projects include a change of purpose and 14 include an

expansion of purpose. Approximately 20% of the reauthorizations, a total of 24 projects, change or

expand the project purpose without a time extension, and almost 7% of the reauthorizations change the

administering agency. Although the governor vetoed four of the reauthorizations, the provisions of the

original appropriations remain intact.

Details of projects funded in all three capital outlay bills may be found in Appendix C.

Related Bills HJC/House Bill 184 - Law Enforcement Protection Fund distribution changes - see Courts, Criminal Law, Law Enforcement and Public Safety House Bill 225 - Kiki Saavedra Senior Dignity Fund - see Aging House Bill 254 - public school capital improvements distribution to school districts - see Education House Bill 312 - Environmental Health Fund - see Energy, Environment and Natural Resources

BUSINESS AND ECONOMIC DEVELOPMENT While a number of bills became law that tangentially affect business and economic development,

only three bills directly impact this topic area. The bills address a broad spectrum of business and

economic issues within the state.

Tri-State Generation and Transmission Association, Incorporated, will close its Escalante coal-

fired electric generating facility near Grants, New Mexico, by the end of 2020, resulting in significant job

losses and tax revenue losses for McKinley and Cibola counties. House Bill 8 (Chapter 78) allows

BUSINESS AND ECONOMIC DEVELOPMENT


McKinley County to create an electric generating facility economic district to help the industrial

redevelopment of the facility and surrounding area; Cibola County has the option of joining the district

by the end of 2020. The bill details the process of forming the district, the appointment of members of

the district's governing authority, the conduct of governing authority members and powers and duties of

the governing authority. Member counties have the option of imposing a local option gross receipts tax of

up to one-fourth percent in either the unincorporated area of the county or the entire county. However,

receipts from such taxes can be used only to repay interest and principal on bonds issued by the governing

authority for the purpose of constructing, purchasing, improving, remodeling, furnishing or equipping any

necessary buildings, structures, roads or other infrastructure in the district.

Under general principles of corporate law, directors of corporations are required to maximize

profit for shareholders as part of their duties to act in the best interests of the corporation. House Bill

118 (Chapter 61) allows a corporation to designate itself as a benefit corporation that does not have a

singular focus on maximizing profits. Pursuant to the new law, a corporation may designate in its articles

of incorporation a general purpose of creating general public benefit to have a positive impact on society

and the environment, taken as a whole, and may also include a purpose to create a specific public benefit.

The directors of a benefit corporation are not limited to considering the interests of shareholders as

beneficiaries of the corporation when determining the best interests of the corporation, but may also

consider the interests of the corporation's employees and customers, community and societal factors, the

local and global environment, long-term and short-term interests of the corporation and the corporation's

goals of achieving a general or specific benefit.

The state, through the Economic Development Department, has long had the authority to

participate in local and regional economic development projects pursuant to the Local Economic

Development Act. However, this act was silent regarding the parameters for such participation. Senate

Bill 118 (Chapter 74) clarifies that authority, setting specific goals, requirements and limitations regarding

state support. Furthermore, the bill creates the Local and Regional Economic Development Support

Fund from which the department may draw funds to participate in approved projects.

Related Bills House Bill 170 - extend small business Saturday - see Taxation House Bill 255 - technology readiness gross receipts tax credit - see Taxation Senate Bill 29 - new solar market development income tax credit - see Taxation Senate Bill 136 - investments in New Mexico funds and businesses - see Appropriations and Finance

CHILDREN AND FAMILIES In the two bills pertaining to children and families that became law in 2020, issues in the kinship

guardianship and foster care systems were addressed, with one bill focusing on the financial impact to

CHILDREN AND FAMILIES


kinship guardians throughout the state and the other providing significant revisions and technical cleanup

to the Fostering Connections Act.

In cases where a child's parents are unable to care for a child, the Kinship Guardianship Act

enables children to be raised by relatives, members of the child's tribe or an adult with whom the child has

a significant bond. Senate Judiciary Committee Substitute for Senate Bill 146 (Chapter 51) provides for

financial assistance payments to a kinship guardian on behalf of the child. The bill sets forth eligibility

requirements for financial subsidies, including reimbursement for nonrecurring expenses incurred in

establishing a subsidized guardianship. Also, the bill specifies the requirements for guardianship

assistance agreements and provides for successor guardians, discontinuance of guardianship assistance

payments and methods of appealing decisions related to subsidized guardianships made by the Children,

Youth and Families Department. When considering whether a parent should contribute to the support of

a child, the court shall now consider the potential impact of financial payments on the relationship of the

parent and child and on the prospects of family reunification.

Enacted into law in 2019, the Fostering Connections Act provides extended foster care for eligible

adults 18 through 20 years of age. Senate Judiciary Committee Substitute for Senate Bill 168 (Chapter

52) makes numerous changes to the act to ensure eligibility for significant federal funding. These changes

include new and revised definitions, clarification of eligibility to participate in the Fostering Connections

Program, services to be provided by the Children, Youth and Families Department through the program,

allowing an eligible adult to opt out of and reenter the program without limitation on the number of

times to do so, additional requirements for review and discharge hearings, new duties required to be

performed by the Fostering Connections Advisory Committee and a provision for administrative appeals.

Moreover, the bill clarifies court venues and eligibility for subsidy payments pursuant to the Children's

Code.

Related Bill House Bill 83 - Early Childhood Education and Care Fund - see Appropriations and Finance

CONSTITUTIONAL AMENDMENTS Of the many joint resolutions proposing amendments to the Constitution of New Mexico that were introduced this session, only one passed both houses and will appear on the November 2020 ballot,

along with Constitutional Amendment 1, which passed the legislature in 2019. The LCS publishes an

analysis of and arguments for and against proposed constitutional amendments prior to any election in

which they appear. This publication, titled Summary of and Arguments For and Against the Constitutional

Amendments Proposed by the Legislature in 2019 and 2020, was released by the LCS in July 2020 and is

available at www.nmlegis.gov/Publications/Constitutional_Amendments.

Statutory provisions that would have had the effect of lengthening or shortening the terms of

CONSTITUTIONAL AMENDMENTS

http://www.nmlegis.gov/Publications/Constitutional_Amendments


office of certain elected officers were declared unconstitutional in State ex rel. Sugg v. Toulouse Oliver, 2020-

NMSC-002. To address the holding in that case, House Joint Resolution 8 (C.A. 2) proposes to amend

Article 20, Section 3 of the Constitution of New Mexico to allow the legislature to adjust the term of a

state, county or district officer to align or stagger the election of officers for a particular state, county or

district office throughout the state. The proposed amendment also clarifies that officers elected to fill a

vacancy in office shall take office on the first day of January following their election.

COURTS, CRIMINAL LAW, LAW ENFORCEMENT AND PUBLIC

SAFETY The 2020 session saw the New Mexico Legislature pass and the governor sign a handful of courts,

criminal law, law enforcement and public safety bills, ranging from a comprehensive criminal law and

public safety bill to bills addressing distributions of funding for law enforcement agencies and training and

funding for school resource officers, enacting the Extreme Risk Firearm Protection Order Act, revising the

Electronic Communications Privacy Act and increasing the number of judges in several judicial districts.

House Judiciary Committee Substitute for House Bills 6, 35 & 113 (Chapter 54) addresses a

comprehensive range of topics relating to public safety, including provisions that change criminal penalty

enhancements and other provisions affecting law enforcement officers. Criminal penalty enhancement

changes include an amendment to the criminal statute regarding a felon in possession of a firearm. Prior

to this session, only felons previously convicted of a capital felony or a serious violent offense were guilty

of a third degree felony if found to be in possession of a firearm. Now, the penalty for felons convicted of

any offense who are found in possession of a firearm is a third degree felony. The bill also makes a

significant change to the sentencing enhancement for the use of a firearm in the commission of a

noncapital felony by redefining the enhancement, changing it from using a firearm to brandishing a

firearm, which is a change that reflects federal criminal law. The bill increases the penalty for a first

offense from one year to three years, except for serious youthful offenders and youthful offenders, and

increases the penalty for a second or subsequent offense from three years to five years, also excepting

serious youthful offenders and youthful offenders. Additionally, the bill removes language that prevented

a judge from suspending or deferring the enhancement, thereby increasing judicial discretion in the use of

this enhancement. Provisions affecting law enforcement officers include an amendment to a section of

law regarding the Law Enforcement Protection Fund, allowing for distributions for recruiting, providing

bonuses for and training law enforcement officers engaged in community-oriented policing. A

contingency is also removed for distributions for law enforcement officer retention payments.

In House Judiciary Committee Substitute for House Bill 184 (Chapter 67), further changes are

made to the Law Enforcement Protection Fund by replacing the funding formula for municipal police and

COURTS, CRIMINAL LAW, LAW ENFORCEMENT AND PUBLIC SAFETY


county sheriff's departments with an annual base allocation of $45,000 for each and adding school district

police departments to this allocation. University police departments' annual fund distributions are

increased to $45,000, and commissioned officers in county sheriff's and municipal, university and tribal

police departments receive a boost in funding to $1,000 per officer, with school district police officers also

eligible. Furthermore, funding is provided to the Department of Public Safety for special deployments of

state police officers and to school districts for school resource officers, who are defined as commissioned

and certified law enforcement officers responsible for school safety and crime prevention in public schools

who are required to receive certain training.

Through Senate Judiciary Committee Substitute for Senate Bill 5 (Chapter 5), New Mexico joins

a growing number of states that have enacted some form of red-flag legislation. Pursuant to the Extreme

Risk Firearm Protection Order Act, if a district court finds by a preponderance of the evidence that a

person, i.e., a respondent, poses a significant danger of causing imminent personal injury to self or

another by having a firearm, the court may order the respondent to relinquish the respondent's firearms

either temporarily or for up to one year with the possibility of additional periods of up to one year. The

order must be based on a petition filed by a law enforcement officer who has probable cause to believe

that the respondent poses such a danger. The petition may be based upon a request from a person who

personally knows the respondent, including a family member, a person with whom the respondent has or

had a continuing personal relationship, an employer or a school administrator. The respondent may

request termination of the order at any time, and a one-year extreme risk firearm protection order is final

and immediately appealable.

The Electronic Communications Privacy Act regulates the acquisition of electronic

communications information by governmental entities. The act includes requirements for warrants or

court orders, limits the information that can be obtained and provides a procedure for emergency

situations to obtain such information. Senate Bill 270 (Chapter 41) amends the act so that information

obtained that is unrelated to the objective of a warrant or court order or that is not exculpatory to the

target of the warrant or order is required to be sealed, subject to further court direction, rather than being

almost immediately destroyed. That information, however, must be destroyed after termination of the

investigation that prompted the warrant or order and related investigations. The legislation also provides

that electronic communications information voluntarily disclosed by an electronic communications

provider is required to be sealed, subject to further disclosure by court order or as required by law.

Furthermore, in emergency situations involving possible death or injury to a natural person, where the

governmental entity has obtained electronic communications information prior to applying for a warrant

or court order, the entity must apply for approval to a court within three days of obtaining the

information. However, if the court determines that no emergency exists, the information must be sealed,

subject to later court order. The act is additionally amended to permit a governmental entity to compel an

COURTS, CRIMINAL LAW, LAW ENFORCEMENT AND PUBLIC SAFETY


employee to return an electronic communications device owned by the entity. The legislation also

modifies reporting provisions.

Courts are also affected by legislative changes made this year. With the enactment of Senate

Judiciary Committee Substitute for Senate Bill 185 (Chapter 40), the legislature increases the number of

district court judges in the First Judicial District from nine to 10, the number of district court judges in

the Second Judicial District from 27 to 29, the number of district court judges in the Third Judicial

District from eight to nine and the number of district court judges in the Twelfth Judicial District from

four to five. In addition to providing these increases, the bill removes language requiring certain judges of

divisions in the Sixth, Eighth, Ninth, Eleventh, Twelfth and Thirteenth judicial districts to reside in

specific counties.

Related Bill Senate Bill 75 - Wildlife Trafficking Act - see Animals

EDUCATION As usual, education was an actively discussed topic this year, even in the subject-limited short

session, with many bills introduced related to public education and higher education. While there was a

paucity of education-related statutory changes passed in this year's session, those bills that did become law

concern topics such as an elimination of copayments for reduced-fee school meals, adjusting the at-risk

index, providing transparency in school budget reporting and in the cost of private post-secondary

educational institutions, changing the calculation of funding from the Public School Capital

Improvements Act and several provisions to help teachers, including funding for beginning teacher

mentorship programs, a teacher residency program and a new scholarship for teachers seeking national

board certification.

Public Schools

While there were not many education-related bills that were enacted into law, the state budget

contains significant funding for a variety of public education initiatives. In the GAA, an additional $31.2

million in special appropriations is appropriated to the Public Education Department in Section 4 for

such things as early literacy and reading support; community school initiatives; indigenous, multilingual,

multicultural and special education; teacher and principal professional development; breakfast for

elementary students and school lunch copayments for reduced-fee lunch; and science, technology,

engineering and mathematics initiatives. In the GAA's appropriation for Public School Support in

Section 4, funding is provided for several measures, including $30 million for school districts and charter

schools to purchase culturally and linguistically appropriate instructional materials for eligible students;

$11 million to comply with statutory budget requirements passed in 2019 that expand the information

EDUCATION


required in each school district's and charter school's educational plan, to comply with statutory

mentorship requirements and to provide targeted and ongoing professional development focused on case

management, tutoring, data-guided instruction, coaching and other evidence-based practices that improve

student outcomes; and $10 million to provide evidence-based structured literacy interventions and to

develop literacy collaborative models to improve reading and writing in kindergarten through second

grade.

Section 5 special appropriations for the Public Education Department include: $2 million for

career-technical education; $9 million to develop culturally and linguistically appropriate instructional

materials and curricula; $3 million for a school budget transparency website; $2.9 million for school

improvement grants; $1 million to place teachers in hard-to-staff schools; and $2 million for teacher

residencies. Also in Section 5 is almost $19 million to the Public School Facilities Authority for

maintenance, repairs and other infrastructure expenditures for impact aid school districts and state-

chartered charter schools, to be disbursed in proportion to their impact aid revenue. The authority

receives almost $1.6 million for safety and statewide deployment of mobile panic buttons at public

schools, subject to local match. Additionally, the Public Education Department receives just under $3

million for three computer system projects, including a data exchange system for educator preparation

programs; a consolidated grant management system for public schools, regional education cooperatives

and tribal partners to manage federal and state grants; and implementation of a real-time data

management system.

Among the bills that became law regarding education, House Bill 59 (Chapter 23) amends the

Public School Finance Act by increasing the at-risk multiplier from 0.25 to 0.30 to determine the at-risk

index, which is funded through a $50.1 million appropriation in the GAA.

The federal government, through the federal school breakfast program and the national school

lunch program, provides funding for free and reduced-fee school meals for low-income students based on

its income eligibility guidelines. In House Bill 10 (Chapter 12), copayments for reduced-fee school meals

are eliminated, and the GAA appropriates $650,000 for lunch copayments.

In order to create transparency among schools and school districts regarding funding, Senate

Education Committee Substitute for Senate Bill 96 (Chapter 71) tasks the Public Education Department

with establishing and updating annually a statewide online financial reporting system that is based on a

standard chart of accounts. The bill creates guidelines for the Public Education Department to follow,

including enabling the system to show comparisons between schools, local education agencies and

regional education cooperatives and displaying administrative costs for schools and local education

agencies.

While mentorship for beginning teachers has been required since teacher licensing levels were

created in 2003, public schools have struggled with the requirement, chiefly because of limited funding.

EDUCATION


To address this, House Bill 62 (Chapter 24) creates the Beginning Teacher Mentorship Fund and

provides a distribution from the fund of up to $2,000 per year per beginning teacher for mentorship

programs in school districts and charter schools. The GAA provides nearly $3.5 million for teacher

professional development, which includes teacher mentorship.

To diversify the teaching profession and fill high-need teaching positions across the state, House

Bill 92 (Chapter 25) enacts the Teacher Residency Act, which provides grants to establish teacher

residency programs at public post-secondary educational institutions and tribal colleges that have Public

Education Department-approved teacher preparation programs. In turn, these institutions or tribal

colleges establish partnerships with one or more school districts or charter schools to co-administer the

program and to provide employment to program participants following graduation. To be eligible for a

teacher residency program, an individual must hold a bachelor's degree and be either a professional from

outside the field of education or not a holder of a level one, two or three-A teaching license.

To provide scholarships to teachers who are seeking certification from the National Board for

Professional Teaching Standards, House Bill 102 (Chapter 26) enacts the National Board Certification

Scholarship Act. The scholarship is equal to the certification fees assessed by the national board and shall

not be for longer than three years. The GAA allocates $500,000 for these scholarships.

In order to allow students to graduate and receive their diplomas, students who transfer to

another public school are permitted to receive credit for completed course work even if the transfer occurs

before the end of the grading period pursuant to Senate Bill 130 (Chapter 50).

Public School Capital Outlay

The state funding calculation in the Public School Capital Improvements Act is amended to

increase distributions from the Public School Capital Improvements Fund, and an additional distribution

from that fund is created, for capital outlay funding for school districts that impose a public school capital

improvements tax and charter schools in those districts by House Bill 254 (Chapter 64). The state

funding calculation is based on a program guarantee amount, and school districts either get a minimum or

maximum guarantee adjustment to that amount depending on the funds school districts generate from

the public school capital improvements tax. The bill adjusts the amount included through the minimum

and maximum guarantee adjustment, as well as the types of program units included in the calculation.

Post-Secondary Education

In its ongoing efforts to improve consumer protection of New Mexicans, and in this case primarily

a cohort of young adults, the legislature passed House Education Committee Substitute for House Bill

17 (Chapter 55). Pursuant to the new law, every private post-secondary educational institution that falls

under the authority of the Higher Education Department must disclose the total estimated cost of

EDUCATION


attendance on its website and disclose to every person who demonstrates an interest in becoming a

student prior to that person enrolling in the institution the total estimated cost of attendance for the

prospective student's program.

Related Bills House Bill 83 - Early Childhood Education and Care Fund - see Appropriations and Finance HJC/House Bill 184 - Law Enforcement Protection Fund distribution for school resource officers - see Courts, Criminal Law, Law Enforcement and Public Safety Senate Bill 99 - high school diplomas for Vietnam Conflict veterans - see Military and Veterans' Affairs

EMPLOYMENT AND LABOR Enacted legislation relating to employment and labor focused on limiting confidentiality

provisions in certain settlement agreements with private employers and changing prevailing wage laws for

public works contracts, both of which seek to protect employees in areas of contract law where an

employee's bargaining power may be limited.

House Bill 21 (Chapter 16) prohibits private employers from using confidentiality provisions in

settlement agreements in sexual harassment, discrimination and retaliation claims. Confidentiality

provisions are allowed in instances where the information relates to the monetary amount of a settlement

or if confidentiality is sought at the employee's request to prohibit the disclosure of facts that could

identify the employee, unless such disclosure is required for a judicial, administrative or governmental

proceeding pursuant to a valid subpoena or as otherwise required by law.

The Public Works Minimum Wage Act requires that in public works project contracts with a

value greater than $60,000, workers must be paid wages that are prevailing in the area of the project. This

prevailing wage is determined by the director of the Labor Relations Division of the Workforce Solutions

Department from collective bargaining agreement wages and fringe benefits paid to similar workers as

those on the public works project. Currently, payment of the prevailing wage is enforceable by the

director if the director determines that wages have been underpaid. Senate Judiciary Committee

Substitute for Senate Bill 98 (Chapter 47) amends the act to allow a worker to bring a complaint of

underpayment and creates a procedure that can lead to either resolution of the complaint, including the

use of mediation, or enforcement. To encourage proper wage payment, the bill provides that if a

contractor or employer makes an underpayment of the required prevailing wages to a worker for any

reason, the contractor or employer is liable to the worker for three times the amount of wages underpaid.

Related Bills House Bill 25 - Pregnant Worker Accommodation Act - see Health and Human Services HLVMC/House Bill 364 - Public Employee Bargaining Act changes - see Public Officers and Employees

EMPLOYMENT AND LABOR


ENERGY, ENVIRONMENT AND NATURAL RESOURCES Several bills were passed and signed into law this session relating to energy, environment and

natural resources. With this session's enactments, the state, utilities and local entities are given tools to

modernize New Mexico's electric grid, and utilities providing natural gas are incentivized to implement

energy efficiency programs. Other enactments strengthen the Department of Environment's ability to

carry out its mission, centralize the state's outdoor recreation initiatives in the Economic Development

Department and enhance litter control and environmental beautification programs.

Much of New Mexico's electric grid is decades old and ill-equipped to handle the state's transition

to using more renewable energy sources. House Bill 233 (Chapter 15) supports technological updates to

the grid and provides an array of tools to support grid modernization. This legislation provides a cost

recovery mechanism for public utilities, subject to approval of the Public Regulation Commission, to

undertake grid modernization projects. Also, the Energy, Minerals and Natural Resources Department is

directed to develop a road map that details the state's priorities and strategies to modernize New Mexico's

electric grid and to establish a grant program to assist local and tribal entities with implementing

innovative grid modernization projects.

Pursuant to the Efficient Use of Energy Act, the Public Regulation Commission is authorized to

remove regulatory disincentives to a utility's implementation of energy efficiency programs through the

adoption of a rate adjustment mechanism that allows the utility to recover the same revenue per customer

as approved in the utility's general rate case regardless of the amount of electricity actually sold. House

Bill 93 (Chapter 17) clarifies that a rate adjustment mechanism may also be adopted to ensure that

revenue remains constant without regard to the amount of natural gas sold.

In line with the Department of Environment's goal of becoming an enterprise agency, House Bill

312 (Chapter 32) eliminates several treasury funds administered by the Department of Environment and

consolidates the funds into a newly created Environmental Health Fund to be the repository of fees

collected by the department in its regulation of on-site liquid waste systems and water recreation facilities

pursuant to the Environmental Improvement Act, food establishments pursuant to the Food Service

Sanitation Act and hemp pursuant to the Hemp Manufacturing Act. The Department of Environment is

allowed to use the Environmental Health Fund for administration of any of its regulations pertaining to

on-site liquid waste systems, water recreation facilities, food establishments and hemp.

In 2019, the Outdoor Equity Grant Program was created for the New Mexico Youth

Conservation Corps Commission to award grants to political subdivisions, Indian nations, tribes and

pueblos and nonprofit organizations for the sole purpose of funding outdoor recreation programs for

youth up to the age of 18. House Bill 304 (Chapter 65) transfers responsibility for administering the

ENERGY, ENVIRONMENT AND NATURAL RESOURCES


grant program from the New Mexico Youth Conservation Corps Commission to the New Mexico

Outdoor Recreation Division of the Economic Development Department.

Changes to the Litter Control and Beautification Act are made in House Bill 317 (Chapter 33),

including defining the "Keep America Beautiful Program" as a comprehensive program under the

direction of the Tourism Department to end littering, improve recycling and beautify American

communities, deleting references to a specific nonprofit organization that had been inactive and

permitting the number of members of the New Mexico Clean and Beautiful Advisory Committee to range

from seven to 11. Moreover, the bill revises the target expenditures from the Litter Control and

Beautification Fund for local keep America beautiful programs, youth employment programs, nonprofit

organizations' beautification and related educational programs and operating expenses for the New Mexico

Clean and Beautiful Program.

Related Bills House Bill 76 - Eastern New Mexico Water Utility Authority membership - see Local Government and Special Districts House Bill 146 - expand biomass income tax credit and reporting - see Taxation House Bill 167 - wastewater system financing - see Appropriations and Finance Senate Bill 19 - Water Project Fund authorization - see Appropriations and Finance Senate Bill 29 - new solar market development income tax credit - see Taxation Senate Bill 69 - drinking water system financing - see Appropriations and Finance

HEALTH AND HUMAN SERVICES This session, an assortment of bills related to health and human services became law. Enacted

legislation relating to health insurance issues includes changes in the operation of the New Mexico Health

Insurance Exchange, capping copayments on insulin, expanding covered services and establishing new

reimbursement rates for certain providers. Motivated by the rising cost of prescription drugs, the

legislature passed a bill to create and implement a wholesale prescription drug importation program.

Additionally, bills were passed to resolve an ongoing dispute over whether certain out-of-state residents can

enroll in New Mexico's medical cannabis program, to amend the Assisted Outpatient Treatment Act and

to protect pregnant workers from discrimination.

The New Mexico Insurance Exchange Act was enacted in 2013 with the original purpose of

providing qualified individuals and employers increased access to health insurance. House Judiciary

Committee Substitute for House Bill 100 (Chapter 35) amends the act by defining the three types of

standardized health insurance plans with increasing levels of coverage to be offered through the New

Mexico Health Insurance Exchange, known as the bronze, silver and gold plans, and describing, in detail,

the persons and small businesses that can enroll in or offer health insurance plans through the exchange.

In addition, the bill requires the exchange's board of directors to review its plan of operation to ensure

HEALTH AND HUMAN SERVICES


that the exchange is operating with best practices in the health insurance industry and provides the board

of directors with several new powers and duties, including consulting with the superintendent of

insurance to create standards and criteria for health benefit plans offered through the exchange, vetting

health insurance issuers, administering and regulating the exchange and providing options for employers

to access health coverage for their employees. The board of directors is also given the power to establish

the standardized bronze, silver and gold plans; however, health insurance issuers are also allowed to offer

nonstandard plans. Finally, the bill requires the board of directors to make regular public reports about

the work of the exchange, including the number of people and businesses enrolled in health insurance

plans offered through the exchange and analysis of the exchange demographics, health plan pricing, the

individual health plan market and the impact of offering standardized health plans.

According to the Department of Health, in 2017, heart disease was the leading cause of death in

New Mexico and accounted for over 20% of all deaths. Additionally, the federal Centers for Disease

Control and Prevention reports that the most common type of heart disease is coronary artery disease,

which can lead to a heart attack. A coronary artery calcium scan measures coronary artery calcium for

atherosclerosis and abnormal artery structure and function. With the passage of House Bill 126 (Chapter

79), beginning in January 2021, all health insurance products offered in New Mexico will be required to

cover the cost of the scan for individuals between the ages of 45 and 65 who are determined to be at

intermediate risk for developing heart disease, according to an evidence-based algorithm.

Many New Mexico residents struggle with paying for the costs of prescription drugs, particularly

drugs required to treat chronic conditions. House Bill 292 (Chapter 36) addresses one such drug, insulin,

by capping the copayment that an insurance company can require a patient to pay for preferred formulary

prescription insulin or medically necessary alternatives at $25.00 for a 30-day supply. The bill covers all

health care insurers, regardless of how they are organized. It also includes a temporary provision that

requires the superintendent of insurance to convene an advisory group to study the cost of prescription

drugs for New Mexico consumers and make recommendations on increasing the accessibility of

prescription drugs. At a minimum, the study is required to consider potential cost-sharing limitations for

nine other drugs, including inhaled prescription asthma drugs, oral diabetic medications, injectable

epinephrine devices, opioid reversal agents, hypertension medications, antidepressant and antipsychotic

medications, lipid-lowering agents and anticonvulsants.

Another initiative toward making prescription drugs more affordable has been taken with the

enactment of the Wholesale Prescription Drug Importation Act in Senate Bill 1 (Chapter 45). That act

creates the "Wholesale Prescription Drug Importation Program", which will be submitted for federal

approval on or before December 15, 2020. Once the state receives certification of approval by the United

States secretary of health and human services, the Department of Health shall begin implementing the

program, which is required to be operational within six months of federal approval. The state will

HEALTH AND HUMAN SERVICES


contract with one or more approved Canadian drug suppliers, New Mexico drug wholesalers and New

Mexico drug distributors to carry out the program. Moreover, the bill provides that the act may be

extended to include any other country allowed by federal law to import prescription drugs into the United

States. After implementation, the Department of Health is required to report annually to the legislature

and the governor.

In New Mexico, certain advanced practice pharmacists are permitted to prescribe vaccinations,

emergency contraception, tobacco cessation products, tuberculosis testing, naloxone and hormonal

contraception, helping to address the shortage of primary care providers that is particularly acute in rural

areas of the state. Previously, advanced practice pharmacists who provided these prescriptive services

within an insurer's network were reimbursed for the cost of the prescribed drug, while licensed physicians,

physician assistants and certified advanced practice nurse practitioners within the same network received a

higher rate of reimbursement for the same services. House Bill 42 (Chapter 58) rectifies this situation by

requiring insurers to reimburse advanced practice pharmacists for their prescriptive services, creating

reimbursement parity with licensed physicians, physician assistants and nurse practitioners who provide

identical services in the same network.

The Lynn and Erin Compassionate Use Act was enacted in 2007 to legalize the use of medical

cannabis by qualified patients residing in New Mexico to alleviate certain medical conditions. In 2019,

the act was amended to remove language requiring New Mexico residency from the definition of "qualified

patient". Subsequently, a group of out-of-state plaintiffs sued the Department of He

of the fifty-fourth legislature second session, 2020 and · 2020. 10. 2. · first special session,...

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