2025 Legislative Advocacy Wrap-Up

The 2025 State of New Mexico Legislative Session was one of the tougher sessions in recent years, with over 1100 bills being introduced. There were many controversial bills that were introduced, with some gaining more and more ground as they have been presented over the years.  The Gallup McKinley County Chamber of Commerce was in Santa Fe numerous times to testify for or against legislation that would affect our chamber members, as well as all small rural businesses across the state.  We won some and we lost some, but no matter the outcome this year, be assured that your Gallup Chamber will be there to fight for our businesses!

Here are some of the bills that the Gallup Chamber supported or opposed:

SB29: WATER PROJECT FUND APPROPRIATION - SUPPORTED
Sponsor: Muñoz

HB130: PUBLIC BANKING ACT - OPPOSED - NOT PASSED
Sponsors: Roybal Caballero, Steinborn, Hernandez

A public bank is owned and operated by a state or city government in the public interest. The Bank of North Dakota is the only public bank in the United States, and it was “created for the primary purposes of providing low-cost rural credits, financing state departments and enterprises, and serving as a clearinghouse and rediscount agency for banks throughout the state.”

This bill died in the House Commerce & Economic Development Committee.

HB19: TRADE PORTS DEVELOPMENT ACT – SUPPORTED – SIGNED INTO LAW
Sponsors: Lundstrom, Hochman-Vigil, Lara, Lujan, Garratt

The Gallup McKinley County Chamber testified in strong support of the HB19, joined by representatives of fellow chambers in Albuquerque and Rio Rancho.  HB19 also received support from the Bernalillo County Economic Development director, NMIdea, the Brotherhood of Locomotive Engineers, the N.M. Builders and Construction Trades Council, and others. We believe the creation of ports will provide economic diversification, leverage our existing assets, attract new businesses and create high-quality jobs, and will help us build a foundation for a thriving modern trade infrastructure.

This bill passed through both the House and Senate and was ultimately signed into law by Governor Michelle Lujan-Grisham.

HB52: RURAL HEALTH CARE TAX CREDIT ELIGIBILITY – SUPPORTED – NOT PASSED
Sponsors: García, Jones, Gonzales, Hernandez

The Chamber aligned with numerous other organizations, physicians, speech pathologists, EMTs and other medical professionals as well as many New Mexicans pleading the case for more providers and care in our communities combined to give overwhelming support.

There is a shrinking population of providers in New Mexico. While New Mexico is 63 percent rural, just 23 percent of the practitioners mentioned in the bill work in rural New Mexico.

In the last session this committee wisely passed legislation which encouraged health care professionals to practice in our rural areas with a modest tax break. This session, the sponsors of HB52 were working to expand the health care practitioners who are eligible for the $3,000 credit. They were right to do so. We have a critical shortage of medical professionals at all levels across our state, and we should be doing all that is possible to persuade these additional categories of medical professionals to live and practice in New Mexico.

This bill died in the House Taxation & Revenue Committee.

HB66: WORKER'S COMPENSATION CHANGES – OPPOSED – SIGNED INTO LAW
Sponsor: Herndon

House Bill 66, Worker's Compensation Attorney Fees & Discovery Cost Increases, sponsored by Rep. Pamelya Herndon (D-Bernalillo) will add costs and additionally burden our business community.

The bill increases the cap on attorney fees from $22,500 to $30,000, and then increases it annually based on the Consumer Price Index. It also increases the amount of discovery fees that can be advanced to an attorney, from $3,000 to $6,000.

In addition to the Chamber, several groups are opposing HB 66, including:

• New Mexico Mutual Casualty Company, which served on a 2023 worker’s comp task force and said the indexing and increase in advanced discovery fees were not in the agreed-upon recommendations
• New Mexico County Insurance Authority, whose members created the Workers’ Compensation Fund in 1987 when commercial rates for this coverage increased dramatically and numerous carriers opted not to offer coverage to public entities. It also spoke against the indexing.
• Builders Trust, which also served on the task force and which solely insures contractors, pointed out there is no data supporting increasing the advanced discovery fees.

The Chamber believes Worker’s Compensation payments should first and foremost help injured workers. But according to the bill’s FIR, the 2023 task force warned that raising attorney fee caps has the potential for a larger portion of worker’s compensation awards being allocated to legal fees rather than aiding in recovery and compensation for lost wages among workers’ compensation claimants. That same task force found that the vast majority of cases, 93 percent, did not reach the fee cap.

This bill was passed through both the House and Senate and signed into law by Governor Michelle Lujan-Grisham.

HB11: PAID FAMILY & MEDICAL LEAVE ACT – OPPOSED – NOT PASSED
Sponsors: Chandler, Stewart, Serrato, Roybal Caballero

This bill was the most controversial bill that was presented during this session.  While it may be up for debate as to whether or not it would have been the largest tax increase in the state’s history, it was still one very large and monstrous tax increase, period!  According to the Fiscal Impact Report (FIR), for a variety of cultural and economic factors unique to New Mexico, the tax could have doubled in order to support high employee use of paid leave. Among those factors was the provision for "safe" and "exigency" (military related) leave. Most states do not include these factors in their programs.

Along with many businesses and business organizations, including the New Mexico Restaurant Association, the New Mexico Chamber, the Albuquerque & Rio Racho Chambers, your Gallup Chamber testified against the legislation.  The following points were conveyed:

• The scope of the bill that allows such a large amount of leave for such a wide range of reasons, for such a wide range of people, will create incredible instability and administrative challenges in the workplace.
• The bill imposes a new burdensome tax on both employers and employees at a time when the state is flush with cash.

After passing the first House committee on party lines, the bill was dramatically changed by the sponsors, and the bill that was presented to the second House committee didn’t resemble the original bill.  Even the name of the bill was changed to the Welcome Child and Family Wellness Act. No matter what they named this train wreck…it was still an expensive train wreck. There were too many uncertainties, too little fiscal insight and too little transparency.

This bill passed through the House, and passed the first Senate committee before it was FINALLY defeated.

This bill died in the Senate Finance Committee.

SB141: $100,000 STANDARD GRT DEDUCTION - OPPOSED
Sponsor: Wirth

HB48: LAW ENFORCEMENT TRAINING AT SOME SCHOOLS - SUPPORTED - NOT PASSED
Sponsor: Lundstrom

This bill was not passed, but the Gallup Chamber worked with UNM-Gallup, Representative Lundstrom and Senator Munoz to secure funding to bring the academy back to the UNM Gallup Campus.

SB45: COUNTY HEALTH CARE ASSISTANCE FUND USE - OPPOSED
Sponsors: Steinborn, Stefanics

This bill was passed through both the House and Senate and signed into law by Governor Michelle Lujan-Grisham.

HB246: INCREASE MINIMUM WAGE – OPPOSED – NOT PASSED
Sponsor: Roybal Caballero

House Bill 246 (HB246) proposed changes to the state’s Minimum Wage Act. The three biggest changes included:

1. Increasing the state’s minimum wage for employees to $17 per hour, beginning January 1, 2026
2. Eliminates the tipped minimum wage and tip credits, requiring employers instead to pay tipped employees at least the new minimum wage, with no reliance on tipped credits
3. Annually adjusting the state’s minimum wage, using the consumer price index (CPI)

It is proven that minimum wage increases force businesses to cut back employee hours or cut jobs (think about the kiosks in fast food or self-checkout stations).  The added cost in overhead in business is passed onto the consumer…so while you may see your paycheck increase, the dollars simply won’t go as far.

The Gallup McKinley County Chamber of Commerce was joined in our opposition by the small business owners, their employees, and their customers across the state - New Mexico Restaurant Association – Ruidoso Chamber of Commerce – Greater Albuquerque Chamber of Commerce – Rio Rancho Chamber of Commerce - New Mexico Business Coalition – Santa Fe Chamber of Commerce – New Mexico Chamber of Commerce - New Mexico Chile Association – New Mexico Cattle Growers Association – National Federation of Independent Businesses.

This bill died in the House Appropriations & Finance Committee.

SB1: BEHAVIORAL HEALTH TRUST FUND – SUPPORTED – SIGNED INTO LAW
Sponsors: Muñoz, Stefanics, Woods, Block, Hochman-Vigil

This bill sought to create a $1 billion behavioral trust fund to ensure a long-term, stable source of funding for behavioral health services. The Legislature has established several trust funds, for example the Early Childhood Education Trust Fund, that have grown significantly through investment and from which distributions can be taken annually. The entire $1 billion may not be achieved this year, but it is expected that level can be reached within the next two to three years.

This bill was passed through both the House and Senate and signed into law by Governor Michelle Lujan-Grisham.

SB2: PUBLIC HEALTH & SAFETY INITIATIVES - SUPPORTED
Sponsors: Shendo, Muñoz, Gallegos, Block, Hochman-Vigil

This bill is referred to as the "down payment" on rebuilding the behavioral health system. The bill would appropriate $200 million to jump-start the rebuilding. The bill appropriates money to 24 areas to ensure there are resources to complete the purposes of SB 3 and to fund specific agencies or programs.

This bill passed through the Senate but died in the House Appropriations & Finance Committee.

SB3: BEHAVIORAL HEALTH REFORM & INVESTMENT ACT – SUPPORTED – SIGNED INTO LAW
Sponsors: Wirth, Stewart, Sharer, Block, Hochman-Vigil

Sponsored by Senate Majority Leader Peter Wirth (D-Santa Fe), this bill was the hub of the behavioral health package. This bill establishes the structure of regional planning areas coordinated by the Administrative Office of the Courts (AOC), which will be responsible for establishing the process whereby regions will develop plans, prioritize actions to be taken and report results. The AOC's role is one of facilitator, not to run or manage programs outside the court's responsibility.

This bill was passed through both the House and Senate and signed into law by Governor Michelle Lujan-Grisham.

SB4: CLEAR HORIZONS & GREENHOUSE GAS EMISSIONS – OPPOSED – NOT PASSED
Sponsors: Stewart, Ortez, Romero

This bill was part of a package of bills (SB48 SB 49) that would have set Statewide Greenhouse Gas Emissions Limits, sponsored by Senate President Pro Tempore Mimi Stewart. The measure would have require statewide reductions, based on 2005 emission levels, to be set at the following:

• By 2030, a 45% reduction
• By 2040, a 75% reduction
• By 2050, a 100% reduction.

The scale and scope of the bill would have affected all buildings, structures, modes of transportation, home heating fuels, virtually every nook and cranny of our economy. The Fiscal Impact Report (FIR) states the following:

“This appropriation will likely over encumber the general fund appropriation account and create an irreconcilable deficit…”

When fully implemented, this bill could have meant all electric homes, all electric vehicles, all electric manufacturing and more. How will heavy-duty trucking be accomplished, especially over long distances? Same with our cars. Consumers are voting with their feet with unsold EVs stacking up on dealer lots. Where is the infrastructure and an electric grid capable of supplying the power…it’s certainly not in New Mexico.

This bill died in the Senate Finance Committee.

HJR3: ENVIRONMENTAL RIGHTS, CA – OPPOSED – NOT PASSED
Sponsors: Ferrary, Roybal Caballero, Hernandez, Sedillo Lopez

HB130: PUBLIC BANKING ACT – OPPOSED – NOT PASSED
Sponsors: Roybal Caballero, Steinborn

SB91: PRIVATE COLLECTION OF SPEEDING CAMERA FINES - OPPOSED
Sponsors: Duhigg, Anyanonu

SB141: $100,000 STANDARD GRT DEDUCTION - OPPOSED
Sponsors: Wirth, Gonzales, Parajón

HB186: STATE-ADMINISTERED HEALTH COVERAGE PLAN – OPPOSED – NOT PASSED
Sponsors: Szczepanski, Anaya, Jaramillo, Gurrola, Parajon

This bill would have allowed nearly all New Mexicans to receive Medicaid health care coverage, a plan originally designed to help low-income citizens. It sounded good until you considered the cost and the negative consequences it could have on doctors and the availability of private insurance.

Talk about a real budget buster…this could have been the biggest of all time. The estimated cost of this expansion was $1.2 billion, which, theoretically, might have been covered by a sliding scale of premiums. Any deficits might have had to be bailed out by the general fund or a payroll tax on employers. The bill like many this session was very weak on specifics. How all this might work and the authority to figure it all out was left to the state Health Care Agency. Currently, Medicaid is the second largest cost to the general fund behind only public education, consuming 30% of the budget.

This bill died in the House Appropriations & Finance Committee.

HB413: PHYSICIAN ASSISTANT LICENSURE COMPACT – SUPPORTED – NOT PASSED
Sponsors: Armstrong, Vincent, Jones, Thomson, Hochman-Vigil

The bill would have entered New Mexico into the Physician Assistant Licensure Interstate Compact for the purpose of strengthening access to medical services and enhancing the portability of a license to practice as a physician assistant. The Physician Assistant Licensure Compact Commission would have served as the national administrative body.

The Gallup McKinley County Chamber sided with other proponents of the bill.  We must begin making it easier for licensed providers in other states to treat New Mexicans – be it in person or in a telehealth setting – this is a positive step, a real way to get more New Mexicans the care they need, and address the lack of providers while at the same time encouraging them to practice in, perhaps even move to, our state.

By entering the Physician Assistant Licensure Interstate Compact, it would require a licensee to get certified in NM – guaranteeing that the PA would function within the laws and regulations of New Mexico. The Chamber is pleased to support this bill as it aims to bring more care to New Mexicans, and we ask you to vote to pass it.”

This bill passed through the House but died in the Senate Judiciary Committee.

HB72: NURSING STAFF-TO-PATIENT RATIOS IN HOSPITALS – OPPOSED – NOT PASSED
Sponsors: Chavez, Duhigg, Ferrary, Thomson, Szczepanski

This bill directs the Health Care Authority to develop rules to create and enforce minimum nurse-to-patient staffing ratios for hospitals. The authority is authorized to waive staffing requirements for rural general acute care hospitals, while certain exceptions to the staffing ratios are granted. It would also create the staffing advisory committee.

Joining the Chamber in opposition were:

• Christus Health System
• New Mexico Hospital Association
• San Juan Regional Medical Center
• New Mexico Chamber of Commerce
• University of New Mexico Hospital
• Sierra Vista Hospital

This bill passed the first two House committees but died on the House Floor.

HB137: STRATEGIC WATER SUPPLY ACT – SUPPORTED – SIGNED INTO LAW
Sponsors: Herrera, Munoz, Montoya, Lara, Brandt

House Bill 137, sponsored by Rep. Susan Herrera (D-Rio Arriba, Sandoval, Santa Fe & Taos), was to accelerate the use of brackish (salty) water found in deep aquifers. The bill was aimed at helping fund these kinds of projects and advance scientific work at New Mexico Tech and New Mexico State University. Tech is working on mapping these aquifers throughout the state - geological mapping to understand possible effects of tapping brackish aquifers. NMSU is working on how to improve treatment technology. The Chamber and others had originally been opposed to the measure because it had included a new tax on oil-field-produced water that would have once again attacked that industry and done economic harm to the state. However, the new version of the bill removed all reference to produced water, including the tax. This change allowed the Chamber to support what has always been a good idea.

This bill was passed through both the House and Senate and signed into law by Governor Michelle Lujan-Grisham.

HB417: LIQUOR TAX CHANGES & PROGRAMS – OPPOSED – NOT PASSED
Sponsors: Cadena, Ferrary, Parajon, Pinto, Lopez

House Bill 417 sought to place an additional 6% excise tax on liquor consumption, be it by the glass or by the case. An amendment was introduced to leave the 6% on package sales but lower the rate on per-drink servings in restaurants and bars to 3%. The amendment failed passage by the committee. Rep. Doreen Gallegos (D-Doña Ana) summed up the opposition, noting that working people with limited budgets don't go to restaurants, they go to the grocery store. Therefore, keeping the tax higher on package sales produces an inequitable result.

This bill passed the first two committees in the House but died in the House Taxation & Revenue Committee.