Pub 18 2021 Issue 1

Issue 1 • 2021 7 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S — H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S n EXECUTIVE VICE PRESIDENT’S MESSAGE continued on page 8 House members who were present in person participated by Zoom so that there was no disadvantage to members who were not physically present at the capitol. The 2020 CARES Act provided tribes, states, and larger local governments with allocations of coronavirus relief funds. New Mexico received $1.25 billion in coronavirus relief funds, of which $182 million was directed to the city of Albuquerque and Bernalillo County. The state Legislature allocated the remaining $1.07 billion of its coronavirus relief funds in the first 2020 Special Session: • $750 million to the general fund • $130 million for FY20 COVID-related state-emergency expenditures • $188 million to tribes, pueblos, and localities. The governor vetoed all but the $750 million allocation to the general fund. Still, she ended up allocating the remaining funding close to the Legislature’s plan — $178 million to tribes and local governments and $140 million for general fund expenditures. In the 2020 second Special Session in November 2020, the Legislature further directed the use of those funds: • $194 million to provide $1,200 payments to unemployed New Mexicans. • $100 million for the New Mexico Finance Authority to provide grants to small businesses. • $15 million for homeless housing support. • $10 million to the Human Services Department for food banks and additional $750 payments to low-income households. • The remaining $431 million was used for personnel costs for public health and safety employees. The 2021 American Rescue Plan included $350 billion in COVID-19 relief aid to states, tribes and localities, of which New Mexico will receive $1.62 billion that can be used through the end of 2024. The Act stipulated allowable uses of relief funding to include: • Assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality • Premium pay to workers performing essential tasks during the pandemic • Cover government revenue losses from the pandemic, or • Investments in water, sewer, or broadband infrastructure The Act also stipulated that the funds could not be used for state pensions, to offset a new tax cut, or to delay a tax increase. In addition to the state and local fiscal recovery funds, the Act included a $10 billion coronavirus capital projects fund available to states, territories and tribal governments for critical capital projects that directly enable work, education and health monitoring in response to the COVID-19 crisis. New Mexico is expected to receive $134 million of the capital fund, and the funding will remain available until it is expanded. The 2021 Regular Legislative Session Update The 2021 Legislature adjourned at noon Saturday, March 20, having considered 252 House bills, 454 Senate bills, 60 Memorials and 37 constitutional amendments during the 60-day session. Only 158 bills passed this session, which is well under the average number of bills passed (356) in ten previous 60-day sessions. Of the 158 bills enacted in this year’s regular session, the governor signed 140 into law. She vetoed the other 18. The regular session opened under the most unusual circumstances because of the COVID-19 pandemic. The state capitol was off-limits to the public and lobbyists for the entirety of the session. Only legislators, certain media members and legislative staffers were admitted to the capitol. The governor’s annual State of the State speech, which historically marks the commencement of each legislative session, was not scheduled. Most legislative committee meetings were conducted online. The Senate considered allowing members to participate in person in capitol hearing rooms, and the House Appropriations Committee met in person at the capitol. The House allowed representatives to participate in floor session debates and vote remotely. House members who were present in person participated by Zoom so that there was no disadvantage to members who are not physically present at the capitol. In the Senate, members were on the floor or utilizing Zoom from the capitol offices to participate in floor votes. Public input for committee hearings was limited to emails or online options such as Zoom comments. It was feared that without the usual ongoing conversations among legislators, staff, lobbyists and state agency representatives, the legislation would not be as well-vetted and developed as in previous sessions. Instead of her State of the State address, the governor submitted to the Legislature her priorities for 2021. The list included the following: • Revise the Small Business Recovery Act of 2020. The Act, which was enacted in the June 2020 Special Session, contained a $400 million appropriation from the Severance Tax Permanent Fund. The legislation was enacted and signed by the governor. • Reform the state’s Liquor Control Act to assist businesses such as restaurants. The reform provided for alcohol delivery and the purchase of dispenser licenses at a reasonable price. The legislation was approved and signed by the governor. • Legalize adult use of cannabis. The legislation was approved in the March 2021 Special Session and signed by the governor. • Reform predatory lending practices by limiting the annual interest rates on small loans. The legislation was not approved by the Legislature.