Pub. 17 2020 Issue 4

Issue 4 • 2020 9 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 SB 6: Liquor Licenses (Wirth) and HB 8 (Hock - man-Vigil). The bill amends the Liquor Control Act. It pro- vides an alcoholic beverage delivery permit to a restaurant licensee or those holding a retailer’s, dispenser’s or craft distiller’s, winegrowers or small brewer’s license. A delivery permit issued to a valid restaurant licensee may convey only beer or wine with a minimum of $25 worth of food. Payment for the alcoholic beverages must be received only at the licensed premises of the selling licensee. Other licenses will not have food restrictions or on the type of alcoholic bever- age sold. A local option district that has approved the issuance of restaurant licenses for the sale of beer and wine may ap- prove the issuance of restaurant licenses to sell beer, wine, and alcoholic beverages in restaurants by adopting an ordi- nance. A restaurant license issued on or after July 1, 2021, that permits the sale and service of beer, wine and alcoholic beverages is designated a type B restaurant license. A type B restaurant licensee must demonstrate that the primary source of revenue from the restaurant’s operation will be derived from the sale of food. A type B restaurant license may not be transferable from person to person but may be transferable from one location to another within the same local option district. The annual fee for a restaurant license type B is $3,000. The bill also provides that a dispenser’s licensee that, un- der previous law, lost the privilege to sell alcoholic beverages in unbroken packages for consumption and not for resale off the licensed premises as a result of transferring out of its original local option district may have the privilege rein- stated if the licensee pays 50 thousand dollars ($50,000) to the alcoholic beverage control division of the regulation and licensing department. SB 6 and HB 8 (same bills) are touted by the Governor as a way to support the hospitality industry by providing a new source of revenue for businesses and restaurants adversely affected by the pandemic. These bills are listed on the Gov - ernor’s legislative priority wish list. Opponents are con- cerned that the new restaurant license type B will devalue dispensers licenses purchased by restaurants, for example, and full-service package licenses will have package privileg- es for $50,000. This could potentially flood that market with new full-service package licenses. Financial institutions have a concern over any decrease in the value of collateral with a loan dependent on the value of liquor licenses. SB 66: Finance (Soules), HB 110 (Roybal Caballe - ro) and HB 149 (Herrera). The bill revises the maximum percentage rates for loans made pursuant to the New Mexico Bank Installment Loan Act of 1959 and the New Mexico Small Loan Act of 1955 from 175% to 35%. SB 78: Social Security (Padilla) and HB 49 (G. Armstrong). The bill exempts Social Security income from the state income tax. There are more than 10 other bills introduced that are the same as SB 78. HB 36: Property (Ely). The bill substantially increases the dollar amount and items exempt from receivers or trustees in bankruptcy or other insolvency proceedings, attachment, execu - tion or foreclosure by a judgment creditor. The homestead exemp - tion is increased to $90,000 from $60,000. The exemption in lieu of homestead is increased from $5,000 to $15,000. All exemptions provided in HB 36 are subject to a cost-of-living adjustment on July 1, 2023, and at each two-year interval. HB 50: Environment (Lewis). The bill provides for a pri- vate right of action for persons injured resulting from a violation of the Oil and Gas Act, Solid Waste Act, the Air Quality Control Act, the Water Quality Act and Hazardous Waste Act. HB 110: MinimumWage (Caballero). The bill phases in an increase for minimum wage for employees. Beginning on Jan. 1, 2024, the minimum wage shall be $15.00 per hour. The bill also provides that effective Jan. 1, 2025, the minimum wage rate shall be increased with a cost-of-living index. The minimum wage shall not be decreased as a result of a decrease in the cost- of-living index. HB 236 (Roybal Caballero) and SB 313 (Steinborn): Public Bank. The bills would create the Public Banking Act and the Public Bank of New Mexico as a governmental instru - mentality to be chartered pursuant to United States law. The bill establishes an 11-member board of directors to govern the bank and vests a host of power with the public bank. The public bank is initially funded by a $50 million deposit by the State Treasur- er and the state investment officer's commitment to invest $50 million from the Severance Tax Permanent Fund. The NMBA opposes HB 236 and SB 313. The 2021 Legislature ends at noon on Saturday, March 20. April 9, 2021, is the last day for the Governor to sign legislation. Legislation not acted upon by the Governor is pocket vetoed. June 18, 2021, is the effective date of legislation that is not a general appropriations bill or a bill carrying an emergency clause or other specific date. Bills carrying an emergency clause go into effect on the date the Governor signs that bill. n We anticipate that there will be less than 800 bills introduced during the 2021 Legislature-as compared to 1,500 plus during the 2019 regular 60-day session. House leadership has requested that legislators limit their bill introduction to 5 bills.