BEHAVIORAL HEALTH PACKAGE HEADS TO SENATE FLOOR

A package of bills - Senate Bills 1, 2 and 3 – will have a very significant impact on rebuilding our state's behavioral health system. The Senate Finance Committee approved all three measures Wednesday morning (02/12/25), sending them to the Senate floor. The Chamber supports all three measures. Here is short synopsis of what each bill does – we’ll give you the 3, 2, 1, countdown:

SB 3 - Sponsored by Senate Majority Leader Peter Wirth (D-Santa Fe), is the hub of the 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.

SB 2 - Sponsored by Sen. Benny Shendo Jr. (D-Bernalillo, McKinley, Rio Arriba, Sandoval & San Juan), 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. 

SB 1 - Sponsored by Sen. George K. Muñoz (D-Cibola, McKinley & San Juan), seeks 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.

Bill Lee, Gallup McKinley County Chamber President/CEO testified:

Mr. Chairman members of the committee.

Gallup McKinley County Chamber of Commerce stands in support of Senate Bill 1 Behavioral Health Trust Fund and the other bills in the package. It is unfortunate that a number of years ago the Behavioral Health Care system in our state was all but completely dismantled.  Behavioral health issues continue to plague our community.  The negative impacts extend from economics to quality of life…most of all, it is the toll it takes on the souls in our region where there are too few resources to help those afflicted.

It is critical that we address this issue in our state.  If we continue to simply kick the can down the road, ignore what is taking place, the consequences in our community and across our state will be devastating and possibly deteriorate beyond repair.  SB 1 provides a funding source and a plan for restoring Behavioral Health services in our state. 

There is a lot to this bill, and it will be critical to have keen oversight and accountability.  What we have heard in recent open discussions in this committee, the sponsors and committee members have diligently worked to bring these needed measures forward and have put into place sensible guidelines.

This is not an easy lift…but it is imperative that we take positive steps to address this need.  Please support SB1, move the bill forward with a Do Pass.  Thank you

Chairman George Munoz & Senate Finance Committee listen as Bill Lee Testifies on Behavioral Health package

HB 186 “STATE ADMINISTERED HEALTH COVERAGE PLAN” – MEDICAID FORWARD PLAN

On Monday the House Health and Human Services Committee gave a do pass recommendation to HB 186, known as the Medicaid Forward Program. In essence, the bill would allow nearly all New Mexicans to receive Medicaid health care coverage, a plan originally designed to help low-income citizens. It sounds good until you consider 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 be the biggest of all time. The estimated cost of this expansion is $1.2 billion, which, theoretically, might be covered by a sliding scale of premiums. Any deficits might have to be bailed out by the general fund or a payroll tax on employers. The bill like many this session is very weak on specifics. How all this might work and the authority to figure it all out is 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.

With the low Medicaid reimbursement rate that Doctors in the state already receive, you can count on more providers accelerating their exit from New Mexico. Should this legislation pass, it also means private insurance companies would most likely pull the plug on New Mexico, leaving even fewer choices for consumers.

HOW MANY GREENBACK$ DOES IT TAKE TO GET TO GREEN?

$340 MILLION PER YEAR!

Sitting before the Senate Finance Committee is Senate Bill 4 which is part of package of bills (SB48 SB 49) sets Statewide Greenhouse Gas Emissions Limits, sponsored by Senate President Pro Tempore Mimi Stewart. The measure would 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 affects 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…”

Again, the Chamber finds itself asking - If your own Legislative Finance Committee tells you, it will be too costly and creates an “irreconcilable deficit”, then why are you even considering the legislation?

When fully implemented, this bill could well mean 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.

New Mexico has, and is making significant strides in reducing greenhouse gas emissions, in no small part by voluntary actions of businesses across the state. Goals and rules have to be well-defined and achievable. They also have to balance all the needs of our citizens (especially those in rural New Mexico where these challenges loom even larger), not just the environmental side of the equation. We urge the Senate Finance Committee to assess the likely high economic cost to our state, be fiscally responsible, and stop the revenue damage that will occur if SB 4 becomes law.

This bill leaves many unanswered questions, it needs a realistic plan for implementation, which is difficult to achieve when the definitions lack clarity. The bill will affect virtually every sector of our economy: electric generation, transportation, home heating fuels, buildings, all forms of waste, manufacturing and extraction of raw materials, agricultural and forest products. This transition is far too aggressive and lacks a necessary balanced strategy.

House Bill 246 “INCREASE MINIMUM WAGE”

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

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)

The bill was up for consideration yesterday (03/13/25) in the House Labor, Veterans and Military Affairs Committee.

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 -

Bill Lee testified on behalf of the Gallup McKinley County Chamber of Commerce:

Madam Chair and members of the committee we stand opposed to HB246.

An extensive survey conducted by the Department of Economics – University of California, Irvine found consistent evidence that increasing the minimum wage creates job loss. Especially for those between the ages of 16 to 34.

Proof of minimum wage increases creating job loss can be found in the recent California minimum wage increase to $20 per hour for fast food restaurants. As of April, last year:

• 89% of those employers reduced employee hours.
• 73% limited employee shifts or overtime.
• 70% reduced staff or consolidated positions.

Our community’s small businesses tell us:

They face fierce competition in the marketplace and they rely on being able to be cost competitive against the on-line marketplace.  Raising the minimum wage will force them to make job cuts.

Legislative leadership on both sides of the aisle agree, job creation is critical in New Mexico.  The retention of existing jobs is just as vitally important. 

Additionally, we point to the irrefutable fact that increasing the minimum wage only serves to fuel inflation.  While your paycheck may reflect a larger amount, the overhead burden of a higher minimum wage simply gets passed onto the consumer.  Your dollars will simply not go as far at the checkout counter. 

The Gallup McKinley County Chamber of Commerce urges you to oppose HB 246 or any legislation that would increase the minimum wage to preserve jobs in New Mexico.

Despite the overwhelming testimony from businesses, employees, consumers and many business associations, the committee gave a “Do Pass” recommendation. The bill will next be heard in House Appropriations and Finance where we plan to oppose again.

CRIME PACKAGED UP WITH A VALENTINES DAY BOW.

House Bill 8, the "Public Safety Package" was approved Wednesday and will likely be before the House either today or Saturday. It does have some promising things that make it worth opening for you on this Valentines Day:

1. A major overhaul of the criminal competency statute aimed at institutionalizing the truly violent criminals and placing others in behavioral health programs, including court-ordered treatment, if necessary.
2. Creation of the crime of unlawful possession of a weapon conversion device that can convert a semiautomatic weapon into a fully automatic weapon. The devices are commonly known as "Glock switches."
3. An increase in the penalty for making a shooting threat, the same level as making a bomb threat.
4. Enhancement of drug-trafficking sentences by up to three years if fentanyl is involved in trafficking. 
5. Increasing blood testing when there is probable cause that an individual is driving under the influence of intoxicating substances of any kind. Does not include cannabis at this time as there is not a reliable test yet.
6. Increased penalties for different forms of auto theft. A person could be guilty of a fourth-degree felony for a first offense, a third-degree felony for a second offense, and a second-degree felony for a third or subsequent offense.

In General, we believe this legislative package is a step in the right direction…but if all of this gets done and put into law this session, would you come away saying, "Wow, I really feel a lot safer."?  On Valentines Day it we got flowers…but no chocolates. 

The fact that we even have a public safety bill at all is because the governor called a special session and shined a bright light on making our communities safer as soon as possible. The package does things we all want, tougher penalties for egregious crimes, rebuilding of the behavioral health system and, to slam the revolving door shut...but…

The session is only half over - there's plenty of time to add critical, but so far missing pieces of chocolate to this package. After visiting with law enforcement, here are our top five recommendations that would add a nice bow to this Crime Package:

1. Juvenile justice reform - serious violent crimes committed by youthful offenders is the fastest growing category in our communities. We must find a way to take violent offenders off our streets. Murder is murder regardless of age. It's serious, and we need to treat it seriously.
2. Racketeering - the scope of crimes that can be prosecuted using racketeering laws in New Mexico is very narrow. We need to add many additional crimes to break human trafficking, drug dealing and other organized crimes. 
3. Felons using firearms - substantially increase sentences for convicted felons who commit subsequent crimes using a firearm. 
4. Increased penalty for drug trafficking resulting in death - impose second-degree felony penalties for this crime and first-degree sentences if the death of a minor is committed. 
5. Pretrial detention - require that felons who have committed a subsequent violent crime be held in custody pending trial and not be released back into the community.

P.S. If we could do something to make our District Attorney and her office efficient, working with law enforcement instead of assigning undue blame, and actually prosecuting criminals, that would be a BIG help.

Why do we advocate for small business in Gallup/McKinley County & across New Mexico?

Here are some statistics about small business and its importance in our state. These stats might surprise you (information from the U.S. Small Business Administration)

New Mexico Small Business Profile - U.S. SMALL BUSINESS ADMINISTRATION

158,296 small businesses – 98.9 percent of New Mexico businesses (down from 161,921 in 2022)

345,088 small business employees – (Down from 346,374 in 2022) - exceeding the national average.

Small businesses continues to be the backbone of New Mexico’s economy providing a large tax base that supports everything from education, infrastructure, and safety net social benefits.  Without small business, New Mexico does not thrive.

WE LOVE YOU SMALL BUSINESSES

HAPPY VALENTINES DAY!

Sincerely,

The Gallup McKinley County Chamber of Commerce