ByRobert Nott and Daniel J. Chacón, Santa Fe New Mexican |
It has become a cycle of despair for low-income residents with poor credit scores: They take out a high-interest installment loan to tide them over in tough times and soon accumulate an unmanageable load. They pay off old debt with new loans at rates of up 175 percent. For years, state lawmakers have unsuccessfully tried to introduce legislation capping the interest rate for such loans at 36 percent. Their efforts have failed repeatedly. An attempt last year to forge a compromise — with a 99 percent cap on the smallest loans, of up to $1,100, and 36 percent on higher amounts — stalled in the House of Representatives.
New Mexico Gov. Michelle Lujan Grisham on Wednesday signed into law what evolved into a sweeping change of state liquor laws.
HB 255, sponsored by Rep. Antonio “Moe” Maestas, D-Albuquerque, was originally intended to allow alcohol deliveries and add a new type of liquor dispensing license. But through a series of amendments on the Senate floor, the law now bans miniature liquor bottles, broadens the hours when liquor can be sold and allows for a ban of liquor sales at gas stations and convenience stores in McKinley County.
The bill proved controversial among many liquor license holders early on in the legislative process. Those existing license holders repeatedly argued that adding a new type of liquor license would devalue current licenses. For decades, New Mexico limited the number of liquor dispensing licenses which resulted in licenses being sold for upwards of half a million dollars. Many restaurant and bar owners said they used their licenses as collateral for loans.
But instead of issuing more dispensing licenses, the new law actually creates a new class of liquor licenses for restaurants that requires a certain amount of food to be sold and those who obtain the new class of license cannot sell any more than three drinks, containing one and a half ounces of hard alcohol.
Lujan Grisham, in a statement on Wednesday said the passage of the bill was the result of “productive and creating problem-solving” by lawmakers.
“Like any bipartisan compromise, at the end of the day, most if not all will feel both that they got some of what they wanted and had to give some of what they didn’t,” Lujan Grisham said.
During committee hearings many current license holders implied that the state could face lawsuits calling for state reimbursement to make up for a devalued license.
After extensive changes through a series of amendments, the New Mexico Senate on Tuesday approved a bill aimed at allowing alcohol delivery and making other significant changes to the state’s liquor laws by a 29-11 vote.
Shortly after the Senate passed HB 255, the House voted to concur with the changes made in the Senate, which means the bill now heads to the governor’s desk.
Sen. Daniel Ivey-Soto, D-Albuquerque, presented the bill on behalf of the House sponsor, Rep. Antonio “Moe” Maestas, D-Albuquerque.
Throughout the hours-long debate and amendment process, Ivey-Soto said the bill was one way for New Mexico to change its “relationship with alcohol.”
“This has been a long time coming,” Ivey-Soto said just before the vote. “It’s been 40 years coming for us to have this discussion. It’s been 40 years coming for people to be able to say, ‘You know, here’s something that’s affected my constituents. Here’s something that I’ve wanted to do something about. Here’s something where we can make a change.”
Besides allowing for alcohol deliveries, the original intention of the bill was to fix a decades-old system that inadvertently put an inflated monetary value on licenses to sell liquor by the drink.
A sweeping liquor license reform bill is on its way to the Senate floor after the Senate Judiciary Committee voted 5-4 to move it forward Wednesday. But the committee approved a number of amendments that changed some aspects of the bill.
Gone is a provision that would have given a $100,000 tax break to retailers who currently hold liquor licenses.
But a clause giving longtime liquor license owners who run restaurants and bars a $200,000 tax break — $50,000 per year for four years — remains. Gone, too, is a deal that would have waived all future annual license renewal fees for those longtime liquor license owners.
But much of House Bill 255, which passed through the House of Representatives earlier in the session, remains intact. The bill still allows for home delivery of alcohol along with food orders.
The bill’s main sponsor, Rep. Moe Maestas, D-Albuquerque, said the bill is meant to update the decades-old liquor license law that has increased liquor license fees to well over $500,000. It is also meant to encourage new restaurateurs to get into business at an affordable price.
As J.R. Palermo sees it, the year has been bad enough for restaurants, bars and patrons. He’s none too happy with a proposed 2 percent excise tax the state could impose on alcohol sales as part of a sweeping liquor law reform bill. Palermo, the owner of Tiny’s Restaurant & Lounge, a fixture in Santa Fe since 1950, has been an outspoken critic of New Mexico legislators’ efforts to overhaul what many people call an outdated and cost-prohibitive liquor license system. He said House Bill 255 is “not friendly to the industry.” At the top of his many objections to the bill is a plan to allow restaurateurs to purchase new licenses to serve liquor at a fraction of the costs paid by longtime business operators.
A House bill aimed at allowing some alcohol deliveries as well as adding a new class of liquor licenses for restaurants on Wednesday passed its first committee 6-3.
HB 255, sponsored by Rep. Antonio “Moe” Maestas, D-Albuquerque, would, besides allowing certain alcohol deliveries, allow restaurants a chance to sell spirits the same way they currently can under a beer and wine license.
“The task before us is how do we open up these markets, while not disrupting current investors and folks who relied on that existing statutory scheme,” Maestas said. “That’s our task, and I think we’ve accomplished that in a great and reasonable and conservative way today.”
For decades, New Mexico law has limited the number of package or dispensing licenses in the state, which has inadvertently put a premium on those that are issued. Over the years, the value of those licenses have only increased. During Wednesday’s hearing, as well as previous hearings in the past few weeks, current liquor license holders spoke out against adding more licenses because it would devalue current licenses. Dozens of liquor license holders pleaded with lawmakers on Wednesday to not pass the bill to the next committee.
Gary Skidmore, owner of Holiday Bowl bowling alley in Albuquerque, said the liquor law change combined with the COVID-19 pandemic would be detrimental to his business.
“The timing of this bill under our current economic situation for our business is terrible in that we have been closed more months than we have been open,” Skidmore said.
Since the early part of the 20th century, the number of liquor licences in New Mexico have largely been finite. As a result, those licenses are now worth roughly half a million dollars. In recent years, state lawmakers have tried various ways to reconfigure the state’s liquor laws that would both make it less costly for potential new liquor license holders while also not devaluing current licenses.
This year, there are a handful of bills aimed at creating a new type of liquor license for restaurants to add spirits to their menus, instead of adding more liquor licenses to the mix. The general idea is that restaurants would be able to obtain a license to sell mixed drinks as long as a certain percentage of sales is for food, much like a beer and wine license. But even the idea of increasing the number of restaurants that can serve alcohol beyond beer and wine has some current liquor license holders concerned.
A piece of legislation designed to create a cash flow for New Mexico’s college student-athletes cleared its first significant hurdle Wednesday. Introduced by a bipartisan trio of two state senators and a high-profile member of the House, SB 94 cleared the Senate Education Committee with unanimous approval Wednesday morning. According to one of its authors, it has gained the kind of momentum required to make it become a law before the end of the session. Similar measures have been adopted in California and Colorado, which have five schools in the Mountain West Conference, 10 in the Rocky Mountain Athletic Conference and one in the Western Athletic Conference — leagues that are home to, respectively, the University of New Mexico, New Mexico Highlands and New Mexico State. “In this day and age of politics, this is a bill that passed unanimously with Republicans and Democrats in California,” said Sen. Mark Moores, R-Albuquerque.
ByRobert Nott and Daniel J. Chacón, Santa Fe New Mexican |
Two weeks into the 2021 legislative session, it looks like no one is home at the state Capitol. The hallways and hearing rooms — which normally would be bustling with activity by this time in a 60-day session — were empty Tuesday, aside from the rare sighting of a staff member or New Mexico State Police officer. Perhaps more surprisingly, Tuesday’s House floor session ran quickly and quietly, with no sign of the partisan rancor of the previous week, when party leaders bickered. House Republicans have questioned and criticized rules for running the session in a hybrid format, which allows members to participate in person or to log in online from home or their Capitol offices. And late last week, some members of the House GOP petitioned the New Mexico Supreme Court to halt those rules, arguing they are unconstitutional.
Attempts at criminal justice reform are not new for the New Mexico Legislature, but success in lessening criminal penalties and revamping processes has seen mixed results. But reform advocates and some lawmakers said they are confident this is the year criminal justice reform proposals will gain more traction and possibly be signed into law.
Rep. Antonio “Moe” Maestas, D-Albuquerque, who has been a long-time advocate for criminal justice reform said a politically progessive shift of the Legislature could help move those types of bills forward.
“I think a lot of champions have emerged,” Maestas said. “So I anticipate a whole slew of criminal justice type bills to increase public safety and make the system more accountable”
One issue Maestas said he plans to address is language in state law that gives law enforcement officers who are under investigation arguably more rights than other citizens under investigation have been afforded in practice.
The law Maestas plans to address details rights of officers subjected to internal investigations and includes things like limiting interrogations to two in a 24 hour period, limiting interrogation time limits and requiring no more than two interrogators at a time. Maestas said the language in the law is unusually similar to language in most police union contracts.
“It’s like an HR protection in state statute,” he said.
Maestas said the law itself is antithetical to basic freedoms afforded by the U.S. Constitution.
“It’s even referred to in popular culture as the peace officer bill of rights,” Maestas said. “Which totally contradicts the premise of the U.S. Bill of Rights, which is protections against the government not protections for government.”
Maestas said he also wants the regulation of law enforcement licensure moved from the New Mexico Law Enforcement Academy to the state’s Regulation and Licensing Department and plans to sponsor a bill to do so.
Maestas said law enforcement is one of the few professions, including teachers and lawyers, in the state that is self-regulated.
“The Law Enforcement Academy has to be re-reworked,” he said.