Comments and questions raised on Tuesday during an interim legislative tax policy committee point towards lengthy debates on recreational cannabis legalization in the upcoming legislative session in January.
Richard Anklam, the president and executive director of the New Mexico Tax Research Institute, told lawmakers that states that were early in legalizing recreational-use cannabis like Colorado, Washington, Oregon and California have seen significant tax revenue increases in the past several years. Anklam, using a study from the Tax Foundation, a national think tank, said New Mexico could see roughly $70 million in excise taxes, before factoring in gross receipts taxes, if the state legalizes cannabis for recreational use.
While not as common, Anklam said some states who have recently legalized recreational-use cannabis have developed tax models based on potency instead of by volume of what is sold. He said, the potential increase in tax revenue may not become the state’s saving grace, but that it would make a significant impact.
“What’s the marijuana market worth? It’s worth a lot,” Anklam said. “Most states can’t fund highly significant portions of their government with it, but every little bit helps.”
Duke Rodriguez, the president and CEO of Ultra Health, a New Mexico medical cannabis production company, told lawmakers that despite the large amounts of possible tax money going to the state, current restrictions on cannabis production would not be conducive to a cannabis boom.
Rodriguez has long been a vocal critic of the state’s Department of Health’s restrictions on how many plants producers can grow.
If the world ends with a whimper rather than a bang, the House began Thursday with a sputter. For hours, Republicans in the state House debated new rules on whether lawmakers should be allowed to vote remotely — a debate that was delayed because of trouble with the webcast, in turn delaying committee hearings scheduled for that afternoon until after representatives’ 6 p.m. dinner. Complying with state rules on open meetings, lawmakers paused the debate for close to 30 minutes as the tech team scrambled to get the internet video feed back online before resuming. The resolution passed the House 43-24 along party lines. But not before prolonged debate about the rules within the resolution and other, tangentially-related topics.
ByRobert Nott & Jens Gould, Santa Fe New Mexican |
A House committee charged with creating rules for running the special session got an earful Wednesday when some telephone callers into the meeting criticized social protests and uttered racial epithets. The scene, legislators on both sides of the aisle said, pointed to the challenge of running a nontraditional session of the Legislature. Members of both political parties expressed outrage at the calls, which effectively ended any effort to take public comment by phone during Wednesday’s meeting of the House Rules and Order of Business Committee at the Roundhouse. “What we just heard is pretty disgusting,” said House Speaker Brian Egolf, D-Santa Fe. Rep. Jim Townsend, the minority leader in the House, agreed.
“I am the strongest proponent of public involvement that there is, but when I hear comments like that … that’s uncalled for,” said Townsend, R-Artesia.
A House Republican said Tuesday he would likely shake hands with or hug fellow legislators from Southeastern New Mexico during the special session — prompting criticism from House Speaker Brian Egolf, who said he was worried such a practice could jeopardize the health of others later this week. Rep. Greg Nibert, R-Roswell, said lawmakers from his part of the state plan to wear masks and use hand sanitizer during the upcoming meeting in Santa Fe and would keep their distance from legislators from other areas of New Mexico. But when it comes to interacting with members from his area of the state, Nibert said those representing the southeast intend to engage in physical contact with each other at the Capitol because their area of the state has not been heavily affected by the novel coronavirus pandemic. “When I see David Gallegos for the first time, I can pretty well guarantee you he’s going to stick his hand out to shake my hand and probably give me a hug,” Nibert said, referring to the Republican legislator from Eunice. “I’m not going to be offended by it and he’s not going to be offended by it because in our community that’s where we’re at.”
The comments came as a House committee is set to debate proposed rules changes on Wednesday that would allow the chamber to take greater health precautions during the session, such as allowing members to participate virtually.
New Mexico House Republicans presented a starkly different plan for fixing the state budget Monday, calling for lower spending levels than the governor and a key legislative panel have proposed. Minority Whip Rod Montoya said the state shouldn’t use federal stimulus funding to help mend its huge budget shortfall during the upcoming special session because the U.S. government hasn’t approved the use of those funds for that purpose. “If we do pass this budget in the next several days with that in place, we will have passed an illegal budget,” said Montoya, R-Farmington. The proposal from GOP legislators differs from the solvency plans presented last week by Gov. Michelle Lujan Grisham and the Legislative Finance Committee, which both call for using at least $700 million in federal funding to help the state shore up the shortfall caused by the novel coronavirus pandemic. Guidance issued by the U.S. Treasury Department regarding the coronavirus relief act passed by Congress states the stimulus funding allocated to states must be used to cover costs that “are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019.”
It also says “funds may not be used to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify under the statute” and that “revenue replacement is not a permissible use of fund payments.”
New Mexico legislators are giving a handout to insurance companies, say backers of a bill designed to create a fund for the uninsured.
The bill passed the House floor 41 to 25 earlier this week but failed to make it to the Senate Finance Committee agenda by Wednesday evening. It has to go through that committee before reaching the Senate floor. The legislative session ends at noon on Thursday. Adriann Barboa, spokesperson for a coalition of nonprofits serving the vulnerable called New Mexico Together for Health Care, called HB 278 a “one-time opportunity” for New Mexicans to get nearly everyone in the state insured. The federal government made a change to give a tax rebate to insurance companies this year.
Sparks flew between Republicans and Democrats Sunday during a lengthy debate on a health care tax bill that supporters say would help the uninsured. Passed by the House on a vote of 41 to 25, HB 278 would create a health care fund for New Mexicans who are uninsured. The bill would replace a federal tax that Congress repealed. The state health insurance tax would result in $99.1 million to go to a new “health care affordability fund” and the remaining $25.6 million would go to the general fund. Republicans tried twice to amend the bill to exempt small business owners from the bill.
The state House passed a memorial that would direct the State Investment Council (SIC) to explore investment opportunities in renewable energy, transmission and storage. HM 9 directs the SIC and the State Land Office to collaborate together on developing a strategic plan for investing in renewables and related projects within the state. “The goal of this memorial is to invest more renewables in our state,” said Democratic Rep. and bill sponsor Joseph Sanchez of Alcalde. “Our state has the second highest solar density in the country, second to the Mojave Desert in California. The renewable industry is booming in other states, this is a great opportunity to move forward in this area.”
If legislation had taglines, this one’s might be: “How a highly technical bill became the latest partisan punching bag.”
On Friday, the Democrat-controlled House Taxation and Revenue Committee approved House Bill 341, which proposes to transfer money from the state’s enormous Tax Stabilization Reserve fund into its operating reserve if the latter drops to less than 1 percent of total appropriations. The legislation’s proponents say the measure would fix a structural issue created when the rainy-day fund was set up, and would even help the state avoid calling a special session when it’s not necessary. But it became a flashpoint for discord Friday, with Republicans critics contending the bill is a cover for Democrats spending too much during the session. “If we refuse to address the technical problem that has arisen, we’re not doing our job,” House Speaker Brian Egolf said Friday at the committee hearing before voting in favor of the bill. At issue is the balance in the state’s operating reserve, a sort of holding account for the general fund that provides a buffer in case there’s a revenue shortfall.
With a week left to this year’s 30-day legislative session, House Republicans in a Thursday news conference again complained their Democratic counterparts are spending too much, claiming if a “messed up” budget proposal isn’t trimmed, the state may come up short by as much as $200 million.
Leaders on the Democratic side immediately countered, calling Republican claims “ridiculous,” “absurd” and “wrong.” Welcome to the Roundhouse, day 23. During a Thursday morning news conference, Rep. Jim Townsend, R-Artesia, and Rep. Rod Montoya, R-Farmington, pointed to a Legislative Finance Committee financial update this week that indicated projected revenues would fall short of the proposed expenditures by $200 million. “It’s just another example of the crazy spending going on in your Capitol,” Townsend said. Republicans have recommended a 4.3 percent increase to the 2021 fiscal year budget, far smaller than the 7.5 percent increase passed in the House more than a week ago.
The planned expenditures in the proposed budget, said Rep. Larry Scott, R-Hobbs, “are a concern.