Legislative Session Update: March 5

With just 17 days remaining in the legislative session, there is still a significant amount of work to be done. Key legislative priorities continue to move through the process, and the Santa Fe Chamber of Commerce is keeping a close eye on developments that will impact the business community.

Legislative Progress

Governor Michelle Lujan Grisham has already signed two major pieces of legislation:
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• Senate Bill 3 – Behavioral Health Reform and Investment Act
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• House Bill 8 – Criminal Competency and Treatment Legislation

The House and Senate leadership committed to making behavioral health and competency treatment a priority, and they have followed through on that promise. However, with over two weeks left, many bills are still pending, and the state budget remains the top priority.

State Budget and Federal Concerns

​The budget, which passed the House, is now in the Senate Finance Committee for review. A looming concern is potential federal budget cuts, which could have a significant impact on key sectors such as higher education and healthcare. Legislative leaders are considering adjustments to fill potential funding gaps, and there is speculation about a possible special session later in the year to address these issues.

Taxation Proposals

​A proposed tax package is moving quickly through the House, which includes:
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• Corporate Tax Increases
  
  
• Equalization Tax on Oil & Gas

While these measures could generate an estimated $500-$600 million annually, they also raise concerns about the impact on industries that have been driving New Mexico’s economic growth. The Chamber will continue to monitor these proposals and advocate for policies that support a healthy business climate.

Business-Related Legislation

Several bills are of particular interest to the business community:
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• Hospital Mergers & Acquisitions Oversight:
  Proposed legislation would give the state more authority in these transactions, but the Chamber believes private enterprises should govern themselves.
  
  
• Staffing Ratios for Nurses & Doctors:
  A bill addressing this issue is moving through the House.
  
  
• Data Privacy & Artificial Intelligence Regulations:
  New Mexico is considering policies similar to those in Colorado, though there are concerns about their practicality and impact on businesses.
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• Economic Development & Energy Infrastructure:
  ​The Chamber supports efforts to improve site readiness and power grid flexibility to attract businesses and streamline the permitting process.

​Workforce and Housing

• Minimum Wage Increase:
  While Santa Fe and New Mexico already have some of the highest wages in the region, new legislation is under discussion.
  
  
• Rent Control:
  A measure previously defeated is being reconsidered, raising concerns about its impact on housing development.

A Call to Action

The Chamber encourages business leaders to stay informed and engage with their elected officials. Visit www.nmlegis.gov to find your representatives, share your perspectives, and provide feedback on legislation that affects the local business community.

Recognizing Leadership

​A special thank you to Bridget Dixon, President & CEO of the Santa Fe Chamber of Commerce, for her tireless advocacy on behalf of local businesses. Her leadership, along with the efforts of the Chamber team and board, has been instrumental in ensuring that business voices are heard at the Roundhouse.

As we approach the final stretch of the session, we remain committed to keeping you updated on key developments. The next legislative update will take place on Wednesday, March 19. If you have concerns or questions, please reach out to the Chamber team.
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Thank you for staying engaged, and we look forward to the final weeks of this legislative session.