Labor & Employment

HB 270 requires employers working on most New Mexico public works construction projects to contribute to apprenticeship or training programs, or to the Public Works Apprentice and Training Fund administered by the Workforce Solutions Department. The bill sets a zero contribution rate for trades without approved apprenticeship programs (such as certain street, highway, or utility projects), ensuring employers aren't required to pay if no local program exists. It amends existing law to clarify administration, compliance verification, and penalty enforcement for these contributions. The law takes effect July 1, 2026, directly affecting public works contractors and the state's workforce development system.

HB 280 creates a three-year pilot program in New Mexico that provides grants to nonprofit organizations, schools, and tribal entities to fund paid internships for youth aged 14-22. The grants supplement internship pay (requiring shared funding from host organizations), cover support services like career counseling, and must collect data on outcomes such as internship completion and post-internship employment. The Workforce Solutions Department will administer the program, requiring grantees to have complaint systems and report annually to the legislature. The bill appropriates $250,000 (2027-2029) for this initiative, with unspent funds reverting to the general fund by 2029.

This House Memorial (HM 51) requests state departments to study how to support workers and repurpose detention facilities if contracts with U.S. immigration authorities end. It directs the Economic Development and Workforce Solutions departments to explore new job opportunities for affected employees, while the Corrections, Children/Youth/Families, and Health Care departments must examine alternative uses for the facilities (e.g., healthcare, community services). The studies, due by October 1, 2026, aim to address potential economic impacts on communities near Cibola, Otero, and Torrance County detention centers. As a procedural memorial, it does not enact new law but seeks planning for possible future changes.

SB 260 creates a tax credit allowing businesses to claim 75% of donations (up to $750,000 per company annually) to public colleges or school districts for workforce education programs, such as vocational training and job skills courses. The credit is capped at $5 million total per year across all businesses, requiring companies to apply for certification through the state's economic development department. Eligible donations must be direct monetary contributions to public institutions - not to affiliated entities - and the credit applies to taxable years starting January 1, 2026. This policy directly affects businesses donating to workforce training programs and public educational institutions receiving those funds.

HB 296 increases New Mexico's Working Families Tax Credit to 50% of the federal Earned Income Tax Credit (EITC) for eligible residents, up from previous rates of 20-25%. It directly affects low-to-moderate income New Mexico residents who file individual state tax returns and qualify for the federal EITC, including those aged 18-24 who previously faced age-based barriers. The bill allows the credit to reduce state tax liability, with any excess refunded to taxpayers. This change takes effect for tax years beginning January 1, 2026, as specified in Section 7-2-18.15 of New Mexico's tax code.

SB 220 sets new minimum Medicaid reimbursement rates for personal care services in New Mexico: $23.50 per hour for consumer-delegated services and $19.78 per hour for consumer-directed services. It requires personal care providers receiving Medicaid payments to spend at least 70% of those funds on direct care worker costs, including wages, benefits, training, and supervision. The bill appropriates $51.4 million to update the reimbursement schedule and mandates providers to maintain records proving compliance. This directly affects personal care service agencies that contract with Medicaid to support individuals with daily living needs.

This Senate Memorial (SM 27) acknowledges New Mexico residents affected by radiation from the Trinity nuclear test and uranium mining, urging state agencies to help eligible individuals apply for federal compensation before December 31, 2027. It directly supports downwinders, uranium workers (post-1971), and their families who qualify for a one-time $100,000 federal payment under the expanded Radiation Exposure Compensation Act. The memorial directs state departments (Health, Aging, Veterans, Indian Affairs) to collaborate with tribal governments and community groups to provide outreach, education, and application assistance. As a non-binding memorial, it does not create new law but emphasizes state coordination to ensure affected residents access existing federal benefits.

HB 28, the Artificial Intelligence Transparency Act, requires businesses in New Mexico using AI for major decisions (like loans, jobs, housing, or healthcare) to notify consumers before AI influences those decisions. It mandates clear explanations for negative outcomes - including reasons, data used, and human oversight - and provides consumers a chance to correct data or appeal decisions reviewed by humans. The bill also forces AI chatbots ("companion products") to disclose their AI nature at the start of each conversation and prohibits misleading claims about being human. These requirements apply to all businesses operating in New Mexico using AI for consequential decisions, effective July 1, 2026.

SB 109 prevents utilities from recovering costs related to abandoning power plants if they later build new natural gas resources. Specifically, it blocks qualifying utilities from applying for financing orders to recover energy transition costs (like employee severance, decommissioning, and mine reclamation) through energy transition bonds if they construct new natural gas facilities. The bill amends existing law to deny this cost-recovery mechanism for utilities abandoning generating facilities while developing new natural gas infrastructure. This directly affects utilities seeking to transition away from certain power sources while expanding natural gas operations.

SB 125 modifies how school districts and charter schools fund employee insurance. It requires these entities to cover at least 80% of insurance costs for lower-paid staff (under $50,000 salary), 70% for middle-paid staff ($50k-$60k), and 60% for higher-paid staff ($60k+), eliminating previous waivers that allowed them to opt out of the Public School Insurance Authority. The bill also mandates reference-based pricing for hospital services in state health plans, requiring hospitals to charge no more than set rates for covered care. This directly affects school employees and school districts by standardizing their insurance contribution requirements and controlling healthcare costs.