2011 Legislative Update – Bills of Interest
NMHBA achieved its #1 priority this session
– prohibiting mandatory residential sprinklers in the statewide code. The Session ended with some very important issues being left on the table. No action was completed on Tax Lightning or Homeowners’ Associations, and only one small portion of the bills introduced to increase building inspection efficiency passed. Below is the listing of bills of the most interest to NMHBA members this Session. You are encouraged to check the actual language of any bill of particular interest to you and your business via the internet link noted at the end of this report.
Fire Codes, Fire Marshal, Fire Sprinklers
We PROMOTED SB201
& HB167 Fire Prevention Ordinances & Code Changes (Munoz / Doyle) – These bills had their content stripped back to just prohibit the state from enacting a building code or rule which would mandate residential fire sprinklers, however NMHBA still considers this a major victory.
SB201 & HB167 both PASSED the Senate and the House, and have gone to the governor for final disposition.
Building Departments
We PROMOTED SB262
Construction Commission Inspector Authority (B. Sanchez) – This bill would remove CID’s current authority to limit municipal inspectors to just one "locality". Municipal inspectors believe this bill would enable them to form Joint Powers Agreements across municipal boundaries to share resources without having to get CID’s approval first. Unfortunately this bill was all that remained of a larger package of ideas for code compliance efficiency and effectiveness promoted by NMHBA during this session.
PASSED and has gone to the governor for final disposition.
Workers’ Compensation
We NOW OPPOSE SB274
Qualification of Workers' Comp Judges (Lopez) – Builder’s Trust was instrumental in creating this bill to change the WC judge selection and retention/review process to more closely mirror the process used for district court judges. According to the proponents, amendments to SB274 made at the last moment created a process worse than the current practice of the Work Comp Director simply appointing judges. We will be urging Governor Martinez to veto this bill.
PASSED and has gone to the governor for final disposition.
Climate Change / Sustainable Building Tax Credit
We SUPPORTED HB166
Review Certain Tax Credits (Sandoval) – Beginning in 2014 and at six-year intervals, will require a report on the sustainable building tax credit so it could be reviewed to see if a need remains for the credit, and if the credit is cost-effective. Hopefully this will sustain the life of the program.
PASSED and has gone to the governor for final disposition.
Public Works Bidding
We monitored SB617
Public Works Contractor Registration (Martinez) – This bill will require anyone bidding on a Public Works project over $60,000 to be registered with the state. Registration would need to be renewed every 2 years, at a cost of $400 instead of the current process of $200 each year.
PASSED and has gone to the governor for final disposition.
March 25, 2011
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Mortgages/RECs/Foreclosures
We SUPPORTED SJM14
Qualified Homebuyers to Obtain Financing (Boitano/Baldonado) –
This Joint Memorial encourages federal mortgage lending regulators to reassess and amend their credit policies so that more homeowners can refinance their current home loans and more qualified homebuyers can obtain mortgage financing. This bill flew through the Senate & House. The topic will be studied by an Interim Committee, and possibly result in bills for 2012 Session. NMHBA will participate in these hearings, hoping to find answers to the lending crisis.
Tax Lightning
These bills, like many others in past years, attempted in various ways to fix the problems that resulted from the
2001 Constitutional Amendment which limited property tax increases for existing owners to 3% annually. SB108 was the only bill moving this Session, and was amended to include some of the best ideas. SB108 Extend Annual Property Valuation Increases (Eichenberg) –
Would have retroactively extended the cap on property tax increases to all owner-occupied residential properties back to 2001 regardless of any sales in the interim. It also would have applied a ratio for each neighborhood or county to the market value price of new construction (instead of the sales price), possibly resulting in lower property taxes for those who purchased newly-constructed homes. We are disappointed this bill died when it ran out of time for the House and Senate to concur on an "emergency clause" added by a House Committee. Failure to act on this subject is a major problem because there are lawsuits in Dona Ana and Bernalillo County that have determined the current system of property tax valuation is unconstitutional. This problem has the potential to cause chaos for our property tax system.
Condominium Laws
We monitored SB8
Condo Declaration Compliance With Local Laws (Wirth) and SB183 Condominium Board Member Requirements (McSorley) – These bills were both designed to require condo boards operate in a more organized and transparent fashion. SB 8 amends the Condominium Act to require confirmation from the local zoning official that a condominium declaration complies with local zoning and subdivision laws. SB183 was repeatedly amended. The original bill increased the degree of care required by appointed condo board members, decreased the amount of time a developer may control a condo association, required notice of open meetings, provided for disclosure of records, allowed audits, provided for alternative dispute resolution and attorneys fees. The bill also required earlier disclosure of condominium information to purchasers. The Senate Judiciary Committee amendment enacts a new section on attorney fees and costs; the House Judiciary Committee amendment removes provisions for alternative dispute resolution. BOTH PASSED and have gone to the governor for final disposition.
A similar bill for homeowner associations failed to pass this session.
Miscellaneous
We monitored HB 59
Unemployment Contribution Temporary Schedule (Stewart) – This bill is controversial because while it would raise taxes for employers now, proponents note that if the Unemployment Fund becomes insolvent in the future, the provisions in existing law contain a mandatory replenishment that would require even higher amounts to be paid in the near future. Usually "temporary" taxes find a way of becoming permanent. Governor Martinez has stated her opinion that the bill should be vetoed, but major business groups are urging passage.
PASSED and has gone to the governor for final disposition.
We monitored HB64
Construction Contract Litigation Location (Larrañaga)
– This bill will require that all litigation and alternative dispute resolution of all public and private construction contracts for
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work in New Mexico to be conducted in New Mexico. This means national builders cannot include in their contracts language that would allow disputes to be litigated under laws of another state.
PASSED and has gone to the governor for final disposition.
We monitored SB280
Elevator Safety Act (P. Griego) –Proponents of this idea claimed the public is in danger from lack of regulation on elevator contractors, although they were unable to cite examples of such problems in NM. The bill creates another CID bureau-type administrative group with five employees. With another budget cut coming, this would likely drain CID resources and attention from existing programs as CID takes on the additional tasks mandated in this bill. The bill requires CID write rules for new licensing of elevator contractors and maintenance workers, set up registration and certification of all elevators and home stair lifts in the state, and adopt standards (codes) all building owners would have to comply with. Exact fees are not included in the bill, but will be set by Rule later. New fees will be levied for the new license classification, annual operator’s permit, and inspection certification. Fines will be created for unlicensed activity and for working with an expired license. Residential construction would not have to pay for annual certification, but would have to pay for annual inspections. All building owners would have to bring their elevators/lifts up to current codes within 30 days after an inspection notes violations. It is estimated 80% of all elevators in the state are in the City of Albuquerque, where the building department already handles elevators in a much less invasive manner. The Senate tied on the vote for this bill, which was broken by the Lt. Governor voting in favor of the bill.
PASSED and has gone to the governor for final disposition.
We monitored HB393
Hoisting Operator Licensure Requirements (R. Martinez) – The Statute for Hoisting Operators would simply state those who are found in violation of the regulations (now extended to the employer in addition to the operator) will be subject to administrative (instead of criminal) penalties up to $5,000. Added requirements for examinations prior to obtaining a license, but allows for employers’ in-house training programs as an alternative. Increases 2-year license fees from $75 to $200 and reinstatement fees from $5/month for each month renewal is late to a flat $1,000 fee.
PASSED and has gone to the governor for final disposition.
We monitored HB500
Excavation Notices & Utility Pipelines (King) – This bill amends New Mexico Excavation Law, to add a definition for "master meter system and operators" and to clarify that the definition of "underground utility line" does not include master meter systems and operators. The bill would exempt master meter operators and homeowners that have private underground facilities from having to be a member of a One Call notification system.
PASSED and has gone to the governor for final disposition.
We monitored HB 653
Remedies For Real Property False Documents (Gonzales) –This bill allows any party "adversely affected" by the filing of a title document containing a false claim to go to court to have the document declared void and seek damages. Assuming this applies to liens, it means contractors who have knowingly filed liens when they were unsure they had the right could see their lien rights voided and then be liable for financial damages to the property owner. We are trying to get a legal "read" on this bill ASAP.
PASSED and has gone to the governor for final disposition.
The actual text of any bill may be found online at http://www.nmlegis.gov/lcs/default.aspx. Click on "Legislation", then "Bill Finder" on left side, enter the bill number, and scroll down to the file. Call Melanie for bill numbers.
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