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Terri Cole President and CEO | Greater Albuquerque Chamber of Commerce

House committee approves paid family leave bill amid tax increase concerns

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The House Health and Human Services Committee has approved House Bill 11, the proposed Paid Family and Medical Leave Act (PFMLA), with a 6-4 vote along party lines. Democrats supported the bill, while Republicans opposed it. If implemented, employees and employers would contribute $507,860.6 million in new taxes to fund benefits by fiscal year 2029.

Rep. Alan Martinez (R-Sandoval) labeled this as potentially the largest tax increase in New Mexico's history, a claim that Chair Liz Thomson (D-Bernalillo) criticized as inflammatory. The bill's scope includes provisions for "safe" and "exigency" leave related to military service, which could lead to higher employee participation compared to other states.

Terri Cole, representing various business organizations including the New Mexico Restaurant Association and the New Mexico Chamber, testified against HB 11. She argued that the bill would cause instability in workplaces due to its extensive leave allowances and necessitate a significant new bureaucracy of over 200 employees.

The Workforce Solutions Department anticipates needing an additional 209 employees or contractors to manage the program. This expansion could raise annual costs by $49 million from tax revenues allocated to the fund.

The bill now proceeds to the House Commerce and Economic Development Committee for further consideration.

New legislators were also introduced: Elizabeth Torres-Velasquez will represent District 30; Nicole Chavez will serve District 31; Heather Berghmans takes on District 15; Natalie Figueroa will cover District 18.

In related legislative developments, Sen. Pat Woods expressed concerns over strict rules limiting public testimony in Senate committees. He emphasized the importance of open debate on bills affecting New Mexico's future.

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