A recent decision by the Senate Finance Committee has put a halt to House Bill 11, known as this session's version of the Paid Family and Medical Leave Act (PFMLA). The committee voted 8-3 to table the bill due to concerns over its financial implications.

Terri Cole, president and CEO of the Greater Albuquerque Chamber of Commerce, commented on the decision: "This bill, which is fraught with financial uncertainty, finally got a hard look from one of the Legislature’s finance committees. And they revealed what many of us have been saying all session: Despite a payroll tax increase of over $200 million, there is huge fiscal uncertainty."

The proposed legislation included provisions for six weeks of paid leave for family medical care funded by a new payroll tax. Additionally, it offered 12 weeks of unpaid "welcome child" leave and a $9,000 per child refund. These measures were estimated to cost over $190 million annually without identified funding sources. Concerns were raised about potential impacts on the general fund or possible withdrawals from the Early Childhood Trust Fund.

Cole further expressed relief at the committee's decision: "This bill would have made New Mexico less competitive in so many ways. There’s the taxes, there’s the cost of replacement employees if they can be found or overtime. There’[s] the chance for abuse and overutilization of leave because the definitions are so loose. We are thankful the Senate Finance Committee put the brakes on this onerous plan."

Further details are expected in tonight's Legislative RoundUp.