NM Legislature: Capital Outlay, Tax Tweaks & Privacy Bills Pass

New Mexico lawmakers addressed a range of issues on Thursday, February 12, 2026, including a significant push to manage unspent state funds, a spirited initiation for a new senator, and measures concerning healthcare and license plate data privacy. These developments signal ongoing efforts to improve financial accountability, protect individual rights, and modernize state systems.

Addressing the Backlog of Unspent Funds

The Senate Finance Committee unanimously approved House Bill 247, aiming to tackle the growing problem of billions of dollars in unspent capital outlay. Sponsored by Derrick Lente, D-Sandia Pueblo, the bill limits reauthorizations for capital projects. Senator George Muñoz, D-Gallup, highlighted the scale of the issue, stating, “I mean, we have $7 billion sitting in that parking lot, and it’s not doing anybody any good.” The city of Santa Fe is currently seeking reauthorization of $1.7 million for projects ranging from road construction to affordable housing and police equipment.

Did You Know? House Bill 247 passed the House of Representatives with a vote of 48-20 earlier this week.

A Freshman Senator’s Trial by Fire

Senator Rex Wilson, R-Ancho, recently appointed to District 33, experienced a memorable first legislative test. While his Senate Bill 21, requiring a yearly 60-day open enrollment period for Medicare supplement policies, ultimately passed, it wasn’t without playful scrutiny from colleagues. Questions about the bill’s birthday month provision revealed Wilson is a Capricorn, and Senator Peter Wirth, D-Santa Fe, jokingly claimed to have received 100 opposing emails from Wilson’s hometown.

Bipartisan Support for Medicare Access

Despite initially failing by a vote of 9-27, Senate Bill 21 ultimately passed with unanimous support (36-0) after a motion to reconsider. Aging Department Cabinet Secretary Emily Kaltenbach praised the bill, stating, “Medicare should provide peace of mind, not uncertainty,” and emphasizing its role in modernizing Medigap protections.

Tax Code Cleanup and License Plate Privacy

Lawmakers also approved House Bill 291, the annual tax code cleanup measure, by a vote of 59-8. The bill addresses loopholes in the film tax credit, clarifies provisions for technology jobs and research, and adjusts the tobacco products tax. It also allows for rounding tax amounts to the nearest five cents. A proposed amendment by Rep. Mark Duncan, R-Kirtland, to broaden tax relief was voted down.

Expert Insight: The passage of these bills demonstrates a commitment to both fiscal responsibility and addressing specific needs of New Mexico residents, from infrastructure improvements to healthcare access and data privacy. The initial struggle with SB 21 highlights the dynamics of legislative debate and the importance of building consensus.

Senate Bill 40, aimed at limiting the sharing of automated license plate reader data, passed the Senate 32-8 and is headed to the House. The bill seeks to protect privacy by prohibiting the sale or sharing of data for immigration enforcement, healthcare investigations (including abortion and transgender care), or activities protected by the U.S. And New Mexico constitutions.

A Moment of Levity

A brief evacuation of the Capitol building due to a fire alarm provided a lighthearted moment during the day’s proceedings. Senator Candy Spence Ezzell, R-Roswell, quipped, “I know I have red hair but I did not do that, Madame President.”

Frequently Asked Questions

What is the primary goal of House Bill 247?

The primary goal of House Bill 247 is to address the issue of billions of dollars in unspent capital outlay funds by limiting reauthorizations for capital projects.

What does Senate Bill 21 aim to achieve?

Senate Bill 21 requires issuers of Medicare supplement policies to offer a yearly 60-day open enrollment period to policyholders age 65 and older, starting on the first day of their birthday month.

What restrictions does Senate Bill 40 place on license plate reader data?

Senate Bill 40 bans the sale or sharing of automated license plate reader data to third parties if it could be used for immigration enforcement, to investigate protected healthcare activities, or to punish constitutionally protected activities.

As these bills move forward, it remains to be seen how they will be implemented and what impact they will have on New Mexico’s communities. Will these measures effectively address the identified challenges, and what further legislative action might be considered in the future?

NM Legislature: Capital Outlay, Tax Tweaks & Privacy Bills Pass – Feb 12, 2026