The New Mexico Senate Committee on Tax, Business, and Transportation convened on March 8, 2025, to discuss House Bill 11, which proposes a paid family leave program aimed at supporting small businesses and their employees. The meeting featured a range of testimonies from supporters and opponents of the bill, highlighting the ongoing debate over its potential impact on the state's economy and workforce.

Reinhard Lorenz, owner of First Eye Films in Albuquerque, expressed strong support for the bill, emphasizing its potential to enhance employee loyalty and trust within the film industry. He noted that while larger productions already provide benefits under union agreements, the proposed bill would allow smaller businesses to offer similar support without significant financial burden. Lorenz pointed out that many small businesses, including his own, would not contribute to the program while still benefiting from it.

Aweesta Sarkash, Public Policy Director for Small Business Majority, echoed Lorenz's sentiments, arguing that comprehensive benefits like those in HB 11 are essential for small businesses to compete effectively. Sarkash suggested increasing the paid leave from six weeks to nine weeks to align with larger corporations, asserting that many small businesses are eager to provide such benefits.

Francine Campos, a human resources director for a large aerospace company, also voiced her support, stating that the bill would allow workers to take necessary time off without the fear of losing income or employment. She highlighted the positive outcomes seen in other states that have implemented similar legislation, including improved workplace morale and productivity.

However, opposition to the bill was also strong. Larry Reagan, president of the New Mexico Farm and Livestock Bureau, argued that the bill would impose hardships on farmers and ranchers, who often lack access to temporary labor. Allison Riley, Public Policy Director for the New Mexico Chamber of Commerce, raised concerns about the potential for new taxes and the risk of the fund becoming insolvent within two years. Debbie Moore, president of the Greater Las Cruces Chamber of Commerce, reiterated these concerns, emphasizing the lack of a confirmed funding formula and the potential for increased taxes.

In response to the opposition, the bill's sponsor defended the proposal, clarifying that it aims to support employees who are already facing hardships due to illness or family needs. The sponsor noted that the costs associated with the program have been minimized, particularly for small businesses with fewer than five employees, which would not be required to contribute.

The committee's discussions reflect a broader conversation about balancing the needs of employees for paid leave with the concerns of small business owners about potential financial impacts. As the bill moves forward, its implications for New Mexico's workforce and economy will continue to be closely monitored.