Our 2022 Legislative Agenda
Legislative Advocacy
House Bill 132 - 36% Interest Rate Cap Passes – A huge win for New Mexicans!
Prosperity Works has advocated for a lower interest rate cap on small-dollar loans for the past 15 years. This year, we are more than thrilled to see these long-time efforts pay off, with the passing and signing of House Bill 132, effectively capping interest rates on small-dollar loans at 36%.
As a collaborative partner organization within the New Mexicans for Fair Lending Coalition, Prosperity Works has advocated for the New Mexico legislature and the governor to bring our state in line with many others by reducing the state's maximum annual interest rate on small loans from 175 percent to 36 percent. In 2020, New Mexicans paid $179 million in interest and fees on these predatory loans. Additionally these lenders disproportionately impacted indigenous communities with 65% of lenders in New Mexico located within 15 miles of tribal lands. In McKinley County alone, there are more than 40 storefront lenders that made 69,618 loans in 2020 – nearly one loan for every resident.
Prosperity Works has been working towards this goal along with many other community organizations and legislative officials to finally make this goal a reality. We’d like to thank former Speaker of the House Brian Egolf, Rep. Susan Herrera, Sen. Katy Duhigg, and community partners like the New Mexicans for Fair Lending Coalition, New Mexico Center on Law and Poverty, NAVA Education Project, and many more community advocates for helping us advocate for this important legislation. Our Board member, Karen Meyers, a consumer protection lawyer, was a key strategist and expert witness for the bill.
As an organization that works to end poverty in New Mexico and is committed to racial equity, capping the interest rate on small dollar loans is a key piece of work in our predatory lending portfolio and allows New Mexicans to still have access to financial resources in times of need without stripping assets from families, and putting them into a never ending debt spiral.
House Bill 132 - 36% Interest Rate Cap Passes – A huge win for New Mexicans!
Prosperity Works has advocated for a lower interest rate cap on small-dollar loans for the past 15 years. This year, we are more than thrilled to see these long-time efforts pay off, with the passing and signing of House Bill 132, effectively capping interest rates on small-dollar loans at 36%.
As a collaborative partner organization within the New Mexicans for Fair Lending Coalition, Prosperity Works has advocated for the New Mexico legislature and the governor to bring our state in line with many others by reducing the state's maximum annual interest rate on small loans from 175 percent to 36 percent. In 2020, New Mexicans paid $179 million in interest and fees on these predatory loans. Additionally these lenders disproportionately impacted indigenous communities with 65% of lenders in New Mexico located within 15 miles of tribal lands. In McKinley County alone, there are more than 40 storefront lenders that made 69,618 loans in 2020 – nearly one loan for every resident.
Prosperity Works has been working towards this goal along with many other community organizations and legislative officials to finally make this goal a reality. We’d like to thank former Speaker of the House Brian Egolf, Rep. Susan Herrera, Sen. Katy Duhigg, and community partners like the New Mexicans for Fair Lending Coalition, New Mexico Center on Law and Poverty, NAVA Education Project, and many more community advocates for helping us advocate for this important legislation. Our Board member, Karen Meyers, a consumer protection lawyer, was a key strategist and expert witness for the bill.
As an organization that works to end poverty in New Mexico and is committed to racial equity, capping the interest rate on small dollar loans is a key piece of work in our predatory lending portfolio and allows New Mexicans to still have access to financial resources in times of need without stripping assets from families, and putting them into a never ending debt spiral.
House Bill 37 - The Community Energy Efficiency Development Act (CEED) passes!
The Community Energy Efficiency Development Act will improve utility affordability, reduce the energy burden on individuals, and increase utility access for low-income individuals across New Mexico. Individuals living in low-income, rural, or other underserved communities often spend a high portion of their income on utility bills up to 15% of their annual income. Making targeted energy efficiency improvements in these homes can significantly lower utility bills bringing the energy burden closer to 3%, the average for middle-income homes.
This block grant allows cities, counties or tribal communities and a local partner to apply and decide the highest energy efficiency needs in their community that they wish to address. This ensures that each community can accomplish what is most important for its members. For some communities, this might be low-hanging fruit like replacing old, inefficient appliances. In other communities, more comprehensive retrofits in aging housing stock might be the choice that communities pursue.
This bill will support those that are most impacted by climate change while also creating local jobs and reducing pollution. The CEED Act will open doors to more equity for New Mexicans by making energy-efficient investments that:
The CEED Act will not only reduce the energy burden for low-income New Mexicans, but it also helps our state meet its clean energy and climate goals! We are thrilled that the New Mexico legislature was able to pass this important bill this session, ensuring that low-income New Mexicans will get the help they need.
The Community Energy Efficiency Development Act will improve utility affordability, reduce the energy burden on individuals, and increase utility access for low-income individuals across New Mexico. Individuals living in low-income, rural, or other underserved communities often spend a high portion of their income on utility bills up to 15% of their annual income. Making targeted energy efficiency improvements in these homes can significantly lower utility bills bringing the energy burden closer to 3%, the average for middle-income homes.
This block grant allows cities, counties or tribal communities and a local partner to apply and decide the highest energy efficiency needs in their community that they wish to address. This ensures that each community can accomplish what is most important for its members. For some communities, this might be low-hanging fruit like replacing old, inefficient appliances. In other communities, more comprehensive retrofits in aging housing stock might be the choice that communities pursue.
This bill will support those that are most impacted by climate change while also creating local jobs and reducing pollution. The CEED Act will open doors to more equity for New Mexicans by making energy-efficient investments that:
- Reduce utility bills
- Reduce climate-changing pollution
- Upgrade affordable housing, and
- Improve the health, safety and comfort of homes.
The CEED Act will not only reduce the energy burden for low-income New Mexicans, but it also helps our state meet its clean energy and climate goals! We are thrilled that the New Mexico legislature was able to pass this important bill this session, ensuring that low-income New Mexicans will get the help they need.