Summary:

 The House Appropriations and Finance Committee amendment of House Bill 17 (HB 17) creates the Commission on Reduction of Grocery Costs to study and develop policy recommendations aimed at lowering grocery prices for consumers in New Mexico. The commission will examine factors influencing grocery costs, including supply chain infrastructure, price manipulation, and state policies that impact affordability. The commission must submit a report with findings and legislative recommendations by November 15, 2025. HB 17 declares an emergency and takes effect immediately upon passage and approval. 

Legislation Overview:

 House Bill 17 (HB 17) establishes a temporary Commission on Reduction of Grocery Costs, which will operate from its appointment until March 31, 2026. The commission will have nine members appointed by the governor and the New Mexico Legislative Council, with efforts made to ensure economic, geographic, gender, cultural, and racial diversity. Members will be selected based on expertise in economics, consumer protection, agriculture, trade, food production, or nutrition.

The commission is tasked with reviewing grocery pricing policies and proposing solutions to reduce costs for consumers. It will study strategies to support food businesses that produce locally sourced products and explore ways to increase consumer access to these products in retail grocery stores. Additionally, the commission will assess investments in supply chain infrastructure, including transportation, cold storage, and aggregation, to enhance food system resilience and stabilize grocery prices. It will also evaluate state laws related to price gouging, dynamic pricing, and other pricing practices that affect grocery costs. The commission’s work will include an examination of the prices of essential household foods such as eggs, milk, fresh produce, bread, and tortillas. Furthermore, it will consider the potential impact of federal trade agreements and regulatory changes on grocery affordability, identifying ways to insulate consumers from cost increases.

The commission must submit a report by November 15, 2025, with findings, recommendations, and proposed legislation. The commission is authorized to hire staff and request assistance from the Legislative Council Service and the Economic Development Department. Members will receive compensation per the Per Diem and Mileage Act. HB 17 declares an emergency and takes effect immediately upon passage and approval.

Implications

HB 17 aims to address rising grocery costs in New Mexico by creating a commission to study pricing factors and recommend policy interventions. The study could provide valuable insights into cost drivers, supply chain inefficiencies, and potential market interventions to improve affordability. The bill’s focus on local food production and supply chain improvements aligns with broader economic development and food security initiatives.

The $400,000 appropriation from the General Fund will support commission activities, including research, staffing, and operational expenses. If successful, the commission’s findings could inform future legislative efforts to stabilize or reduce grocery prices. However, the study’s effectiveness will depend on the scope of its research and the feasibility of implementing its recommendations. 

Current Law:

 New Mexico does not currently have a dedicated commission focused on reducing grocery costs. Food pricing policies, consumer protection regulations, and agricultural market conditions are addressed through various agencies, including the Economic Development Department, Department of Agriculture, and the Attorney General’s Consumer Protection Division.

Under current law, the State Price Gouging Act restricts excessive price increases during emergencies, but there are no state-level laws that regulate everyday grocery pricing, supply chain investments, or competitive practices beyond standard consumer protection laws.  

Amendments:

 Amended March 1, 2025 in HAFC

HAFCa/ HB 17: The House Appropriations and Finance Committee amends House Bill 17 made a single but significant change to HB 17 by removing the appropriation provision from the bill:

1. Removed Section 2 entirely, which had appropriated $400,000 from the General Fund to the Economic Development Department (EDD) for supporting the Commission on Reduction of Grocery Costs.

The removal of the $400,000 appropriation fundamentally changes how the Commission on Reduction of Grocery Costs would function. Without dedicated state funding, the commission would need to secure alternative funding sources—such as existing agency resources, private grants, or federal funding—to conduct the study and prepare its report. This could delay or limit the scope of the commission’s work, making it more difficult to conduct research, engage stakeholders, and develop policy recommendations.

The original bill intended to ensure that the commission had the necessary financial resources to operate effectively. The removal of this funding means that the EDD and Legislative Council Service may need to absorb the costs, which could strain existing budgets or result in a less comprehensive analysis.

From a fiscal responsibility standpoint, this amendment reflects concerns about state spending and budget constraints. Some legislators may have opposed committing new appropriations without a clearer demonstration of long-term benefits. The narrow passage of the amendment (8-6 vote) suggests that there was disagreement about whether state funding was necessary for the commission to be effective.

However, even without direct funding, the commission remains authorized to carry out its duties, meaning that policymakers may still pursue grocery cost reduction strategies, albeit with potentially limited resources and staffing.