INTERIM ADMIN. RULES OVERSIGHT COMMITTEE

HB0230

HOUSE BILL 230

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Randall T. Pettigrew
and
Jimmy G. Mason
and
John Block

AN ACT

RELATING TO LEGISLATIVE AFFAIRS; CREATING THE INTERIM
ADMINISTRATIVE RULE OVERSIGHT COMMITTEE; REQUIRING LEGISLATIVE
REVIEW OF EXECUTIVE AGENCY PROPOSED RULES; AMENDING THE STATE
RULES ACT'S NOTICE OF PROPOSED RULEMAKING TO INCLUDE A FISCAL
IMPACT STATEMENT IF THE ESTIMATED COST OF IMPLEMENTING A
PROPOSED RULE IS GREATER THAN ONE MILLION DOLLARS ($1,000,000);
MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
A new section of Chapter 2 NMSA 1978 is
enacted to read:

"[
NEW MATERIAL
] INTERIM ADMINISTRATIVE RULE OVERSIGHT
COMMITTEE--CREATED--APPOINTMENT.--

A. The "interim administrative rule oversight
committee" is created as a permanent joint interim committee of
the legislature. The committee consists of twelve members who
shall be appointed as follows:

(1) three members shall be appointed by the
majority floor leader of the house of representatives;

(2) three members shall be appointed by the
minority floor leader of the house of representatives;

(3) three members shall be appointed by the
majority floor leader of the senate; and

(4) three members shall be appointed by the
minority floor leader of the senate.

B. The position of chair shall alternate between
the house of representatives and the senate and the two
political parties having the most members in both houses each
year; provided that at no time shall the political parties
having the most members in both houses not be represented as
either a chair or a vice chair.

C. Members shall be appointed for two-year terms
that shall expire on the first day of each odd-numbered year
regular session. The term of a member shall terminate when the
member ceases to be a member of the legislature. A member may
be removed at any time by the member's appointing authority.
Vacancies on the committee shall be filled for the unexpired
term by the respective appointing authority that makes the
original appointments.

D. The committee shall meet no less than one time
per month during the interim."

SECTION 2.
A new section of Chapter 2 NMSA 1978 is
enacted to read:

"[
NEW MATERIAL
] INTERIM ADMINISTRATIVE RULE OVERSIGHT
COMMITTEE--DUTIES--POWERS.--

A. The interim administrative rule oversight
committee shall:

(1) review rules proposed by an executive
agency;

(2) review committee staff analysis and
associated fiscal impacts of the rules at least two weeks prior
to the public rule hearing for the rules, except when the
legislature is in session;

(3) provide recommendations on the rules to
the proposing executive agency;

(4) recommend changes to the authorizing
statutes of a rule to clarify legislative intent; and

(5) direct the work of committee staff.

B. The interim administrative rule oversight
committee may endorse legislation as is necessary to amend or
repeal a statute authorizing an agency to promulgate rules."

SECTION 3.
A new section of Chapter 2 NMSA 1978 is
enacted to read:

"[
NEW MATERIAL
] INTERIM ADMINISTRATIVE RULE OVERSIGHT
COMMITTEE--STAFF.--The legislative council service shall hire
no more than four staff members for the interim administrative
rule oversight committee."

SECTION 4.
A new section of Chapter 2 NMSA 1978 is
enacted to read:

"[
NEW MATERIAL
] INTERIM ADMINISTRATIVE RULE OVERSIGHT
COMMITTEE--RULE REVIEW PROCEDURES.--

A. The legislative council service shall distribute
a notice of proposed rulemaking received by an executive agency
pursuant to Section 14-4-5.2 NMSA 1978 to the staff and members
of the interim administrative rule oversight committee when a
notice is received. Staff of the committee shall develop a
written analysis of the proposed rule that shall consider:

(1) the proposed rule in relation to the scope
of the authorizing statute;

(2) the necessity of the proposed rule;

(3) the fiscal impact of the proposed rule on
state agencies, political subdivisions, regulated persons,
businesses and all other foreseeable stakeholders if a fiscal
impact statement is required pursuant to Section 14-4-5.2 NMSA
1978 or otherwise requested by the committee pursuant to
Subsection B of this section;

(4) legal implications of the proposed rule on
existing federal and state laws; and

(5) the proposing agency's compliance with
notice requirements provided pursuant to the State Rules Act.

B. The interim administrative rule oversight
committee and its staff, at the request of committee members,
may request a fiscal impact statement from the agency proposing
a rule after receiving the rule even if the fiscal impact of
the rule does not exceed one million dollars ($1,000,000).

C. The staff of the interim administrative rule
oversight committee shall provide to committee members the
written analysis and the corresponding rule at least ten days
prior to the committee meeting at which the proposed rule will
be reviewed.

D. The interim administrative rule oversight
committee shall review the proposed rule and approve
recommendations to be provided to the proposing agency.
Following a meeting at which the proposed rule is reviewed,
committee staff shall submit the committee's approved
recommendations in writing to the proposing agency during the
public comment period for the proposed rule as provided
pursuant to the State Rules Act. These written recommendations
shall also be submitted to the attorney general and the
governor.

E. The requirements of this section shall not apply
to emergency rules as provided pursuant to the State Rules
Act."

SECTION 5.
Section 14-4-5.2 NMSA 1978 (being Laws 2017,
Chapter 137, Section 4) is amended to read:

"14-4-5.2. NOTICE OF PROPOSED RULEMAKING.--

A. Not later than thirty days before a public rule
hearing, the agency proposing the rule shall provide to the
public and publish in the New Mexico register a notice of
proposed rulemaking. The notice shall include:

(1) a summary of the full text of the proposed
rule;

(2) a short explanation of the purpose of the
proposed rule;

(3) an estimate of the cost of implementing
the proposed rule; provided that the agency shall include a
fiscal impact statement pursuant to Section 14-4-5.9 NMSA 1978
if the cost of implementing the proposed rule is estimated to
be greater than one million dollars ($1,000,000);

[
(3)
]
(4)
a citation to the specific legal
authority authorizing the proposed rule and the adoption of the
rule;

[
(4)
]
(5)
information on how a copy of the
full text of the proposed rule may be obtained;

[
(5)
]
(6)
information on how a person may
comment on the proposed rule, where comments will be received
and when comments are due;

[
(6)
]
(7)
information on where and when a
public rule hearing will be held and how a person may
participate in the hearing; and

[
(7)
]
(8)
a citation to technical information,
if any, that served as a basis for the proposed rule, and
information on how the full text of the technical information
may be obtained.

B. An agency may charge a reasonable fee for
providing any records in nonelectronic form when provided to a
person pursuant to this section. An agency shall not charge a
fee for providing any records in electronic form when provided
to a person pursuant to this section.

C. An internet link providing free access to the
full text of the proposed rule shall be included on the notice
of proposed rulemaking.

D. If the agency changes the date of the public
rule hearing or the deadline for submitting comments as stated
in the notice, the agency shall provide notice to the public of
the change.

E. The state records administrator or the
administrator's designee shall timely publish the notice of
proposed rulemaking in the next publication of the New Mexico
register."

SECTION 6.
A new section of the State Rules Act, Section
14-4-5.9 NMSA 1978, is enacted to read:

"14-4-5.9. [
NEW MATERIAL
] FISCAL IMPACT STATEMENT--REQUIREMENTS.--

A. A fiscal impact statement required pursuant to
Paragraph (3) of Subsection A of Section 14-4-5.2 NMSA 1978
shall include:

(1) the fiscal impact of the proposed rule on
other agencies, municipalities, counties, business sectors and
other entities that will be impacted by the proposed rule;

(2) the necessity of the rule;

(3) a statement on whether and how the rule is
consistent with the legislative intent of the authorizing
statute;

(4) whether the rule amounts to a mandate on
counties and municipalities and, if so, whether that mandate is
funded or unfunded; and

(5) whether the rule is necessary to comply
with a federal mandate.

B. The interim administrative rule oversight
committee and its staff at the request of committee members may
request a fiscal impact statement from the agency proposing a
rule after receiving the rule even if the fiscal impact of the
rule does not exceed one million dollars ($1,000,000) pursuant
to Section 4 of this 2026 act."

SECTION 7.
APPROPRIATION.--Two million dollars
($2,000,000) is appropriated from the general fund to the
legislative council service for expenditure in fiscal year 2027
to staff the interim administrative rule oversight committee
and for other costs incidental to establishing the committee.
Any unexpended balance remaining at the end of fiscal year 2027
shall revert to the general fund.

SECTION 8
. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2026.

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