FISCAL IMPACT REPORTS FOR RULES

SB0258

SENATE BILL 258

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

INTRODUCED BY

Larry R. Scott

AN ACT

RELATING TO RULES; REQUIRING THE LEGISLATIVE FINANCE COMMITTEE
TO PREPARE FISCAL IMPACT REPORTS OF RULES OF SIGNIFICANT FISCAL
IMPACT UPON THE REQUEST OF LEGISLATIVE LEADERSHIP.

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

SECTION 1.
Section 2-5-4 NMSA 1978 (being Laws 1967,
Chapter 267, Section 1) is amended to read:

"2-5-4. LEGISLATIVE FINANCE COMMITTEE--ADDITIONAL
DUTIES.--

A. The legislative finance committee, in addition
to all other duties prescribed by law, shall annually review
budgets and appropriations requests and the operation and
management of selected state agencies, departments and
institutions and shall make recommendations with respect
thereto to the legislature.

B. To carry out the purposes of this section, the
legislative finance committee shall establish a budget analysis
division staffed with persons knowledgeable and proficient in
budget analysis and budget preparation.

C. Each state agency, department and institution
shall furnish to the legislative finance committee a copy of
its appropriation request made to the department of finance and
administration at the same time [
such
]
the
request is made [
to
such department
]. Each state agency, department or institution
shall also furnish to the legislative finance committee and its
staff any other supporting information or data deemed necessary
to carry out the purposes of this section.

D. The legislative finance committee or, when it
deems necessary, its staff may hold such hearings and require
such testimony from officers and employees of each state
agency, department or institution as is necessary to carry out
the purposes of this section.

E. Not later than the first week of any regular
legislative session, the legislative finance committee shall
furnish a document containing its budget recommendations to
each member of the senate finance committee
and
the house
appropriations and finance committee and to those other members
of the legislature [
which
]
who
may request it. A copy shall
also be furnished to the governor and to the department of
finance and administration.

F. Upon request of the speaker of the house of
representatives, the president pro tempore of the senate, the
minority leader of the house of representatives or the minority
leader of the senate to provide a fiscal impact analysis of a
proposed executive agency rule that is expected to have a
significant fiscal impact, the staff of the legislative finance
committee shall conduct a fiscal impact analysis of the
proposed rule and report the results to the members of the
legislative finance committee as soon as practicable. Upon
receipt of the request, the staff shall request from the agency
proposing the rule a statement of need for the rule and the
costs to the agency to comply with and implement the rule. The
fiscal impact report shall include:

(1) the statement of need and compliance costs
submitted by the proposing agency;

(2) the authorizing statute for the proposed
rule;

(3) the estimated fiscal impact of the
proposed rule, including administrative costs, costs to private
industry impacted by the rule and any risks to the estimated
fiscal impact;

(4) potential secondary benefits or
disadvantages of the proposed rule to the state and to private
industry; and

(5) the sources relied on in performing the
analysis.

G. As used in this section, "rule of significant
fiscal impact" means a rule that will result in or is likely to
result in an annual effect on the state or private industry of
ten million dollars ($10,000,000) or more.
"

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