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."

- 4 -