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F I S C A L I M P A C T R E P O R T

SPONSOR Nuñez

ORIGINAL DATE

LAST UPDATED

1-24-2008

HB HJM15

SHORT TITLE Pump Installer Regulations Task Force

SB

ANALYST Woods

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

NFI

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY08

FY09

FY10 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

$0.1

$0.1

$0.1

$0.1 Recurring

1

General

Fund

(Parenthesis ( ) Indicate Expenditure Decreases

SOURCES OF INFORMATION

LFC Files

Responses Received From

Office of the State Engineer (OSE)

New Mexico Department of Agriculture (NMDA)

Regulation and Licensing Department (RLD) )

SUMMARY

Synopsis of Bill

House Joint Memorial 15 resolves that the state engineer appoint a task force that includes the

New Mexico farm and livestock bureau, the New Mexico cattle growers association, the dairy

producers of New Mexico, the New Mexico home builders association, the realtors association

of New Mexico, the New Mexico ground water association, the associated builders and

1

Projected by OSE. See Administrative Implications.

House Joint Memorial 15 – Page

2

contractors of New Mexico, and the construction industries division of the regulation and

licensing department to develop regulations for ground water well pump installer certification.

There is no appropriation attached to this legislation.

FISCAL IMPLICATIONS

OSE indicates that this legislation significantly impacts the agency as it would need to devote

existing resources to establish a task force and coordinate the development of regulations for

certifying pump installers. It estimates that, at a minimum, 1 FTE plus additional resources for

operating costs, i.e. copying, mailing, travel costs, etc., will be required from the OSE to

accomplish the requested task. The estimated time for completion – through promulgation of the

requested rules – is 2-years. More than one OSE staff member will be involved with the process

but the full-time equivalent is estimated to be 1 FTE.

Additionally, significant staff time would be required to coordinate the task force and hold three

to five meetings or workshops to develop a regulatory framework for certifying pump installers.

Promulgating the actual regulations would require at least five additional meetings or workshops

plus the mandatory hearing in Santa Fe for final promulgation of the regulations.

SIGNIFICANT ISSUES

OSE anticipates that defining the regulatory responsibilities of the OSE and the Construction

Industries will be a significant task. Construction industries regulate and license electricians and

the state engineer regulates and licenses well drillers. Pump installers do not fall in either

category. Further, the development of regulations will be a multi-year process – a minimum of 2

years is estimated, and some members of the task force may not have the necessary background

to review the technical issues on pump installation and groundwater protection. The OSE does

not regularly employ electrical engineers so would have to rely on other agencies input for the

electrical requirements of the rules and regulations.

PERFORMANCE IMPLICATIONS

OSE notes that no funds are provided by this legislation, so tasks would have to be accomplished

within OSE’s presently available resources. The requested tasks would take resources away

from other agency projects and other agency priorities that, in turn, affect the agency’s ability to

meet its performance measures. RLD adds that representatives from the Construction Industries

Division at the Regulation and Licensing Department, among others, will be a part of the task

force that will develop regulations for ground water well pump installer certification.

ADMINISTRATIVE IMPLICATIONS

OSE predicts that significant staff time would be required to coordinate the task force and hold

up to five meetings or workshops to develop a regulatory framework for certifying pump

installers. Promulgating the actual regulations would require at least five additional meetings or

workshops plus the mandatory hearing in Santa Fe for final promulgation of the regulations.

Also, OSE staff would be responsible for promulgating or implementing regulations,

administering the pump installer licensing program, issuing pump installer licenses and

providing continuing education for pump installation certification. It is estimated that, at a

House Joint Memorial 15 – Page

3

minimum, 1 FTE plus additional resources for operating costs, i.e. copying, mailing, travel costs,

etc., will be required from the OSE to accomplish the requested task. The estimated time for

completion – through promulgation of the requested rules – is 2-years. More than one OSE staff

member will be involved with the process but the full-time equivalent is estimated to be 1 FTE.

2

OTHER SUBSTANTIVE ISSUES

OSE suggests that the Construction Industries Division may require a pump installer to have a

contractor’s license for the electrical work involved in pump installation. The issue of if and

when a contractor’s license is required during pump installation needs to be reviewed and

resolved.

ALTERNATIVES

OSE proposes the modification of the goal of the task force from “developing regulations" to

“recommending a regulatory framework for certifying pump installers". The task force would be

responsible for recommending the regulatory roles of the OSE and the Construction Industries

Division in certifying pump installers, and then propose general regulations for the certification

process.

BFW/nt

2

It should be noted that the agency does not supply any projections of costs or FTE requirements.