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HB 358

INTERIM ADMIN. RULES OVERSIGHT COMMITTEE

2025 Regular Session Introduced by Randy Pettigrew

Establishes an interim Legislative Rule Oversight Committee to review executive rules and require cost estimates, with formal fiscal impact statements for costly rules, plus staff.

action postponed indefinitely
#legislature #stateagencies&departments(includingreorganization)
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Bill Summary · HB 358

Summary — HB 358: Interim Administrative Rule Oversight Committee

Status: Action postponed indefinitely (6/3/2025). Introduced: 11/12/2024. Subject area: Legislature / State agencies & departments (rulemaking oversight). Effective date (as written): July 1, 2025.

Main purpose

Create a permanent interim legislative committee and supporting staff to review and analyze executive-branch proposed administrative rules and the fiscal impacts of those rules, and to strengthen pre‑rule fiscal transparency by requiring cost estimates and, in many cases, formal fiscal impact statements.

Key provisions

  • Establishes an interim Administrative Rule Oversight Committee of the Legislature (12 members). The committee:

    • Meets monthly during the legislative interim (suspends meetings during sessions).
    • Reviews proposed executive agency rules and the committee staff’s analysis and fiscal impact statements at least two weeks before the public hearing on the rule.
    • May make recommendations to agencies on rule text and to the Legislature on statutory clarifications to better reflect legislative intent.
    • Must produce written analyses of proposed rulemaking addressing: statutory scope, necessity, fiscal impact on stakeholders, legal implications, and agency compliance.

  • Directs the Legislative Council Service (LCS) to hire up to four staff to support the committee and prepare the written analyses described above.

  • Amends the State Rules Act (Section 14‑4‑5.2 NMSA 1978) to require that each proposed rule include an estimate of the cost of implementing the rule. If the estimated implementation cost exceeds $1 million, the agency must include a formal fiscal impact statement meeting specified content requirements.

  • Fiscal appropriation: a one‑time, nonrecurring appropriation of $2,000,000 from the general fund to LCS to cover staff and start‑up costs for the committee (FY26). The bill notes that recurring funds would be needed for ongoing staffing and committee operations.

Who is affected

  • Primary: executive branch rulemaking agencies — additional duties to prepare cost estimates and, when applicable, fiscal impact statements; possible need for legal/economic support or contractors.
  • Legislative Council Service and Legislature — new staffing and review responsibilities.
  • Regulated entities, local governments, and stakeholders — subject to more detailed fiscal transparency on proposed rules and potentially greater legislative engagement before rules are finalized.

Fiscal and legal considerations

  • Fiscal: $2.0 million nonrecurring appropriation for LCS (FY26). State agency respondents warned of added administrative and possibly recurring costs (agency estimates vary; some agencies identified the need for economists, counsel, or contractors).
  • Legal/policy concerns: the Office of the Attorney General flagged potential separation‑of‑powers issues. Several agencies noted overlap with existing rule review processes (e.g., LCS receipt of rules is already required) and that the requirement to estimate implementation costs may be vague and difficult to apply consistently.

Procedural/timeline notes

  • Committee reviews must occur at least two weeks prior to an agency’s public rule hearing.
  • The bill was postponed indefinitely (6/3/2025), so it is not moving forward in its current form as of that action.

Compiled from official sources — confirm details with the bill’s official record.

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