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

SPONSOR HCPAC

ORIGINAL DATE

LAST UPDATED

3/06/2007

3/08/2007 HB CS/1197/a HBIC

SHORT TITLE Small Business Regulatory Relief

SB

ANALYST Schuss

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

General Services Department (GSD)

SUMMARY

Synopsis of HBIC Amendment

The amendment proposed by the House Business and Industry Committee clarifies the

submission of rules. The amended bill will state that all rules shall be submitted both

electronically and by paper copy.

Synopsis of Original Bill

The House Consumer and Public Affairs Committee Substitute for House Bill 1197 grants small

business regulatory relief and requires notice for proposed rule changes that may have an adverse

effect on small business.

HB 1197 amends the Small Business Regulatory Relief Act to require an agency:

•

to provide a copy of a proposed rule that may have an adverse effect on small business to

the Small Business Regulatory Advisory Commission 60 days prior to the scheduled

adoption of the proposed rule;

•

to notify the Small Business Regulatory Advisory Commission directly of public

hearings on the proposed rule change at the same time notice is given to the public.

•

to submit all rules electronically

CS/House Bill 1197/a HBIC – Page

2

SIGNIFICANT ISSUES

According to GSD, pursuant to the State Rules Act, the effective date of a rule is the date of

publication in the New Mexico Register. The time requirements for notice to the commission in

HB 1197 are dependent upon the “adoption" of the rule. The term “adoption" is unclear and

could cause confusion in determining when notice is due to the commission.

ADMINISTRATIVE IMPLICATIONS

The Oil Conservation Division (OCD) will need to revise its rulemaking process. By statute, it

must provide at least 10 days notice prior to a rulemaking hearing, except in emergencies. See

NMSA 1978, Section 70-2-23. OCD notice rules currently provide for notice of rulemaking no

less than 20 days prior to hearing.

TECHNICAL ISSUES

EMNRD stated the following technical issue in the original bill:

HB 1197 provides for a notice period prior to “the scheduled adoption" of the rule. Rules

are often “adopted" by a rulemaking body either at or some time after a public hearing or public

comment period. (The rules then become “effective" some time later, usually upon publication

in the New Mexico Register or on a later date specified in the rule.) If “the scheduled adoption"

is construed as the date the rulemaking body is expected to act on the proposed rule, the intent of

HB 1197 could be circumvented by providing the required notice a few days before (or even

after) the public hearing or comment period expires, and delaying action by the rulemaking body

until after the sixty day notice period. If the intent is to provide notice to the commission in time

for the commission to provide input on the proposed rule, the notice period should run before the

hearing or before expiration of the public comment period.

BS/mt