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

SPONSOR Cisneros

ORIGINAL DATE

LAST UPDATED

2-14-07

3-11-07 HB

SHORT TITLE Mine Safety Rule Enforcement

SB 819/aSJC

ANALYST Woods

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates HB682

SOURCES OF INFORMATION

LFC Files

Responses Received From

Energy, Minerals and Natural Resources Department (EMNRD)

SUMMARY

Synopsis of SJC Amendment

Senate Judiciary Committee amendment to Senate Bill 819 reflects the following language:

1. On page 3, between lines 20 and 21, insert the following new paragraph:

"(4) if a mine is found to be unsafe during an inspection, give written notice

that the mine is unsafe to the owner, operator or manager of the mine with an

explanation for the notice;".

2. Renumber the succeeding paragraphs accordingly.

3. On page 7, line 3, after "shall", insert "issue an order closing all or any portion of

the mine to regular operations and".

4. On page 12, line 21, after "represent" insert "and balance management and non-

management employees at".

Senate Bill 819/aSJC – Page

2

5. On page 13, line 13, after the closing bracket insert "Voting members of the board

shall receive compensation pursuant to the Per Diem and Mileage Act.".

6. On page 14, line 14, strike "may" and insert in lieu thereof "shall".

7. On page 19, line 12, strike "may" and insert in lieu thereof "shall".

The amendment carries no appropriation language. The Energy, Minerals and Natural Resources

Department supports the amendment noting that the language has been agreed upon with

representatives of industry, management, and labor, and, further, that the amendment improves

the legislation.

Synopsis of Original Bill

Senate Bill 819 seeks to change to the state’s mine safety laws in an effort to bring these laws in

line with the current role of the State Mine Inspector and the Mining Safety Board. The changes

fall into the following categories:

.

repeal outdated statutes that have been superseded by federal mine safety laws;

.

rewrite the laws governing the certification of mine personnel. Certain levels of coal

mine officials (e.g., foremen) must be certified by the Inspector. These changes move

most of the qualifications to rules and create a process for disciplining officials and

appealing the Inspector's actions to the Safety Board.

.

clarify the role of the Inspector and the Mining Safety Board. The duties of the

Inspector are rewritten to reflect the current reality. The Mining Safety Board is given

a clearer role in rulemaking and appeals of Inspector decisions.

State Mine Inspector’s duties are clarified in Sections 2 through 6 (Sections 69-5-7, -9, -10 -14, -

17). The Inspector will conduct training programs, provide compliance assistance, certify mine

personnel, conduct inspections, and respond to emergencies. Other statues with outdated or

duplicative duties are repealed (Sections 69-5-8, -11, -13, -15).

Definitions pertaining to mine safety are combined in Section 8 (Section 69-8-2) and now

include several definitions from federal law to avoid conflicts. Unneeded or duplicative

definitions are repealed (Sections 69-4-1 to -10).

The name and composition of the Mining Safety Board are changed (Section 9 – 69-8-3) to

reflect the new role of the Board and the need for active membership. The process for adopting

mine safety rules is clarified (Section 10 – 69-8-4) to give the Board the rulemaking authority

and provide for a clear public rulemaking process. Other rulemaking provisions are unnecessary

and are repealed (Sections 69-8-5 through 10 and 69-8-14). The Board is also given a role in

reviewing the decisions of the Inspector through certification appeals (Section 11) and variance

appeals (Section 12).

The process for certifying mine personnel is rewritten to reflect that currently only mine foremen

and mine examiners are certified (Sections 14 and 15: 69-14 -1 and -2), that the mining safety

board can adopt rules to establish certification requirements and procedures (Section 16: 69-14-

Senate Bill 819/aSJC – Page

3

3) and that the Inspector may, under certain limited circumstances, take action against a

certificate holder (Section 17: Section 69-14-4).

Numerous sections which include duties now superseded by federal mine safety laws and

provisions for outdated mining practices are repealed (Section 18).

There is no appropriation attached to this legislation.

SIGNIFICANT ISSUES

EMNRD indicates that the State Mine Inspector’s duties are clarified in Sections 2 through 6

(Sections 69-5-7, -9, -10 -14, -17). The Inspector will conduct training programs, provide

compliance assistance, certify mine personnel, conduct inspections, and respond to emergencies.

Other statues with outdated or duplicative duties are repealed (Sections 69-5-8, -11, -13, -15).

Definitions pertaining to mine safety are combined in Section 8 (Section 69-8-2) and now

include several definitions from federal law to avoid conflicts. Unneeded or duplicative

definitions are repealed (Sections 69-4-1 to -10).

EMNRD adds that the name and composition of the Mining Safety Board are changed (Section 9

– 69-8-3) to reflect the new role of the Board and the need for active membership. The process

for adopting mine safety rules is clarified (Section 10 – 69-8-4) to give the Board the rulemaking

authority and provide for a clear public rulemaking process. Other rulemaking provisions are

unnecessary and are repealed (Sections 69-8-5 through 10 and 69-8-14). The Board is also given

a role in reviewing the decisions of the Inspector through certification appeals (Section 11) and

variance appeals (Section 12).

Further, that the process for certifying mine personnel is rewritten to reflect that currently only

mine foremen and mine examiners are certified (Sections 14 and 15: 69-14 -1 and -2), that the

mining safety board can adopt rules to establish certification requirements and procedures

(Section 16: 69-14-3) and that the Inspector may, under certain limited circumstances, take

action against a certificate holder (Section 17: Section 69-14-4); and numerous sections which

include duties now superseded by federal mine safety laws and provisions for outdated mining

practices are repealed (Section 18).

As background, EMNRD notes that many mine safety laws date to the 1930s and were partially

repealed and rewritten in the 1980s when the State Mine Inspector’s regulatory authority was

superseded by the federal Mine Safety and Health Administration and the Inspector’s office was

transferred to New Mexico Tech. While the role of the Inspector shifted from a regulatory entity

to primarily a training organization, many laws still included outdated duties of the Inspector. In

recent years, these outdated statutes have been the source of some confusion over the role of the

Inspector. From EMNRD’s perspective, this legislation will:

.

Provide clearer legislative guidance to the State Mine Inspector and the Mining Safety

Board on their duties;

.

Avoid conflict and duplicative regulation between the State Mine Inspector and the

federal mine safety and health administration;

Senate Bill 819/aSJC – Page

4

.

Provide limited oversight by the Mining Safety Board over the actions of the State

Mine Inspector;

.

Provide the mining industry and workers with a clearer list of the Inspector’s duties.

PERFORMANCE IMPLICATIONS

ENMRD concludes that, “This bill can focus the work of the State Mine Inspector and the

Mining Safety Board and avoid potential conflict and duplication."

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Duplicates HB 682.

OTHER SUBSTANTIVE ISSUES

EMNRD advises that the State Mine Inspector and the EMNRD Mining and Minerals Division

Director have worked together extensively in drafting this legislation with the intent to clarify

roles and reduce duplication.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

EMNRD indicates that the outdated laws that this bill would otherwise update or repeal, will

“continue to be a source of confusion."

BFW/nt