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

SPONSOR Lundstrom

ORIGINAL DATE

LAST UPDATED

2/5/08

HM 54

SHORT TITLE Financial Institutions Affairs Committee

SB

ANALYST Cox

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$0.1 see analysis

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

House Memorial 54 requests that the New Mexico Legislative Council appoint a legislative

interim "financial institutions affairs committee" to study legislative issues relating to financial

institutions, including a potential reorganization of the constitutional and statutory framework for

regulating financial institutions subject to state law in New Mexico, and to the interplay between

federal and State Regulation of Financial Institutions. to recommend appropriate actions to

address relevant related issues.

This Memorial requests that the newly created legislative interim committee report its findings

and make its recommendations to the legislature by November 30, 2008.

Copies of this Memorial should be transmitted to the co-chairs of the New Mexico Legislative

Council.

FISCAL IMPLICATIONS

This Memorial may require some travel, per-diem, compilation and manpower to form the

requested committee and accomplish the committee’s purposes.

House Memorial 54 – Page

2

SIGNIFICANT ISSUES

This Memorial states that:

•

The regulatory framework for financial institutions at federal and state levels is complex

and overlapping, and the extent to which New Mexico can regulate financial institutions

operating in New Mexico is unclear.

•

Problems arising in areas such as mortgage lending, small loans and title insurance

illustrate the concern that the present regulatory framework for financial institutions at

the state level may be inadequate to protect the interests of New Mexico residents.

•

Because the present state regulatory framework for financial institutions in New Mexico

was enacted piecemeal over the years and has not been subjected to a comprehensive

review, that framework may be inefficient and conflicting and in need of a

comprehensive update.

•

Modern and evolving technology has given rise to new institutions, such as the internet,

that may not be adequately overseen by the current regulatory framework.

•

Legislation introduced during recent legislative sessions has addressed different parts of

the regulatory framework for financial institutions but has not been coordinated to

address the industry as a whole;

PRC/bb