NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

LFC Files

LFC Sunrise/Sunset Subcommittee Report

SUMMARY

Synopsis of Senate Finance Committee Amendment

The Senate Finance Committee amendments to Senate Bill 402 would apply specifically to the Board of Examiners for Architects. The amendments would eliminate the age requirements for board members. The remainder of the changes are technical clean up items.

Synopsis of Bill

This bill would delete a private member to be replaced by a public member on the New Mexico Real Estate Commission; add a public member to the Board of Thanatopractice; delete a private member to be replaced by a public member on the Real Estate Appraisers Board; reclassify the architectural educator member as a public member and delete a private member to be replaced by a public member on the Board of Examiners for Architects; add a public member to the State Board of Professional Engineers & Land Surveyors; and eliminate the director of the agricultural experiment station of New Mexico state university to be replaced by a public member on the Coal Surface Mining Commission.

Significant Issues

The sunset process is an integral element to legislative oversight that ensures accountability of self-regulating professions such as dentistry or accountancy. During the 1998 sunset review process of these boards and commissions, the LFC sunrise/sunset subcommittee voiced concerns about the lack of public member involvement on professional/licensing and independent boards or commissions. In many cases, the disparity is seen directly in the ratio of private members to public members.

To balance the public's interest, the public members' presence on the boards becomes an important component of the dynamics of the board effectiveness as a regulatory body. Equity would dictate a 50- 50 split between private and public members. Yet, governing bodies have long recognized the value of industry and practitioner input and expertise on board operations, and therefore, have structured boards to allow practitioners to maintain a majority. According to the Regulation and Licensing Department (RLD) administrators, "one [member] less of quorum" is the appropriate level for public board member representation.

Though not statutorily, the bill, by focusing specifically on public member representation, will also place responsibility on RLD for ensuring public members are adequately trained. The intent of the subcommittee is to require the department to offer more independent training specifically to public members.

FISCAL IMPLICATIONS

Overall, the bill will ultimately add two members to boards or commissions. Currently, the department spends approximately $166.0 for in-state travel and $60.0 for out-of-state travel for board members. Adding two new members could potentially cost from $4.0 to $6.0, annually. Additionally, the affected boards could incur minor costs, however, those costs would be negligible and could be easily absorbed in the boards' operating budget.

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