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HB 571: DFA COST-BENEFIT ANALYSIS OF AGENCY RULES

An Act Relating To Government Operations; Providing Authority To The Department Of Finance And Administration To Perform Cost-benefit Analyses On Agency Rules.

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HIGH HB 571
DFA COST-BENEFIT ANALYSIS OF AGENCY RULES

Legislative URL:
HB 571 on nmlegis.gov
Emergency Clause:
No
Germane:
N/A
Location:
- OTHER -
Action:
[22] HBIC/HAFC-HBIC [39] w/o rec-HAFC API.
Issue(s):

Companion Bills

Bills:
DFA COST-BENEFIT ANALYSIS OF AGENCY RULES

Related Legislators

Bill Sponsor:

Related Documents

Downloads:
Introduced
HBIC Committee Report
Fiscal Impact Report
LESC Analysis
Summary

This piece of legislation requires the Department of Finance and Administration to perform a cost-benefit analysis of each rule proposed by a State agency and to report its findings and recommendations to the Governor and the Legislative Finance Committee (LFC) as well as post the report on the State’s sunshine portal. It will make the analysis and related public documents available to interested parties, regulated persons and nonprofit corporations whose members may be affected by the proposed rule at least thirty days before presenting the analysis to the Governor and LFC.

 

With respect to the cost-benefit analysis:

  • The Department will consider any verified data provided voluntarily by interested parties, regulated persons and nonprofit corporations whose members may be affected by the proposed rule. However, neither the Department nor any State Agency is authorized to require an interested party or a regulated person to provide information for the analysis.
  • The analysis will be a public document.
  • The Department or State Agency must protect the any confidential and proprietary business plans and other confidential information submitted.
  • Proposed rules making only technical amendments are exempt.

 

The bill also requires the Department to perform a retroactive cost-benefit analysis for rules adopted and taking effect after December 31, 2012 for the three years following the rule’s effective date. A retroactive cost-benefit analysis must address a number of issues, including the following:

  • an estimate of the primary and direct benefits of the rule, including the impact on, among other things, consumer protection, energy reliability and the environment;
  • an estimate of the secondary or indirect benefits;
  • an the estimate of any cost savings to regulated persons;
  • a comparison of the pre-adoption cost-benefit analysis and the date of the retroactive analysis.

 

One concern with this bill might be that rules that are needed to protect the public and New Mexico’s natural resources are not adopted in a timely manner, or are not adopted at all, because of the need to do the cost-benefit analyses. Another concern might be that the Department will be so bogged down in performing the analyses that it will become unable to perform its other duties.

This bill is a companion bill to Senate Bill 533.

Outcome: HB 571 died in the House Appropriations and Finance Committee.

Date of Summary:  2/14/13; Updated 5/15/13