Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Anyanonu
LAST UPDATED
ORIGINAL DATE 1/31/25
SHORT TITLE
Attorneys and Contractors as Property
Managers
BILL
NUMBER House Bill 100
ANALYST Chavez
REVENUE*
(dollars in thousands)
Type FY25 FY26 FY27 FY28 FY29
Recurring or
Nonrecurring
Fund
Affected Real
estate
licenses
fees
Indeterminate
but minimal
loss
Indeterminate
but minimal
loss
Indeterminate
but minimal
loss
Indeterminate
but minimal
loss
Indeterminate
but minimal
loss
Recurring
Real Estate
Commission
Fund
Parentheses ( ) indicate revenue decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
New Mexico Attorney General (NMAG) Regulation and Licensing Department (RLD)
Agency Analysis was Solicited but Not Received From
Administrative Office of the District Attorneys (AODA)
New Mexico Mortgage Finance Authority (MFA)
SUMMARY
Synopsis of House Bill 100
House Bill 100 (HB100) amends exceptions to the Real Estate Brokers and Salesman Act,
allowing attorneys and contractors licensed under the Construction Industries Licensing Act to
perform property management services without a real estate license.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
FISCAL IMPLICATIONS
Creating two new exemptions to licensure requirements for property managers would result in
loss of revenue for the real estate commission fund. Additionally, attorneys and contractors who
act as property managers with a current real estate license will no longer need to pay to maintain
the license, further reducing fund revenue. However, LFC staff believe the fiscal impact of House Bill 100 – Page 2
HB100 is indeterminate but minimal due to the exemptions being for attorneys, who do not
typically operate in property management as a regular function, and for contractors. who only
render the service when contracted and not on a regular basis.
SIGNIFICANT ISSUES
The Regulation and Licensing Department (RLD) provides the following:
When preparing this fiscal impact response, RLD contacted the Real Estate Commission,
which is administratively attached to RLD, to give Commission members an opportunity
to provide input regarding HB100. The following concerns about HB100 were raised by a
member(s) of the Real Estate Commission:
1. Regulatory Gaps: By exempting attorneys and contractors from property
management oversight, this creates a regulatory gap where these individuals
are not held to the same standards as licensed property managers.
2. Consumer Protections: The exemption potentially reduces protections for
property owners and tenants, as attorneys and contractors may not adhere to
the professional and ethical standards enforced by the Real Estate
Commission.
3. Jurisdictional Overlap: Attorneys are already regulated by the State Bar, and
contractors by the Construction Industries Division. Allowing these
exemptions creates jurisdictional confusion and inconsistent oversight for
property management activities.
4. Market Confusion: Consumers might struggle to understand why attorneys
and contractors are not held to the same accountability standards as licensed
property managers.
5. Dilution of Professional Standards: Property management requires specialized
skills, education, and training. Exemptions for attorneys and contractors do
not guarantee that they possess the necessary expertise for effective property
management.
6. Fiduciary Responsibility: Currently under Real Estate Commission
requirements, licensees engaged in property management must maintain a
trust account of all monies received from tenants and then disburse those
funds as specified in the management agreement. While attorneys regularly
have trust accounts for their clients, it is not clear that they would be required
to do the same for property management. Contractors would have no
responsibility to maintain a trust account for property management services,
providing less protection for owners and tenants.
ADMINISTRATIVE IMPLICATIONS
RLD provides the following:
The Real Estate Commission, with administrative assistance from RLD, would be
required to conduct an administrative rulemaking process in order to amend and update
New Mexico Administrative Code 16.61.24, Property Management, in compliance with
the terms of HB100.
FC/SL2 /rl