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 Matthews
LAST UPDATED 2/13
/2025
ORIGINAL DATE 02/11/2025
SHORT TITLE Psychology Interjurisdictional Act
BILL
NUMBER House Bill 242
ANALYST Montano
REVENUE*
(dollars in thousands)
Type FY25 FY26 FY27 FY28 FY29
Recurring or
Nonrecurring
Fund
Affected
Fee
No fiscal
impact
*See fiscal
implications
*See fiscal
implications
*See fiscal
implications
*See fiscal
implications
Recurring
Board of
Psychologist
Examiners
Fund
Parentheses ( ) indicate revenue decreases.
*Amounts reflect most recent analysis of this legislation.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
RLD
No fiscal
impact
$40.0
No fiscal
impact
$40.0 Nonrecurring
Board of
Psychologist
Examiners
Fund
RLD
No fiscal
impact
At least $8.0 At least $8.0 $16.0 Recurring
Board of
Psychologist
Examiners
Fund
Total
No fiscal
impact
At least $48.0 At least $8.0 At least $56.0
Board of
Psychologist
Examiners
Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Duplicates Senate Bill 106
Sources of Information
LFC Files
Agency Analysis Received From
Regulation and Licensing Department (RLD)
Department of Health (DOH)
House Bill 242 – Page 2
SUMMARY
Synopsis of House Bill 242
House Bill 242 (HB242) enacts the Psychology Interjurisdictional Compact (PSYPACT), which
is already in place in multiple states across the U.S. The compact standardizes the process for
licensed psychologists to provide telepsychology services and temporary in-person psychological
care across member states without requiring separate licenses in each jurisdiction.
By passing HB242, New Mexico would become a member of PSYPACT, aligning its regulations
with those of other participating states. This would allow New Mexico-licensed psychologists to
practice in other PSYPACT states and enables out-of-state PSYPACT-licensed psychologists to
provide services in New Mexico under the compact’s rules.
Under the compact, psychologists must hold a valid New Mexico license and obtain additional
EPassport and Interjurisdictional Practice Certificate credentials to participate. The bill also
creates a coordinated licensure information system, enabling states to share disciplinary and
licensing data on participating psychologists. Additionally, an oversight commission is
established to monitor compliance, investigate complaints, and enforce compact rules.
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
The Regulation and Licensing Department (RLD) states HB242 will require RLD to update the
NM plus licensing system at a cost $40 thousand and incur $8,000 in recurring travel costs.
RLD notes:
With respect to Article 7 of the bill, “Adverse Actions,” the issuing state would incur
expenses related to taking adverse action against a psychologist’s privilege to practice
within a member state. The issuing state is responsible for paying any witness fees, travel
expenses, mileage and other fees required by the service statutes of the state in which the
witnesses or evidence are located. Potential expenses that may be incurred by the RLD on
behalf of the Board of Psychological Examiners under this provision cannot be
reasonably estimated at this time.
RLD does not attempt to project the loss in revenue associated with HB242. The purpose of the
bill is to allow licensed psychologists outside of New Mexico to practice within New Mexico
while not needing to apply for a New Mexico state license. This will lead to a decrease in
potential revenue, as RLD will no longer collect license fee revenue from out-of-state
psychologists. Vermont predicted that joining PSYPACT would result in the state’s regulation
department losing $17.8 thousand in licensing fees and application fees. LFC staff have
requested this data from RLD to calculate an estimate for New Mexico.
House Bill 242 – Page 3
SIGNIFICANT ISSUES
RLD notes:
RLD consulted Board of Psychological Examiners members about whether it is believed
the Board would support the passage of HB242. At this time, it appears the Board has not
reached a consensus on joining the compact. There is significant concern among some
board members about the ability to discipline psychologists who cause harm to New
Mexico clients. There is also a concern that enforcement may be inconsistent across state
lines leading to public harm.
RLD also notes:
Individual licensed psychologists can apply for one or more of the certificates required to
participate in the compact: the EPassport to practice telepsychology and the
Interjurisdictional Practice Certificate for the temporary in‐person, face‐to‐face practice
of psychology. The costs to obtain these certificates are passed down to licensees. The
costs for the E. Passport are $40.00 one-time APIT application fee, $400.00 Application
Fee and $100.00 Annual Renewal Fee. The costs for the IPC are $40.00 one-time TAP
fee, $200.00 Application Fee and $50.00 Annual renewal fee.
ADMINISTRATIVE IMPLICATIONS
HB242 would require the New Mexico State Board of Psychologist Examiners to adopt rules to
better align with compact regulations. It would also require administrative staff to develop and to
document procedures for reporting disciplinary action and submitting licensing information to
the coordinated database managed by the PSYPACT commission.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
HB242 duplicates Senate Bill 106.
OTHER SUBSTANT IVE ISSUES
Forty-two other states have joined the compact, which increases the number of licensed
psychologists New Mexicans will have access to.
NM/SL2/rl