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 Sanchez/Pettigrew
LAST UPDATED
ORIGINAL DATE 02/12/2025
SHORT TITLE Engineer Licensure
BILL
NUMBER House Bill 323
ANALYST Montano
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
No fiscal
impact
No fiscal
impact
No fiscal
impact
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Board of Licensure for Professional Engineers and Professional Surveyors (BLPEPS)
Agency Analysis was Solicited but Not Received From
Regulation and Licensing Department (RLD)
SUMMARY
Synopsis of House Bill 323
House Bill 323 (HB323) revises exemptions under the Engineering and Surveying Practice Act
to clarify when business-employed engineers must be licensed. The bill modifies the conditions
under which an engineer employed by a business entity is exempt from licensure requirements
by expanding the definition of where unlicensed engineers may perform work.
Under current law, engineers employed by a business entity are exempt from state engineering
licensure requirements so long as they only perform engineering work related to their employer’s
operations and do not offer services to the public. Previously, this exemption was limited to work
within the legal boundaries of property that the business entity owns, leases, or lawfully operates.
HB323 expands this exemption to also include work on properties where the business entity or
an affiliated business entity has an easement or right-of-way, meaning unlicensed engineers may
now perform work beyond property the business directly owns or leases.
Additionally, the bill reinforces that any engineering work performed on public works projects,
or within off-premises easements, constitutes services to the public and remains subject to full
licensure requirements under the Engineering and Surveying Practice Act. This ensures that any
engineering work that impacts public infrastructure or government projects must still be House Bill 323 – Page 2
performed by licensed engineers.
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 Board of Licensure for Professional Engineers and Professional Surveyors (BLPEPS)
expects no fiscal impact with the enactment of HB232.
SIGNIFICANT ISSUES
BLPEPS notes:
In 2021, the Board received a letter from the National Transportation Safety Board
(NTSB) urging the State of New Mexico to act on the safety recommendation cited in
their letter. This, as well as public input for several preceding years, led to a change in
Board Rules in 2022 and, in 2023, the board updated the Engineering and Surveying
Practice Act with language to the industrial exemption. The change, which is considered
a best practice for protection of the public, allows that the practice of engineering without
a license is limited to the legal boundaries of the property owned, leased or lawfully
operated by the business entity or affiliated business entity that employs the engineer. If
at any time the engineer provides services outside the boundaries of the property,
including in public easements, the engineer must be licensed and is subject to the
Engineering and Surveying Practice Act. Notably, the 2022 and 2023 changes stopped
short of the full NTSB recommendation that all projects involving the practices of
engineering and natural gas, regardless of location or ownership, be completed under the
direction of a professional engineer.
ADMINISTRATIVE IMPLICATIONS
BLPEPS notes:
Prior to the language adopted in 2022, the board received periodic inquiries from the
public as to where the practice of engineering without a license was permitted. Many of
these questions were focused on practice within areas where there was significant public
interaction such as along and crossing roads and highways and on private residences.
These concerns focused acutely on utilities and easements and where the responsibility
lies for engineering errors in these areas. HB323 would reverse the clarity provided to the
public in the changes of 2022 and 2023.
OTHER SUBSTANT IVE ISSUES
BLPEPS notes:
National model law for professional engineers does not contemplate an exemption such
as that currently afforded in the New Mexico act, let alone what is proposed in HB323.
Several surrounding states do have industrial exemptions, but not all states. Texas, for
example, has very explicit industrial sectors and conditions that allow for exemption, but
not as broad as that already provided to industry in New Mexico.
House Bill 323 – Page 3
NM/hj