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 Gallegos/Serrato/Anyanonu/Hernandez, J./ Murphy LAST UPDATED ORIGINAL DATE 3/3/2025 SHORT TITLE Artificial Intelligence Interim Committee BILL NUMBER House Joint Memorial 9 ANALYST Leger ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT* (dollars in thousands) Agency/Program FY25 FY26 FY27 3 Year Total Cost Recurring or Nonrecurring Fund Affected Up to $24.0 Up to $56.0 No fiscal impact Up to $80.0 Nonrecurring General Fund Total Up to $24.0 Up to $56.0 No fiscal impact Up to $80.0 Nonrecurring General Fund Parentheses ( ) indicate expenditure decreases. *Amounts reflect most recent analysis of this legislation. Sources of Information LFC Files SUMMARY Synopsis of House Joint Memorial 9 House Joint Memorial 9 (HJM9) requests the Legislative Council to create a special interim committee during the 2025 interim dedicated to examining issues presented by artificial intelligence (AI) technology and developing legislative proposals for the regulation of the technology and the protection of data privacy. The committee is tasked with developing recommendations for legislation in the 2026 legislative session. FISCAL IMPLICATIONS HJM9 does not include an appropriation and LCS would have to absorb all associated costs. It is estimated mileage and per diem for meetings from April to December 2025 would cost up to $80 thousand for a 10-member committee. Costs will vary depending on the size of the committee and the frequency and duration of the meetings. SIGNIFICANT ISSUES According to the National Conference of State Legislatures (NCSL), artificial intelligence (AI) is the development of computer systems to perform tasks that normally require human intelligence, such as learning and decision-making, and has the potential to spur innovation and transform industry and government. As the science and technology of AI continues to develop, more products and services are coming onto the market. For example, companies are developing AI to help consumers run their homes and allow the elderly to stay in their homes longer. AI is used in healthcare technologies, self-driving cars, digital assistants, and many other areas of daily life. House Joint Memorial 9 – Page 2 Concerns about potential misuse or unintended consequences of AI, however, have prompted efforts to examine and develop standards. The U.S. National Institute of Standards and Technology, for example, is holding workshops and discussions with the public and private sectors to develop federal standards for the creation of reliable, robust and trustworthy AI systems. The top three legislative trends related to AI are consumer protection, deepfakes, and government use. According to House Joint Memorial 2, there were 24 interim committees during the 2024 legislative interim. ADMINISTRATIVE IMPLICATIONS The committee is tasked to develop recommendations for legislation in the 2026 legislative session. Bills considered germane in the 2026 legislative session must meet certain constitutional requirements (see “Technical Issues”). TECHNICAL ISSUES HJM9 uses the term “special” when referring to the special interim legislative committee but does not explain it. HJM9 might not be considered germane during the 2026 legislative session, which is constitutionally limited. According to the Constitution of the State of New Mexico Article IV, Section 5, Subsection B, Paragraph 1-3, every regular session of the Legislature convening during an even-numbered year shall consider: (1) budgets, appropriations, and revenue bills; (2) bills drawn pursuant to special messages of the governor; and (3) bills of the last previous regular session vetoed by the governor. ALTERNATIVES As an alternative to creating a new committee, the standing interim Science, Technology and Telecommunications Committee coud include AI in it work plan. JL/rl/hg