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 Sens. Trujillo, Sedillo Lopez, and Figueroa /Rep. Herndon LAST UPDATED ORIGINAL DATE 2/25/2025 SHORT TITLE Social Work Licensure Compact BILL NUMBER Senate Bill 105 ANALYST Hanika-Ortiz ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT* (dollars in thousands) Agency/Program FY25 FY26 FY27 3 Year Total Cost Recurring or Nonrecurring Fund Affected RLD $40.0 $40.0 Nonrecurring Other state funds RLD $8.0 $8.0 $16.0 Recurring Other state funds Total $48.0 $8.0 $56.0 Other state funds Parentheses ( ) indicate expenditure decreases. *Amounts reflect most recent analysis of this legislation. Relates to House Bills 79, 81, 82, 110, and 217 and Senate Bills 46 and 104 Sources of Information LFC Files Agency Analysis Received From Regulation and Licensing Department (RLD) Department of Health (DOH) Public Education Department (PED) SUMMARY Synopsis of Senate Bill 105 Senate Bill 105 (SB105) enters New Mexico into the Social Work Interstate Compact (SW compact) to facilitate interstate practice for social workers. The compact preserves the regulatory authority of states; promotes mobility to address workforce shortages; facilitates the exchange of licensure and disciplinary information between states; enhances cooperation in regulating social workers by sharing discipline information; and allows for use of telehealth to increase access. Participating states may charge fees for granting a multistate license. If an applicant is eligible, the licensee’s home state may issue a multistate license that authorizes a licensee to practice in all participating states. To maintain membership in the SW compact, states select one delegate to serve on the Social Work Licensure Compact Commission. The commission will develop and maintain a coordinated database and reporting system to which participating states would submit a uniform data set of licensee information. Criteria for state participation includes criminal history background check licensure requirement. The compact grants power to the home state to investigate violations by licensees from other member states. Senate Bill 105 – Page 2 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 RLD said fees to upgrade the NM Plus licensing system are approximately $40 thousand. An administrative rulemaking process, including a public hearing and publication of notices and proposed rules, would be required. RLD noted that it believed the Social Work Board can absorb these costs. The board “may” but more likely will be required to pay an annual assessment based on a formula determined by the commission. If SB105 is enacted, the Board will incur travel expenses for its delegate to attend annual commission meetings. If the Board is responsible for these costs, the potential expenses are estimated to cost a minimum of $2,000 per day for one delegate each year, with an estimated four days of travel and attendance each year. Therefore, RLD anticipates a recurring expense of $8,000 per year in FY26 and future fiscal years. With respect to adverse actions, the issuing state may incur expenses related to taking adverse action against a licensee. The board is in support of SB105. The board cites concerns about unmet mental health diagnoses and treatment needs and substance misuse/substance use disorders, limited mobility and licensure for social workers, reduced availability of telehealth options, and ongoing social work shortages. SIGNIFICANT ISSUES The Department of Health (DOH) explains that the compact is a result of collaboration between the Department of Defense, the Association of Social Work Boards, and the Council of State Governments, which houses the National Center for Interstate Compacts. The compact has been activated by the membership of the required seven states, but multistate licenses are not yet being issued; that process will take 12 to 24 months. They note that the lack of easy interstate licensing hits military families particularly hard, as at least 36 percent of military spouses need an occupational license for employment. Additionally, DOH notes, social work services are often required by a student’s Individualized Education Plan, and those services are reimbursable. School social workers may require specialized training for working in a special education program. New Mexico’s Medicaid services plan also allows for schools to be reimbursed for social work services for their general education students, as well. ADMINISTRATIVE IMPLICATIONS RLD also explained that the board would be required to adopt rules in accordance with requirements to participate in the compact. In addition, staff would need to develop procedures for using the database, which is the licensure information system maintained by the commission. Background checks would also need to be implemented. RLD says those contracts already exists. Senate Bill 105 – Page 3 CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP This bill relates to other bills enacting other model interstate licensing compacts, including: House Bill 79 Audiology & Speech-Language Pathology Compact, House Bill 81 Occupational Therapy Compact, House Bill 82 Physical Therapy Licensure Compact, House Bill 110 Interstate Teacher Mobility Compact, House Bill 217 Counselling Compact, Senate Bill 46 Interstate Medical Licensure Compact, Senate Bill 104 Audiology & Speech Licensure Compact, and Senate Bill 106 Psychology Interjurisdictional Compact. AHO/rl/SL2