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 Pinto
LAST UPDATED
ORIGINAL DATE 2/8/2025
SHORT TITLE Native American Ombud Act
BILL
NUMBER Senate Bill 308
ANALYST Ortega
APPROPRIATION*
(dollars in thousands)
FY25 FY26
Recurring or
Nonrecurring
Fund
Affected $2,000.0 Recurring General Fund
Parentheses ( ) indicate expenditure 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
IAD
No fiscal
impact
$475.5 to
$975.5
$475.5 to
$975.5
$951.0 to
$1,951.0
Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Relates to Senate Bill 307
Sources of Information
LFC Files
Agency Analysis Received From
Indian Affairs Department (IAD) Department of Health (DOH)
SUMMARY
Synopsis of Senate Bill 308
Senate Bill 308 (SB308) appropriates $2 million from the General Fund to the Indian Affairs
Department (IAD) in fiscal year 2026 for the purpose of establishing the Office of the Native
American Ombud to identify, investigate, and resolve concerns related to services provided to
Native Americans. The Office of the Native American Ombud will be appointed by the secretary
of the Indian Affairs Department (IAD) and will oversee office operations, including
investigating complaints, monitoring policy implementation, and recommending legislative or
regulatory changes.
The bill states that the office will ensure confidentiality of records related to Native Americans Senate Bill 308 – Page 2
and provide an annual report detailing concerns, resolutions, and policy recommendations. The
bill mandates that all service providers post contact information for the office in a visible
location and online, if applicable. IAD must provide legal counsel to the office to assist in its
duties. The bill prohibits retaliation against individuals who file concerns and establishes a
process for addressing noncompliance.
The effective date of this bill is July 1, 2025.
FISCAL IMPLICATIONS
The appropriation of $2 million contained in Senate Bill 308 is a recurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of FY26 shall revert to the
general fund, but the Indian Affairs Department (IAD) will require recurring funds in its
operating budget to sustain the implementation of SB308 beyond FY26. The total cost of
implementing the bill was estimated by calculating personnel expenses, office space needs, and
legal representation requirements.
IAD estimates that hiring an ombudsman at a classified position pay band 80 will result in an
annual cost of approximately $101.5 thousand, including salary, benefits, and incidentals. The
bill also requires legal representation for Native Americans, necessitating an office attorney or
general counsel at an estimated annual cost of $124 thousand, according to the department.
Depending on the scope of the office’s responsibilities, additional attorneys and support staff
may be required, potentially costing between $200 thousand and $700 thousand in annual costs.
IAD reports that its current office space is at capacity and will require additional leased space to
accommodate the new staff, with an estimated annual cost of approximately $50thousand.
However, final lease expenses may vary depending on location and office requirements. Based
on these calculations, the annual cost of implementing SB308 is estimated to range from $475.5
thousand to $975.5 thousand, depending on staffing levels and office space requirements.
SIGNIFICANT ISSUES
The statutory duties outlined in SB308 overlap significantly with the existing statutory authority
of the IAD. Under NMSA 1978, Section 9-21-7, IAD is responsible for investigating and
addressing issues affecting Native American communities, coordinating with local, state, and
federal agencies, and advocating for policy changes. The bill’s establishment of the Office of the
Native American Ombud may duplicate these responsibilities without clearly defining how the
office will interact with IAD’s existing functions.
IAD notes that SB308 mandates that the department, through the ombud, prepare an annual
report on Native American concerns but does not specify where the report must be submitted or
whether it should be made public. Additionally, Section 6(B) states that certain information in
the report may be published, creating ambiguity about the transparency and accessibility of the
report’s findings, according to IAD.
IAD also states that the broad language in Section 6 regarding the confidentiality of records
raises concerns about compliance with the Inspection of Public Records Act (IPRA). IAD
maintains numerous Intergovernmental Agreements (IGAs) with tribes, pueblos, and nations, Senate Bill 308 – Page 3
many of which are currently considered public records. A blanket confidentiality provision could
create legal conflicts and limit public access to important governmental agreements, according to
the department.
IAD raises concerns about the requirement in Section 7 that "every person that provides services
to Native Americans" must post contact information for the ombud in a visible location. The
department notes that it is unclear whether this applies to IAD employees, state agency staff,
tribal service providers, or all individuals offering services to Native Americans.
IAD further notes that Section 8 requires the ombud to have legal counsel who does not have a
conflict of interest. However, if a conflict arises, IAD could collaborate with another state
agency for legal assistance.
IAD points out that the bill’s creation of an ombud also raises structural and operational
concerns, given that the State-Tribal Collaboration Act already requires each cabinet-level
agency to have a tribal liaison. These liaisons are responsible for engaging with tribal
governments, producing annual reports on agency interactions with Native communities, and
facilitating communication between state and tribal entities. Without clear delineation, the bill
may introduce redundancy and create confusion about the respective roles of the ombud, IAD,
and existing tribal liaisons.
Additionally, the Department of Health (DOH) notes that the bill assigns the ombud broad
investigative and training responsibilities, including monitoring state and federal policies
affecting Native Americans and developing certification procedures for ombuds. However, it
does not specify funding sources, staffing requirements, or how these functions will be
coordinated with existing state and tribal entities.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
IAD notes that Senate Bill 307 (SB307), the Child Ombud Act, proposes the creation of an
Office of the Child Ombud within the children’s code, which includes oversight related to
federal and state child welfare laws affecting Native American families. The selection committee
for the ombud position includes a member with expertise in the Indian Child Welfare Act
(ICWA) of 1978 and the Indian Family Protection Act, and the office’s staff must be trained in
tribal laws, culture, and sovereignty. Given the overlapping responsibilities between SB307 and
SB308, IAD suggests that clarification is needed to define how these offices will interact, avoid
redundancy, and ensure effective coordination in addressing Native American concerns.
AO/hj/SL2