NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Expenditure Decreases)

** Appropriations may be needed for the operations of the new Office Mexican Affairs should this proposal be enacted.

SOURCES OF INFORMATION

LFC files

Tourism Department

Economic Development Department

SUMMARY

Synopsis of Senate Finance Committee Amendments

The amendments: (1) add the Office of Cultural Affairs and the State Records Center to the list of agencies that will participate in the Mexican Affairs Oversight Committee hearing process and in the activities of the Office of Mexican Affairs; and (2) strike the appropriations previously designated for the oversight committee ($50.0) and for the new agency ($325.0). Presumably, the costs of the oversight committee would be paid from the appropriation for legislative interim expenses contained in Subsection B of Section 3 of House Bill 1, the Feed Bill, already signed by the governor. Currently, appropriations for the Office of Mexican Affairs are not contained in any other bill, including the conference committee report of House Bill 2.

Synopsis of House Appropriations and Finance Committee Amendments

The amendments create the Office of Mexican Affairs as an executive agency and appropriates $325.0 to the office for expenditure in FY02 to carry out the operations of the agency. The office is to be responsible, to the extent possible, for directing the activities of the following agencies so the common economic, political, cultural and infrastructure issues with Mexico and Chihuahua are coordinated:

• •New Mexico Boarder Commission,
• •Boarder Authority,
• •Joint Border Research Institute,
• •Economic Development Department,
• •Tourism Department,
• •State Highway and Transportation Department,
• •Department of Health and
• •Department of Public Safety.

The amendment also sunsets the legislative oversight committee on July1, 2004. Finally, the amendment deletes reference to subpoena power in Section 3 of the introduced bill.

Synopsis of Original Bill

House Bill 740 appropriates $50.0 from the general fund and creates the legislative interim Mexican Affairs Oversight Committee:

• •the oversight committee would function from the date of its appointment until December 1, 2009;

• •the 10-member committee (5 from the House and 5 from the Senate) will be appointed by the respective House and Senate leaders so as to give the two major political parties in each house the same equal representation on the committee as prevails in each house, with no less than one member of either party from each house;



• •the speaker of the House of Representatives and the president pro tempore of the Senate will appoint the co-chairmen;



• •a work plan and budget, developed by the committee at its organizational meeting, will be approved by the Legislative Council and the Legislative Council Service will provide staff and or contractual services to support the work of the committee;



• •the committee's duties are to oversee all aspects of the state's relations with Mexico and the state of Chihuahua; hold hearings to ensure coordination of the activities of the New Mexico Board Commission, Joint Border Research Institute, Economic Development Department, Tourism Department and other agencies; establish relations with legislative agencies and committees in the state of Chihuahua to identify and resolve common issues; and recommendation legislation to the Legislature;



• •the New Mexico Board Commission, Joint Border Research Institute, Economic Development Department, Tourism Department, other agencies and political subdivisions are required to provide documents, material or information requested by the members of the committee or its staff;



• •subcommittees may be created; and

• •the committee shall make a report of its findings and recommendations for consideration by the Legislature by December 15 of each year.

Significant Issues

The purpose of the legislation is to establish relations with legislative agencies in Chihuahua and oversee all aspects of New Mexico's relations with Mexico and the state of Chihuahua.

FISCAL IMPLICATIONS

The appropriation of $50.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund. The appropriation would presumably cover mileage and per diem costs of members and possibly some contractual services, if required.

PERFORMANCE IMPLICATIONS

The Tourism Department reports that its own programs may be impacted by the work of the committee since one of its target markets is Mexico. The Economic Development Department reports that legislative involvement would speed up decision-making and implementation processes for border issues, but "not necessarily bi-national issues, which are resolved at the federal government level between the Republic of Mexico and the United States."

ADMINISTRATIVE IMPLICATIONS

The Legislative Council Service is directed to provide staff and/or contractual support to the committee. Staff of agencies such as the New Mexico Board Commission, Joint Border Research Institute, Economic Development Department, Tourism Department would become involved in the committee's activities. No additional FTE would be required.

SUBSTANTIVE ISSUES

Some of the proposed objectives may involve federal level negotiations between Mexico and the United States.

DKB/prr/njw