44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO THE LEGISLATIVE BRANCH; PROMOTING TRUTH IN FORECASTING BY REQUIRING FISCAL IMPACT ESTIMATES TO CONSIDER PROBABLE BEHAVIORAL RESPONSES TO TAX LAW CHANGES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 2-5-4.1 NMSA 1978 (being Laws 1979, Chapter 229, Section 1) is amended to read:

"2-5-4.1. LEGISLATIVE SYSTEMS--COORDINATION WITH OTHER AGENCIES--FISCAL IMPACT INFORMATION.--The legislative finance committee shall cooperate with the office of the governor, the department of finance and administration and the taxation and revenue department in designing a timely and accurate system of providing fiscal impact and other pertinent information to the legislature concerning pending legislation. To the extent that the pending legislation proposes one or more changes to laws relating to taxation, the fiscal impact information provided shall be based on assumptions that estimate the probable behavioral response of taxpayers, businesses and other citizens to the proposed changes and shall include a statement identifying those assumptions."