\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.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

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(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 667, SB 678

SOURCES OF INFORMATION

LFC files

SUMMARY

Synopsis of HAFC Amendment

The House Appropriations and Finance Committee amendment defines that "post-secondary educational institution" means community college operating pursuant to Chapter 21, Article 13 NMSA 1978, a technical and vocational institute operating pursuant to Chapter 21, Article 16 NMSA 1978, an area vocational school operating pursuant to Chapter 21, Article 17 NMSA 1978, a branch community college operating pursuant to Chapter 21, Article 14 NMSA 1978 and New Mexico military institute, as provided in Chapter 21, Article 12 NMSA 1978;".

As amended by HAFC, the post-secondary educational institutions affected by this bill include eight branch campuses, three technical-vocational institutions, five community colleges and the New Mexico Military Institute. At a rate of distribution of $17.0 per 20,000 population, the 17 schools would be eligible for $289.0. With an additional $.5 for each officer certified by the New Mexico Law Enforcement Academy, an additional $8.5 would be available for a total impact of $297.5.

Synopsis of HJC Amendment

The House Judiciary Committee amends HB 28 replacing the phrase "junior college police departments."

Synopsis of Bill

The bill authorizes the distribution of money from the law enforcement protection fund to junior college police departments. The bill allows junior college police to receive an equitable distribution of money from the law enforcement protection fund. Previously, the fund allowed for distribution to municipal police, university police, tribal police and county sheriff's departments for use in maintenance and improvement of those department's in order to enhance efficiency and effectiveness of law enforcement services.

29-13-3. Distribution of certain insurance department collections; law enforcement protection fund created.

There is created in the state treasury the "law enforcement protection fund". Ten percent of all money received for fees, licenses, penalties and taxes from life, general casualty and title insurance business pursuant to the New Mexico Insurance Code [Chapter 59A NMSA 1978] shall be paid daily to the state treasurer and by him credited to the fund. On or before June 30 of each year, the state treasurer shall transfer to the general fund any balance in the law enforcement protection fund in excess of one hundred thousand dollars ($100,000) that is not obligated and that is in excess of the amount certified by the division to be distributed from that fund.

Significant Issues of HJC Amendment

The initial legislation used outdated terminology in describing two-year institutions in the state. This amendment uses more appropriate terminology in authorizing distributions from the Law Enforcement Protection Fund (LEPF) for campus police.

Significant Issues

The bill allows for junior college police to receive $17,000 dollars and $500 for each police officer employed full time by his

The New Mexico Finance Authority (NMFA) reports;

1. The increase in distribution from the fund will result in strengthening of the NMFA loans backed by this revenue source,

2. The $200 increase in per officer allocation will result in larger LEPF distribution, which a local government may use to purchase much needed law enforcement protection equipment and,

3. The excess amount of the LEPF, which in the past had reverted to the general fund after distributions were made, will be decreased as a result of the increase of per officer allocations and the addition of junior colleges as recipients of both the allocation and the base amount.

FISCAL IMPLICATIONS

The estimated revenues from the insurance tax for fiscal year 2000 is $46.0 million. The State Treasurer reports $2,510.0 reverted in FY98. The estimated distribution to the law enforcement protection fund is $4.6 million. Of that amount it is estimated that $2.4 million will revert to the general fund on June 30, 2000.

This bill will divert up to seven hundred seventy thousand tree hundred dollars ($770,300) away from the general fund reversion to junior college police departments.

This may have fiscal impacts to the: municipal police; university police; tribal police; and county sheriff's departments for use in maintenance and improvement of those department's in order to enhance efficiency and effectiveness of law enforcement services.

NMFA reports, for the past two fiscal years, an average of $1,255,070 from the LEPF has reverted to the general fund after distributions and the statutory retention of $100,000 per year were made. Preliminary financial estimates indicate that as a result of the enactment of HB 28, the general fund reversion will be decreased by approximately $770,300.

ADMINISTRATIVE IMPLICATIONS

This may have administrative impacts to the: municipal police; university police; tribal police; and county sheriff's departments for use in maintenance and improvement of those department's in order to enhance efficiency and effectiveness of law enforcement services.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

According to Criminal Juvenile Justice Coordinating Council (CJJCC), HB 28 relates in a general way to HB 368 (Precluding the New Mexico Law Enforcement Academy from charging post secondary educational institutions for training expenses).

OTHER SUBSTANTIVE ISSUES

CJJCC reports, Section 29-13-2.1 NMSA 1978, Subsection C, defines a governmental entity to include universities. Subsection E of the same section defines a university as a four-year post secondary institution. Thus, the statute currently excludes two year post-secondary educational institutions (junior colleges) from the possibility of receiving monies from the Law Enforcement Protection Act Fund. There seems no good reason for this. If University Police Departments are eligible for those monies, why not junior colleges?

The same reasoning also leads the CJJCC to ask why the Albuquerque Public Schools Police department in not eligible for monies from the Law Enforcement Protection Act fund. This is currently the only school board police department in the state, yet it functions are similar to those of police departments at junior colleges and universities.

CJJCC suggests amending Section 29-13-2 to include school board police departments as potential recipients of monies from the LEPF.

HB 28/aHJC

According to the Commission on Higher Education, post secondary educational institution is defined to mean those encompassed by: Chapter 21, Article 12 NMSA 1978 (the Community College Act); Chapter 21, Article 16 NMSA 1978 (Technical & Vocational Institute Act)., and; Chapter 21 Article 17 NMSA 1978 (Area Vocational Schools).

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