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.

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 Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HB28/aHJC/aHAFC - Junior College Police (Stewart); SB667 - Law Enforcement Training Center Fund (Lopez). All of these bills propose to divert monies in the law enforcement protection fund that would have reverted to the general fund.

SOURCES OF INFORMATION

LFC Files

Office of Indian Affairs

SUMMARY

Synopsis of Bill

SB 678 authorizes the distribution of money from the law enforcement protection fund to each tribal police department in the amount of $17,000. There are twenty two tribes in New Mexico. Fourteen of those tribes fund their police departments independently. The remaining eight tribes receive their police department funding from the Bureau of Indian Affairs (BIA).

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.

The revenues that support the law enforcement protection fund are from the insurance premium tax. This tax is collected by the superintendent of insurance of the Public Regulatory Commission. Ten percent of the taxes collected are distributed to the law enforcement protection fund.

Significant Issues

The bill authorizes the distribution of money from the law enforcement protection fund to tribal police. The bill allows tribal 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, and county sheriff's departments.

FISCAL IMPLICATIONS

The estimated revenues from the insurance tax for fiscal year 2000 are $46.0 million. 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 three hundred seventy four thousand dollars ($374,000) away from the general fund reversion to tribal police departments.

ADMINISTRATIVE IMPLICATIONS

This may have administrative impacts to the: municipal police; university police; tribal police; and county sheriff's departments.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

Relates to HB 28/aHJC/aHAFC and SB667.

Analyst Comments

At first there was no recognition on the analysts' part as to the general fund fiscal impact of this bill. A subsequent Fiscal Impact Report (FIR) was released that wrongfully assumed the entire balance of the law enforcement protection fund that would have reverted to the general fund would be distributed to the tribal police departments.

LAT/JBE/jsp:gm