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.



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F I S C A L I M P A C T R E P O R T



SPONSOR: Thompson DATE TYPED: 01/26/00 HB 194
SHORT TITLE: Except Disaster Funds From 10 Day Abeyance SB
ANALYST: Burch


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY00 FY01 FY00 FY01
NFI NFI



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



LFC files

Energy, Minerals and Natural Resources Department

Department of Military Affairs

Office of Cultural Affairs

Department of Game and Fish



SUMMARY



Synopsis of Bill



The bill amends Section 6-3-25 NMSA 1978, relating to procedures for adjusting budgets, to except disaster assistance funds and emergency response funds from the 10-day waiting period currently required by law. Budget adjustments from federal funds are currently exempt from the waiting period.



Significant Issues



The 10-day waiting period allows LFC time to review the budget adjustments; the LFC may object to a budget adjustment within 10 days of receipt of the budget adjustment request.



The provision would prevent emergency response agencies from creating financial obligations prior to the funds being available. Agencies that receive funds pursuant to emergency disaster declarations include the Energy, Minerals and Natural Resources Department, Department of Military Affairs and Department of Public Safety.





TECHNICAL ISSUES



The bill does not provide a definition of the terms "disaster assistance funds" or "emergency response funds". Sections 6-7-1 through 6-7-3 NMSA 1978 provide for emergency declaration of disasters by executive order and for funding to respond to such emergencies. Whether or not it is intended that "disaster assistance funds" means those funds appropriated for emergencies declared by executive order or if the phrase means other funds, then perhaps Section 6-3-25 NMSA 1978 should say so. Also, a fund entitled "emergency response fund" was eliminated by Laws 1991, Chapter 44; therefore, perhaps "emergency response funds" should also be defined.



Two similar bills (House Bill 538 and House Bill 539) were introduced in the 1999 regular legislative session. House Bill 538 defined "emergency or disaster event"; however, House Bill 539 did not.



OTHER SUBSTANTIVE ISSUES



The State Budget Division and LFC have established a process for waiving the 10 day waiting period in the case of an emergency. In no case has LFC not approved a budget adjustment waiver in the case of an emergency or a disaster declaration pursuant to executive order.



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