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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(Parenthesis ( ) Indicate Expenditure Decreases)

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates Senate Bill 383

SOURCES OF INFORMATION

LFC Files

Public Regulation Commission (PRC)

New Mexico Environment Department (NMED)

SUMMARY

Synopsis of Bill

House Bill 341 adds a new section to the Fire Protection Fund Law [59A-53-1, NMSA1978] that creates the Hazardous Materials Task Force Fund to equip and train first responders to emergencies involving the transport of hazardous materials. The fund would be available to counties and incorporated municipalities through the State Fire Marshal's Office of the Public Regulation Commission (PRC). The bill identifies criteria for funding and limits for applicants. A percentage (1.25%) of the fire protection fund would be the revenue source. The bill contains a clause that would require the PRC to revert any unexpended balance to the general fund at the end of each fiscal year. The bill contains an emergency clause.

Significant Issues

The purpose of the Fire Protection Fund Law is to provide for distribution of funds to incorporated cities, towns and villages, and to county fire districts, in proportion to their respective needs. The balance in the fund ranges from $37 to $41 million. Consequently, the effect of the bill would be to make an annual appropriation from $462.5 to $512.5. Additionally, the fire protection fund reverts to the general fund, aside from the operating budgets for the State Fire Marshal's Office and the Fire Training Academy. Therefore, House Bill 341 would reduce the available general fund by almost $500.0.

FISCAL IMPLICATIONS

SB342 reduces general fund revenue by an estimated $500.0 beginning in FY00 and recurring annually. The funds are appropriated to the State Fire Marshal's office. Enactment would not have a fiscal impact on the State Fire Marshal's Office which already has mechanisms in place to distribute the funding to localities.

ADMINISTRATIVE IMPLICATIONS

Enactment of House Bill 341 would have a minor impact on the agency, which could be absorbed with its existing resources.

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