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 ( ) Indicates Expenditure Decrease)

(Parenthesis ( ) Indicate Revenue Decreases)

* Table is scored on current law which indicates all revenues received shall be deposited in the general fund unless specified by

statute. Current practice does not deposit this revenue into the general fund.

Duplicates/Conflicts with/Companion to/Relates to General Appropriations Act

SOURCES OF INFORMATION

LFC files

SUMMARY

Synopsis of HAFC Amendment

The House Appropriations and Finance Committee amendment strikes the language on page 1, line 22: "a monthly access fee for each circuit location to access" and substitutes instead: "an access fee for the cost of providing access to". It also inserts the words: "for fiscal year 2001 only" on page 2, line 11.

Synopsis of Original Bill

HB 6 was initiated by the Department of Public Safety (DPS) in order to have statutory authority for charging Law Enforcement Telecommunications Systems (NMLETS, NLETS, NCIC) users a monthly fee for telecommunications circuits.

A. During fiscal year 2001, the department of public safety may charge local, state and federal law enforcement agencies, criminal justice agencies and other users a monthly access fee for access to the department's law enforcement telecommunications systems. During fiscal year 2001, the access fee shall be set by the secretary of public safety in the amount not to exceed the actual cost of providing users access to telecommunications systems.

B. During fiscal year 2001, the department of public safety shall meet with representatives of all users of the department's law enforcement telecommunications systems to develop a recommendation for the legislature's consideration concerning the amount of the access fee during fiscal year 2002 and subsequent fiscal years.

Staff is concerned whether DPS has accurate data to determine the cost of providing user access fees not to exceed the total cost. If the cost is greater than the fees, how would DPS be affected and how would the costs be covered?

Staff is concerned why Section A. provides a criteria (not to exceed the actual cost of providing users access to the telecommunications systems) to determine the access fees and Section B provides the agency the flexibility to develop a recommendation for the legislature's consideration concerning the amount of the access fees during fiscal year 2002 and subsequent fiscal years. Section A. is criteria driven and Section B does not specify a criteria the department should use in establishing structure for fees.

Significant Issues

DPS reports the statutory authority is essential to charge access fees to users of the telecommunications systems to cover the costs of operating the systems.

FISCAL IMPLICATIONS

DPS reports this bill will have a positive fiscal impact on DPS. Without this authority, DPS can no longer charge user fees. This means that DPS cannot continue to operate the telecommunications systems which provide access to the National Crime Information Center (NCIC) and the National Law Enforcement Telecommunications System (NLETS).

DPS reports the amount of revenue will be approximately $559.9. While these are not new revenues, this bill provides the statutory authority for collecting these revenues.

DPS has indicated they used $523.3 of these fees in FY99, and will use $559.9 in the current fiscal year. The collections of these revenues are not authorized statutorily. Section 6-4-2 states: There is created a fund to be known as the "general fund" to which the state treasurer shall credit all revenues not otherwise allocated by law. Expenditures from this fund shall be made only in accordance with appropriations authorized by the legislature. DPS has failed to deposit these revenues into the general fund.

DPS reports there is no effect on federal appropriations.

Table is scored on current law which indicates all revenues received shall be deposited in the general fund unless specified by statute. Current practice does not deposit this revenue into the general fund.

ADMINISTRATIVE IMPLICATIONS

DPS reports there is no administrative impact.

OTHER SUBSTANTIVE ISSUES

DPS did not provide information such as:

• How much it is costing the agency in FY00 and FY01 to operate this system?
• What percentage is being used by other agencies?




DPS reports they can no longer operate the telecommunications system and will have to either have additional funds appropriated by the legislature or shut down the law enforcement telecommunications system which means it will deny access to NCIC and NLETS.





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