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.

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 Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to the General Appropriations Act

SOURCES OF INFORMATION

LFC Files

Department of Public Safety (DPS)

Administrative Office of the District Attorneys

SUMMARY

Synopsis of Bill

HB203 appropriates $700.0 from the general fund to the DPS for the purpose of creating a law enforcement telecommunications fund.

Significant Issues

The fund is initially appropriated in the amount of $700,000; thereafter, the department would have to request an appropriation each fiscal year based upon the department's expenses incurred in operating and maintaining the law enforcement telecommunications system.

There seems to be a conflict with the New Mexico Constitution which grants appropriating authority to the Legislature. The bill proposes to grant appropriating authority to both the Department of Public Safety and Department of Finance Authority.

PERFORMANCE IMPLICATIONS

DPS has transitioned into performance-based budgeting. There are no performance measures included in this appropriation. In its fiscal analysis, DPS did not provide information as to how this appropriation would affect the proposed measures for FY02.

FISCAL IMPLICATIONS

Although the appropriation of $700.0 contained in this bill is seems to be a non-recurring expense. Any collection of revenue and earmarked for a specific purpose becomes a recurring expenses to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general bill).

Continuing Appropriations

This bill creates a new fund and provides for continuing appropriations. The LFC objects to including continuing appropriation language in the statutory provisions for newly created funds. Earmarking reduces the ability of the legislature to establish spending priorities.

Laws 2000 2^nd Special Session HB6 was passed and signed by the governor which states:

"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.

To date, a recommendation from the department has not come forward to LFC staff. HB203 seems to circumvent prior legislation.

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?

This bill does not specify a criteria the department should use in establishing structure for revenues.

ADMINISTRATIVE IMPLICATIONS

DPS reports failure to pass this bill would eliminate the department's ability to maintain the system and would result in the need for local agencies to pick up the line costs and other hardware related maintenance costs. This would be extremely difficult for agencies that do not have internal information system's personnel.

TECHNICAL ISSUES

This bill is technically flawed that it creates a fund, but does not specify a revenue stream for the fund; therefore, the fund is not viable.

DPS suggests the following:

Page Two, Section 1, Paragraph C. Revise wording to read:

"The department of public safety may authorize additional users, not previously connected to the law enforcement telecommunications system, if adequate funding has been provided. The department shall request an appropriation each fiscal year that is based upon the department's expenses incurred in operating and maintaining the law enforcement telecommunications system, including all newly authorized users."

LAT/njw