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

SPONSOR:	Lujan		DATE TYPED:	01/28/02		HB	107
SHORT TITLE:		Office of Mexican Affairs				SB
					ANALYST:		Sandoval

APPROPRIATION

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

$375.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC files

Responses Received

State Highway and Transportation Department (SHTD)

Economic Development Department

Environment Department

Tourism Department

No Response

The Office of the Governor

Office of Cultural Affairs (OCA)

Department of Health (DOH)

Department of Public Safety (DPS)

New Mexico Border Commission

Boarder Authority

Commission on Higher Education (CHE)

SUMMARY

House Bill 107 creates the Office of Mexican Affairs (OMA) within the Office of the Governor. The head of the OMA is to be appointed by the Governor with the consent of the Senate. This new office is to be primarily responsible for conducting the state’s relations with the Republic of Mexico and the state of Chihuahua. The OMA is authorized to direct or oversee the activities of several state agencies as necessary to ensure the common economic, political, cultural, health and safety

and infrastructure issues with the Republic of Mexico and the state of Chihuahua are properly coordinated.

The Mexican Affairs Committee (the committee) is created as a joint interim legislative committee. The committee will consist of 5 members of the House of Representatives that are appointed by the Speaker of the House of Representatives and 5 members of the Senate that are appointed by the Senate Committees’ Committee. The President Pro Tempore of the Senate may appoint Senate members, if a majority of the Senate Committees’ Committee agree. The Speaker of the House and the President Pro Tempore shall each designate a co-chairman of the committee.

The committee is to oversee the state’s relations with the Republic of Mexico and the state of Chihuahua, hold hearings to ascertain if state agencies and institutions are coordinating their efforts to improve New Mexico-Mexico relations, establish relations with legislative agencies and committees in Chihuahua and recommend legislation to the New Mexico State Legislature.

The committee is to make an annual report of its findings and recommendations for consideration by the State Legislature. The committee is to be staffed by the Legislative Council Service. The committee has a sunset date of July 1, 2004.

Synopsis of Bill

House Bill 107 appropriates $325.0 from the general fund to the Office of the Governor for the purpose of operations of the Office of Mexican Affairs. This bill also appropriates $50.0 from the general fund to the Legislative Council Service for the purpose of operations and staffing of the Mexican Affairs Committee.

Significant Issues

Agencies that may be supervised or directed by the OMA are the Departments of Economic Development, Tourism, Office of Cultural Affairs, State Highway and Transportation, Health, Environment, Public Safety, New Mexico Border Commission, Boarder Authority and the Joint Boarder Research Institute at New Mexico State University.

FISCAL IMPLICATIONS

The appropriation of $375.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2003 shall revert to the general fund.

ADMINISTRATIVE IMPLICATIONS

Minimal administrative implications have been reported by several of the agencies affected by this bill.

OTHER SUBSTANTIVE ISSUES

The State Highway and Transportation Department currently has an International Programs Coordinator that is funded by the Federal Highway Administration who works closely with the U.S. and

Mexican governments on border related issues regarding ports of entry and other highway related

infrastructure. The International Program Coordinator also represents the State Highway and Transportation Department on several bi-national committees.

The U.S. Federal Government is responsible for decision on bi-national issues between the U.S. and the Republic of Mexico. Some of the objectives of the OMA may require federal involvement.

The New Mexico Economic Development Department reports, “It should be expected that this closer relationship with Mexico and Chihuahua will generate additional trade and commerce revenue between our areas, specially in the development of a border economy at Santa Teresa”.

POSSIBLE QUESTIONS

1. To what extent does the State of New Mexico have legal authority to make binding agreements with the Republic of Mexico and the state of Chihuahua?

2. Will the creation of this new office and committee facilitate cooperation between the state agencies listed in this bill or create another layer of bureaucracy?

3. What sort of coordinated effort currently exists between the agencies listed in this bill?

4. How will this bill improve relations between the New Mexico and the Republic of Mexico?