[1] NOTE:  As provided in LFC policy, this report is intended only 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:

Lyons

 

DATE TYPED:

01/31/02

 

HB

 

 

SHORT TITLE:

Manufacturing Extension Services

 

SB

313

 

 

ANALYST:

Woodlee

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

$400.0

 

 

 

Recurring

General Fund

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates HB 347

 

SOURCES OF INFORMATION

 

Economic Development Department (EDD)

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 313 appropriates $400.0 from the general fund to the Economic Development Department for fiscal years 2002 and 2003 to contract for manufacturing extension services.  Expenditure of the funds is contingent upon receiving an equivalent match from the National Institute of Standards and Technology (NIST) for an approved manufacturing center in New Mexico.

 

     Significant Issues

 

The only NIST approved organization for such services is the New Mexico Manufacturing Extension Partnership (MEP), which is part of a nationwide system of services that assist small manufacturing businesses in improving production capacity and quality in order to be more competitive.  According to EDD, NIST supports the MEP network and provides a 33.3 percent match; however, the bill requires an “equivalent” match.

 

 

 

 

 

FISCAL IMPLICATIONS

 

The appropriation of $400.0 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

 

EDD indicates that there may be some administrative implication to the agency for the administration of the contract.  Specifically, the services of the last such contract in fiscal year 2001 were not thoroughly audited because of a lack of sufficient resources within the department.

 

DUPLICATION

 

Senate Bill 313 duplicates House Bill 347

 

 

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