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 for other purposes.

 

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

 

 

 

SPONSOR:

Saavedra

 

DATE TYPED:

2/7/03

 

HB

418

 

SHORT TITLE:

Increase Lobbyist Registration  Fee

 

SB

 

 

 

ANALYST:

Chavez

 

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

$25.0-$35.0

 

Recurring

General Fund

 

 

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

 

New Mexico Commission on Higher Education (NMCHE)

Secretary of State (SOS)

LFC Files

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 418 amends Section 2-11-3 NMSA 1978 to increase the annual filing fee from $25.00 to $50.00 for each of the lobbyist’s employers.

 

     Significant Issues

 

It is noted by the Secretary of State (SOS) that there has not been a fee increase since 1993. The development of forms, review of reports, and new equipment are costly.  The increase in the lobbyist registration fee would double the revenue currently received by the State of New Mexico, provided that a comparable number of lobbyists continue to register.

 

The Commission on Higher Education (NMCHE) has expressed a concern regarding the proposed increase.  Currently, NMCHE has five registered lobbyists who are agency employees that attend committee hearings to testify on bills which are relevant to higher education in addition to their lobbying efforts.  At the present funding level, it was difficult for NMCHE to pay for the current registration cost.  NMCHE anticipates that raising the fee to $50 would pose a greater fiscal difficulty not only for NMCHE, but for other state agency’s who are also experiencing budget cut-backs. 

 

To clarify NMCHE’s concerns, there are two state agency designations with regard to filing fees:

 

  1. State agencies who have employees that only testify on bills in relation to their agency do not have to pay an annual filing fee
  2. State agencies who have employees that are authorized on a broader level to actually lobby are required to pay an annual filing fee

 

Currently, the SOS does not breakdown the number of registered lobbyists who are state agency employees that are required to pay an annual filing fee.

 

FISCAL IMPLICATIONS

 

 There will be an increase in revenue of approximately $25.0 to $35.0 to the state general fund.

 

OTHER SUBSTANTIVE ISSUES

 

There are currently over 700 registered lobbyists with the Secretary of State as of February 3, 2003.  Of those, approximately 24 are lobbyists specific for public institutions of higher education.  In discussions with NMCHE, their concern is that as state employees who are not provided further compensation in addition to their salaries, state agencies should not be required to pay an annual filling fee despite their lobbying efforts.

 

FC/prr/ls