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:

House Floor

 

DATE TYPED:

03/20/03

 

HB

CS/585/HFlS

 

SHORT TITLE:

Aging and Long-Term Care Department Act

 

SB

 

 

 

ANALYST:

Hayes

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

NFI

 

Unknown

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Relates to various House and Senate Joint Memorials along with HB 853.  

 

SOURCES OF INFORMATION

 

Responses Received From

State Agency on Aging

 

SUMMARY

 

     Synopsis of Bill

 

The House Floor Substitute for the House Appropriations and Finance Committee Substitute for House Bill 585 permits the governor to reorganize certain agencies by executive order in 2003 to elevate them to cabinet-level departments after obtaining legislative approval.  In addition, the bill provides for renaming the National Hispanic Cultural Center of New Mexico.  Here is a summary of the bill’s provisions:

 

Section 1.  Elevating cabinet-level departments; Purpose statement.

 

A.     State Agency on Aging:  to develop programs and unified public policies that address the needs of the aging population, long-term care and related services.  This includes implementing and administering the requirements of the federal Older American Act of 1965.  The bill also directs the State Agency on Aging to develop a comprehensive plan to coordinate, reorganize and consolidate older adult services by June 30, 2004.

 

B.     Office of Cultural Affairs:  to improve and enhance educational, historical, archaeological and architectural preservation, collections and other cultural services for the state.

 

C.    Office of Indian Affairs:  to provide a conduit and to ensure coordination between the State of New Mexico and tribal governments in order to increase each sovereign’s ability to respond more effectively to the issues and needs of the state’s Native American communities, including technical assistance, health issues, education, safety, fiscal management and capital outlay management.

 

D.    Veterans’ Service Commission:  to address the needs of veterans and their families along with developing and expanding outreach and educational programs to improve the quality of life for veterans and their families.

 

Section 2.  Executive order; Transfers; Legislative approval.

 

A.    New names of cabinet-level departments:   Aging and Long-term Care Department

   Cultural Affairs Department

    Indian Affairs Department

    Veterans’ Service Department

 

B.    Transfers.  Functions, personnel, appropriations, records, files, furniture, equipment and other property of the four agencies specified in this bill shall be transferred to the resulting cabinet department.  Contractual and statutory obligations of the original agency shall be obligations of the resulting department.

 

C.    Consolidation of Adult Services.  The Aging and Long-term Care Department may transfer functions, personnel, appropriations, records, files, furniture, etc., from other departments into the Aging and Long-term Care Department if such functions and resources pertain to adult services, specifically those adult services found in the Human Services Department, Department of Health and CYFD.

 

D.    Enactment.  If a bill of the Forty-Sixth Legislature, Second Session, approving an executive reorganization undertaken pursuant to Section 2, subsection A as outlined above is not enacted into law, then the reorganization is void.

 

 

Section 3.  Title; Reference to New Mexico.

 

            The House Floor Substitute amends Section 18-12-1 NMSA 1978 to be cited as the National Hispanic Cultural Center of New Mexico.  Reference to the state is deleted in the Cultural Center’s title as well as references to the National Hispanic Cultural Center of New Mexico in Sections 18-2-2, 18-2-3 and 18-2-4.

 

FISCAL IMPLICATIONS

 

There is no appropriation associated with this bill.  However, it is conceivable that creating four new cabinet-level departments may result in additional recurring costs to the general fund, such as associated increases in travel, office space, equipment, etc., as well as salary increases and associated benefits for each new department secretary. 

 

On the other hand, there could be potential savings in administrative and program overlap costs as a result of reorganization and consolidation of certain functions in departments such as the State Agency on Aging.

 

ADMINISTRATIVE IMPLICATIONS

 

It is assumed that extensive and detailed transition planning will be undertaken by each new cabinet department as needed to identify what programs and services will be administered by the department in accordance with its purpose statement outlined in the bill.  The Aging and Long-term Care Department will also need to identify “adult services” in other departments that need to be transferred under its auspices, pursuant to Section 2C of the bill.  In addition, each department will need to identify: appropriations, personnel, furniture, equipment, records, files and other property that need to be transferred; laws and regulations that need to be amended; information systems issues and needs; office space issues and needs; additional personnel needs; and other associated administrative issues, if any.

 

RELATIONSHIP

 

HJR 7, HJR 10, HJR 12, HJR 17, HJR 15, along with SECS for SJRs 2, 5, 12 and 21 all propose constitutional amendments to be voted on at the next general election or earlier special election for creating a cabinet-level “Public Education Department.”

 

HB 853 authorizes the governor to reorganize and elevate certain agencies to cabinet-level departments, by executive order.

 

CMH/njw