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SPONSOR: |
Varela |
DATE TYPED: |
|
HB |
713 |
||
SHORT TITLE: |
Insurance Revenues to PRC Insurance Division |
SB |
|
||||
|
ANALYST: |
Valenzuela |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
FY03 |
FY04 |
FY03 |
FY04 |
|
|
|
|
|
See Narrative |
|
|
|
|
|
|
|
|
(Parenthesis
( ) Indicate Expenditure Decreases)
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
($2,000.0) |
|
Recurring |
General
Fund |
|
$5,200.0 |
|
Recurring
|
Insurance
Operating Fund |
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates Senate Bill 398
Relates to Appropriation in the General Appropriation Act for
FY04 for the Insurance Division of the Public Regulation Commission.
-
Report of the Legislative Finance
Committee to the Forty-sixth Legislature, First Session,
January 2003 for Fiscal Year 2003 – 2004, pp. 390 – 401.
LFC spreadsheets
related to the Insurance Suspense Fund, the Fire Protection Fund, and several
other special revenue funds collected by the PRC.
SUMMARY
Synopsis
of Bill
House Bill 713 amends
the New Mexico Insurance Code by creating a new special revenue fund, called
the “insurance operating fund.” Those fees, identified in Section 59A-6-1 (A)
& (E), will be deposited into the fund, which shall be appropriated by the
Legislature to the Public Regulation Commission Insurance Division for its
annual operating budget. The revenue in the new fund will not revert to the
general fund.
Significant
Issues
The Insurance Division
reports that the Consumer Federation of America has given the division a grade
of “F” based on the percent of budget versus revenues collected.
FISCAL IMPLICATIONS
This bill will divert
more than $5,200.0 in revenue that goes to the general fund to the newly created
Insurance Operating Fund. Currently, the
general fund supports the insurance division operating costs for $3,200.0,
based on FY02 actual expenditures. Consequently, diversion of these insurance
fee revenues, less the Insurance division operating budget, will result in a
$2,000.0 revenue loss for the general fund.
As the bill is
written, the new fund would begin receiving revenue in FY04 and the insurance
division would begin to request its operating revenue from this fund beginning
in FY05.
Attachment 1 provides
a spreadsheet showing those fees that will be deposited into the newly created
Insurance Operating Fund. Attachment 2 provides a spreadsheet of revenue collections
by the PRC over the past nine years to FY2001.
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.
MFV/nw:yr
Attachments