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

 

 

 

SPONSOR:

Foley,D.

 

DATE TYPED:

3/07/03

 

HB

951

 

SHORT TITLE:

Regional Education Co-op Purchasing Duties

 

SB

 

 

 

ANALYST:

Segura

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

NFI

 

 

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

State Department of Education (SDE)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 951 amends Section 22-2B-5 NMSA 1978 by limiting the purchasing duties of the Regional Education Cooperatives, specifically  excluding the purchase of insurance.

 

     Significant Issues

 

According to SDE, the Cooperatives are authorized by the State Board of Education pursuant to 22-2B-3, through 22-2B-5 NMSA 1978. Several school districts through a Joint Powers Agreement combine resources and employ the REC to provide services and maintain fiscal accountability of their federal and state programs.

 

The SDE indicates that most school districts have insurance provided by the New Mexico Public

School Insurance Authority, (NMPSIA). The purpose of NMPSIA  is to provide comprehensive core insurance programs by expanding the pool of subscribers to maximize cost containment opportunities for required insurance coverage.

 

FISCAL IMPLICATIONS

 

House Bill 951 does not contain an appropriation. If the bill is enacted the REC’s would no longer be part of the pool of insurance subscribers with the schools and it could have a minimal fiscal impact to insurance premiums currently charged to school districts.

 

ADMINISTRATIVE IMPLICATIONS

 

The REC’s would have to comply with the mandate of House Bill 951.

 

RS/njw