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:

Maes

 

DATE TYPED:

02/24/03

 

HB

 

 

SHORT TITLE:

Quality Rewards

 

SB

9

 

 

ANALYST:

Padilla

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$100.0

 

 

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates HB 621, HB 624, HB 770 and HB 907

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

Economic Development Department

State Department of Education

Department of Health

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 9 appropriates $100.0 from the general fund to the Economic Development Department for the purpose of contracting with a non-profit organization that promotes and rewards quality in business, education, government and health care.  The appropriation is contingent upon the organization receiving matching funds from private donors.

 

     Significant Issues

 

Quality New Mexico is the intended beneficiary of this appropriation.  According to its website, Quality New Mexico is a non-profit organization “that engages in activities which seek to educate New Mexicans about quality; encourage and rewards quality in business, education, government, and healthcare; and promotes an economic climate to foster and enhance the prosperity of the citizens of New Mexico.”

Because the appropriation made by this bill would directly benefit Quality New Mexico, a private non-profit organization, the bill may violate the anti-donation clause of the New Mexico constitution.

 

The bill does not state the benefits the appropriation would bring to the Economic Development Department as a result of this contract.

 

SDE and DOH believe Quality New Mexico can enhance their agencies’ programs and assist them in meeting performance goals.

 

FISCAL IMPLICATIONS

 

The appropriation of $100.0 contained in this bill is a recurring expense to the general fund.  Any unexpended or unencumbered balance remaining at the end of fiscal year 2004 shall revert to the general fund.

 

ADMINISTRATIVE IMPLICATIONS

 

The Economic Development Department notes that there may be administrative implications to the department because of the need to issue a request for proposals, enter into a contract and perform an audit.  EDD notes that the bill does not provide funds to EDD for administrative costs. 

 

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

 

This bill duplicates four bills introduced this session:  HB 621, HB 624, HB 770 and HB 907.

 

OTHER SUBSTANTIVE ISSUES

 

According to Quality New Mexico, the organization began in 1993 as a result of efforts by Senator Pete Domenici, Senator Jeff Bingaman, former Governor Bruce King and Sandia National Laboratories.  Quality New Mexico is the official administrator of the New Mexico Quality Awards, initiated by Executive Order 95-16, which are patterned after the Malcolm Baldrige national quality awards. 

 

A number of state government agencies, including DOH and the State Highway and Transportation Department, are members of Quality New Mexico and participate in the awards program.  DOH notes that it has already received three Quality awards.

 

POSSIBLE QUESTION

 

Does the appropriation contained in this bill violate the anti-donation clause of the New Mexico constitution?

 

LP/prr:yr