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.

 

The most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

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

 

 

 

SPONSOR:

Smith

 

DATE TYPED:

3/5/03

 

HB

 

 

SHORT TITLE:

New Mexico-Chihuahua Commission Act

 

SB

183/aSFC

 

 

ANALYST:

Collard

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

 

 

See Narrative

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates HB 213

 

SOURCES OF INFORMATION

 

Responses Received From

Economic Development Department

New Mexico Border Authority

Tourism Department

 

SUMMARY

 

     Synopsis of SFC Amendment

 

The Senate Finance Committee deletes the appropriation from Senate Bill 183.  An appropriation of recurring general fund of $100.0, beginning in 2004, is included the committee substitute for Senate Bill 655 for this purpose.  The Economic Development Department understands the appropriation contained in this bill is no longer necessary.

 

     Synopsis of Original Bill

 

Senate Bill 183 appropriates $100.0 from the general fund to the Economic Development Department for the purpose of creating a New Mexico-Chihuahua Commission to promote bi-national economic development.

 

 

 

     Significant Issues

 

Senate Bill 183 allows the Governor, the Secretary of Economic Development and the Secretary of Tourism to serve on the commission, along with up to 10 state officials, appointed by the Governor for two-year terms.

 

The bill also allows the Governor to implement projects or agreements negotiated with the state of Chihuahua, provided that those with appropriations shall require an act of the legislature.

New Mexico Border Authority notes this bill is a venue for furthering border trade, infrastructure, and regulatory modification. 

 

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 FY04 shall revert to the general fund.

 

The Economic Development Department notes the activities of the commission may require the department to expend funds for travel and marketing, estimated at $25.0 for FY03 and $50.0 for FY04.  Since marketing is already part of the department’s function, the cost is within the job creation and job growth program budget.  However, the extra travel is not covered.

 

The New Mexico Border Authority indicates the need for an additional staff member at a cost of $58.5.

 

ADMINISTRATIVE IMPLICATIONS

 

New Mexico Border Authority indicates the commission will increase the workload to the department and an additional staff member will be needed, as indicated in the governor’s initiative for border development.

 

The Economic Development Department notes the bill requires the commission to be administratively attached to the department. Thus, all administrative activities such as the commission budget and travel authorization will be coordinated by the Economic Development Department.

 

DUPLICATION

 

Senate Bill 183 duplicates House Bill 213.

 

OTHER SUBSTANTIVE ISSUES

 

The Economic Development Department indicates that this bill is vital in allowing the Governor to fulfill his commitment to New Mexico and to the Governor of Chihuahua to work together on projects to improve trade between New Mexico and Chihuahua and to market the New Mexico-Chihuahua region abroad.

 

The Economic Development Department and the New Mexico Border Authority recommend an amendment to the bill to rename the commission the “New Mexico-Chihuahua Economic Development Commission” to underscore its purpose.  Further, the New Mexico Border Authority recommends the executive director of the New Mexico Border Authority be included in the commission membership, to conflict with current border programs.

 

KBC/njw:yr