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

SPONSOR	Garcia, M.J.		DATE TYPED	2/14/04		HB
SHORT TITLE		NMSU Board of Regents Officer Elections				SB	65
					ANALYST		Baca

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY04	FY05	FY04	FY05
			See Narrative

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

Senate Bill 65 amends §21-8-4 NMSA 1978 to require that the Board of Regents of NMSU shall meet, organize and elect officers, a president, a secretary and a treasurer in Las Cruces during the last week in March and hold their respective offices until their successors are duly elected and qualified. The treasure and secretary shall execute good and sufficient bond of not less that $20 thousand with two or more sureties who are residents of the state with the bond to be approved by the Governor and filed with the Secretary of State.

Significant Issues

According to NMSU, the major purpose of the bill is to ensure the Board of Regents holds its organizational meeting in Las Cruces so faculty, students and the public could attend the meeting without having to travel.

FISCAL IMPLICATIONS

The costs accruing to this bill include the mileage and per diem expenses for the regents, and those associated with branch college administrator and faculty invited to attend the meeting or who elect to be present. These and related expenses for the conduct of the meeting are those normally incurred whenever the Regents meet.

TECHNICAL ISSUES

In its analysis, the CHE suggests that the sentence, “two or more sufficient sureties who are residents of the state” be rephrased. Apparently, residents cannot issue surety bonds. Only licensed companies, who meet full licensure requirements by the New Mexico Insurance Division under the “Surety Bond Act”, can issue surety bonds. Also the Risk Management Division of the General Services Department can issue surety bonds. Might they be able to cover the Secretary and Treasurer of the NMSU Board of Regents? Do they currently provide the surety bond coverage?

LB/dm:yr