Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us). Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and attachments may also 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	Maes		DATE TYPED	1/26/2004		HB
SHORT TITLE		NM Securities Act Reporting Requirements				SB	152
					ANALYST		Aguilar

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY04	FY05	Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
		See Narrative

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Regulation and Licensing Department (RLD)

SUMMARY

Synopsis of Bill

SB 152 eliminates the requirement that securities licensees file an annual report.

Significant Issues

The information contained in annual reports is available to the Securities Division of the Regulation and Licensing Department upon request. Additionally, brokerage firms now file their financial information electronically on a quarterly basis with federal regulators. With advances in technology, federal regulators are now able to inspect the financial condition of brokerage firms electronically on at least a quarterly basis.

FISCAL IMPLICATIONS

The Securities Division would save approximately $1,500 in clerical time and materials used to file and store the reports.

OTHER SUBSTANTIVE ISSUES

RLD reports that annual reporting requirement imposes a cost on securities firms. The Governor’s performance review estimated the annual cost to industry at approximately $36,000 for all licensees.

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