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

Heaton

DATE TYPED

1/27/04

HB

74

 

SHORT TITLE

Enterprise Facilitation Grants Program

SB

 

 

 

ANALYST

Gilbert

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

$300.0

 

 

Recurring

General Fund

 

 

 

$300.0

Recurring

Municipal Funds

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

Economic Development Department (EDD)

Attorney General’s Office (AGO)

 

SUMMARY

 

Synopsis of Bill

 

House Bill 74 appropriates $300 thousand from the general fund to the Economic Development Department (EDD) for a competitive grants program in three communities to demonstrate the efficacy of enterprise facilitation.

 

Significant Issues

 

Grants made per the provisions of this bill require a fifty percent match from the recipient communities.  This program is intended to provide jobs in communities with populations under 50,000.

 

FISCAL IMPLICATIONS

 

The appropriation of $300.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2005 shall revert to the general fund.

The appropriation in HB 74 is contingent upon a fifty percent match by each recipient community.

 

ADMINISTRATIVE IMPLICATIONS

 

According to the Economic Development Department, this bill may require significant staff time to process the RFP and administer the Enterprise Facilitation program.

 

TECHNICAL ISSUES

 

According to the Attorney General’s Office, if the term “communities” is defined to include nonprofits or other private entities, this bill could violate the anti-donation clause of the New Mexico Constitution (Art. IX, § 14).

 

RLG/dm