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
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|
SPONSOR |
Whitaker |
DATE TYPED |
|
HB |
117 |
||
|
SHORT
TITLE |
Liquor Excise Tax Revenue to DWI Grant Fund |
SB |
|
||||
|
|
ANALYST |
Neel |
|||||
REVENUE
|
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
|
FY04 |
FY05 |
|
|
|
|
|
(1,400.0) |
(800.0) |
Recurring |
General
Fund |
|
|
1,400.0 |
800.0 |
Recurring |
|
|
|
|
|
|
|
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to:
HB 115, Liquor Excise Tax
Distributions
SB 119, Local DWI Grant Fund Distribution
Increase
LFC Files
Responses
Received From
Taxation
and Revenue Department (TRD)
Department
of Finance and Administration (DFA)
Department
of Health (DOH)
SUMMARY
Synopsis of Bill
House Bill 11 amends
statute to increase distributions to the DWI grant fund administered by DFA’s
local government division from the 34.57 percent of net liquor excise revenues
to 38.12 percent in FY05 and 36.56 percent in FY06 and thereafter. An additional $1.4 million in FY05 and $800.0
thousand in FY06 is appropriated to Lea county for alcohol treatment
facilities.
All other
beneficiaries are held harmless, which includes $2.5 million reserved for grantsto local government, $2.8 million distributed to
certain counties for alcohol detoxification and treatment facilities and
distributions to all counties by formula.
Significant Issues
The local DWI grant fund (7-1-6.40) is segmented
into three parts: (1) $2.5 million to the local government division of DFA to
make grants to municipalities and counties in accordance with provisions of the
local DWI Grant Program Act; (2) $2.8 million to five counties to fund of alcohol
detoxification and treatment facilities; (3) the remainder is distributed to
all counties based on a formula provided by in law (11-6A-3 and 11-6A-5).
FISCAL IMPLICATIONS
TRD notes the following calculation:
Total
liquor excise taxes are anticipated in FY05 to be approximately $39.4
million. By
increasing the DWI Grant Fund distribution in FY 2005 from 34.57% to 38.12%,
this will decrease the State General Fund revenues and increase the DWI Grant
Fund revenues by $1.4 million ($39.4 million x 3.55% = $1.4 million).
TECHNICAL ISSUES
TRD
notes the following technical issues:
1.
Section 2,C (page 3, line 5)
and Section 3,A (page 7, line 14) change language to indicate that the amount
of funds in the DWI Grant Fund that are NOT available for formula distribution
to the counties will increase to $6.2 million in FY 2005 and then decrease to
$5.6 million in each fiscal year thereafter.
This amount should be $7 million in FY 2005 and $6.4 million in each
fiscal year thereafter. It is necessary
to increase the current law amount of $5.6 million by the distributions to
2.
In Section 3,D (page 9, line 9), there is an amount given of
$1,325,000. This amount should be ¼ of
$7 million or $1,750,000 in FY 2005 (see first technical issue) and ¼ of $6.4
million (or $1,600,000) in each fiscal year thereafter (see first technical
issue).
An
additional technical adjustment should be made: Section 3D (page 9 line 12),
the deleted E should be reinserted. This
refers to the new distribution to Lea county and
should be included in the calculation.
This is also true in Section 2, C (page 2, line 22).
OTHER
SUBSTANTIVE ISSUES
1)
Legislative History
The DWI
Grant Fund was originally created by Laws 1993, Chapter 65, Section 3 (Chapter
11, Article 6A NMSA 1978) as part of a major liquor tax increase and DWI prevention
effort. From 1993 through 1997 the fund
was financed by state General Fund appropriation. The 1993 legislation appropriated $5.5
million for the 1993-94 fiscal year to the newly
created Local DWI Grant Fund for use in grants to local communities to fund
innovative programs and services dealing with DWI, alcoholism and alcohol
abuse. Appropriations to the fund for
fiscal years 1994 through 1997 were roughly $5 million per year. Also in fiscal year 1993-94, an additional
$5.1 million was appropriated to the newly created DWI Program Fund
administered by DFA for use in new state agency programs meeting the guidelines
of the Alcoholism and Alcohol Abuse Prevention, Screening and Treatment
Act.
The
Community DWI Fund was appropriated $9.2 million, replacing the old earmarked
tax to the Community Alcoholism Treatment and Detoxification Fund.
1997 legislation (Laws 1997, Chapter 182 – 1997
HB-107) directed 27.2% ($9.7 million) of state Liquor Excise Tax revenue from
the State General Fund to the Local DWI Grant Fund, and created a new quarterly
distribution by formula to counties amounting to available money in the fund
less $2 million reserved for local government grants.
2000
legislation (Laws 2000, Chapter 83 – 2000 SWMC Substitute for SB-96) increased
the DWI Grant Fund distribution to 32.7% (an additional $2.0 million) of liquor
excise tax revenue for fiscal year 2002 only, and appropriated the additional
amount to Bernalillo County ($1.7 million) and San Juan County ($0.3 million)
to fund alcohol detoxification and treatment facilities.
2001
legislation (Laws 2001, Chapter 112 – HB-103) permanently directed 34.57% of
state liquor excise tax revenue to the Local DWI Grant Fund, beginning in
fiscal year 2002. An additional $0.5 million was appropriated from the DWI
Grant Fund for distribution to
The one-time distributions to
RLG/njw:lg