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
F I S C A
L I M P A
C T R E P O R T
|
SPONSOR |
|
DATE TYPED |
|
HB |
|
||
|
SHORT
TITLE |
Nonresident and Temporary Game and Fish
Licenses |
SB |
2/aSFC/aSFL#1 |
||||
|
|
ANALYST |
Aguilar |
|||||
APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
|
FY04 |
FY05 |
FY04 |
FY05 |
||
|
|
$709.0 |
|
Minimal |
Recurring |
Game
Protection
Fund |
|
|
|
|
|
|
|
(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to SB554
REVENUE
|
Estimated Revenue |
Subsequent Years Impact |
Recurring Or
Non-Rec |
Fund Affected |
|
|
FY04 |
FY05 |
|||
|
|
$450.0 |
$1,500.0 |
Recurring |
Game
Protection
Fund |
|
|
|
|
|
|
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF
INFORMATION
Report of the
Legislative Finance Committee to the Forty-Sixth Legislature, Second Session,
January 2004 for Fiscal Year 2004 – 2005, pp. 377 – 381.
Responses
Received From
Department
of Game and Fish
Taxation
and Revenue Department
SUMMARY
Synopsis of SFl Amendment #1
The
Senate Floor Amendment #1 strikes the SFC amendment; adds language to the title,
and makes an appropriation to provide salary increases for game and fish law
enforcement commissioned conservation officers, clerical, secretarial,
financial specialists and farm and ranch workers of the department.
The
amendment makes the appropriation contingent on DGF adopting a tiered salary
schedule for all employees based on experience and job qualifications and, in
the case of law enforcement officers, risk involved in the job assignment.
The
amendment specifies an effective date of
Any
unexpended or unencumbered balance remaining at the end of fiscal year 2005
shall revert to the game protection fund.
Significant Issues
The
New Mexico Conservation Officers Association (NMCOA) has approached the
department regarding concern surrounding the recruitment and retention of
officers and salary compaction within the pay group. An investigation of concerns recognized a segment
of employees who are being compensated at a salary that does not reflect their
demonstrated performance in their current positions.
An approximately 6 month in-house evaluation of
compensation and the duties performed by the officers was undertaken and a
proposed resolution developed. NMCOA has
reviewed the proposal and supports this plan.
Additionally, several State Game Commission members and legislators have
indicated their concern and the need to address this issue. As a result, the plan specified in the
amendment is being recommended to correct compensation issues among Conservation
Officers.
DGF has not completed a study of salary issues in some
of the other classified positions. The
agency is preparing to work with SPO to determine appropriate classification
changes if necessary. SPO will need to be
involved in any reclassification efforts and are so directed by the legislation.
FISCAL IMPLICATIONS
The appropriation of $709
thousand contained in this bill is a recurring expense to the game protection
fund. Any unexpended or unencumbered balance remaining at the end of fiscal
year 2005 shall revert to the game protection fund.
TECHNICAL ISSUES
The effective date of
the provisions should be changed July1, 2004.
Synopsis of SFC Amendment
The
Senate Finance Committee amendment adds a new section which makes the effective
date of the provisions of the act
Synopsis of Original Bill
Senate Bill 2 raises license fees for certain
non-resident and temporary hunting and fishing licenses.
Significant Issues
The
Department of Game and Fish generates the majority of its revenue through the
sale of hunting and fishing licenses, with fees fixed by statute. Inflation and appropriations for
non-recurring projects have caused overall expenditures to surpass revenues,
reducing cash balances
in the fund. This has
produced a situation where increasing revenue has become a priority. Increasing license fees is one way the
department has identified to generate additional revenue.
In
recent years, the game protection fund has provided opportunities for the department
to complete several projects, such as the construction of its headquarters building,
construction of fish hatcheries and the purchase of
Source: New Mexico Department of Game and Fish
The license fees amended in this bill are sold
during the hunting and fishing license year that runs from April 1st
to March 31st. The licenses
for the 2004-2005 license year have already been
ordered and printed and the computer systems have been programmed. Consideration should be given to changing the
effective date of the bill to
FISCAL
IMPLICATIONS
The department reports that at current sales
levels, the changes proposed in this bill will generate an additional $1.5
million in annual license revenue. This will allow the agency to continue operating
at current levels until fiscal year 2007.
Without the proposed increase, current cash balances will only sustain
the agency’s operations through fiscal year 2006.
TECHNICAL
ISSUES
The Department requests that this bill be
amended to include an effective date of
OTHER SUBSTANTIVE ISSUES
The agency notes that the additional revenue
generated by this license fee adjustment will forestall the need for an overall
increase in fees for both residents and nonresidents, but will not eliminate
the need to make adjustments to the agency’s fee structure in the future.
PA/prr:dm