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 a vailable 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 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 Varela

DATE TYPED 2/19/05

HB 891

SHORT TITLE Create Office of Homeland Security

SB

ANALYST Peery

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance Administration (DFA)

Attorney General’s Office (AGO)

New Mexico Environment Department (NMED)

New Mexico Corrections Department (NMCD)

No Response

Department of Public Safety (DPS)

Governor’s Office

SUMMARY

Synopsis of Bill

House Bill 891 replaces the existing position of governor’s Homeland Security Advisor with the

newly created position of Director of Homeland Security, creates an Office of Homeland Secu-

rity, and delineates the duties of the Office of Homeland Security. The new Director of Home-

land Security will be appointed by the governor and will head the Office of Homeland Security

which will act as the central coordination point for homeland security efforts throughout New

Mexico. Those efforts include the following: secure and handle all state homeland security fed-

eral funding; act as liaison between federal, state and local agencies in homeland security areas;

provide security information to the public and private businesses; identify and establish security

criteria for state facilities; assist private entities in identifying and protecting critical infrastruc-

tures; provide training, coordination and exercises in terrorism response; and coordinate actual

House Bill 891 -- Page 2

response in the event of a terrorist incident. The proposed legislation will provide authority for

the Director of Homeland Security to manage the state’s homeland security efforts and hire em-

ployees to carry out those duties. In addition, two existing laws which refer to the governor’s

Homeland Security Advisor Section 9-15-48 NMSA 1978 and Section 9-15-49 NMSA 1978 are

amended to reflect the new Director of Homeland Security title.

PERFORMANCE IMPLICATIONS

NMCD states the bill may help them to coordinate with other law enforcement agencies in the

event of a terrorist incident.

DFA reports the performance of the Office of Homeland Security would be made more transpar-

ent by this bill. DFA states this would lead to performance measures that would be easier to

measure and quantify.

FISCAL IMPLICATIONS

DFA states the proposed legislation would require additional resources to be given to homeland

security if the agency were to become a stand alone. DFA reports homeland security is currently

spread between Department of Public Safety and the Governor’s Office. DFA states lease pay-

ments could run from $20 thousand to $50 thousand a year.

ADMINISTRATIVE IMPLICATIONS

NMCD reports they have already established relations with local law enforcement agencies and

emergency service providers, the administrative impact of this bill would be absorbed by the cur-

rent arrangement.

DFA states the proposed legislation would require the Department of Public Safety to transfer 4

FTE and the federal portion of their funding to the Office of Homeland Security. The Gover-

nor’s Office would be required to give up supervisory functions of homeland security, but they

would keep the administrative functions.

OTHER SUBSTANTIVE ISSUES

NMCD states the proposed legislation does not include a provision for coordinating with private

utility providers, such as water associations.

NMED reports Governor Bill Richardson issued executive order 2003-001 on January 13, 2003

that established the New Mexico Director of Homeland Security. Mr. R. L. Stockard was ap-

pointed the Homeland Security Director. Governor Bill Richardson issued executive order 2003-

007 on March 18, 2003 that established the Office of Homeland Security Advisor. Mr. R. L.

Stockard was appointed the Homeland Security Advisor. This order superseded executive order

2003-001 and created the New Mexico Homeland Security Advisory Committee. Governor Bill

Richardson issued executive order 2003-050 on December 5, 2003 that established the Home-

land Security Advisor, General Annette Sobel, as the Deputy Secretary of the Department of

Public Safety. The Office of Emergency Management would report through General Sobel to

the Secretary of Public Safety and then to the governor.

House Bill 891 -- Page 3

During fiscal year 2004 (FY04), the Department of Public Safety was awarded a federal home-

land security grant through the federal Office of Domestic Preparedness totaling $24.9 million.

State share of the homeland security funding for FY04 totaled $4.8 million. President Bush’s

budget request for federal fiscal year 2006 eliminates the State Homeland Security Grant Pro-

gram of $12 million.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

DFA states homeland security will stay housed within the Governor’s Office with federal funds

being administered by the Department of Public Safety.

RLP/sb