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F I S C A L I M P A C T R E P O R T

SPONSOR Grubesic

DATE TYPED 2/15/05

HB

SHORT TITLE Require Registration of Fundraising Campaigns

SB 625/aSJC

ANALYST Hanika-Ortiz

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$300.0

See Narrative Recurring General Fund

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

See Narrative

See Narrative

Recurring

SOURCES OF INFORMATION

LFC Files

Responses Received From

Office of the Attorney General (AGO)

SUMMARY

Synopsis of SJC Amendment

The Senate Judiciary Committee Amendment further clarifies that the Attorney General may

charge fees for the registration of a fundraising campaign conducted by a professional fundraiser.

A professional fundraiser solicits donations on behalf of a charitable organization.

Synopsis of Original Bill

SB 625/aSFC appropriates $300 thousand from the general fund for FY06 and subsequent fiscal

years to a newly proposed non-reverting Charitables Unit Fund created in the state treasury.

New material in the Charitables Solicitation Act require professional fundraisers soliciting dona-

tions on behalf of a charitable organization to submit a fundraising campaign and pay fees which

shall be deposited in the Charitables Unit Fund.

Senate Bill 625/aSJC-- Page 2

The Attorney General may charge fees:

•

not to exceed $25 for a charitable organization,

•

not to exceed $500 for a professional fundraiser, and

•

not to exceed $250 for registration of a fundraising campaign.

Significant Issues

The AGO reports the new amendments and new sections of SB 625/aSJC will provide for fund-

ing and give the Attorney General the authority to charge statutorily capped administrative fees

to support the public disclosure, investigatory, and enforcement of the AGO’s Charitables Solici-

tation Unit. Based on a nationwide survey, the fees proposed in this bill are moderate and rea-

sonable.

PERFORMANCE IMPLICATIONS

N/A

FISCAL IMPLICATIONS

The appropriation of $300 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY06 shall not revert to

the general fund.

The appropriation request is for a newly proposed Charitables Unit Fund which will consist of

registration fees, appropriations, gifts, grants and donations. The fund will assist the AGO to de-

fray costs associated with the administration and enforcement of the Charitable Solicitations Act.

SB 625/aSJC creates a new fund and provides for continuing appropriations. The LFC objects to

including continuing appropriation language in the statutory provisions for newly created funds.

Earmarking reduces the ability of the legislature to establish spending priorities.

ADMINISTRATIVE IMPLICATIONS

None indicated

TECHNICAL ISSUES

None indicated

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

The AGO reports their Charitables Unit will continue to be hampered with inadequate resources

to administer and enforce the Charitable Solicitations Act. The number of nonprofit organization

operating in New Mexico continues to significantly increase. The Charitables Unit is no longer

able to provide adequate services to New Mexico nonprofit organizations and the public due to

dated technology and the number of staff in relation to the number of nonprofit organizations

.

AHO/yr