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 Payne

DATE TYPED 2/23/05

HB

SHORT TITLE PRC Professional Staff

SB 947

ANALYST Wilson

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

See Narrative

SOURCES OF INFORMATION

LFC Files

Responses Received From

Attorney General’s Office (AGO)

Public Regulation Commission (PRC)

SUMMARY

Synopsis of Bill

Senate Bill 947 amends the Public Regulation Commission Act to explicitly state that the PRC

may only remove its chief of staff for cause and the chief of staff shall have significant adminis-

trative, budgetary and regulatory experience and expertise and shall be appointed solely based on

qualifications to perform the duties of the position and without reference to political party affilia-

tion; and that the chief of staff may remove a division director only for cause and that division

directors shall be appointed solely on qualifications to perform the duties of the position.

Additionally, this bill amends current law to state, the PRC may only remove its general counsel

for cause and that the general counsel shall be hired solely on the person’s qualifications and fit-

ness to perform the duties of the position.

Significant Issues

Current law allows the PRC to hire “competent attorneys” without reference to their qualifica-

tions or grounds for dismissal. Current law also provides that the chief of staff serves “at the

pleasure of the commission”.

Senate Bill 947 -- Page 2

The AGO provided the following:

•

This bill creates “property interests” in the positions of PRC general counsel and chief of

staff. The Supreme Court holds that the due process clause of the United States Constitu-

tion requires a pretermination hearing before employees may be dismissed if the terms of

their employment specify that they may only be terminated “for cause”.

•

The bill may also create rights for unsuccessful applicants for the positions of general

counsel and chief of staff, if they believe that the successful applicant is unqualified un-

der the terms of this bill or that political party affiliation was considered by the PRC dur-

ing the hiring process for chief of staff.

The PRC notes the term “cause”, in the context of removable only for cause, is not defined and

could be the subject of litigation.

FISCAL IMPLICATIONS

There may be some costs to the PRC in conducting the required termination hearings.

ADMINISTRATIVE IMPLICATIONS

The PRC will have to conduct “special hearings when it wants to dismiss its general counsel or

chief of staff. The chief of staff would also have to conduct hearings when he or she wants to

dismiss a division director.

DW/yr