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F I S C A L I M P A C T R E P O R T
SPONSOR HTRC
ORIGINAL DATE
LAST UPDATED
2/8/06
HB 435 & 477/HTRCs
SHORT TITLE
LIQUOR TAX DISTRIBUTION TO LOCAL DWI
FUND
SB
ANALYST Schardin
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
FY08
9,994.0
10,193.9 Recurring Local DWI
Grant Fund
(9,994.0)
(10,193.9) Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Conflicts with SB525.
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
The House Taxation and Revenue Committee substitute for House Bills 435 and 477 would in-
crease the percentage of liquor excise tax revenue that is distributed into the local DWI grant
fund from 34.57 percent to 60 percent. Doing so would cause the percentage of liquor excise tax
revenue that is distributed into the general fund to decrease from the current level of 65.43 per-
cent to 40 percent.
The bill would designate how additional local DWI grant fund revenue will be distributed
amongst New Mexico’s counties and the state’s five alcohol detoxification and treatment centers.
Part of the new revenue to the local DWI grant fund would be used to increase the amount of
funding available for grants to New Mexico counties.
The bill would eliminate an existing annual appropriation of $300 thousand from the local DWI
grant fund to the local government division of DFA to cover the costs of installing ignition inter-
lock devices for indigent people who are required by law to install ignition interlock devices on
their vehicles.
pg_0002
House Bill 435 & 477/HTRCs – Page 2
The effective date of this bill is July 1, 2006.
FISCAL IMPLICATIONS
According to the January 2006 consensus revenue estimate, total liquor excise tax revenue is ex-
pected to be $39.3 million in FY07. Under current law, the local DWI grant fund would receive
34.57 percent ($13.6 million) and the general fund would receive 65.43 percent ($25.7 million).
The House Taxation and Revenue Committee substitute for House Bills 435 and 477 would in-
crease the local DWI grant fund distribution to 60 percent ($23.6 million) and decrease the gen-
eral fund distribution to 40 percent ($15.7 million). The total impact will be $10.0 million.
The bill would increase the annual distributions to the state’s alcohol detoxification and treat-
ment centers by $1.56 million from $2.8 to $4.36 million. About $1 million of this funding in-
crease would be earmarked for a new alcohol detoxification and treatment facility in De Baca
County.
The bill would also increase the amount of funding for grants to New Mexico’s 33 counties from
about $8.0 million to about $16.7 million.
SIGNIFICANT ISSUES
According to a report from UNM’s Division of Government Research, 40 percent of all fatal
crashes in New Mexico involved alcohol in 2004.
ADMINISTRATIVE IMPLICATIONS
The bill will increase the administrative responsibilities of DFA’s Local Government Division,
which administers the local DWI grant fund.
DOH will need to oversee the new treatment center in De Baca County funded by this bill. This
will require about ¼ FTE and three site visits per year to ensure quality of services provided.
The bill will require TRD to make minor administrative changes.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
This bill conflicts with Senate Bill 525, which increases the local DWI grant fund share of the
liquor excise tax and creates different ways for the additional DWI grant money to be distributed.
POSSIBLE QUESTIONS
Page 4-5: What will be the impacts of removing the $300 thousand per year appropriation to
DFA to fund ignition interlock device installation for indigent people.
SS/mt:yr