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

SPONSOR Trujillo

ORIGINAL DATE

LAST UPDATED

01/24/07

HB 151

SHORT TITLE

Immigrant & Minority-Owned Businesses

SB

ANALYST Hanika Ortiz

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$200.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Economic Development Department (EDD)

SUMMARY

Synopsis of Bill

House Bill 151 appropriates $200 thousand to the EDD to assist certain small businesses in

northern New Mexico in enhancing their growth through personal consultations offered in a bi-

lingual format.

FISCAL IMPLICATIONS

The appropriation of $200 thousand contained in HB 151 is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY08 shall revert to the

general fund. HB 175 is not part of the Executive Budget Request or in House Bill 2.

SIGNIFICANT ISSUES

EDD reports minority and immigrant business owners are typically underserved and underrepre-

sented across the state. The appropriation will be utilized by EDD to provide advice to these

businesses in order to foster their job growth and economic sustainability.

House Bill 151 – Page

2

PERFORMANCE IMPLICATIONS

EDD will assess whether the program is successful in creating jobs and economic sustainability

through one-one-one meetings with business owners.

ADMINISTRATIVE IMPLICATIONS

EDD reports minimal staffing will be required to provide the business consulting necessary to

implement the bill.

TECHNICAL ISSUES

The bill is unclear regarding which definition will be used in defining a “small business".

In addition, the bill states in the title assistance will be for businesses in “Santa Fe County", and

in the body of the bill the assistance is for businesses in the “northern New Mexico region".

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

EDD believes failure to enact HB 151 may continue the trend of historically underserved busi-

nesses lacking opportunities that may create jobs and economic growth for their communities.

POSSIBLE QUESTIONS

How will underserved small businesses in areas outside of the region stated in the bill access

similar services as described.

AHO/nt