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

SPONSOR Varela

ORIGINAL DATE

LAST UPDATED

1/23/07

2/20/07 HB 227/aHJC/aHAFC

SHORT TITLE Homeland Security & Emergency Management Act SB

ANALYST Peery-Galon

STIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY07

FY08

FY09 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

NA

$250.0 $250.0

$500.0 Recurring General

Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Health (DOH)

New Mexico Corrections Department (NMCD)

Department of Military Affairs (DMA)

No Responses Received From

Border Authority

Department of Public Safety (DPS)

SUMMARY

Synopsis of HAFC Amendment

The House Appropriations and Finance Committee amendment strikes the House Judiciary

Committee amendment 3 to remove “consists of" on page 11, line 9. Also, the amendment

removes any language pertaining to an appropriation from the proposed legislation.

Synopsis of HJC Amendment

The House Judiciary Committee amendment removes language “the staff of the governor’s

organized crime" on page 10, line 25, “prevention commission," on page 11, line 1 and “consist

of" on page 11, line 9. The amendment removes the staff of the governor’s organized crime

prevention unit from the Special Investigation Unit and clarifies some wording.

House Bill 227/aHJC/aHAFC – Page

2

Synopsis of Original Bill

House Bill 227 creates the Homeland Security and Emergency Management Department Act that

would establish a department that is not a cabinet department. The purpose of the act is to

establish a department to:

•

consolidate and coordinate homeland security and emergency management functions to

provide comprehensive and coordinated preparedness, mitigation, prevention, protection,

response and recovery for emergencies and disasters, regardless of cause, and acts of

terrorism;

•

act as the central primary coordinating agency for the state and its political subdivisions in

response to emergencies, disasters and acts of terrorism; and

•

act as the conduit for federal assistance and cooperation in response to emergencies, disasters

and acts of terrorism.

The proposed legislation would remove the Emergency Management and the Homeland Security

Support Program from DPS and the Office of Homeland Security from the Governor’s Office to

create a separate Homeland Security and Emergency Management Department. The state

director of the department is to be appointed by the governor and hold office at the pleasure of

the governor. The proposed legislation appropriates $250.0 from the general fund to the

Department of Finance Administration for the purpose of establishing the Homeland Security

and Emergency Management Department. The proposed legislation updates statute in regards to

establishing the Homeland Security and Emergency Management Department.

FISCAL IMPLICATIONS

The appropriation of $250.0 contained in this bill is a non-recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of fiscal year 2008 shall revert

to the general.

The appropriation of $250.0 will go towards funding four full-time-equivalent positions making

it likely that an annual appropriation will be required.

For fiscal year 2008, the Executive recommends an expansion of $250.0 for DPS for the

reorganization of homeland security, and recommends language that the funding is contingent on

the passing of this proposed legislation. DPS reports that the department will be negatively

impacted by indirect administrative costs of around $449 thousand if the Emergency

Management and Homeland Security Support Program becomes its own agency.

NMCD reports there may be a small expense to the department relating to coordinating existing

emergency response plans through the new agency, especially if the renegotiating of existing

mutual aid agreements is required. NMCD also states that expenses could occur if the

department’s resources are used in an emergency situation. NMCD states the proposed

legislation might create some savings to the department by coordinating with federal agencies,

other states and municipalities to provide support in some emergencies.

The federal homeland security grants awarded to the State of New Mexico have gone from $28.1

million in federal fiscal year 2004 to $8.2 million in federal fiscal year 2006.

House Bill 227/aHJC/aHAFC – Page

3

SIGNIFICANT ISSUES

DPS states the proposed department will continue to coordinate with state police on intelligence,

hazardous materials and road use during emergencies, with the Department of Agriculture in

agro-terrorism, with the New Mexico Environment Department in assessment and exercise, with

Department of Transportation in road use in times of disaster, with the NM Department of Health

in bioterrorism and medical surge capacity, and with any other department deemed necessary.

NMCD states is not clear how the existing emergency preparedness plan of the department

would interact with plans put forth by the new agency. NMCD reports many of the emergencies

they prepare for are unique to the Corrections Department such as prison fire or riot. NMCD

feels that for these specific emergencies it is in the best interest of the public for the response to

be from the department and not an outside agency.

The Legislative Finance Committee over the past two years has expressed concern that the

state’s homeland security operations are not clearly organized. Currently, the responsibility for

administration of federal homeland security grants is divided between the Office of the Governor

and the Emergency Management and Homeland Security Support Program in DPS. The

homeland security advisor wears two hats: that of policy advisory in the Office of the Governor

and that of deputy secretary of DPS. This “double hatting" has the potential of creating

confusion over the lines of authority during an emergency. Currently, the Office of Homeland

Security is not authorized under statute.

PERFORMANCE IMPLICATIONS

DPS reports consolidating the homeland security and emergency management functions into a

single department can lead to a more efficient and coordinated response in emergencies, disasters

and acts of terrorism. DPS states that in reporting directly to the governor, decision-making

authorities can be expedited during disasters, emergencies or terrorist incidents.

DOH states the proposed legislation falls under the department’s strategic plan regarding

epidemiology and response with the goal to monitor the health status of New Mexicans and

respond to public health threats.

ADMINISTRATIVE IMPLICATIONS

DPS states there will be some economies of scale in consolidating personnel. DPS reports the

new department will have the following personnel needs: chief financial oversight, budget

analysis, legal support, procurement/purchasing, personnel authorizations and public

information.

OTHER SUBSTANTIVE ISSUES

DOH states the language “direct and coordinate the all hazard emergency management activities

of all state department, agencies and political subdivisions…" requires clarification. The

secretary of DOH directs the department’s health emergency management and resources in the

preparedness phase of em`ergency management. DOH states language may need to clarify the

roles of the state director of homeland security and emergency management and the secretary of

DOH during a health emergency.

House Bill 227/aHJC/aHAFC – Page

4

DOH notes the nature of the state director over tribal emergency management entities is not

mentioned, and perhaps could be clarified.

RPG/mt