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

SPONSOR Rodella

ORIGINAL DATE

LAST UPDATED

2-19-07

HB 1111

SHORT TITLE Chimayo Youth Conservation Corps

SB

ANALYST Woods

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

$150.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Energy, Minerals and Natural Resources Department (EMNRD)

SUMMARY

Synopsis of Bill

House Bill 1111 seeks to appropriate $150,000 from the general fund to the New Mexico Youth

Conservation Corps fund for expenditure in fiscal year 2008 for a grant to the Chimayo Youth

Conservation Corps to establish the water restoration action strategies to manage the upper

Chimayo watershed. Any unexpended or unencumbered balance remaining at the end of fiscal

year 2008 shall revert to the general fund.

SIGNIFICANT ISSUES

The Youth Conservation Corps (YCC) is administratively attached to the Energy, Minerals and

Natural Resources Department (EMNRD).

As background, EMNRD notes that this legislation would provide $150 thousand from the

general fund to the New Mexico Youth Conservation Corps Fund for a direct grant to the

Chimayo Youth Conservation Corps, a non-profit organization. YCC is a state agency youth

employment program that provides grants to state agencies, federal agencies, local government

agencies, federally recognized Native American Tribes and organizations recognized by the

House Bill 1111 – Page

2

Internal Revenue Service as a 501 (c)(3) (non-profit). The YCC Commission awards grants each

year based on the YCC Act (NMSA 1978, Section 9-50-1 et seq. and Rules using a competitive

evaluation and selection process. House Bill 1111 specifically states that $150,000.00 shall go to

the Chimayo Youth Conservation Corps, but does not require a competitive process.

EMNRD advises that, by requiring the YCC Commission to make a grant directly to the

Chimayo Youth Conservation Corps without going through the competitive bidding process, HB

1111 violates the requirement for a competitive procurement selection process. However, the

status of the Chimayo Youth Conservation Corps as a non-profit organization does not eliminate

the requirement for competitive bidding.

ALTERNATIVES

EMNRD suggests that HB1111 should be amended to provide that the money is to be used to

award a grant for establishment of water restoration strategies in the Upper Chimayo Watershed

and not identify the recipient of the grant. The Chimayo Youth Conservation Corps has received

4 grants in the last 5 years from the YCC Commission and would be eligible to apply for a grant.

[See amendment below.]

AMENDMENTS

EMNRD suggests the following language:

AN ACT MAKING AN APPROPRIATION FOR THE CHIMAYO YOUTH

CONSERVATION

CORPS

TO ESTABLISH THE WATER RESTORATION

ACTION STRATEGIES TO MANAGE THE UPPER CHIMAYO WATERSHED.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. APPROPRIATION.--One hundred fifty thousand dollars ($150,000) is

appropriated from the general fund to the New Mexico youth conservation corps fund

for expenditure in fiscal year 2008 for a grant to the Chimayo youth conservation corps

a New Mexico not-for-profit organization

to establish the water restoration action

strategies to manage the upper Chimayo watershed. Any unexpended or unencumbered

balance remaining at the end of fiscal year 2008 shall revert to the general fund.

BFW/nt