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 Cisneros

ORIGINAL DATE

LAST UPDATED

01/22/2007

02/19/2007 HB

SHORT TITLE Natural Resources Trustee Fund & Office

SB 15/aSFC

ANALYST Moser

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to: 75-7-1 to 75-7-5 NMSA 1978

Duplicates SB261

Duplicates Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From:

The Office of the Natural Resources Trustee (ONRT)

SUMMARY

Synopsis of SFC Amendment

The Senate Judiciary Committee amendment for Senate Bill 15 removes the appropriation of

$500,000 as this amount duplicates the appropriation in the General Appropriation Act for the

ONRT.

Synopsis of Original Bill

Senate Bill 15 appropriates $500 thousand from the General Fund to ONRT for the purpose of

establishing and funding a revolving fund which would cover initial start up costs for recovery

projects.

Senate Bill 15/aSFC – Page

2

FISCAL IMPLICATIONS

The ONRT indicates that it has successfully recovered start up costs in each one of its cases to

date. Therefore, ONRT does not expect additional special appropriations anytime in the

foreseeable future

The appropriation of $500 thousand contained in this bill is a nonrecurring expense to the

general fund. Any unexpended or unencumbered balance remaining at the end of FY08 shall not

revert to the general fund.

SIGNIFICANT ISSUES

Start up costs in the past has been funded partly from the natural resources trustee fund. The

ONRT has been advised by the Attorney General’s Office that these monies by law “…must be

used for the purpose of restoring, replacing, or acquiring the equivalent of the injured natural

resources," and , may not be used for operating expenses. This bill establishes a one-time

appropriation. The ONRT is allowed to collect through the court for actual costs incurred. As

these monies, are collected they will be deposited into the revolving fund to offset future start-up

costs.

PERFORMANCE IMPLICATIONS

This bill the ONRT states “…would allow the state to take on larger cases where start up costs

may substantially exceed $500 thousand." This would allow the state to recover substantial

settlements for the state.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

The state will be required to appropriate additional monies from the general fund to meet the

mission of the agency.

GM/mt:nt