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

SPONSOR Robinson

ORIGINAL DATE

LAST UPDATED

2/12/07

HB

SHORT TITLE Campaign Disclosure Laws & Certain Contracts

SB 737

ANALYST Wilson

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY07

FY08

FY09 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

($0.1)

($0.1)

($0.1) Recurring General Fund

& others

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Attorney General’s Office (AGO)

Energy, Minerals & Natural Resources Department (EMNRD)

SUMMARY

Synopsis of Bill

Senate Bill 737 amends NMSA 1978, Section 13-1-191.1.A., Campaign Contribution Disclosure

and Prohibition, to set a minimum contract value of $12,000 per year before the requirements of

campaign disclosure laws kick in.

FISCAL IMPLICATIONS

The provisions of this bill will streamline contracts processing and ease the paperwork burden on

both prospective contractors and entities.

SIGNIFICANT ISSUES

SB 737 sets the contract value at which prospective contractors must file the Campaign

Contribution Disclosure Form at a market value equal to or greater than $12,000 per year. This

gives guidance to prospective contractors and entities which must comply with the law at what

point the form must be filed. It lessens paperwork on both prospective contractors and entities

while still protecting the State of New Mexico.

EMNRD suggests increasing the yearly threshold to $30,000, the level at which when procuring

professional services, entities are required to issue an RFP. This will better track the

Senate Bill737– Page

2

Procurement Code and streamline contract processing, while still protecting the State’s interests.

ADMINISTRATIVE IMPLICATIONS

Currently, agencies must require completion of the Campaign Contribution Disclosure Form for

procurement of all types of professional services, or for construction projects procured via a

Request for Proposals (RFP). SB 773 will allow agencies to bypass this requirement for small

contracts i.e. a $1,600 contract for meeting facilitation as well as for contracts which do not meet

the threshold such as a one-year $10,000 contract for wind power monitoring or a four-year

contract for educational programs that does not exceed $12,000 per year. This change will

streamline contracts processing and ease the paperwork burden on both prospective contractors

and entities.

DW/mt