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).

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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 Senate Rules Committee

ORIGINAL DATE

LAST UPDATED

2/9/08

HB

SHORT TITLE State Ethics Commission Act

SB 437/SRCS

ANALYST Wilson/Escudero/Baca

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

None

(Parenthesis ( ) Indicate Expenditure Decreases)

SB 437 relates to the following ethics bills:

HB 160, Amend Gift Act Allowable Amounts

HB 309, State Ethics Commission Act

HB 344, State Ethics Commission Act

HJM 24, Study Bipartisan State Elections Commission

SB 132, Whistleblower Protection Act

SB 320, Ethical Conduct of Political Subdivisions

SB 376, State Ethics Commission Act

SJR 6, Create State Ethics Commission, CA

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY08

FY09

FY10 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

Indeterminate

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Senate Rules Committee Substitute for Senate Bill 437 creates a right to an action for civil

damages against a public employer that takes any retaliatory action against a public employee

because the public employee either:

Senate Bill 437/SRCS – Page

2

•

discloses or threatens to disclose an activity, policy or practice of the public employer

that constitutes an unlawful or improper act or that the public employee believes in good

faith constitutes an unlawful or improper act;

•

provides information to, or testifies before, a public body as part of an investigation,

hearing or inquiry into an unlawful or improper act; or

•

objects to or refuses to participate in an activity, policy or practice that constitutes an

unlawful or improper act or that the public employee believes in good faith constitutes an

unlawful or improper act.

The bill provides legal remedies for “whistle blowing" violations.

The provisions of this act apply only to civil actions for damages resulting from retaliatory action

that occurred on or after July 1, 2005. Provisions of the act are effective July 1, 2008.

FISCAL IMPLICATIONS

This bill has no appropriation. Costs are unknown and will be determined by awards made

related to the types and frequency of litigation involved.

SIGNIFICANT ISSUES

The provides that:

A public employer that violates the provisions of this section shall be liable to the public

employee for all relief necessary to make the employee whole, including actual damages,

reinstatement with the same seniority status that the employee would have had but for the

violation, two times the amount of back pay with interest on the back pay and

compensation for any special damage sustained as a result of the violation. In addition, an

employer shall be required to pay the litigation costs and reasonable attorney fees of the

employee. An employee may bring an action pursuant to this section in any court of

competent jurisdiction.

It shall be an affirmative defense to a civil action brought pursuant to this section that the

action taken by a public employer against a public employee was due to the employee's

misconduct, poor job performance or a reduction in workforce for purposes unrelated to

conduct prohibited pursuant to this section.

The remedies provided for in this section are not exclusive and shall be in addition to any

other remedies provided for in any other law or available under common law.

OTHER SUBSTANTIVE ISSUES

Initially, the ethics reform act was considered at the request of the Governor and a commission

appointed to make recommendations regarding ethics reform. The provisions contained in

related bills included the commission’s recommendations and addressed and its provisions

addressed the conduct of public employees, contractors and lobbyists. Whistle blower

protections are the only provisions remaining from SB 437 and other ethics reform related bills.

Senate Bill 437/SRCS – Page

3

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

Whistle blower protections will not be as clearly stated as under existing statutes.

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