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





SPONSOR: Garcia, MP DATE TYPED: 02/09/99 HB 289
SHORT TITLE: Alcohol and Gaming Division Director SB
ANALYST: Valenzuela


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
NFI $ 88.0 Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates/Conflicts with/Companion to/Relates to



SUMMARY



Synopsis of Bill



House Bill 289 would create, formally, the Alcohol and Gaming Division (AGD) of the Regulation and Licensing Department (RLD) and designate the division director as a classified state employee. The bill also changes the definition of "director" in the Liquor Control Act from the superintendent of the RLD to the director of the AGD, thus clarifying the role of the director.



Significant Issues



Division directors are normally exempt state employees, who serve at the pleasure of the Superintendent of the Regulation and Licensing Department. There are and have been division directors within state government who have been classified, not exempt, employees.



FISCAL IMPLICATIONS



House Bill 289 does not contain an appropriation. The RLD eliminated its exempt Division Director position at or around March 31, 1998. The bill would add one new FTE to the division, costing approximately $88.0 in general fund.





ADMINISTRATIVE IMPLICATIONS



If any, enactment of House Bill 289 would require only minor administrative changes.



TECHNICAL ISSUES



House Bill 289 may conflict with Section 9-1-4 of the Executive Reorganization Act, which states that division directors generally serve at the pleasure of the cabinet secretary.



OTHER SUBSTANTIVE ISSUES



The RLD eliminated its exempt Division Director position. House Bill 289 would create a division director position statutorily, thus, adding one new position to the division. Currently, the department has one "exempt" position (the chief legal counsel) in this division. Enactment of this bill would structure, organizationally, a classified division director over a exempt position.



When the new division director position is created, the department will have to comply with applicable laws for filling the position.



MV/njw