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



SPONSOR: Lutz DATE TYPED: 02/18/99 HB 381
SHORT TITLE: Exempt Various Licensing Boards SB
ANALYST: Valenzuela

APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
$ 0.0 $ 0.0 $ (4,867.8) Non-Recurring OSF



(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION



LFC Files

Regulation and Licensing Department



SUMMARY



Synopsis of Bill



House bill 381 essentially privatizes four licensing boards:

House Bill 381 would eliminate the Legislature's appropriating power for these boards. As such, enactment of the bill would transfer the following annual budgets and cash balances from the state treasury to the respective boards:



Board Annual Budget Cash Balance Total
Accountancy $345.5 $509.8 $855.3
Acupuncture $90.7 $146.9 $237.6
Pharmacy $1,200.0 $596.5 $1,796.5
Real Estate Commission $800.0 $1,178.4 $1,978.4
Total $2,436.2 $2,431.6 $4,867.8

Significant Issues



House Bill 381 would allow each of the boards to create and maintain an account in an FDIC insured depository (i.e., bank), instead of the current practice of depositing these funds into the state treasury. In essence, this change would eliminate the Legislature's appropriating power for these boards. The revenue generated by each board would not be considered public money, but the governor and state auditor would have the option of requesting a special audit of the funds.



The amendments to Section 61-11-6 would remove the Pharmacy board from and give the board the autonomy to adopt the provisions of the Uniform Licensing Act. More specifically, the changes in wording follow: 1) from "shall" to "may" adopt, amend, or repeal rules necessary to carry out the provisions of the pharmacy act in accordance with the provisions of the Uniform Licensing Act; and 2) from "shall" to "may" cause the prosecution of any person violating the pharmacy act, the New Mexico Drug Device and Cosmetic Act or the Controlled Substance Act.



For the Pharmacy Board, the bill adds provision to continue to employ inspectors as state employees, covered by the personnel act or other provisions of law relating to state employees. Staff members for these boards will serve at the boards pleasure and are exempt from provisions of personnel act. Boards would be responsible for the employee benefits.



This bill would require the board to compensate board members for mileage and per diem, pursuant to the board's policies, rather than the Per Diem and Mileage Act. Finally, House Bill 381 removes each of the boards from the Sunset Act, thus eliminating the Legislature oversight of the boards operations and effectiveness.



FISCAL IMPLICATIONS



House Bill 381 does not contain an appropriation. The bill removes the Legislature's appropriating power for these boards.



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