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





SPONSOR: Taylor, T.C. DATE TYPED: 03/11/99 HB 451
SHORT TITLE: Property Control Division SB
ANALYST: Carrillo


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
*



(Parenthesis ( ) Indicate Expenditure Decreases)



REVENUE



Estimated Revenue
Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY99 FY2000
*



(Parenthesis ( ) Indicate Revenue Decreases)



*See fiscal impact section.



Duplicates/Conflicts with/Companion to/Relates to



SOURCES OF INFORMATION



General Services Department

New Mexico State Highway and Transportation Department

State Department of Education

Administrative Office of the Courts

Attorney General's Office





SUMMARY



Synopsis of Bill



House Bill 451 proposes to allow the Property Control Division (PCD) of the General Services Department (GSD) to assist state agencies otherwise exempt from PCD jurisdiction with construction projects, through a joint powers agreement. Specifically, the PCD would assist with the control, the most beneficial use, and the management of all state buildings and lands.



The effective date of the legislation is July 1, 1999.



FISCAL IMPLICATIONS



According to staff from the PCD: Agencies exempt from PCD jurisdiction sometimes request professional assistance from PCD on major construction projects. Under current law, PCD cannot act as the official representative for those agencies in contractual agreements. This legislation would allow PCD and an exempt agency to enter into a joint powers agreement so PCD could provide that assistance through design and construction. PCD estimates one FTE is dedicated to work on these types of issues.



OTHER SUBSTANTIVE ISSUES



PCD states in the past year, PCD has been asked by the State Fair, Museum of New Mexico, and the Game and Fish Department to administer major projects. PCD was able to do so with the State Fair only because the legislature appropriated the money to the Capital Program Fund, which is administered by PCD. This allowed a Joint Powers Agreement which authorized PCD to act as "owner's representative" with the design firms and construction contractors. Because of the nature of construction projects, the design administration and construction management cannot effectively be performed by PCD unless there is a legal relationship between PCD and the contractor. Government would be served better if an official relationship can be formed when the parties agree.



WJC/njw