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



SPONSOR: Watchman DATE TYPED: 2/15/99 HB 502
SHORT TITLE: Create Federal Investment Corporation SB
ANALYST: L. Kehoe

APPROPRIATION



Appropriation Contained
Estimated Additional Impact
 Recurring

or Non-Rec

 Fund

Affected

FY99 FY2000 FY99 FY2000
$ 55.0 Non-Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates/Conflicts with/Companion to/Relates to



SOURCES OF INFORMATION



Office of Indian Affairs

Legislative Finance Committee Files



SUMMARY



Synopsis of Bill



House Bill 502 appropriates $55,000 from the general fund to the New Mexico Office of Indian Affairs to study the feasibility of creating a federal investment corporation that is similar to the federal overseas private investment corporation that will insure investments made on Indian land.



Significant Issues



The use of a federal investment insurance corporation will have the effect of bringing more investment capital to Indian lands because of the federal government insuring the investment. Economic development on Indian lands will help diversify their economy and provide more opportunities for Native Americans to live and work in their communities.



FISCAL IMPLICATIONS



The fiscal impact to the Office of Indian Affairs would be minimal. The agency would enter into a Joint Powers Agreement with a recognized governmental entity, such as the Navajo Nation, or another provider with the expertise to provide the services intended in House Bill 502.



POSSIBLE QUESTIONS



LMK/gm