NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Local Government Division (LGD), Department of Finance and Administration (DFA)

SUMMARY

Synopsis of Bill

House Bill 596 amends Section 11-6A-3 NMSA 1978, Local DWI Grant Program Fund, to change the amount of the liquor excise tax revenues that can be used for administration of the Fund.

FISCAL IMPLICATIONS

This bill would increase the funding that can be used for administering the DWI Grant Program Fund from five percent of $2 million, $100.0, to three percent of the liquor excise tax revenues distributed to the fund in a fiscal year, approximately $285.0. This would restore the administrative funding to approximately the level authorized prior to July 1998. Chapter 182, Laws of 1997 reduced the allowable program administrative funds from approximately $250.0 per year to $100.0. This administrative funding provides technical assistance, training or evaluation for county programs. The funding available for programs also doubled as provided by Chapter 182, Laws of 1997 from approximately $5 million per year to $9.5 million per year. The increased funding provided for administrative funding would in turn reduce the funding available to counties by approximately $185.0.

It's possible the general fund appropriations provided to the LGD could be reduced in FY2000 should this bill pass.

OTHER SUBSTANTIVE ISSUES

The LGD states the following : "The bill provides a cost-effective way for the county DWI programs to obtain training, technical assistance and evaluation services by pooling' a small portion of their financial resources within LGD's administrative budget."

According to LGD, "the DWI Grant Council and county DWI programs have expressed widespread support for this bill."

Without the administrative assistance provided by the LGD, each county program would have to contract individually for training, technical assistance and evaluation services which could be more costly than "pooling" all the resources together.

JMG/gm