Master FIR (1988)

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

SPONSOR:	Macias		DATE TYPED:	3/13/99		HB
SHORT TITLE:		Increase Distributions to Fire Districts				SB	636
					ANALYST:		Esquibel

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY99	FY2000	FY99	FY2000	Recurring or Non-Rec	Fund Affected
	N/A

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY99	FY2000	Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
	$ (1,171.1)		Recurring	General Fund
	$ 2,700.0		Recurring	Fire Protection Fd

(Parenthesis ( ) Indicate Revenue Decreases)

Relates to SB658

SOURCES OF INFORMATION

Public Regulation Commission (PRC)

Commission on Higher Education (CHE)

LFC Files

SUMMARY

Synopsis of Bill

Senate Bill 636 proposes to change the distribution of revenue from the insurance department suspense fund to provide for an increase in the monthly reversions to the general fund, while eliminating the annual reversion to the general fund from the fire protection fund. The purpose of this revenue shift is to allow for supplemental distributions from the fire protection fund from funds that would previously have reverted to the general fund in an effort to improve fire department and district insurance ratings; foster planning goals and for any other purpose allowed by the Fire Protection Fund Law.

FISCAL IMPLICATIONS

The LFC estimated fiscal impact to the general fund uses projected estimates for FY2000 balances in the insurance suspense fund to arrive at a negative impact of $1,171.1 to the general fund given that, under the provisions of the bill, the general fund would lose reversions from the fire protection fund.

The PRC estimates the net gain to the fire protection fund would be an approximate $2.7 million annually.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

Senate Bill 636 relates to SB658, as amended, which proposes to move the state fire marshal and firefighter training academy to the Department of Public Safety.

RAE/njw