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





SPONSOR: Eisenstadt DATE TYPED: 03/06/99 HB
SHORT TITLE: Tribal Police Departments SB 678
ANALYST: Trujillo/Eaton


REVENUE



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
$ (374.0) Recurring General Fund Reversion

(Parenthesis ( ) Indicate Expenditure Decreases)



Relates to HB28/aHJC/aHAFC - Junior College Police (Stewart); SB667 - Law Enforcement Training Center Fund (Lopez). All of these bills propose to divert monies in the law enforcement protection fund that would have reverted to the general fund.



SOURCES OF INFORMATION



LFC Files

Office of Indian Affairs



SUMMARY



Synopsis of Bill



SB 678 authorizes the distribution of money from the law enforcement protection fund to each tribal police department in the amount of $17,000. There are twenty two tribes in New Mexico. Fourteen of those tribes fund their police departments independently. The remaining eight tribes receive their police department funding from the Bureau of Indian Affairs (BIA).



29-13-3. Distribution of certain insurance department collections; law enforcement protection fund created.

There is created in the state treasury the "law enforcement protection fund". Ten percent of all money received for fees, licenses, penalties and taxes from life, general casualty and title insurance business pursuant to the New Mexico Insurance Code [Chapter 59A NMSA 1978] shall be paid daily to the state treasurer and by him credited to the fund. On or before June 30 of each year, the state treasurer shall transfer to the general fund any balance in the law enforcement protection fund in excess of one hundred thousand dollars ($100,000) that is not obligated and that is in excess of the amount certified by the division to be distributed from that fund.



The revenues that support the law enforcement protection fund are from the insurance premium tax. This tax is collected by the superintendent of insurance of the Public Regulatory Commission. Ten percent of the taxes collected are distributed to the law enforcement protection fund.



Significant Issues



The bill authorizes the distribution of money from the law enforcement protection fund to tribal police. The bill allows tribal police to receive an equitable distribution of money from the law enforcement protection fund. Previously, the fund allowed for distribution to municipal police, university police, and county sheriff's departments.



FISCAL IMPLICATIONS



The estimated revenues from the insurance tax for fiscal year 2000 are $46.0 million. The estimated distribution to the law enforcement protection fund is $4.6 million. Of that amount it is estimated that $2.4 million, will revert to the general fund on June 30, 2000.



This bill will divert up to three hundred seventy four thousand dollars ($374,000) away from the general fund reversion to tribal police departments.



ADMINISTRATIVE IMPLICATIONS



This may have administrative impacts to the: municipal police; university police; tribal police; and county sheriff's departments.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



Relates to HB 28/aHJC/aHAFC and SB667.



Analyst Comments

At first there was no recognition on the analysts' part as to the general fund fiscal impact of this bill. A subsequent Fiscal Impact Report (FIR) was released that wrongfully assumed the entire balance of the law enforcement protection fund that would have reverted to the general fund would be distributed to the tribal police departments.



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