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.



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



SPONSOR: Wallace DATE TYPED: 02/02/00 HB 15
SHORT TITLE: Sunset Agency Extensions SB
ANALYST: Valdes

APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY00 FY01 FY00 FY01
$4,985.2* Recurring General Fund
$ 6,618.9 Recurring OSF
$ 2,351.5 Recurring Fed Funds

(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates SB122

SOURCES OF INFORMATION



LFC files

Regulation and Licensing Department

Energy, Minerals and Natural Resources



SUMMARY



Synopsis of Bill

This bill extends the termination date to July 1, 2005 for the following agencies:



These agencies will cease operations These agencies will cease operations on July 1, 2001

on July 1, 2000 without an extension: without an extension:

*Human Rights Commission Crime Victims Reparation Commission

*Labor and Industrial Commission *Manufactured Housing Division & Committee

*State Racing Commission Private Investigators/Polygraphers Advisory Board

Athletic Commission

Message Therapy Board

Board of Acupuncture

Athletic Trainer Practice Board

Interior Design Board

Real Estate Commission

Real Estate Appraisers Board

Coal Surface Mining Commission

____________

*(See Fiscal Implications)



Significant Issues



Legislation was passed during the 1999 Legislative session to extend the agencies set to expire on July 1, 2000. The Governor vetoed the bill because it also included an extension of the Public Employee Labor Relations Board.



The purpose of extending the termination date of these agencies is to ensure continuity in regulation and oversight of the professions and industries regulated. If this legislation is adopted and signed by the governor, it has an emergency clause and will become effective immediately.



If this legislation is not adopted, approximately 116 FTE will be affected when the agencies are shut down on July 1, 2000.



FISCAL IMPLICATIONS



*Extending the termination date of these agencies has a recurring fiscal impact to the General Fund of approximately $5 million. Ten of these agencies are self-supporting and the remaining ones (identified by an *) operate with General Fund appropriations.



If the Coal Surface Mining Commission sunsets, the state will lose approximately $2.0 million federal funds annually used to reclaim dangerous, abandoned mines in New Mexico.



ADMINISTRATIVE IMPLICATIONS



If not extended, each agency will have to develop a phase-out plan to close on July 1 of the applicable year. The Regulation and Licensing Department will coordinate and assist with the close-down of agencies within its department, which will take a minimum of three months.



The Energy, Minerals and Natural Resources Department reports the statutory authority for both the coal mine permit and reclamation program, and the reclamation of abandoned mines will be eliminated if the coal surface commission is not extended.



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