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: Griego DATE TYPED: 02/06/00 HB
SHORT TITLE: Federal Investment Corporation SB 377
ANALYST: Kehoe


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
 Recurring

or Non-Rec

 Fund

Affected

FY00 FY01 FY00 FY01
$ 55.0 Non-Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates/Conflicts with/Companion to/Relates to



SOURCES OF INFORMATION



Office of Indian Affairs (OIA)

LFC Files



SUMMARY



Synopsis of Bill



Senate Bill 377 appropriates $55.0 from the general fund to the Office of Indian Affairs to study the feasibility of creating a federal investment corporation 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 move 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 appropriation of $55.0 in general fund in Senate Bill 377 is for expenditure in fiscal year 2001. Any unexpended or unencumbered balance remaining at the end of the fiscal year reverts to the general fund.



ADMINISTRATIVE IMPLICATIONS



The fiscal and administrative 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 Senate Bill 377.



POSSIBLE QUESTIONS