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





SPONSOR: Garcia, M.H. DATE TYPED: 02/27/01 HB 612
SHORT TITLE: County Commissioners to Administer Refuse SB
ANALYST: Padilla


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
NFI NFI



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



LFC Files

Attorney General

Department of Environment

Department of Finance and Administration (DFA)



SUMMARY



Synopsis of Bill



House Bill 612 amends existing statute on the powers of county commissioners to allow them to compel the taking of solid waste generated in their jurisdictions to designated facilities for processing and disposal.



Significant Issues



Current statute provides only that county commissioners can "regulate" the collection and disposal of refuse.



DFA believes this bill address a problem in Dona Ana county, where local government funds have been used to construct and operate regional solid waste facilities that are dependent upon the collection and disposal of refuse in that region. The repayment of the bonds that were issued for the construction demands that a certain level and volume of refuse be generated. If the refuse is directed to another facility, adequate revenues may not be generated, perhaps leaving the local governments to repay the bonds with other revenues.





FISCAL IMPLICATIONS



This bill does not contain an appropriation and has no fiscal implications for state government.



Fiscal implications for local governments are discussed above under "significant issues."



OTHER SUBSTANTIVE ISSUES



The Department of Environment notes that this bill would give county commissioners what is known as "flow control." Flow control, the department reports, has been the subject of several lawsuits in recent years. The U.S. Supreme Court, in C&A Carbone, Inc. V. Town of Clarkstown, New York, ruled that a local government's flow control ordinance violated the Commerce Clause of the U.S. Constitution because it regulated interstate commerce. The syllabus of the decision states, "While [the ordinance's] immediate effect is to direct local transport of solid waste to a designated site within the local jurisdiction, its economic effects are interstate in reach." The department asks whether House Bill 612 might raise similar legal questions.



It should be noted that the Attorney General's office noted "no significant legal issues" in its review of this bill.



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