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: Garcia DATE TYPED: 01/30/01 HB
SHORT TITLE: Satellite Consumer Protection Bureau SB 7
ANALYST: Valdes


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
$ 450.0 Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



Attorney General



SUMMARY



Synopsis of Bill



Senate Bill 7 appropriates $450.0 to the Attorney General to establish a satellite Consumer Protection Bureau office in Las Cruces.



Significant Issues



According to the Attorney General, the establishment of this office will allow the Consumer Protection Bureau to educate and protect the public and have a stronger presence in southern New Mexico. There is a significant amount of businesses and individuals being exploited by illegal activities in this area. This office will provide quicker response time for investigations and increase the amount of cases resolved. The education function of the bureau will be more cost-effective and efficient because travel time from Santa Fe or Albuquerque will be eliminated. Increased presence and education will help reduce consumer fraud in the southern region of the state.



PERFORMANCE IMPLICATIONS



The Attorney General's budget will move to performance budgeting in FY03. This bill would improve performance and service to the public in southern New Mexico on consumer protection issues.





FISCAL IMPLICATIONS



This bill would create a permanent consumer protection office in Las Cruces with an initial cost of $450.0, which would be appropriated from the General Fund. This expansion would be a recurring cost to the General Fund. The appropriation would provide an attorney, an investigator and a consumer advocate. It would also fund overhead costs of the office.



According to the agency, it is possible this office could generate additional revenue through consumer settlements.



ADMINISTRATIVE IMPLICATIONS



Establishment of the Las Cruces office will allow more efficient consumer protection services, according to the agency.



OTHER SUBSTANTIVE ISSUES



This expansion was requested last year and was not funded by the 2000 Legislature. The request was not recommended by the LFC or the executive.



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