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

SPONSOR Moore

DATE TYPED 01/24/05 HB 74

SHORT TITLE Municipal Law Enforcement Services and Fund

SB

ANALYST Ford

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

Indeterminate

Indeterminate Recurring

Municipal Law

Enforcement

Services Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

Unknown

Indeterminate Recurring Municipal Law En-

forcement Services

Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Public Safety (DPS)

SUMMARY

Synopsis of Bill

House Bill 74 allows municipalities with populations of 3,000 or less to contract with the New

Mexico state police for provision of municipal law enforcement services.

House Bill 74-- Page 2

The measure creates a non-reverting special fund, which shall consist of payments from contract-

ing municipalities as well as income from investment and any other money accruing to the fund.

The fund shall be appropriated to provide contracted law enforcement services.

FISCAL IMPLICATIONS

If contracts are written properly, the revenue to and appropriations from the municipal law en-

forcement services fund would be equal. There should be no fiscal impact to the general fund.

Continuing Appropriations

This bill creates a new fund and provides for continuing appropriations. The LFC objects to in-

cluding continuing appropriation language in the statutory provisions for newly created funds.

Earmarking reduces the ability of the legislature to establish spending priorities.

ADMINISTRATIVE IMPLICATIONS

DPS would have to draw up contracts that accurately reflect its costs in providing services to

municipalities. DPS indicates that contracts should include a budget for administrative costs of

contract processing and monitoring.

TECHNICAL ISSUES

DPS indicates that it may be helpful if the bill were more specific regarding a funding plan or

system for accounting for the cost of officers’ services when those officers are serving communi-

ties as well as performing their own duties.

EF/lg