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

SPONSOR Rehm

ORIGINAL DATE

LAST UPDATED

2/1/08

HB 611

SHORT TITLE Fallen Military Warriors of NM Act

SB

ANALYST Cox

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$5,000.0

Recurring

General Fund

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

FY10

$5,000.0

Non-Recurring Fallen Military

Warrior Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Veterans Services (VSD)

SUMMARY

House Bill 611 appropriates five million dollars ($5,000,000) from the General Fund to the New

Mexico State Treasury (Treasurer’s Office) to administer the ‘Fallen Military Warriors of New

Mexico Fund. This fund would be used to pay death benefits to specific classes of deceased

veterans, which are as stated:

"veteran" means an individual who was a member of the uniformed services of the United States

who served in:

(1) Afghanistan or contiguous air space, as defined in federal regulations, on or after

October 24, 2001, and before a terminal date to be prescribed by the United States

Secretary of Defense; or

House Bill 611 – Page

2

(2) Iraq or contiguous waters or air space, as defined in federal regulations, on or after

March 19, 2003, and before a terminal date to be prescribed by the United States

Secretary of Defense.

A death benefit of one hundred twenty-five thousand dollars ($125,000) shall then be paid from

the fund to the surviving spouse, child, dependent parent or estate of a New Mexico resident who

was a veteran who was killed or died in the performance of duties on or after the effective date of

the Fallen Military Warriors of New Mexico

. This Bill also requires that a State flag be presented

to the survivors by DVS. LFC analyst added underlines.

FISCAL IMPLICATIONS

Continuing Appropriations language

This bill creates a new fund and provides for continuing appropriations. The LFC has concerns

with including continuing appropriation language in the statutory provisions for newly created

funds, as earmarking reduces the ability of the legislature to establish spending priorities.

This Bill requests that a Fallen Warriors of New Mexico Fund of five million dollars

($5,000,000) be appropriated from the General Fund sent to the State Treasury to be

administered by the State Treasurer’s Office.

Any unspent or un-encumbered balance remaining at the end of Fiscal Year 2009 shall not revert

to the General Fund

SIGNIFICANT ISSUES

This Bill honors the fallen veterans of New Mexico, who served in the contiguous Iraq combat

theater of action, and the contiguous Afghanistan combat theater of action.

The Bill, however, does not address Service related casualties that may have occurred in other

parts of the world, including the United States. Additionally, this Bill would pay veterans who

were casualties on or after the contemplated effective date of the passing of this Bill.

The Bill may inadvertently restrict applicants’ families who have made the ‘ultimate sacrifice’

VSD notes:

There have been 50 soldiers with ties to New Mexico that have been killed so far. None of these

families would qualify for this, only those who are killed after this goes into effect. It would be

awarded apart from any other life insurances that may be in effect.

PRC/bb