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

SPONSOR:	Taylor, T.C.		DATE TYPED:	03/11/99		HB	451
SHORT TITLE:		Property Control Division				SB
					ANALYST:		Carrillo

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY99	FY2000	FY99	FY2000	Recurring or Non-Rec	Fund Affected
		*

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY99	FY2000	Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
		*

(Parenthesis ( ) Indicate Revenue Decreases)

*See fiscal impact section.

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

General Services Department

New Mexico State Highway and Transportation Department

State Department of Education

Administrative Office of the Courts

Attorney General's Office

SUMMARY

Synopsis of Bill

House Bill 451 proposes to allow the Property Control Division (PCD) of the General Services Department (GSD) to assist state agencies otherwise exempt from PCD jurisdiction with construction projects, through a joint powers agreement. Specifically, the PCD would assist with the control, the most beneficial use, and the management of all state buildings and lands.

The effective date of the legislation is July 1, 1999.

FISCAL IMPLICATIONS

According to staff from the PCD: Agencies exempt from PCD jurisdiction sometimes request professional assistance from PCD on major construction projects. Under current law, PCD cannot act as the official representative for those agencies in contractual agreements. This legislation would allow PCD and an exempt agency to enter into a joint powers agreement so PCD could provide that assistance through design and construction. PCD estimates one FTE is dedicated to work on these types of issues.

OTHER SUBSTANTIVE ISSUES

PCD states in the past year, PCD has been asked by the State Fair, Museum of New Mexico, and the Game and Fish Department to administer major projects. PCD was able to do so with the State Fair only because the legislature appropriated the money to the Capital Program Fund, which is administered by PCD. This allowed a Joint Powers Agreement which authorized PCD to act as "owner's representative" with the design firms and construction contractors. Because of the nature of construction projects, the design administration and construction management cannot effectively be performed by PCD unless there is a legal relationship between PCD and the contractor. Government would be served better if an official relationship can be formed when the parties agree.

WJC/njw