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.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Environment Department

LFC File

SUMMARY

Synopsis of Bill

House Bill 512 adds two-year post-secondary educational institutions to the definition of "local public body" contained in Section 13-1-67 NMSA 1978 of the Procurement Code. In addition, the bill expands the exemption from the Procurement Code for magazine subscriptions, conference registration fees, and other similar purchases where prepayments are required to $5.0. Finally, the bill adds and exemption for contracts and expenditures for litigation expenses.

Significant Issues

The exemption for litigation expenses includes contracts and expenditures in connection with proceedings before administrative agencies or state or federal courts, including:

• •experts;
• •mediators;
• •court reporters;
• •process servers; and
• •witness fees.

This exemption does not include attorney contracts.

FISCAL IMPLICATIONS

There is no appropriation contained within this bill.

ADMINISTRATIVE IMPLICATIONS

Agencies indicate that there is potential streamlining of certain purchasing activities, thus creating more efficient administrative activities.

MW/njw