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F I S C A L I M P A C T R E P O R T
SPONSOR Smith
ORIGINAL DATE
LAST UPDATED
2/05/06
HB
SHORT TITLE Abolish Space Commercialization Division
SB 560
ANALYST Earnest
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
Senate Bill 560 duplicates House Bill 89.
SOURCES OF INFORMATION
LFC Files
Responses Received From
Economic Development Department (EDD)
SUMMARY
Synopsis of Bill
Senate Bill 560 will abolish the Space Commission and the Space Commercialization Division
of the Economic Development Department. The bill further transfers resources of the division to
the Spaceport Authority.
Section 1 reduces the number of authorized divisions at the department from six to five.
Section 2 transfers the budget, personnel, and other resources from the Office of Space Commer-
cialization to the Spaceport Authority.
Section 3 repeals Sections 9-15-43 through 9-15-47 NMSA 1978, thus abolishing the Space
Commission and Space Commercialization Division.
pg_0002
Senate Bill 560 Page 2
FISCAL IMPLICATIONS
General fund money budgeted for the Office of Space Commercialization within the Economic
Development Department for FY07 will be transferred to support the Spaceport Authority.
The FY06 operating budget for the Space Commercialization Division, commonly known as the
Office of Space Commercialization, totaled $254 thousand and 3 FTE. The Office of Space
Commercialization falls within the Technology and Space Commercialization Program, which
for FY06 also included the Technology Division and Office of Military Base Planning and Sup-
port. The Legislature appropriated $706 thousand for the Technology and Space Commerciali-
zation Program in the FY06 operating budget.
SIGNIFICANT ISSUES
The Spaceport Development Act, enacted last year, created the Spaceport Authority which has
ultimate responsibility for planning, designing and constructing the spaceport facility in southern
New Mexico. It also has many responsibilities and activities currently under the jurisdiction of
the Office of Space Commercialization and the Space Commission. This legislation removes
conflicts between two statutorily created bodies.
The Spaceport Authority, administratively attached to EDD, consists of a nine-member board,
six of whom are appointed by the governor. According to EDD, the Authority, when created,
was not provided funding to operate. The transfer of funds and FTE will enhance the ability of
the Authority to carry out its statutory responsibilities.
PERFORMANCE IMPLICATIONS
There are no performance measures for the Spaceport Authority.
ADMINISTRATIVE IMPLICATIONS
The Spaceport Authority, by statute, is to be located within fifty miles of the southwest regional
spaceport, currently planned to be built in Sierra County. In addition to the transfer of budget
and resources, this bill might also require the physical transfer of personnel.
TECHNICAL ISSUES
This legislation does not stipulate a cap for budget transfer authority. EDD indicates that it
would transfer approximately $257 thousand to the Spaceport Authority out of the Technology
and Space Commercialization Program budget for FY07.
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL
Failure to pass this legislation will create conflicts in roles and responsibilities among the Space
Commission, Office of Space Commercialization, and the Spaceport Authority.
BE/yr:nt