New Mexico § 2-5-4.1 - Legislative systems; coordination with other agencies; fiscal impact information; dynamic forecasting pilot project

§ 2-5-4.1. Legislative systems; coordination with other agencies; fiscal impact information; dynamic forecasting pilot project

A. The legislative finance committee shall cooperate with the office of the governor,

the department of finance and administration and the taxation and revenue department

in designing a timely and accurate system of providing fiscal impact and other pertinent

information to the legislature concerning pending legislation. B. Beginning January 1, 2004, a two-year dynamic forecasting pilot project shall be

conducted by the legislative finance committee, the department of finance and administration,

the taxation and revenue department and the state highway and transportation department

in which fiscal impact information provided to the legislature concerning legislation

that proposes one or more changes to laws on taxation shall be prepared on the basis

of assumptions that estimate the probable behavioral response of taxpayers, businesses

and other persons to the proposed changes. This requirement applies only to legislation: (1) introduced during the second session of the forty-sixth legislature and the first

session of the forty-seventh legislature; and (2) determined by the legislative finance committee, pursuant to a static fiscal estimate,

to have a fiscal impact when fully implemented in excess of ten million dollars ($10,000,000)

in a fiscal year. C. The legislative finance committee shall cooperate with the department of finance

and administration and other necessary executive agencies to develop the methodology

to implement the dynamic forecasting pilot project pursuant to the requirements of

Subsection B of this section. D. Following the first session of the forty-seventh legislature, the legislative finance

committee shall evaluate the success of the dynamic forecasting pilot project required

by Subsection B of this section and determine if dynamic forecasting should become

a permanent feature of fiscal impact analyses. In making this determination, the legislative finance committee shall consider if

this process: (1) provides a reliable and reasonably accurate analytic tool to aid legislators in

determining the effect of proposed legislation; (2) can be accomplished with a reasonable amount of resources; and (3) can be incorporated into fiscal impact estimates in a form that is easily understood

and usable.