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.

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 Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

Commission on Higher Education (CHE)

New Mexico Department of Agriculture (NMDA)

SUMMARY

Synopsis of Bill

This bill appropriates $50.0 from the general fund to the Board of Regents of the New Mexico State University (NMSU) College of Agriculture to conduct research on the feasibility of growing industrial hemp as a commercial crop and to establish a pilot test program. Findings and recommendations shall be reported to the Legislature by November 2001.

FISCAL IMPLICATIONS

The appropriation of $50.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY01 shall revert to the general fund.

OTHER SUBSTANTIVE ISSUES

According to the NMDA, hemp has over 50,000 commercial applications including paper, textiles, rope, plastics, and construction materials. Specialty crops and niche markets are important for continued agricultural growth and especially significant to small scale growers in New Mexico.

The CHE recommends that the following language be included for all new recurring higher education programs: "A plan for a program evaluation, including specific program goals and criteria for assessing program effectiveness shall be submitted to the LFC and the CHE by October 1, 2000. An assessment of the program will be completed prior to June 30, 2001 and submitted to the LFC and the CHE."

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