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.

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(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates House Bill 194

SOURCES OF INFORMATION

LFC Files

New Mexico Livestock Board (NMLB)

SUMMARY

Synopsis of Bill

Senate Bill 357 relates to livestock and the limiting of the inspection fees for commuting sheep or goats.

Significant Issues

This bill changes the language in Section 77-8-20 NMSA 1978 (the Livestock Code) pertaining to inspections of "commuting sheep or goats." Such inspections are performed when sheep or goats are moved into or out of New Mexico. This section of the law does not apply to sheep or goats being moved due to a change of ownership.

This bill specifies that commuting sheep or goat inspection fees shall only be paid once in any twelve month period. For subsequent commutes in the same twelve month period, owners shall only pay inspection fees on those animals that are over the number initially moved

According to the New Mexico Livestock Board (NMLB), this section of the livestock code was changed as part of the 1999 sunset review. The language in SB357 reverts the process for collecting inspection fees back to the method used prior to the 1999 change.

FISCAL IMPLICATIONS

According to the NMLB, passing this bill will result in slightly lower revenues. The NMLB estimates, however, a loss of only $2.0 per year in sheep or goat inspection fees. The NMLB collects a total of approximately $800.0 per year in other inspection fees.

ADMINISTRATIVE IMPLICATIONS

According to the NMLB, this bill will not significantly change the number of sheep or goat inspections. Since the 1999 change to the livestock code, there has been a slight increase in the number of inspections performed for livestock producers along the border with Colorado. If this bill is passed, there will be a small decrease in such inspections.

OTHER SUBSTANTIVE ISSUES

According to the NMLB, the request for this bill came from several sheep producers who move their livestock back and forth between San Juan County and their pastures in Colorado. They believe the requirement to pay inspection fees every time they move their sheep across the border is an unfair burden.

LG/ar:prr