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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Rodella

 

DATE TYPED:

02/06/03

 

HB

329

 

SHORT TITLE:

Preserve Chimayo Chile Strain

 

SB

 

 

 

ANALYST:

Padilla

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$100.0

 

 

Recurring

General Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Relates to HB221, HB69, SB30

Conflicts with HB438

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

Department of Agriculture

Economic Development Department

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 329 appropriates $100.0 from the General Fund to the Economic Development Department to contract with a non-profit farmers’ market organization for the purpose of developing the Chimayo chile industry.  EDD would be required to report to the 2005 legislature on the benefits of this appropriation.

 

     Significant Issues

 

The bill requires the contractor to be a farmers’ market organization based in Santa Fe county with at least one hundred fifty members.  The only organization meeting this specific description


is the Santa Fe Farmers’ Market.  The Santa Fe Farmers’ Market is a private, non-profit enterprise.  Because the appropriation in this bill would directly benefit this organization, the bill may violate the anti-donation clause of the New Mexico Constitution. 

 

The appropriation in this bill may be better directed to New Mexico State University, where the College of Agriculture and Home Economics has a Chile Pepper Task Force, or to the Department of Agriculture, which has a marketing and development division.  The Economic Development Department believes that it is not the appropriate agency to implement this tasks outlined by this bill.

 

FISCAL IMPLICATIONS

 

The appropriation of $100.0 contained in this bill is a recurring expense to the general fund.  Any unexpended or unencumbered balance remaining at the end of fiscal year 2004 shall revert to the general fund.

 

ADMINISTRATIVE IMPLICATIONS

 

Because EDD does not have expertise in agriculture preservation and marketing, it may not be the best agency to carry out the intent of this bill.

 

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

 

House Bill 438 appropriates $241.7 to New Mexico State University to increase the profitability and yield of chile and to increase the economic sustainability of the New Mexico chile industry.

 

House Bill 221 appropriates $121.0 to the Department of Finance and Administration for planning and developing a permanent farmers' market site on the city of Santa Fe railyard property in Santa Fe.

 

House Bill 69 and Senate Bill 30 appropriate $50.0 from the general fund to the New Mexico Department of Agriculture for the purpose of promoting local farmers’ markets throughout the state, providing marketing and organizational assistance to new and developing markets and to disseminate education information about New Mexico agriculture to consumers.

 

OTHER SUBSTANTIVE ISSUES

 

The Department of Agriculture notes that the Chimayo chile is a traditional chile pepper grown throughout northern New Mexico and that it is recognized and preferred by many consumers.

 

SUGGESTED AMENDMENTS

 

The Economic Development Department recommends the following amendments:

 

On page 1, line 18, delete “Economic Development Department” and replace with “Department of Agriculture, Marketing and Development Division.”

 

On Page 1, line 25, delete “Economic Development Department” and replace with “Department of Agriculture.”

 

POSSIBLE QUESTIONS

 

Does the appropriation contained in this bill violate the anti-donation provisions of the New Mexico Constitution?

 

If the intent of this bill is to study the chile industry, would this appropriation be better directed to New Mexico State University or to the Department of Agriculture?

 

LP/njw:yr