NOTE:  As provided in LFC policy, this report is intended only 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 for other purposes.

 

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

 

 

 

SPONSOR:

Martinez

 

DATE TYPED:

02/28/03

 

HB

 

 

SHORT TITLE:

Rio Arriba Mobile Livestock Slaughter Unit

 

SB

659

 

 

ANALYST:

Padilla

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$65.0

 

 

Non-recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates HB 752

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

Department of Finance and Administration

Department of Agriculture

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 659 appropriates $65.0 from the general fund to DFA’s Local Government Division in order to assist the North Central Economic Development District in studying the feasibility of building a certified mobile livestock slaughter unit.  The mobile unit would serve small-scale livestock growers in rural Rio Arriba County to enable them to market meat to local markets. 

 

     Significant Issues

 

The NM Department of Agriculture reports that Rio Arriba County has the second-highest number of farms in the state, but is ranked only 20th of all New Mexico counties for cash receipts of all farm commodities. 

 


A similar feasibility study for a meatpacking plant in Clayton was conducted in 2003 and was funded by the Small Business Assistance Program of Sandia National Laboratories.  The study was done by the New Mexico Manufacturing Extension Partnership.  

 

FISCAL IMPLICATIONS

 

The appropriation of $65.0 contained in this bill is a non-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

 

DFA believes this bill assigns responsibilities to the Local Government Division without providing the resources need to carry them out.

 

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

 

This bill duplicates House Bill 752.

 

POSSIBLE QUESTIONS

 

1.  If this project is deemed feasible, how will the North Central Economic Development District fund the project’s construction and operations?

 

2.  Since this is an economic development project, shouldn’t the appropriation be made to the Economic Development Department? 

 

3.  Is there another source of funding for this project, such as the Sandia Small Business Assistance Program?

 

LP/njw