Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may also be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

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

 

 

 

SPONSOR

Stell

DATE TYPED

1/27/2004

HB

205

 

SHORT TITLE

Increase NM Livestock Board Fee Limits

SB

 

 

 

ANALYST

Aguilar

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

 

$1,400.0

See Narrative

Recurring

Livestock Board Operating Fund

 

 

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

 

Report of the Legislative Finance Committee to the Forty-Sixth Legislature, Second Session, January 2004 for Fiscal Year 2004 – 2005, pp. 363 - 370.

 

Response Received From

New Mexico Livestock Board

 

SUMMARY

 

Synopsis of Bill

 

House Bill 205 raises the fee limits on brand transfers, new brands, brand renewals and additional copies of certified copies of brands.

 

Significant Issues

 

Although this bill raises the limits on brand transfers, new brands, brand renewals and additional copies of certified copies of brands, the actual fees are set by the New Mexico Livestock Board.

 

In FY03, the agency reported that they expected to deplete the Livestock Board operating fund prior to the next livestock brand re-registration in July 2005.  (The brand re-registration is a primary source of revenue for the agency and is expended over a three year period).  Cost controls and modest growth contributed to improved fiscal condition.  However it is expected that without a significant revenue increase or agency restructuring, the fund will not remain viable through the 2008 re-registration.

FISCAL IMPLICATIONS

 

This bill gives the New Mexico Livestock Board the flexibility to raise brand fees as needed to increase revenues to cover operating expenses.

 

Fees collected as a result of brand transfers, new brands, brand renewals and additional copies of certified copies of brands is generally collected once every three years and utilized over this period for a portion of the board’s operating expenses.  The estimate of $1.4 million in additional revenue noted above is based on fees collected at the maximum allowable level.  The additional revenue will be included in fees collected in calendar year 2005 and every three years thereafter.

 

PA/lg