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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 02/16/05 HB 448/aHAGC

SHORT TITLE Preservation of Chimayo Chile Strain

SB

ANALYST Ford

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$100.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates

SB 408

SOURCES OF INFORMATION

LFC Files

Responses Received From

Economic Development Department (EDD)

Department of Agriculture

SUMMARY

Synopsis of HAGC Amendment

The House Agriculture and Water Resources Committee amendment replaces EDD as the recipi-

ent of the appropriation with the college of agriculture, home economics department of New

Mexico state university (NMSU). Accordingly, the amendment requires NMSU, not EDD, to

report on the benefits and results of the appropriation to the legislature.

Synopsis of Original Bill

House Bill 448 appropriates $100 thousand from the general fund to the Economic Development

Department (EDD) for the purpose of contracting with a nonprofit cultural asset community de-

velopment organization administratively based in Santa Fe county, that will work with a Chi-

mayo-based coalition to develop an economic development plan and to begin implementation to

preserve, conserve, heirloom and seed bank the Chimayo chile strain.

House Bill 448/aHAGC -- Page 2

The EDD shall report the benefits and results of this appropriation to the second session of the

47

th

legislature.

FISCAL IMPLICATIONS

The appropriation of $100 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2006 shall

revert to the general fund.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

House Bill 448 duplicates Senate Bill 408

TECHNICAL ISSUES

The language of the bill is somewhat vague as to the goal of the bill. Is the intent to conduct

studies for generation and preservation of the species. What is the goal of an economic devel-

opment plan.

The bill appropriates funding for EDD to contract with the community based organization, but

the bill does not specify whether EDD can use any of this appropriation to cover the administra-

tive costs of developing the contract and reporting the results to the legislature.

OTHER SUBSTANTIVE ISSUES

EDD warns that the Chimayo strain of chile seed stock will deplete over time and perhaps disap-

pear. Small chile growers and farmers in the Chimayo valley may lose a traditional livelihood

which provides them with supplemental income. The Department of Agriculture notes that the

Chimayo chile carries a marketing value and is specifically recognized and preferred by many

consumers.

EDD notes that New Mexico State University (NMSU) has done substanital work through its

agricultural extension program to work with small farmers for the development and improvement

of seed banks and stocks.

POSSIBLE QUESTIONS

Does this appropriation duplicate efforts by NMSU.

What are the specific goals of the appropriation.

EF/sb:lg