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 a vailable 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 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 Nunez

ORIGINAL DATE

LAST UPDATED

2/1/06

HB 471

SHORT TITLE Agricultural Product Marketing Clearinghouse

SB

ANALYST Earp

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$675.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates Senate Bill 172

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

New Mexico Department of Agriculture (NMDA)

SUMMARY

Synopsis of Bill

House Bill 471 appropriates $675,000 from the general fund to the Board of Regents of New

Mexico State University (NMSU) for the New Mexico Department of Agriculture (NMDA) to

develop and operate an export marketing and clearinghouse program for New Mexico agricul-

tural products.

FISCAL IMPLICATIONS

The appropriation of $675,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert

to the general fund.

SIGNIFICANT ISSUES

This proposal was not included among the special program funding requests submitted by the

House Bill 471 – Page

2

New Mexico State University to the Higher Education Department (HED) for review. Conse-

quently, this proposal has not been included in the HED fiscal year 2007 funding recommenda-

tions to the Legislature.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

House Bill 471 and Senate Bill 172 are duplicate measures.

OTHER SUBSTANTIVE ISSUES

NMDA reports that:

1.

NMDA maintains an international trade program which develops export markets for live-

stock, food, and agricultural products.

2.

NMDA routinely conducts international trade activities including trade shows, trade mis-

sions, in-bound buying missions, reverse trade missions, table top show case, seminars,

market entry services and identification of markets, trade barriers, and constraints.

3.

NMDA is a charter member of the Western United States Agricultural Trade Association.

HED states that, if this proposal is funded, NMSU shall submit a plan for program evaluation,

including specific program goals and criteria for assessing program effectiveness to the Legisla-

tive Finance Committee (LFC) and the NMHED by August 1, 2006. The institution shall also

submit a program evaluation to the LFC and the NMHED by June 30, 2009, detailing the bene-

fits to the State of New Mexico from having this program implemented for a three-year period.

DKE/mt