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

SPONSOR Fox-Young

ORIGINAL DATE

LAST UPDATED

2/2/2006

HB 524

SHORT TITLE NM Indigenous Specialty Crop Marketing

SB

ANALYST Earp

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$250.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates Senate Bill 275

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

New Mexico State University (NMSU)

New Mexico Indian Affairs Department (NMIAD)

SUMMARY

Synopsis of Bill

House Bill 524 appropriates $250,000 from the general fund to the Board of Regents of New

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

(NMDA) in conducting an indigenous specialty crop marketing program.

FISCAL IMPLICATIONS

The appropriation of $250,000 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

NMSU to the Higher Education Department (HED) for review. Consequently, this proposal has

not been included in the HED fiscal year 2007 funding recommendations to the Legislature.

House Bill 524 – Page

2

ADMINISTRATIVE IMPLICATIONS

NMDA would administer the funds provided through this legislation. No significant additional

administrative impact is anticipated.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Senate Bill 275 and House Bill 524 are duplicate measures.

OTHER SUBSTANTIVE ISSUES

NMDA reports that it currently has an ongoing New Mexico Specialty Crop Program established

under the New Mexico Specialty Crops Act of 1983. NMDA funds New Mexico companies,

individuals, agricultural organizations, commodity groups, and nonprofit organizations which

have a commitment to improve the economic viability of New Mexico’s rural economy. Fund-

ing is used for marketing projects, advertising and promotion, surveys, demonstration projects,

marketing development, product development, and organic products. Guidelines and criteria for

funding under the Specialty Crops Program have been established and are based on competitive

proposals. This fiscal year NMDA funded 20 New Mexico projects for a total of $119,065.

However, over 22 other viable specialty crop projects were not funded due to lack of funds.

The Indian Affairs Department notes that New Mexico specialty crops include pinon nuts, pinto

beans, chiles, blue corn, and peletized alfalfa. For many of the 22 Indian Tribes and Pueblos of

New Mexico, agricultural and food products are grown in the traditional Native American way

on their tribal lands. It is unclear from the proposed legislation whether this indigenous specialty

crop program would be available to the New Mexico Tribes. However, if it is made available, a

consultation plan that incorporates tribal viewpoints on environment, water conservation/quality

and other unique agricultural issues would need to be developed.

DKE/mt