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

SPONSOR Moore

ORIGINAL DATE

LAST UPDATED

1-25-07

2-22-07 HB 341/aHAFC

SHORT TITLE Wildlife Enhancement Authorization Packages

SB

ANALYST Woods

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

NFI

200.0 - 250.0

200.0 - 250.0

Recurring

Game

Protection Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicate to Senate Bill 286

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Game and Fish (DGF)

SUMMARY

Synopsis of HAFC Amendment

House Appropriations and Finance Committee amendment to House Bill 341 amends the

legislation as follows:

1. On page 1, lines 22 and 23, strike “The first" and insert in lieu thereof “Each".

2. On page 2, line 1, after the period strike the rest of the line, strike lines 2 and 3 in their

entirety and strike line 4 through the period.

The amendment contains no appropriation language.

Synopsis of Original Bill

House Bill 341 seeks to direct the state game commission to adopt rules for the Department of

Game and Fish to issue enhancement authorization packages each license year for the taking of

one each of elk, deer, oryx, ibex and pronghorn antelope.

House Bill 341/aHAFC – Page

2

The first enhancement authorization package shall be auctioned by the department of game and

fish or by an incorporated nonprofit organization dedicated to the conservation of wildlife and

sold to the highest bidder.

The second enhancement authorization package shall be awarded by lottery by the department of

game and fish or by an incorporated nonprofit organization dedicated to the conservation of

wildlife.

Money collected from the enhancement authorization packages shall be deposited in the game

protection fund and shall be used exclusively for big game habitat enhancement, conservation

and protection.

FISCAL IMPLICATIONS

DGF estimates that the annual revenues generated from the provision of these packages of

authorizations will be from $200,000 to $250,000 annually. Further, that these dollars can then

be leveraged against a variety of federal funding sources to maximize habitat improvement,

conservation, and protection activities for species providing opportunities for sportsmen.

DGF adds that impacts to the Department’s operating budget will be realized in FY08 and FY09

as a result of costs associated with contracting marketing services for the auction and raffle of the

authorization packages. Once the sale of the authorization packages has generated sufficient

revenue, a more realistic marketing cost can be incorporated into the budget development

process for FY 10 and the source of funds for these costs can be the revenue generated by their

annual sales. It is felt that it would be in the best interest of the program, initially, to use the

marketing capabilities of an incorporated non-profit organization so as to maximize the annual

value of each package.

DGF indicates that one to two department staff typically travel to out-of-state locations where the

auctions occur to promote the authorizations as well as New Mexico’s wildlife. Historically these

costs have been 10 percent of the total auction price and 15-20 percent of total raffle ticket sales

in addition to the out-of-state travel costs for two staff for 5-6 days each year. These estimates

are based on the current enhancement programs for deer, elk, and bighorn sheep. In addition to

the marketing cost estimates, the department will need to submit a budget increase request,

probably beginning in FY09, so that funds are available for expenditure on projects. The amount

will depend on revenues generated.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Duplicate to Senate Bill 286

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

DGF suggests that if the bill is not enacted the State of New Mexico will loose an opportunity to

generate revenues that can be leveraged with various federal funding sources resulting in

important habitat improvement, conservation, and protection activities for species, providing

opportunities for sportsmen, and ensuring that New Mexico’s wildlife resources flourish in the

future.

BFW/mt