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

SPONSOR Nunez

ORIGINAL DATE

LAST UPDATED

2/2/2007

HB 437

SHORT TITLE Market New Mexico-Grown Wheat

SB

ANALYST McOlash

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$75.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HB 426.

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Department of Agriculture (NMDA)

Higher Education Department (HED)

SUMMARY

Synopsis of Bill

House Bill 437 appropriates $675,000 from the General Fund to the Regents at NMSU for ex-

penditure in FY 2008 for the NMDA to market New Mexico-grown wheat internationally and

domestically.

FISCAL IMPLICATIONS

The appropriation of $75,000 contained in this bill is a recurring expense to the General Fund.

Any unexpended or unencumbered balance remaining at the end of FY 2008 shall revert to the

General Fund.

SIGNIFICANT ISSUES

The state’s wheat industry is important to eastern and northeastern New Mexico’s economic vi-

ability. NMDA has assisted in the promotion of wheat to Cuba and currently holds a license to

House Bill 437 – Page

2

make the process work. Currently there are 38 states actively trading with Cuba and New Mexico

has the potential of shipping 1.0 million bushels of New Mexico grown wheat to this country lo-

cated 90 miles south of Florida. The purpose of HB437 is to teach, promote, and improve mar-

keting for New Mexico products. For example, trade shows will be used to promote agriculture

products and assist in the marketing of New Mexico products (HED Agency Analysis).

This request was not on the list of priority projects submitted by NMSU to the Higher Education

Department for review and was not included in the Department’s funding recommendation for

FY08

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

House Bill 437 appropriates $675,000 to NMSU in FY 2008 to enhance international marketing

of NM agricultural products.

BM/yr