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

SPONSOR Varela

ORIGINAL DATE

LAST UPDATED

2/14/07

HB 725

SHORT TITLE Artisan Manufacturers and Food Processors

SB

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$300.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to House Bill 606

SOURCES OF INFORMATION

LFC Files

Responses Received From

Economic Development Department (EDD)

SUMMARY

Synopsis of Bill

House Bill 725 appropriates $300 thousand from the general fund to Economic Development

Department for the New Mexico’s Own Initiative to promote the state’s artisan manufacturers

and food processors through a trade show, a web site, a continues consumer awareness initiative

and other technical assistance.

FISCAL IMPLICATIONS

The appropriation of $300 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 2008 shall

revert to the general fund.

SIGNIFICANT ISSUES

EDD indicates that promoting New Mexico’s artisan manufacturers and food processors assists

these companies in increasing their market share and ultimately can lead to business expansion

House Bill 725 – Page

2

and job creation.

New Mexico's Own Program is a private, 501(c)(3) non-profit organization dedicated to

promoting New Mexico companies.

EDD indicates that New Mexico’s Own markets products from approximately 48 artisan

manufacturers and food processors. Providing an appropriation to promote New Mexico’s

artisan manufacturers and food processors will allow more New Mexico artisan manufacturers

and food processors to promote their products. This will increase exports from New Mexico and

expand New Mexico’s manufacturing base. Ultimately, this will increase net revenues to the

state through increase state income taxes, GRT, and withholding taxes.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

House Bill 725 relates to HB 606, which allows municipalities to create Arts and Cultural

Districts.

BE/csd