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

1/21/08

HB 86

SHORT TITLE Study Increased Access To Fresh Foods

SB

ANALYST Haug

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$25.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HB 83, HB 164 and HB 180.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

Public Education Department (PED)

No Response

New Mexico State University (NMSU)

New Mexico Department of Agriculture (NMDA)

SUMMARY

Synopsis of Bill

House Bill 86 appropriates $25.0 from the general fund to the Board of Regents of

New Mexico State University to conduct a study to develop alternative strategies through which

state funds may be used to increase means of access of New Mexicans to sources of fresh foods.

FISCAL IMPLICATIONS

The appropriation of $25.0 contained in this bill is a recurring expense to the general fund. Any

unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall revert to the

general fund.

This request was not submitted by NMSU to the New Mexico Higher Education Department for

House Bill 86 – Page

2

review and is not included in the Department’s funding recommendation for FY09.

SIGNIFICANT ISSUES

The HED states that according to the New Mexico Food & Agriculture Policy Council, HB86

would fund research in support of the Manny Herrera Access to Health Foods Act and food

access challenges in New Mexico. HB86 would build on initial research done to assess

challenges and barriers and would help to provide substantive options to help guide the Healthy

Food Initiative Board proposed within HB180.

The PED states that developing alternative strategies to increase access and consumption of New

Mexico’s fresh foods has the potential to stimulate the economy. Purchasing New Mexico-

grown produce and livestock provides income to the farmers and ranchers of New Mexico.

.

According to the Rural Sociological Society, New Mexico has 12 non-metro counties

with low food access (50% of residents must go more than 10 miles to a food store) and

six counties that are considered “food deserts" (100% of the residents must travel more

than 10 miles to access food).

.

A New Mexico 2006 market-basket comparison found that food in smaller rural stores is

as much as 70% more expensive than the same food purchased in large, metro-area

supermarkets, and that the availability of fresh produce is considerably less (New Mexico

Food and Agriculture Policy Council).

.

Most people do not eat the recommended five servings a day of fresh fruits and

vegetables (New Mexico Food and Agriculture Policy Council).

.

The actual cost of produce has risen as much as 40% over 15 years (New Mexico Food

and Agriculture Policy Council).

.

To increase the consumption of healthy foods, the Robert Wood Johnson Foundation has

recommended that governments create economic stimulus programs and public/private

partnerships to promote the creation and expansion of retail grocery operations (New

Mexico Food and Agriculture Policy Council).

.

Modest investments of private and public funds have developed a new supermarket on

the Jicarilla Apache Nation and a co-op food store in Dixon, New Mexico (New Mexico

Food and Agriculture Policy Council).

RELATIONSHIP

HB83, Market NM-Grown Fruit & Vegetables: requires NMSU to market New Mexico

fruits, vegetables and food products at domestic and international trade shows.

HB164, Local Fruits & Vegetables in School Lunches requires NMSU to purchase New

Mexico-grown fresh fruits and vegetables and to administer a program ensuring that the fresh

fruits and vegetables are delivered to school lunch programs statewide; and

HB180, Manny Herrera Access to Healthy Foods Act: creates the Healthy Food Initiatives

Board, defines board duties, and creates the Healthy Food Initiatives Fund, among other

provisions.

GH/mt