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 Smith

ORIGINAL DATE

LAST UPDATED

02/06/08

HB

SHORT TITLE Border Fencing to Prevent Livestock Ingress

SM 50

ANALYST Escudero

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicate To: HM50

SOURCES OF INFORMATION

LFC Files

Responses Received From

NMSU – Department of Agriculture (NMSU)

NM Livestock Board (NMLB)

Homeland Security (HSEMD)

SUMMARY

Synopsis of Bill

A request to take all necessary steps to ensure barriers and fencing to restrain livestock on the

US/Mexico border, and to enlist the participation of all relevant agencies.

FISCAL IMPLICATIONS

As stated by NMLB:

COST: Fencing sufficient to restrict cross-border livestock movement can be expected to cost in

excess of $5,000 per mile. Approximately 180 miles of border may be subject to such fencing.

There is little to study, other than making sure the fence is actually on the border. Planning and

procurement may take as long as 6 months. Construction, if a proper contract is in place, may

take an additional 9 to 12 months. ($5,000 x 180 = $900.000)

According to NMSU, as an international border issue any fencing costs incurred would likely be

the responsibility of the federal government. Costs incurred by the state would likely require

additional funding

.

Senate Memorial 50 – Page

2

SIGNIFICANT ISSUES

According to NMLB, this problem has recently arisen because of federal homeland security

agencies removing existing fences and replacing them with insufficient barriers that have little to

no effect on restraining movement of livestock across international lines.

Any unauthorized livestock crossing into the state from Mexico increase the risk of livestock-

borne diseases being spread among domestic herds. Such diseases can include but are not

limited to Bovine Tuberculosis, Brucelloses, Trichomoniasis, and numerous parasite transmitted

diseases such as Texas Fever which, ironically, was a primary reason for creation of this agency

120 years ago. These diseases are economically debilitating to the industry in New Mexico and,

because of federal requirements, can cause loss of animal health status by the state, affecting

every livestock producer in New Mexico. The adverse effect on a key economic segment is

obvious and significant.

In addition to animal health concerns, any domestic livestock that wander into Mexico become

unreachable by either the New Mexico owners or the New Mexico authorities. The potential for

loss by theft of livestock is more of a certainty than a probability. Also, the same disease

exposure problem exists.

According to NMSU, Establishing and maintaining adequate fencing and/or barriers to prevent

unauthorized livestock movement across the international border is critical to minimize the risk

of livestock borne diseases becoming established in New Mexico.

•

Detection of some animal diseases can initiate federal quarantine and/or restrictive

movement status on the state as a whole rather than only impacting a single animal or

isolated herd. As an example, a recent multimillion dollar initiative was undertaken to

eradicate bovine tuberculosis in an isolated area of the state in order to prevent restrictive

federal requirement upon the entire state.

•

The livestock industry accounts for approximately $2 billion in cash receipts in the state

annually. Taking steps to ensure adequate fencing is a preventive measure to help protect

the economic viability of this industry. SM 50 stresses the complicated nature of issues

along the border and emphasizes the necessity of a cooperative unified approach between

state and federal agencies. Additional ramifications include livestock theft and

potentially human health implications.

PERFORMANCE IMPLICATIONS

According to NMLB, any livestock wandering into New Mexico from Mexico must be estrayed

and disposed of under Livestock Board laws and policies. NMLB would have to impound or

confine livestock until proper origin and ownership is verified if that is even possible

ADMINISTRATIVE IMPLICATIONS

According to NMLB, proper fences and barriers would help mitigate the situation. Assurance of

proper fencing and barriers is not a responsibility of the New Mexico Livestock Board under its

existing statutes; therefore, any initiative taken by the agency would require additional resources

and authorization. At the minimum, 2 FTEs, plus vehicles and other equipment may be

Senate Memorial 50 – Page

3

necessary to patrol fence lines, or to examine, assess and ensure barriers and to their

functionality and effectiveness. This does not take into account the cost of construction, which,

again, is not a responsibility of the New Mexico Livestock Board. The matter is further

complicated by federal jurisdictional issues along the international border, as well as real and

increasing danger due to illicit trafficking of drugs and people in the area.

TECHNICAL ISSUES

As stated by NMLB, because such fences would become part of the international border, there is

some question as to whether they would be expected to come under federal responsibility,

therefore considered federal property and maintained as such.

The federal entities do not understand the type of construction and other requirements necessary

for restraint of livestock, nor do they understand the implications of livestock movement across

the border when those fences do not exist.

OTHER SUBSTANTIVE ISSUES

As stated by NMLB, a cooperative effort among all relevant local, state and federal agencies

must take into consideration relative jurisdictions, resource availability, commonality of purpose

and mission, existing laws, regulations, international agreements, impacts on affected ranchers

and farmers, and willingness to work together.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Duplicate To: HM50

ALTERNATIVES

As stated by NMLB, good fences make good neighbors. This principal extends to nations as

well. There are no alternatives to effective barriers to unrestrained movement of livestock across

the border. The only reasonable alternative to a Memorial would be actual funding of a project

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

As stated by NMLB, attention will not be given to the critical need for control of livestock

movement along the border. As a result, the likelihood of economic damage is high, and the

compromise of agricultural safety and security remains likely. Unfettered ingress and egress of

livestock increases the risk of disease as well as loss due to theft. These problems portend

economic impacts upon the entire state.

PME/mt