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





SPONSOR: Pearce DATE TYPED: 02/05/00 HB 336
SHORT TITLE: Preference to NM Agricultural Products SB
ANALYST: Pacheco-Perez


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
 Recurring

or Non-Rec

 Fund

Affected

FY00 FY01 FY00 FY01
NA



(Parenthesis ( ) Indicate Expenditure Decreases)



Relates to HB334



SOURCES OF INFORMATION



Commission on Higher Education (CHE)

New Mexico Department of Agriculture (NMDA)

General Services Department (GSD)



SUMMARY



Synopsis of Bill



This bill enacts a new section of the procurement code requiring every contract for the procurement of agricultural products to give preference to those from New Mexico when cost is equal and quality is similar. The NMDA is required to assist with implementation and enforcement of this provision and to provide information on the availability of agricultural products.



Significant Issues



According to GSD, Section 13-1-21 NMSA 1978 presently authorizes a 5% bidders' preference be given to a "resident manufacturer" offering materials grown, produced or processed wholly in the state.



FISCAL IMPLICATIONS



GSD notes minimal impact in implementing the new requirements set forth in this legislation.









ADMINISTRATIVE IMPLICATIONS



The NMDA estimates the need for .5 FTE to disseminate information and to enforce this legislation. Enforcement would be difficult without penalty assessments.



GSD notes minimal impact on the agency.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



This bill relates to House Bill 334.



TECHNICAL ISSUES



GSD offers the following amendment: page 1, line 22, following "agreement" and before "that" this be added "issued by the state purchasing agent or a central purchasing office."



OTHER SUBSTANTIVE ISSUES



According to GSD, while reference is made to enforcement, the bill does not discuss penalties.



APP/sb