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





SPONSOR: Lyons DATE TYPED: 01/28/01 HB
SHORT TITLE: Cotton Boll Weevil Control Program SB 74
ANALYST: Gilbert


APPROPRIATION



Appropriation Contained
Estimated Additional Im
pact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
$ 750.0 Recurring GF



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates House Bill 115



SOURCES OF INFORMATION



LFC Files

New Mexico Department of Agriculture (NMDA)

SUMMARY



Synopsis of Bill



Senate Bill 74 appropriates $750.0 to the New Mexico Department of Agriculture (NMDA) for expenditure in FY02 for cotton boll weevil eradication. This appropriation would be passed through the NMDA to New Mexico's cotton boll weevil control districts, established under the Cotton Boll Weevil Control Act, Chapter 76, Article 6A, NMSA 1978. This appropriation will match expenditures made by New Mexico's Cotton Boll Weevil Control Districts.



Significant Issues



According to the NMDA, cotton is a $39.0 million industry in New Mexico. The cotton boll weevil has infested approximately 80,000 acres of cotton in New Mexico. Producers in all major cotton growing areas (Chaves, Curry, Dona Ana, Eddy, Lea, Luna, Sierra, and Roosevelt counties) have voted to create cotton boll weevil control districts. Producers in the remaining areas of the state, mainly Quay County, are currently involved in a voluntary monitoring and eradication program. The cotton boll weevil has been successfully eradicated from eight states, while seven states are currently involved with eradication programs. New Mexico producers, within established control

districts, contributed approximately $783.0 during the 2000 crop year towards eradication. It is anticipated that for crop year 2001 the producers will contribute approximately $1,309.6 towards eradication.



NMSU provided a categorical priority list of special funding requests to the Commission for Higher Education (CHE) for their review. The NMSU Board of Regents ranked this request as a priority for funding, but the CHE did not recommend funding as requested.



FISCAL IMPLICATIONS



The appropriation of $750.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund.



LG/ar:prr