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

SPONSOR Balderas

ORIGINAL DATE

LAST UPDATED

2/04/06

HB 808

SHORT TITLE Mora, Rio Arriba and Taos Timber Harvesting

SB

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$25.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Energy, Minerals, and Natural Resources Department (EMNRD)

Responses Not Received From

Economic Development Department (EDD)

SUMMARY

Synopsis of Bill

House Bill 808 appropriates $25 thousand from the general fund to the Economic Development

Department to pay for the administrative costs of a timber harvesting and processing program in

Mora, Rio Arriba, and Taos counties.

FISCAL IMPLICATIONS

The appropriation of $25 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 2007 shall

revert to the general fund.

House Bill 808 – Page 2

SIGNIFICANT ISSUES

EMNRD reports that their Forestry Division joined with the USDA, Forest Service to create the

Southwest Sustainable Forests Partnership to encourage the development of new forest industries

that utilize small diameter trees. This effort requires specialized knowledge in forestry and forest

products and a regional approach to take advantage of large, interconnected markets. Federal

grants have been provided to communities and businesses throughout the state to encourage

small diameter industries. These efforts have concentrated on rural communities located near

forests and have a historic forest industry workforce. Mora, Rio Arriba, and Taos counties have

a large forestland base in need of treatment and entities in this area have received federal flow

through grant funds, to forest industries, from EMNRD.

To be successful, businesses must create new, value added forest products and increase effi-

ciency. Although it is unclear how these funds will be used, the Forestry Division will be avail-

able to provide technical assistance to the Economic Development Department to help imple-

ment the timber harvesting program if this bill passes.

ADMINISTRATIVE IMPLICATIONS

There would be minimal administrative impact on the Economic Development Department.

ALTERNATIVES

Given its experience in forestry management, the appropriation could be made to Forestry Divi-

sion of EMNRD to support the Southwest Sustainable Forests Partnership

BE/nt