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 Garcia, MJ
ORIGINAL DATE
LAST UPDATED
2/16/2007
HB
SHORT TITLE Cooperative Establishment Assistance
SB 1050
ANALYST Moser
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
$175.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicate to: HB 442
SOURCES OF INFORMATION
LFC Files
Responses Received From
New Mexico State University – Department of Agriculture (DOA)
Higher Education Department (HED)
SUMMARY
Synopsis of Bill
Senate Bill 1050 appropriates $175,000 from the General Fund to the Regents of NMSU for
expenditure in FY 2008 for the DOA to assist agricultural producers in the establishment of
cooperatives.
FISCAL IMPLICATIONS
The appropriation of $175,000 contained in this bill is a recurring expense to the General Fund.
Any unexpended or unencumbered balance remaining at the end of FY 2008 shall revert to the
General Fund.
SIGNIFICANT ISSUES
Agricultural cooperatives are formed to work with like-minded producers to build a cooperative
structure to sell their goods as one large unit. The goal is to assist small producers in selling in a
pg_0002
Senate Bill 1050 – Page
2
larger volume and to bring quality and quantity to the market system.
This request was not submitted by NMSU to the New Mexico Higher Education Department for
review and is not included in the Department’s funding recommendation for FY08.
ADMINISTRATIVE IMPLICATIONS
The DOA will require a new FTE or consulting services in order to assist with the establishment
of grower cooperatives.
The funds from HB 442 would be administered by DOA with assistance from the Cooperative
Development Center (part of the United States Department of Agriculture) based in Denver, CO.
The DOA would establish a branch office of the Cooperative Development Center in
Albuquerque to assist producers in the formation of cooperatives.
GM/nt