NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

Commission on Higher Education (CHE)

New Mexico Department of Agriculture (NMDA)

SUMMARY

Synopsis of Bill

This bill amends the current Cotton Boll Weevil Control Act to provide for: (1) termination of a control district only after the determination that all financial and legal obligations have been satisfied; (2) specification ability to borrow money, accept grants, donations or contributions; and (3) exemption of cotton boll weevil control committees from the provisions of the Procurement Code and the Personnel Act. Control Committees shall be considered public employees for the purposes of the Tort Claims Act.

Significant Issues

According to the NMDA, after the formation of the first control district, deficiencies were detected in the language of the current statute. The proposed amendments fill the voids in the act to allow for the proper operation of the cotton boll weevil control districts, a majority of which were pointed out by federal agencies (USDA- Farm Services Agency) as being necessary to obtain low interest loans.

FISCAL IMPLICATIONS

This bill has no fiscal impact.

OTHER SUBSTANTIVE ISSUES

According to the NMDA, Cotton Boll Weevil Control Districts may be unable to obtain low interest federal loans (USDA - Farm Services Agency) necessary to become operational until self assessments cover the cost of programs if this bill does not pass. Without attainment of seed money, control districts may be deemed non functional.

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