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F I S C A L I M P A C T R E P O R T
SPONSOR Nunez
ORIGINAL DATE
LAST UPDATED
2/1/06
2/2/06 HB 468
SHORT TITLE Establish Agricultural Producer Cooperatives
SB
ANALYST Earp
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$150.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates Senate Bill 241
SOURCES OF INFORMATION
LFC Files
Responses Received From
Higher Education Department (HED)
New Mexico Department of Agriculture (NMDA)
SUMMARY
Synopsis of Bill
House Bill 468 appropriates $150,000 from the general fund to the Board of Regents of New
Mexico State University (NMDA) for the New Mexico Department of Agriculture (NMDA) to
assist agricultural producers in the establishment of cooperatives.
FISCAL IMPLICATIONS
The appropriation of $150,000 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.
pg_0002
House Bill 468 Page
2
SIGNIFICANT ISSUES
This proposal was not included among the special program funding requests submitted by the
NMSU to the Higher Education Department (HED) for review. Consequently, this proposal has
not been included in the HED fiscal year 2007 funding recommendations to the Legislature.
ADMINISTRATIVE IMPLICATIONS
NMSU would be responsible for administration of the proposed appropriation.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
House Bill 468 and Senate Bill 241 are duplicate measures.
OTHER SUBSTANTIVE ISSUES
HED reports that agricultural cooperatives have a long history of helping farmers achieve their
goals. For generations, they have enabled United States farmers to address recurring concerns:
low crop and livestock prices,
the high cost of farm production supplies, and
the need to expand markets to absorb surplus production.
Historically, individual farmers have had to contend with these dynamics while competing in a
marketplace with much larger, sometimes global firms.
DKE/nt