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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.
pg_0002
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