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F I S C A L I M P A C T R E P O R T
SPONSOR Ingle
ORIGINAL DATE
LAST UPDATED
2/3/06
HB
SHORT TITLE Transfer Natural Resource Revenue Task Force
SB 573
ANALYST Hoffmann
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$700.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates House Bill 443.
Relates to Senate Bill 415/SFCS.
SOURCES OF INFORMATION
LFC Files
Responses Received From
New Mexico Department of Agriculture (NMDA)
SUMMARY
Synopsis of Bill
Senate Bill 473 amends Section 19-1A-2 NMSA 1978 to move the Natural Resources Revenue
Recovery Task Force from the State Land Office to the New Mexico Department of Agriculture.
The bill appropriates $700,000 from the general fund to the Board of Regents of New Mexico
State University in two amounts for the following purposes:
1.
$200,000 for the Department of Agriculture to fund the operations of the Natural Re-
source Revenue Recover Task Force, and
2.
$500,000 to establish an economic, trade and policy analysis center administered by the
Cooperative Extension Service in the College of Agriculture and Home Economics.
The bill amends Section 19-1A-3 NMSA 1978 to delay the termination of the Natural Resource
Revenue Task until July 1, 2009.
pg_0002
Senate Bill 573 Page
2
The task force will be composed of nine members who are appointed by the legislature (4), the
governor (3) and the commissioner of public lands (3). The appointees must meet certain qualifi-
cations for geographic representation and knowledge of agricultural, forest, or extractive indus-
tries and water issues. The staff for the task force shall be provided by the New Mexico Depart-
ment of Agriculture.
The task force shall:
1)
review and analyze the historical and current differences between the prices received
by agricultural producers and the prices paid by consumers;
2)
gather and compile information on the impact of the federal laws that affect
agriculture and extraction industries, specifically the Agriculture Adjustment Act and
the National Industrial Recovery Act as originally enacted;
3)
evaluate the United States Congress's original objectives to stabilize commodity
prices and rural income, manage public lands for multiple use, preserve grazing and
water rights, and foster timber harvests compared to the laws' outcomes;
4)
assess the relationship of these laws with the Treaty of Guadalupe Hidalgo, Kearny's
Code and the preservation of New Mexico's private property rights contained in the
United States Constitution;
5)
define the economic impact of the Agriculture Adjustment Act and the National
Industrial Recovery Act on agricultural producers, natural resource industries and
related businesses, and the impact on county and state revenues;
6)
develop state policies to counteract the negative effect of federal law; and
7)
report its findings and recommendations annually by December 1 to the New Mexico
Legislative Council and the Governor.
FISCAL IMPLICATIONS
The appropriation of $700,000 contained in this bill is a recurring expense to the general fund.
This appropriation may be spent in fiscal year 2007 or 2008. Any unexpended or unencumbered
balance remaining at the end of fiscal year 2008 shall revert to the general fund.
DUPLICATION
This is a duplicate of House Bill 443.
Senate Bill 415/SFCS is related to this bill; it appropriates $50,000 to the State Land Office for
Natural Resources Revenue Recover Task Force. The $50,000 appropriation will go to the New
Mexico Department of Agriculture if Senate Bill 573 passes.
pg_0003
Senate Bill 573 Page
3
TECHNICAL ISSUES
An issue to the NMDA is that while they assume responsibility for the task force from the State
Land Office, the Commissioner of Public Lands is still charged with appointment of two mem-
bers of the task force.
CH/nt