Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes. F I S C A L I M P A C T R E P O R T SPONSOR Dow/Lujan/Ferrary/Ortez/Gonzales LAST UPDATED ORIGINAL DATE 2/4/2025 SHORT TITLE NM-Grown Approved Supplier Program BILL NUMBER House Bill 229 ANALYST Jorgensen APPROPRIATION* (dollars in thousands) FY25 FY26 Recurring or Nonrecurring Fund Affected $430.0 Recurring General Fund Parentheses ( ) indicate expenditure decreases. *Amounts reflect most recent analysis of this legislation. Sources of Information LFC Files Agency Analysis Received From New Mexico Department of Agriculture (NMDA) SUMMARY Synopsis of House Bill 229 House Bill 229 (HB229) appropriates $430 thousand from the general fund to New Mexico State University to allow the New Mexico Department of Agriculture (NMDA) to distribute the funding for the approved supplier program. This bill does not contain an effective date and, as a result, would go into effect 90 days after the Legislature adjourns if enacted, or June 20, 2025. FISCAL IMPLICATIONS The appropriation of $430 thousand contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY26 shall revert to the general fund. SIGNIFICANT ISSUES There is currently a recurring $200 thousand appropriation for the approved supplier program housed at NMDA. HB229 will increase this to $630 thousand for FY26. The approved supplier program supports institutional buyers including preschools, schools, House Bill 229 – Page 2 senior centers and other purchase fresh foods through local farmers and ranchers. NMDA reports: Currently, the New Mexico grown program has benefited 277 farmers and ranchers while supplying 161 institutions with safe fresh local food, and over 1.5 million complete and enhanced meals (or 1.1 million pounds of food) to over 262 thousand consumers across the state with an economic benefit of $4,440.0. CJ/hj/SL2