House committee advances bill to preserve New Mexico spay‑neuter fund paid by pet‑food registration fee

The House Judiciary Committee advanced Senate Bill 38 on a voice and roll call after more than an hour of testimony on the program that funds spay‑and‑neuter services through fees on registered pet‑food brands.

Supporters, including veterinarians and county officials, said the program reduces shelter intake and euthanasia and provides grants to local clinics. Kenneth Brennan, an Edgewood commissioner, pointed to shelter strain and said increased spay‑and‑neuter capacity would “definitely help our animal shelters.” Joy Esparza of New Mexico Counties told the committee the program is an important resource for counties that operate shelters.

Opponents included T.J. Torhill, a registered lobbyist for the Pet Food Institute, who told the committee the fee is being litigated and said a federal court had characterized the charge as a tax. Torhill said discovery showed the veterinary board had not filed statutorily required annual expenditure reports and warned continuing the fee could leave the Legislature responsible for reimbursements if litigation succeeds.

Committee members asked for technical clarifications about how revenue is distributed. An expert explained that about 96% of spay‑and‑neuter fee revenue is deposited into a program subaccount and that the fee is assessed when pet‑food brands register; the witness said the registration is an annual $100 fee.

Representative McQueen moved a due‑pass recommendation; Representative Romero seconded. On the roll call the committee recorded 10 votes in favor and 1 against; the motion to advance SB38 passed. The measure will move on in the legislative process for further consideration.

The committee did not resolve the litigation questions raised about whether the charge is a fee or a tax; proponents said the program's grants have demonstrable benefits, while opponents asked the Legislature to consider the pending court challenge and compliance with reporting requirements.