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F I S C A L I M P A C T R E P O R T

SPONSOR Foley

ORIGINAL DATE

LAST UPDATED

2/07/07

HB 512

SHORT TITLE New Mexico Bowl Promotion and Support

SB

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$1,500.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Tourism Department (TD)

NM Sports Authority (NMSA)

SUMMARY

Synopsis of Bill

House Bill 512 appropriates $1.5 million from the general fund to the NM Sports Authority to

support and promote the New Mexico Bowl.

FISCAL IMPLICATIONS

The appropriation of $1.5 million contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of fiscal year 2008 shall revert

to the general fund.

SIGNIFICANT ISSUES

The New Mexico Bowl is owned by ESPN/Disney and is sanctioned by the National Collegiate

Athletic Association (NCAA). The Tourism Department has signed a four-year, approximately

$1.3 million contract with ESPN to be the title sponsor of the bowl, thus giving it the name,

“New Mexico Bowl." As title sponsor, the state receives a share of the television advertising

House Bill 512 – Page

2

during the broadcast of the game. According to the Tourism Department, the New Mexico Bowl

exposes the state to a national television market via ESPN. This sponsorship allows the depart-

ment to expand its agency mission of marketing New Mexico as an enchanting destination to the

world. NMTD supports any initiative that encourages visitation to the state.

This bill would put $1.5 million dollars into promoting the bowl game owned and operated by

the ESPN/Disney Corporation.

PERFORMANCE IMPLICATIONS

The Tourism Department notes that this initiative positively affects three key performance meas-

ures: domestic market share, percent increase in lodger’s tax, and the impact of tourism in the

state of New Mexico.

OTHER SUBSTANTIVE ISSUES

The event was originated by the New Mexico Sports Authority in conjunction with the Albu-

querque Convention and Visitors Bureau. It is now under the control of the Tourism Department,

which takes advantage of advertising, promotion and media exposure opportunities.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

The ESPN/Disney Corporation would continue to promote the bowl game, but without the assis-

tance of additional state funding.

BE/sb