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

SPONSOR:	Robinson		DATE TYPED:	01/31/02		HB
SHORT TITLE:		STPF Investment in New Mexico Film Projects				SB	280
					ANALYST:		Smith

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

$0.1 Indeterminate

Recurring

Severance Tax Permanent Fund, General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

State Investment Council (SIC)

SUMMARY

This bill allows the state investment officer to make direct investments in New Mexico film projects. Currently, the investments are limited to film private equity funds. This additional investment would be guaranteed by an investment grade entity or its substantial subsidiary.

FISCAL IMPLICATIONS

Income from the severance tax permanent fund is deposited to the general fund. The FY03 estimate for this revenue is $169 million.

OTHER SUBSTANTIVE ISSUES

The SIC notes that the new investment will have a lower risk of loss than the original investments contemplated under the statute, while providing a significant incentive to promote film production in New Mexico.

SS/ar