NOTE: As provided in LFC policy, this report is
intended only for use by the standing finance committees of the
legislature. The Legislative Finance Committee does not assume
responsibility for the accuracy of the information in this report when used for
other purposes.
The most recent FIR
version (in HTML & Adobe PDF formats) is available on the Legislative
Website. The Adobe PDF version includes
all attachments, whereas the HTML version does not. Previously issued FIRs and attachments may be
obtained from the LFC in
SPONSOR: |
Varela |
DATE TYPED: |
|
HB |
876 |
||
SHORT TITLE: |
Civic and Convention Center Funding Act |
SB |
|
||||
|
ANALYST: |
Padilla |
|||||
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
$1,000.0 |
|
Recurring |
Local
Government |
|
|
|
|
|
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to SB 1, SB 792
LFC Files
Responses
Received From
Department
of Finance and Administration
Economic
Development Department
Tourism
Department
City
of
SUMMARY
Synopsis
of Bill
House Bill 876 authorizes certain local
government entities to impose a fee on the users of lodging facilities for the
purpose of financing the design, construction and furnishing of a new civic and
convention center and an adjoining parking garage. The local government entities are: 1) an incorporated municipality in a Class A
county with a 2000 census population of between 50,000 and 70,000 if the city
council has authorized the construction of a civic and convention center; 2)
the county where the incorporated municipality listed above is located,
provided that the county and the municipality have entered into a Joint Powers
Agreement for the collection and expenditure of the revenue.
The lodgers’ fee cannot exceed more than one
percent of the gross room revenue per day.
The fee can be imposed only for the period necessary to cover payment on
revenue bonds issued to finance the convention center and cannot exceed thirty
years. Several exemptions from the lodgers’
fee are provided, including very small facilities.
The bill authorizes qualified municipalities who
have imposed a convention center fee to issue revenue bonds to defray the costs
associated with the construction and equipping of the center.
The bill provides penalties that local
governments can impose on persons failing to pay the fee or otherwise violating
the convention center fee ordinance.
Significant
Issues
The municipality that meets the definition given in the
bill of “qualified municipality” is
The new center will be financed through the means authorized by this bill: a one-time, special use fee of 1 percent of the value of lodging, to be paid by the users of lodging facilities.
FISCAL IMPLICATIONS
According to the City of
RELATIONSHIP
SB 1 and SB 792 also allow certain
municipalities to impose fees for the financing of new convention center
facilities or the improvement of existing facilities. SB 1 applies to a new convention center in
POSSIBLE QUESTIONS
1. Have other financing options been explored
via the New Mexico Finance Authority?
LP/sb