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

SPONSOR:	Ruiz		DATE TYPED:	03/18/03		HB	HJM 116
SHORT TITLE:		Promote Golf in New Mexico				SB
					ANALYST:		Padilla

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY03	FY04	FY03	FY04
	NFI		Minimal – see narrative

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Economic Development Department

Department of Tourism

SUMMARY

Synopsis of Bill

House Joint Memorial 116 notes the importance of the golf industry to New Mexico’s economy and requests the Economic Development Department and the Tourism Department to develop a proposal to promote golf in New Mexico. The memorial asks the two departments to convene representatives from universities, professional and amateur golf associations, and tribes and pueblos to develop the proposal. It asks the two departments to report findings and recommendations to the Legislative Finance Committee and other appropriate interim committees.

HJM 116 notes that there are more than 80 public and private golf courses in New Mexico.

Significant Issues

The memorial does not give the lead for this project to either EDD or Tourism; instead, it asks that they work together to promote golf. EDD believes it would be better to task Tourism with the lead since golf is more closely related to tourism and recreation than to general economic development.

One alternative would be for New Mexico’s golf industry to promote itself, perhaps with state support. Both the Tourism Department and EDD manage “cooperative advertising” programs that provide matching funds to communities and non-profit organizations for the promotion of tourism and economic development. If New Mexico’s golf industry has formed or will form a non-profit organization to promote its interests, it could apply for and possibly receive funds for advertising and promotion.

FISCAL IMPLICATIONS

HJM 116 contains no appropriation. Both EDD and Tourism note that they will incur costs such as travel expenses in order to carry out the objectives of this memorial.

ADMINISTRATIVE IMPLICATIONS

Both EDD and Tourism would have to devote staff and other resources to the tasks required by this memorial.

POSSIBLE QUESTIONS

1. Is golf of sufficient economic importance to merit special study by two cabinet departments?

2. Has the golf industry organized itself for the purposes of promotion and advertising? Can it benefit from EDD and Tourism “cooperative advertising” programs?

LP/njw