Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may also be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

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

 

 

 

SPONSOR

Griego

DATE TYPED

2-12-04

HB

 

 

SHORT TITLE

Upgrade Gaming Machine Monitoring Systems

SB

169/aSCORC/aSFC

 

 

ANALYST

Bransford

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

$1,000.0

 

 

 

Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates Appropriation in the General Appropriation Act

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

 

 

$15,000.0-$20,00.0

Recurring

General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

LFC Files

 

Responses Received From

The Gaming Control Board

 

SUMMARY

 

Synopsis of SFC Amendment

 

The Senate Finance Committed amendment reduces the appropriation of $3 million to $1 million for the Gaming Control Board to upgrade the central monitoring system.

 

      Synopsis of SCORC Amendment

 

The Senate Corporations and Transportation Committee amendment makes a technical correction by adding “Declaring an Emergency” to the title.  The emergency clause was contained in Section 2 of the original bill but was not contained in the title.

 

Synopsis of Original Bill

 

Senate Bill 169 appropriates $3 million from the General Fund to the Gaming Control Board for the purpose of upgrading the central system for continuous monitoring of gaming machines at licensed facilities.  The bill contains an emergency clause.

 

Significant Issues

 

The current on-line monitoring system has become obsolete with new gaming software and technology.  It limits the type of gaming machines available at racetracks and non-profits.

 

The Gaming Control Board proposes to replace and upgrade the current system to allow for newer and more advanced gaming machines similar to the ones played in Indian casinos.

 

ORIGINAL FISCAL IMPLICATIONS

 

The appropriation of $3 million contained in this bill is a non-recurring expense to the General Fund. Any unexpended or unencumbered balances are non-reverting.

 

The Gaming Control Board estimates that updating the central monitoring system to allow for more advanced gaming machines will increase the amount of gaming revenue collected at racetracks and fraternal clubs by $15 million to $20 million annually.  Revenue from gaming is deposited in the general fund.

 

ADMINISTRATIVE IMPLICATIONS

 

The Gaming Control Board plans to allow fraternal clubs and racetracks 18 to 24 months to make the necessary updates to gaming machines to connect to the central monitoring system.

 

TECHNICAL ISSUES

 

Consideration should be given to changing the language in lines 22 and 23 to provide for reversion in fiscal year 2006.

 

POSSIBLE QUESTIONS

 

  1. How long will it take the agency to implement the enhanced system?
  2. Have maintenance costs for the system been included in the agency’s budget request?
  3. Is on-the-shelf hardware and software available or will this be an IT development project?

 

 

VB/dm:yr