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

SPONSOR Park

DATE TYPED 2/2/05

HB 437

SHORT TITLE Raise State Fair Concession Contract Amount

SB

ANALYST Wilson

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

See Narrative

SOURCES OF INFORMATION

LFC Files

Responses Received From

Attorney General’s Office (AGO)

EXPO NM (EXPO NM)

General Services Department (GSD)

SUMMARY

Synopsis of Bill

House Bill 437 amends NMSA Section 13-1-30 of the Procurement Code to raise the State Fair

(EXPO NM) concession contracts revenue limit to which the Code applies from contracts in ex-

cess of $10 thousand to those contracts in excess of $20 thousand. The new limit would apply to

concession contracts in which EXPO NM receives revenue, and also to those in which it expends

public funds.

Significant Issues

The AGO states EXPO NM concession contracts include those in which the EXPO NM author-

izes concessionaires to conduct business on the fairgrounds, and EXPO NM then receives reve-

nue from that license. The Procurement Code provision amended by this bill is unusual in that it

applies the Code to those revenue generating contracts. This application requires competitive

procurement for those contracts in which the EXPO NM receives revenue in excess of the statu-

tory limit. Most of the Code’s provisions apply to procurement by state agencies requiring the

expenditure of public funds. It is possible that the EXPO NM also enters into concession con-

tracts requiring the expenditure of public funds. Presumably this amendment will assist EXPO

House Bill 437 -- Page 2

NM in procuring small concession contracts without competitive procurement, whether they

generate revenue to EXPO NM or require the expenditure of funds by the EXPO NM.

FISCAL IMPLICATIONS

EXPO NM states that the increased exemption from the Procurement Code will allow them the

ability to offer increased concession vendor booth space valued between $10 thousand and $20

thousand. This exemption will allow for timely processing of contracts for the “Annual

Event” in September.

The value of concession vendor booth spaces is determined by front foot basis. EXPO NM cur

rently has six spaces valued between $10 thousand and $20 thousand, which have been rented for

the maximum contract amount of $10 thousand. The increase in the contract amount will al

low EXPO NM to charge market value for these spaces increasing revenue by $22,575.

.

ADMINISTRATIVE IMPLICATIONS

Contracts valued between $10 thousand and $20 thousand will be exempt from the Procurement

Code and can be processed internally.

DW/yr