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

SPONSOR Hanosh

DATE TYPED 1/28/2005 HB 474

SHORT TITLE Indian Gaming Revenue Distribution

SB

ANALYST Taylor

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$200.0 Recurring Cibola County

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

$200.0

Similar

Recurring

Cibola County

($200.0)

Similar

Recurring State General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

Relates to HB 483

SOURCES OF INFORMATION

LFC Files

Gaming Control Board

SUMMARY

House Bill 474 would have the Department of Finance and Administration make a quarterly

“county revenue-sharing distribution” from the state general fund to a qualified county beginning

in November 2005. The distribution would be equal to 2.0 percent of the net receipts of revenue

sharing received by the state from the Indian gaming facility located in the qualified county.

The “qualified county” is defined as one with a population between 25 and 26 thousand in the

most recent federal census and a net taxable value for the 2004 property tax year of less than

$250 million and which two tribal gaming facilities are located. Cibola County fits this descrip-

tion.

House Bill 474 -- Page 2

FISCAL IMPLICATIONS

Cibola County is the only county that would be affected by this bill. Cibola county contains the

Acoma and Laguna casinos. The bill has distributions made quarterly in the second month fol-

lowing each quarter. The first distribution is set for November 2005, implying that the provi-

sions of the bill would affect all of FY 2006.

Recent information indicates that Acoma and Laguna casinos account for about 24 percent of

total Indian gaming revenue sharing. Indian gaming revenue sharing revenues are estimated to

be $43 million. Assuming that 24 percent of the $43 million is attributable to these two casinos,

about $10 million would be the revenue base for the distribution to Cibola County. Applying the

2.0 percent distribution percentage against $10 million implies that $200 thousand would be

transferred to the Cibola County. The state general fund revenues would be reduced by the

equivalent amount.

Over time, the revenue implications of this bill could grow if other municipalities respond by an-

nexing Indian gaming casinos.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

This bill relates to HB 483 which would distribute a share of Indian gaming revenue to Espanola.

BT/yr