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

SPONSOR Harrison

DATE TYPED 3/10/05

HB 481/aHAFC

SHORT TITLE Intertribal Ceremonial Act

SB

ANALYST Rosen

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

Indeterminate Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB46

SOURCES OF INFORMATION

LFC Files

Responses Received From

Tourism Department (TD)

Energy, Minerals, and Natural Resources Department (EMNRD)

Department of Indian Affairs (DIA)

SUMMARY

Synopsis of HAFC Amendment

The House Appropriations and Finance Committee amendment to House Bill 481 strikes the

$400.0 appropriation.

Synopsis of Original Bill

House Bill 481 creates the Intertribal Ceremonial Office within the Tourism Department, creates

an Intertribal Ceremonial board of seven members appointed by the Governor to serve five-year

terms, provides for at least a majority of board members to be Native American, establishes the

Intertribal Ceremonial Fund, and appropriates $400 thousand from the general fund to the Inter-

tribal Ceremonial Fund for the purpose of administering annual intertribal ceremonials, promot-

ing ceremonies of significance to Indian tribes and pueblos and coordinating all services and ac-

House Bill 481/aHAFC -- Page 2

tivities pertaining to intertribal ceremonials. House Bill 481 contains an emergency clause.

Significant Issues

DIA indicates state funding for the annual Gallup Intertribal Ceremonial, the fifth largest tourist

attraction in the state and an annual event for more than 83 years, was discontinued under the

previous administration, creating financial hardship and jeopardizing the Ceremonial’s continued

existence.

TD indicates it is unclear exactly what role the Tourism Department would be expected to play

in its cooperative relationship with the Intertribal Ceremonial Office. TD also notes this bill does

not make provision for management of activities normally associated with such events, including

sales of tickets, booth spaces, refreshments, and ancillary products.

EMNRD indicates the intertribal ceremonial event is annually sponsored by the Gallup Inter-

tribal Ceremonial Association and held at Red Rock Park in Gallup. EMNRD indicates Red

Rock Park is owned by the City of Gallup and operated by a private concessionaire. EMNRD

indicates it is likely that the ownership of Red Rock Park may be conveyed to EMNRD’s State

Parks Division.

PERFORMANCE IMPLICATIONS

Indeterminate

FISCAL IMPLICATIONS

The appropriation of $400 thousand contained in this bill is for staffing, management and promo-

tion of the intertribal ceremonial and, as such, a recurring expense to the general fund. Any un-

expended or unencumbered balance remaining at the end of FY06 shall not revert to the general

fund.

Continuing Appropriations

This bill creates a new fund and provides for continuing appropriations. The LFC objects to in-

cluding continuing appropriation language in the statutory provisions for newly created funds.

Earmarking reduces the ability of the legislature to establish spending priorities.

ADMINISTRATIVE IMPLICATIONS

DIA indicates House Bill 481 provides for a Director for the Office but does not specify the

number of support staff required to carry out the provisions of the Intertribal Ceremonial Act.

DIA notes additional money may be needed to hire administrative support staff and recurring

funding will be required to fulfill the ongoing duties and goals of the Office.

OTHER SUBSTANTIVE ISSUES

DIA indicates creation of an Intertribal Ceremonial Office will assist tribal governments in de-

velopment of tourism and marketing plans and promotion of cultural tourism that brings eco-

nomic benefits to the tribes, pueblos and the state as a whole.

House Bill 481/aHAFC -- Page 3

TECHNICAL ISSUES

The board is to consist of seven members, yet the staggered first year appointments amount to

only six members. In addition, the board has no stated purpose or duties.

JR/sb