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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 3/10/05

HB 586\aHBIC

SHORT TITLE New Mexico Golf Tournament

SB

ANALYST Rosen

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$250.0

Indeterminate Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to a Governor’s new program initiative and HB58

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Tourism Department (TD)

SUMMARY

Synopsis of HBIC Amendment

House Business and Industry Committee amendment to House Bill 586 changes the title and re-

lated language of the bill, striking references to tournaments in lieu of more generic “New Mex-

ico golf” and striking reference to the New Mexico athletic commission in lieu of the New Mex-

ico athletic authority.

Significant Issues

This bill makes reference to the New Mexico athletic authority, an entity that does not exist.

Synopsis of Original Bill

House Bill 586 appropriates $250 thousand from the general fund to TD for expenditure in FY06

to develop market and advertise a New Mexico golf tournament along the Santa Fe trail and

throughout the state.

House Bill 586/aHBIC -- Page 2

Significant Issues

This bill makes reference to TD working in conjunction with the New Mexico athletic commis-

sion, an entity that does not exist.

TD indicates it does not commonly engage in the development of events or take an active role in

the planning of such events. TD does actively promote and advertise numerous events through-

out the state to attract tourists to New Mexico.

PERFORMANCE IMPLICATIONS

This bill may help to increase the state’s share of the national tourism market, a key performance

measure for TD.

FISCAL IMPLICATIONS

The appropriation of $250.0 contained in this bill is a recurring expense to the general fund. Any

unexpended or unencumbered balance remaining at the end of FY06 shall revert to the general

fund.

ADMINISTRATIVE IMPLICATIONS

According to TD, this bill will require redirection of personnel to engage in activities not cur-

rently assigned, such as development of events. However, it may possible for TD to contract

with people experienced in developing sporting events.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

The Governor’s budget in brief (p. 46) includes a new program initiative recommendation for

$250.0 to promote New Mexico as a golf destination.

HB58 creates the New Mexico Sports Authority, attaches it administratively to TD and appropri-

ates $400.0 for its operating expenses in FY06. The FY06 executive budget recommendation for

TD included $400.0 for the same purpose.

TECHNICAL ISSUES

The bill makes reference to the New Mexico athletic commission (lines 18 and 19), an entity

which does not exist. TD wonders whether the drafter intended to reference the New Mexico

Sports Authority, an entity that may be created with passage of HB58.

ALTERNATIVES

Remove the reference to the New Mexico athletic commission.

JR/yr:lg