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

SPONSOR Trujillo

DATE TYPED 2/25/05

HB 1027

SHORT TITLE Repeal Bicycle Racing Act

SB

ANALYST Hanika-Ortiz

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Tourism Department (NMTD)

SUMMARY

Synopsis of Bill

House Bill 1027 repeals the Bicycle Racing Act, the Bicycle Racing Commission and established

licensing requirements for bicycle racing.

Significant Issues

The Bicycle Racing Commission was formed in 2001 to regulate wagering on a type of velo-

drome racing.

Past duties of the Commission:

A.

license all bicycle racing at Keiren velodrome bicycle-racing tracks;

B.

supervise all licensees and races, meets and racetracks;

C.

set the time, place and duration of all race meets;

D.

suspend or revoke licenses for violations;

E.

inspect bicycle-racing meets yearly;

F.

require all pari-mutuel bicycle racing meets held at Keiren velodrome bicycle-racing

tracks in accordance with rules;

House Bill 1027-- Page 2

G.

supervise operations of pari-mutuel machines and equipment and the operation of

money rooms, accounting rooms and seller’s and cashier’s windows;

H.

supervise the weighing and inspection of bicycles; and

I.

make saliva and urine tests on bicycle racers at every race.

PERFORMANCE IMPLICATIONS

According to NMTD, the Attorney General’s Office reports that current federal law prohibits

pari-mutuel (pooled) betting on bicycle racing.

FISCAL IMPLICATIONS

The expenses of the Bicycle Racing Commission were to be paid out of the state's allocation of

the proceeds from the bicycle-racing pari-mutuel tax of 15% to the state treasurer. Each licensee

holding a pari-mutuel bicycle racing license was allowed to conduct pari-mutuel wagering and

paid a bicycle racing pari-mutuel tax. Revenues from 13% of gross receipts were to be deposited

in the general fund and 2% of gross receipts were to be paid to the county in which the meet was

held.

As of 2000, no Keiren velodrome bicycle racing tracks had been built in the state, so no taxes

had been collected.

ADMINISTRATIVE IMPLICATIONS

NMTD is supportive of activities and events that increase the number of tourists to New Mexico.

OTHER SUBSTANTIVE ISSUES

From the University of New Mexico website:

The passage of the Park bond in the October 2003 city election will fund construction in 2004 or

2005 of the Albuquerque Velodrome (professional bicycle racing track) on South Campus. The

new track will go on the north side of Avenida Cesar Chavez S.E., between Isotopes Park and

the City Tennis Center, north of University Stadium. The Velodrome was used in the Pan Am

Games in Winnipeg, Canada a few years ago and has been stored in a local warehouse.

AHO/yr:lg