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

SPONSOR Campos

DATE TYPED 2/2/05

HB

SHORT TITLE Heritage Area Study in Northeast New Mexico

SB 412

ANALYST Rosen

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$100.0

Indeterminate Non-recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

Responses Received From

Tourism Department (TD)

Economic Development Department (EDD)

Department of Cultural Affairs (DCA)

SUMMARY

Synopsis of Bill

Senate Bill 412 appropriates $100.0 from the general fund to EDD for expenditure in FY06 to

conduct a feasibility study for the creation of a heritage area in northeast New Mexico.

Significant Issues

“National Heritage Areas” are designated areas where natural, cultural, historic and recreational

resources combine to form a cohesive, nationally distinctive landscape arising from patterns of

human activity shaped by geography. These patterns make National Heritage Areas representa-

tive of the national experience through the physical features that remain and the traditions that

have evolved in the areas.

According to DCA, designation of a heritage area can occur at the state or federal level. Cur-

rently no such program exists under New Mexico statutes and New Mexico has no National

Heritage Areas under the federal program (although one has been introduced for the northern Rio

Grande). DCA notes other states, including Utah and Maryland, have very successful state-level

Senate Bill 412 -- Page 2

heritage area programs upon which New Mexico could model its own.

According to TD, National Heritage Areas are part of a strategy that encourages residents, gov-

ernment agencies, non-profit groups and private partners to collaboratively plan and implement

programs and projects that recognize, preserve and celebrate many of America's defining land-

scapes.

PERFORMANCE IMPLICATIONS

DCA notes development of heritage areas will substantially enhance New Mexico’s communi-

ties’ capacity to plan and implement preservation projects and promote heritage tourism. In ad-

dition, these activities will positively impact HPD’s preservation performance measures.

FISCAL IMPLICATIONS

The appropriation of $100.0 contained in this bill is a non-recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-

eral fund.

ADMINISTRATIVE IMPLICATIONS

Indeterminate

TECHNICAL ISSUES

TD indicates the term “heritage area” may not be commonly used or understood in the economic

development realm and, therefore, it is critical for definitions and expectations to be agreed upon

by study group members to avoid gathering results not relevant to common goals.

OTHER SUBSTANTIVE ISSUES

According to DCA, designation as a heritage area requires public involvement, outreach and

governmental support for the concept to work. Communities within an area develop a heritage

area management plan that sets forth the strategies, projects, programs, actions, and partnerships

that will be necessary for an area to achieve its goals.

DCA indicates the study will not influence designation under the federal program but may pro-

vide the necessary information to proceed with an application to the federal program. The study

could also provide information on the feasibility of a “heritage enterprise zone” eligible for cer-

tain benefits such as special project grants and loan assistance for acquisition, development, pub-

lic interpretation, and programming, as well as tax incentives for the rehabilitation of non-

designated historic buildings and non-historic buildings in active tourism use.

ALTERNATIVES

DCA indicates its Historic Preservation Division (HPD) should be included in the group con-

ducting the study as the study is consistent with its statutory responsibilities. In addition, DCA

indicates HPD has an ongoing partnership with the National Park Service, which administers the

federal National Heritage Area program. DCA notes heritage areas include natural sites and,

Senate Bill 412 -- Page 3

therefore, Energy, Minerals and Natural Resources’ State Parks Division (SPD) might also be

included in the group conducting the study.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

DCA indicates northeastern New Mexico’s cultural patrimony, which includes archaeological

sites, historic ranches, historic buildings, churches, schools, plazas and parks will continue to

suffer from inadequate interpretation and planning for their preservation and continued use.

JR/yr