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

SPONSOR Begaye

ORIGINAL DATE

LAST UPDATED

2-2-06

HB 408

SHORT TITLE New Mexico Weavers Marketing Program

SB

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$50.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Economic Development Department (NMEDD)

SUMMARY

Synopsis of Bill

House Bill 408 appropriates $50,000 from the general fund to New Mexico Economic Develop-

ment Department for the purpose of establishing a cooperative marketing development plan in

order increase world-wide purchases of local New Mexico woven products, through retail and

auction sales. This enactment would enable NMEDD to contract with a non-profit cultural asset

community development organization to implement this initiative.

FISCAL IMPLICATIONS

The appropriation of $50,000 contained in this bill is a non-recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of 2007 shall revert to the

general fund.

SIGNIFICANT ISSUES

This legislation seeks to develop markets and retail venues for traditional New Mexican woven

products. Weaving has been a cultural staple in New Mexico & the southwest since about 800

AD. Woven items from the area are generally of cotton, a crop currently produced commercially

House Bill 408 – Page

2

in the southern parts of New Mexico. Pueblo weaving today consists of mantas, including elabo-

rately embroidered examples, sashes of varying widths and weave structures, and the striped

blanket descendants of those woven for in the past.

Accordingly, the economic impacts to the New Mexico economy derived through the sale of

woven products are expected to increase with enactment of this initiative.

During the Johnson Administration, the economic development department received a grant from

the USDA to develop and implement a marketing plan to promote Native American art in

Europe. This program was deemed a success in that numerous Native American artisans were

provided an opportunity to display and sell their art, and establish business relationships with

European merchants.

PERFORMANCE IMPLICATIONS

The economic development department would be required to develop and monitor a professional

services contract with a nonprofit cultural asset community development organization, which

would include identifying performance measures to determine the success of the program.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

A cooperative marketing development plan initiated through the Economic Development Plan to

promote the marketing and sale of New Mexico woven products would not be created. Subse-

quently, there would be no corresponding increase in the sale of these products.

PD/yr