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

SPONSOR Balderas

ORIGINAL DATE

LAST UPDATED

2-9-2006

HB 849

SHORT TITLE North-South All-Star Football Game

SB

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$5.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Higher Education Department (NMHED)

SUMMARY

Synopsis of Bill

House Bill 849 appropriates $5,000 from the general fund to New Mexico Highlands University

Board of Regents for the purpose of promoting the North-South All-State football game, which

is to be held at the university.

FISCAL IMPLICATIONS

The appropriation of $5,000 contained in this bill is a non-recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert

to the general fund.

SIGNIFICANT ISSUES

HB849 appropriates money to the New Mexico Higher Education Department to pass through to

an organization stated to be the New Mexico Athletic Association. There is an organization

called the New Mexico Activities Association (NMAA) that is comprised of New Mexico public

and parochial middle/junior high and senior high schools that pay membership dues on an annual

basis. However, NMAA does not sponsor any all-star sporting events. Some clarification of this

House Bill 849– Page

2

discrepancy is necessary in prior to any appropriation.

The actual entity that is sponsoring the event is the New Mexico High School Coaches Associa-

tion (NMHSCA), an independent non-profit organization. The NMHSCA is physically housed

within the NMAA building in Albuquerque, but it is independent of NMAA although the two

organizations work in conjunction with each other.

For the purposes of HB849, the NMHSCA is sponsoring a class 3A All-Star North-South foot-

ball game that will be held at NMHU on July 15, 2006. According to Bobby Gibbs, Executive

Secretary for NMHSCA, only graduating seniors are eligible to play in NMHSCA post-season

all-star games.

Over the past few years, these all-star games have grown to include both boys and girls sports

such as baseball, basketball, football, softball, and volleyball. NMHSCA is currently sponsoring

all-star games throughout the state for small, medium, and large sized schools in class 1A/2A

(combined), 3A, and 4A/5A (combined).

In the case of the latter, NMHSCA has held the annual class 4A/5A All-Star North-South foot-

ball game for the past 62 years. For the past several years, this game has been played in Albu-

querque at the University of New Mexico (UNM), while the class 3A game has been played in

Las Vegas at NMHU.

ADMINISTRATIVE IMPLICATIONS

Please see “Significant Issues” section, regarding the administration of funds, clarification of the

recipient, etc.

TECHNICAL ISSUES

The New Mexico Higher Education Department (NMHED) was initially concerned about the

issue of “anti-donation" regarding a public entity such as NMHU using state money to promote

an event by a so-called entity that no one had heard of. Article IV, § 31 of the New Mexico State

Constitution, Appropriations for charitable, educational, etc., purposes; provides that no money

is to be appropriated to charitable, educational, or benevolent entities not entirely within the pur-

view of state control.

However, once the Department determined that the money would be used to promote an event

sponsored by a non-profit organization, those concerns were assuaged.

According to NMHSCA, each city or town hosting an all-star game has an organization com-

prised of local businesses that help defray the costs of putting on the event.

OTHER SUBSTANTIVE ISSUES

According to NMHSCA, the post-season all-star games (including the class 3A North-South

football game) are not money making events. During the week leading up to an all-star game,

NMHSCA spends most of its money on providing food and housing for the players who stay on

the campus where the event is being held.

House Bill 849– Page

3

NMHSCA derives its benefit in giving the all-stars (most of whom are presumably college

bound) the opportunity to be exposed to what campus life is like at a New Mexico higher educa-

tion institution.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

If this legislation is not enacted, the funding for this event will need to come from another

source.

POSSIBLE QUESTIONS

What if any clarification as to the correct recipient of this funding is necessary.

Does this appropriate violate Article IV, § 31 of the New Mexico State Constitution, titled “Ap-

propriations for charitable, educational, etc., purposes.”

PD/mt