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

SPONSOR Griego

ORIGINAL DATE

LAST UPDATED

2/07/2007

HB

SHORT TITLE Cultural Affairs Dept. Procurement Exemptions

SB 275

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

*NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

Cultural Affairs Department (CAD)

General Services Department (GSD)

New Mexico Tourism Department (NMTD)

SUMMARY

Synopsis of Bill

Senate Bill 275 amends Section 13-1-98 NMSA 1978 to add a provision that the Museum of

New Mexico press program shall be exempted from provisions of the procurement act. The

amended legislation would allow materials printed for sale by the press to be contracted to other

printers.

FISCAL IMPLICATIONS

*Senate Bill 275 carries no fiscal impact. If enacted, the bill would exempt literary products

from the Museum of New Mexico Press from the procurement code.

The ability to procure printing services for items intended for resale through an exemption from

the procurement code would enable the agency to produce products that are more appealing for

purchase by consumers. Similar promotional products (for resale) from State Agencies such as

the Tourism department’s New Mexico magazine are already exempted from the procurement

Senate Bill 275 – Page

2

process, and this amendment would make the statute parallel among these two agencies for es-

sentially the same purpose. The press is a self-sustaining, revenue-generating enterprise and re-

ceives only 12 percent of operating budget through the General Fund. The ability to select high

quality publishers can directly increase the department’s enterprise-revenue generation.

SIGNIFICANT ISSUES

The mission of the press is to publish books that reflect the collections of the museums of the

Department of Cultural Affairs, and books that educate and entertain audiences about the arts

and culture of New Mexico and the southwestern region.

The books produced by MNM Press and other divisions of DCA provide important outreach and

stimulate interests in the state, including tourism generated revenue. This bill will assist MNMP

in support of its mission and program.

The procurement process in printing of books for resale does not meet the quality needs of the

agency and has resulted in inferior quality book printing and production delays. Additionally,

the manufacturing flexibility this legislation could allow can allow the press to manage its inven-

tory more effectively, reducing costs of storage (just in time manufacturing, JIT).

The General Services department maintains that competition among local vendors will be nega-

tively impacted, however, the department also suggests the use of the State Printing program,

citing recent investments in printing equipment.

The production quality for the level of high-resolution, photo-illustrated literature Museum of

New Mexico press aspires to offer is available through several national and international spe-

cialty publishers.

PERFORMANCE IMPLICATIONS

No significant performance implications.

RELATES

SB 275 relates to Section 13-1-98 Exemptions to the Procurement Code Paragraph W

The addition to the procurement code that this bill proposes is similar to Paragraph W; which

exempts “purchases of promotional goods intended for resale by the tourism department."

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

If Senate Bill 275 is not enacted, two agencies with essentially the same mission regarding pro-

motional materials will be treated inequitably.

POSSIBLE QUESTIONS

Would the Museum of New Mexico Press necessarily follow Tourism’s model of selecting ven-

dors.

PD/sb