SENATE JOINT MEMORIAL 16

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Phil A. Griego

A JOINT MEMORIAL

REQUESTING THE STATE INVESTMENT COUNCIL TO EVALUATE THE NEW MEXICO FILM INCENTIVE PROGRAM AND TO MAKE RECOMMENDATIONS FOR IMPROVEMENTS TO THE APPROPRIATE LEGISLATIVE INTERIM COMMITTEE.

     WHEREAS, New Mexico has more than eleven thousand residents employed directly or indirectly in the film and media industry; and

     WHEREAS, state incentives for film and media have drawn concern about their effectiveness; and

     WHEREAS, the current market has changed dramatically, and borrowing money is now cheap but tough to get, when it used to be expensive but easy to get; and

     WHEREAS, the state's market rate for money is still less than the commercial market rate; and

     WHEREAS, diversified investment strategies still make sense, particularly when specific loans are guaranteed up front, thus eliminating any downside risk to the state; and

     WHEREAS, the state investment council should evaluate converting the zero percent loans for film projects to its state market rate; and

     WHEREAS, the state investment council should evaluate benefits of additional incentives or favorable terms for local, in-state productions, particularly in rural areas; and

     WHEREAS, the state investment council should continue to monitor the New Mexico film incentive program closely, making changes whenever necessary to meet competitive market conditions and in-state demand; and

     WHEREAS, the New Mexico film incentive program might perform better under the auspices of the New Mexico finance authority, the small business investment corporation or similar entities focused more on economic development;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the state investment council be requested to evaluate the performance of the New Mexico film incentive program, with particular emphasis on the loan component, and make recommendations for improvements and accountability measures to the appropriate legislative interim committee by December 2011; and

     BE IT FURTHER RESOLVED that a copy of this memorial be transmitted to the state investment council.