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

SPONSOR Irwin

DATE TYPED 1/24/05

HB 59/aHAFC

SHORT TITLE New Mexico Coin Commission

SB

ANALYST Hadwiger

APPROPRIATION

(in $000s)

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Cultural Affairs Department

SUMMARY

Synopsis of HAFC Amendment

The HAFC amendment strikes the appropriation.

Synopsis of Original Bill

House Bill 59 would create a New Mexico Coin Commission to assist the governor in selecting

the designs to be submitted to the U.S. Mint for the New Mexico state quarter for the 50 State

Quarters Program. The commission would consist of seven members, appointed by the gover-

nor, taking into account the geographic distribution of the members. The members would serve

at the pleasure of the governor. The commission would function until the U.S. Mint has selected

its design for the New Mexico quarter but no later than July 1, 2008. Members would receive

mileage and per diem but no other compensation. The Cultural Affairs Department would pro-

vide staff support for the commission. The commission would solicit design proposals for the

New Mexico quarter and submit three to five designs to the Governor. The Governor would

submit the approved designs to the U.S. Mint along with material explaining the designs and

House Bill 59/aHAFC -- Page 2

why they are representative of the state.

House Bill 59 appropriates $60 thousand from the general fund to the Cultural Affairs Depart-

ment in FY06 through FY08 to pay costs associated with the commission.

Significant Issues

The U.S. Mint’s 50 State Quarters Program will issue the New Mexico state quarter in 2008.

The program issues five state quarters per year, in the order in which the states were admitted to

the Union. New Mexico, as the 47

th

state, will be among the last of the coins issued. This bill

represents the executive proposal for providing public input into the process whereby the final

design of the quarter will be selected.

The federal regulations do not require creation of a commission for this purpose. DCA notes that

a commission would help assure statewide representation as design concepts are studied and se-

lected.

FISCAL IMPLICATIONS

The General Appropriation Act currently includes $60,000 to support the Coin Commission in

fiscal years 2006 through 2008.

ADMINISTRATIVE ISSUES

DCA indicates existing staff will be sufficient to support the proposed commission.

TECHNICAL ISSUES

The U.S. Mint regulations are attached. The proposed bill does not appear to conform to these

regulations. According to the regulations, “The state will provide to the United States Mint at

least three, but no more than five, different concepts or themes emblematic of the state; each

concept or theme will be in narrative format. The narrative must explain why the concept is em-

blematic of the state and what the concept represents to the state's citizens. A narrative that

merely describes a particular design is not acceptable. Based on the narratives, the United States

Mint will produce original artwork of the concepts, focusing on aesthetic beauty, historical accu-

racy, appropriateness and coinability.” The actual designs for the coin will be prepared by the

Mint. The DCA comments concur with this interpretation of the regulations. HB59, by contrast,

would require the commission to select designs. To be consistent with the federal program, the

bill should be amended to require the commission to select and submit design concepts.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

According to DCA, the governor and/or his/her staff would develop and oversee the design proc-

ess for the New Mexico state quarter without the assistance and guidance of an appointed com-

mission.

DH/lg/rs

Attachment

House Bill 59/aHAFC -- Page 3

The Evaluation Process

The United States Mint has revised the 50 State Quarters® Program Design Evaluation Proc-

ess. These revisions will enhance the program's educational value and promote the historical

accuracy and artistic beauty of the designs. The changes were approved by U.S. Treasury Sec-

retary Snow on March 11, 2003, and will be implemented in the 2005 quarter design evaluation

process.

50 State Quarters® Design Evaluation Process

Stage 1

The United States Mint will initiate the formal state design process by contacting

the state governor approximately 24 months prior to the beginning of the year in

which the state will be honored. The governor, or such other state officials or group

as the state may designate, will appoint an individual to serve as the state's liaison

to the United States Mint for this program.

Stage 2

The state will conduct a concept selection process as determined by the state. The

state will provide to the United States Mint at least three, but no more than five, dif-

ferent concepts or themes emblematic of the state; each concept or theme will be

in narrative format. The narrative must explain why the concept is emblematic of

the state and what the concept represents to the state's citizens. A narrative that

merely describes a particular design is not acceptable.

Stage 3

Based on the narratives, the United States Mint will produce original artwork of the

concepts, focusing on aesthetic beauty, historical accuracy, appropriateness and

coinability. If the state has not provided at least three concepts, the United States

Mint may produce additional concepts for the state.

Stage 4

The United States Mint will contact the state to collaborate on the artwork. The

state will appoint an historian, or other responsible officials or experts, to participate

in this collaboration to ensure historical accuracy and proper state representation of

the artwork. The United States Mint will refine the artwork before forwarding it to the

advisory bodies.

Stage 5

The Citizens Coinage Advisory Committee and the U.S. Commission of Fine Arts

will review the candidate designs and make recommendations, and the United

States Mint may make changes to address such recommendations.

Stage 6 The United States Mint will present the candidate designs to the Secretary of the

Treasury for review and approval.

Stage 7 The United States Mint will return to the state all candidate designs approved by

the Secretary of the Treasury.

Stage 8

From among the designs approved by the Secretary, the state will recommend the

final design through a process determined by the state, within a time frame speci-

fied by the United States Mint.

Stage 9 The United States Mint will present the state's recommended design to the Secre-

tary for final approval.