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

SPONSOR Salazar

DATE TYPED 1/27/05

HB 483

SHORT TITLE Indian Gaming Revenue Distribution

SB

ANALYST Taylor

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$196.0 Recurring

Espanola

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

$196.0

Similar

Recurring

Espanola

($196.0)

Similar

Recurring State General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

Relates to HB 474

SOURCES OF INFORMATION

LFC Files

Gaming Control Board

SUMMARY

HB 483 would have the Department of Finance and Administration make a distribution to each

municipality in which an Indian gaming facility is located within its municipal boundaries. The

distribution would be equal to 11.4 percent of the net receipts of revenue sharing from the Indian

gaming facility located in the municipality. Distributions would be made quarterly by appropria-

tion. The municipality receiving the distribution would have to spend the money for municipal

government infrastructure or for providing police and fire protection services.

The effective date of this bill is July 1, 2005.

House Bill 483 -- Page 2

FISCAL IMPLICATIONS

The only municipality that would currently be affected by this bill would be Espanola, which

contains the Big Rock Casino (operated by Santa Clara Pueblo). The bill has an effective date of

July 1, 2005, making it apply to all of FY 2006 and future fiscal years.

This casino typically accounts for about 4 percent of total Indian gaming revenue sharing. Indian

gaming revenue sharing revenues are estimated to be $43 million. Assuming that 4 percent of

the $43 million is attributable to the Big Rock Casino implies that about $1.7 million would be

the base for the distribution to Espanola. Applying the 11.4 percent distribution percentage

against $1.7 million implies that $196 thousand would be transferred to the City of Espanola.

The state general fund revenues would be reduced by the equivalent amount.

Over time, the revenue implications of this bill could grow if other municipalities respond by an-

nexing Indian gaming casinos.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

This bill relates to HB 474 which would distribute a share of Indian gaming revenue to a speci-

fied county.

BT/sb