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F I S C A L I M P A C T R E P O R T
SPONSOR McSorley
DATE TYPED 2/1/05
HB
SHORT TITLE Film Business Incubator Program
SB 446
ANALYST Rosen
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$10,000.0
Indeterminate Indeterminate Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates HB367
SOURCES OF INFORMATION
LFC Files
Responses Received From
Economic Development Department (EDD)
Office of Workforce Training and Development (OWTD)
Public Education Department (PED)
No Responses Received From
Office of the Governor (OG)
Department of Labor (DOL)
SUMMARY
Synopsis of Bill
Senate Bill 446 appropriates $10 million from the general fund to EDD for expenditure in FY05
and FY06 for the purpose of financing a pilot film business incubator for apprenticing New Mex-
ico resident workforce training students of film and digital media.
Significant Issues
It is not clear how this incubator integrates with the governor’s Media Industries Strategy Project
(MISP). $6 million of $10 million in capital outlay approved last year has already been diverted
from a “film production education and training center” to University of New Mexico, New Mex-
pg_0002
Senate Bill 446 -- Page 2
ico State University and Santa Fe Community College for various MISP-approved educational
programs.
Furthermore, various entities, including the Office of the Governor, EDD, Tourism Department
and OWTD, appear to play potentially conflicting roles in the development and training of stu-
dents of film and digital media and it is not clear how EDD management of this incubator would
relate to other agencies’ film training and development efforts.
If the purpose of the bill “apprenticing New Mexico resident workforce training students of film
and digital media” is for the procurement of training for future workers in the industry then
OWTD should have responsibility for coordinating the workforce training of students of film and
digital media.
PERFORMANCE IMPLICATIONS
OWTD notes there are no performance measures or targets for the film business incubator and
there is no requirement for U.S. Department of Labor Bureau of Apprenticeship (BAT) approval
of the apprenticeship training program.
FISCAL IMPLICATIONS
The appropriation of $10 million contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-
eral fund.
EDD indicates this bill could have enormous fiscal impact on the EDD budget if the pilot pro-
gram requires ongoing funding.
ADMINISTRATIVE IMPLICATIONS
EDD indicates passage of this bill will generate significant additional administrative support re-
quirements for the department.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Duplicates HB367
TECHNICAL ISSUES
OWTD indicates the term “workforce training students” is unclear as to whom the target popula-
tion is to be served.
OTHER SUBSTANTIVE ISSUES
Despite EDD Film Office’s role in helping to bring film productions to New Mexico, there is no
single point of coordination for all state-related film industry activities. Multiple executive
agencies continue to pursue independent film industry initiatives and make independent requests
for funding for potentially duplicative programs.
pg_0003
Senate Bill 446 -- Page 3
ALTERNATIVES
If the intent of this bill is train New Mexico students the appropriation could be made to OWTD
for integration with its other workforce training activities.
If the intent of this bill is to incubate new film businesses in New Mexico the appropriation could
be made to the State Investment Council for integration with its other film industry investment
activities.
JR/yr