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F I S C A L I M P A C T R E P O R T
SPONSOR Lujan, B.
ORIGINAL DATE
LAST UPDATED
2/12/07
2/22/07 HB 776
SHORT TITLE Underwrite Champions Tour Golf Tournament
SB
ANALYST Earnest
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
$6,500.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
House Bill 776 duplicates Senate Bill 945.
SOURCES OF INFORMATION
LFC Files
Responses Received From
NM Tourism Department (NMTD)
NM Sports Authority (NMSA)
SUMMARY
Synopsis of Bill
House Bill 776 appropriates $6.5 million from the general fund to New Mexico Tourism
Department (NMTD) for expenditure in FY08 and subsequent fiscal years to promote New
Mexico by providing funding to underwrite a professional golfers’ association (PGA) champions
tour golf tournament in New Mexico.
FISCAL IMPLICATIONS
The appropriation of $6.5 million contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert
to the general fund.
SIGNIFICANT ISSUES
This appropriation would sponsor an annual PGA Champions Tour event in New Mexico for
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House Bill 776 – Page
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three years. The PGA requires a 3-5 year commitment from a title sponsor, and this
appropriation would help event organizers meet the three-year requirement. Event organizers
have identified some corporate sponsorship but are in need of a title sponsor.
NMTD notes that promoting New Mexico as a golf destination allows NMTD to expand upon its
agency mission of marketing New Mexico as an enchanting destination to the world. NMTD
supports any initiative that encourages visitation to the state.
According to NMSA, a PGA Champions event would be televised by the Golf Channel and there
would be some national media exposure. A Ladies Professional Golf Association (LPGA) Tour
event, however, might fit New Mexico better. Several New Mexicans play on the women’s tour,
including Nancy Lopez (Roswell), Kathy Whitworth (Jal), Rosie Jones (Albuquerque) and Kristi
Albers (UNM graduate).
NMTD indicates that an economic impact study, conducted by New Mexico State University’s
Office of Policy Analysis (December 2006), predicted that a PGA Champions Tour event will
lead to an increase in local spending between $6.2 million and $7.6 million, and out-of-state
spending ranging between $1.9 million and $2.5 million. Additionally, according to the PGA, a
typical PGA Champions golf tournament will provide the title sponsor with nearly $5.7 million
worth of media exposure.
PERFORMANCE IMPLICATIONS
NMTD finds that if this initiative increases tourism to the state, it will positively affect three key
performance measures: domestic tourism market share, the percent increase in lodger’s tax, and
the impact of tourism in the state of New Mexico.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
House Bill 776 duplicates Senate Bill 945.
BE/nt