Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are used for other purposes.
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F I S C A L I M P A C T R E P O R T
SPONSOR Cisneros
ORIGINAL DATE
LAST UPDATED
1/31/07
HB
SHORT TITLE Local Government Gaming Impact Fund
SB 629
ANALYST Schardin
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
FY09
($5,179.8)
($5,433.6) Recurring General Fund
$5,179.8
$5,433.6 Recurring
Local
Government
Gaming Impact
Fund
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates HB 473
Relates to HB 661 and SB 647
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Finance and Administration (DFA)
Taxation and Revenue Department (TRD)
Gaming Control Board (GCB)
SUMMARY
Synopsis of Bill
Senate Bill 629 creates the local government gaming impact fund, a non-reverting fund that will
receive its own interest earnings. Starting on July 1, 2007 and on every July 1 thereafter, an
amount equal to 10 percent of all tribal revenue sharing payments paid into the general fund
during the previous fiscal year will be transferred to this new fund.
Money in the new fund will be appropriated to the local government division of the department
of finance and administration for distribution to each county or municipality in which an Indian
gaming facility is located. Distributions to local governments will be made in proportion to the
amount of revenue paid by the associated Indian casino. The local government division will be
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Senate Bill 629 – Page
2
required to make a distribution to each eligible municipality and county by July 31 of each year.
If an Indian casino is located in the “planning and platting jurisdiction" of a municipality, that
municipality will receive the distribution. Otherwise, the distribution will be received by the
county. Currently, the City of Espanola, in which San Juan Pueblo’s Big Rock Casino is located,
is the only municipality that will qualify for a distribution created by this bill. All other
distributions will be made to counties.
Because no effective date is provided in the bill, its provisions will become effective 90 days
after the 2007 legislative session adjourns on June 25, 2007.
FISCAL IMPLICATIONS
The December 2006 consensus estimate for tribal revenue sharing payments, adjusted for actual
FY06 revenues, is $51.8 million in FY07, $54.3 million in FY08, $57.1 million in FY09, and
$59.9 million in FY10.
On July 1, 2007, an amount equal to 10 percent of FY07 tribal revenue sharing payments, or
about $5,179.8 thousand, will be transferred from the general fund to the local government
gaming impact fund. Although this transfer will be based on FY07 revenues, the transfer will
occur in FY08 so the impact is to reduce FY08 revenues. The bill is expected to reduce FY09
revenues by 10 percent of FY08 revenues, or about $5,433.6 thousand.
SIGNIFICANT ISSUES
Counties and municipalities in which Indian gaming facilities are located have often requested
distributions from the state’s tribal revenue sharing payment in recent years. One rationale for
these requests is that tribal casinos cause local governments to incur infrastructure costs in the
form of police, fire and ambulance services, as well as utility system maintenance. Unlike most
other businesses, which pay a share of gross receipts tax to the local jurisdictions in which they
are located, tribal gaming facilities pay only tribal revenue sharing payments. This bill does not,
however, does not in any way limit the activities for which local governments may use their
distributions.
Another rationale for this type of local gaming distribution is that gaming facilities located close
to municipalities reduce local gross receipts tax collections by detracting from spending at non-
tribal businesses.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Senate Bill 629 duplicates House Bill 473.
Senate Bill 629 relates to House Bill 661 and Senate Bill 647. These bills would appropriate 20
percent of tribal gaming collections from the Pueblo of Santa Clara’s Big Rock Casino to the
City of Espanola.
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Senate Bill 629 – Page
3
TECHNICAL ISSUES
This bill does not limit the use of local government distributions in any way. LFC suggests the
bill could be amended to include a requirement that distributions created pursuant to this bill be
used for acquisition, construction or improvement of government infrastructure or providing
police or fire protection services (see language in House Bill 661 or Senate Bill 647).
The bill does not explicitly state who will be responsible for calculating the amount of the
appropriation to be made to the affected municipality. Tribal revenue sharing payments are
collected by the State Treasurer’s Office and overseen by the State Indian Gaming
Representative.
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