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

SPONSOR Taylor

ORIGINAL DATE

LAST UPDATED

2/12/07

2/22/07 HB

SHORT TITLE Underwrite Champions Tour Golf Tournament

SB 945

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)

Senate Bill 945 duplicates House Bill 776.

SOURCES OF INFORMATION

LFC Files

Responses Received From

NM Tourism Department (NMTD)

NM Sports Authority (NMSA)

SUMMARY

Synopsis of Bill

Senate Bill 945 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

Senate Bill 945 – Page

2

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

Senate Bill 945 duplicates House Bill 776 duplicates.

BE/nt