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.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

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

SPONSOR Beffort

ORIGINAL DATE

LAST UPDATED

2/24/07

HB

SHORT TITLE Smoking in Films and Tax Credits

SB 1078

ANALYST Francis

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

Indeterminate

Recurring General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

Relates to HB757, SB802

SOURCES OF INFORMATION

LFC Files

Responses Received From

NM Film Office

SUMMARY

Synopsis of Bill

Senate Bill 1078 amends the film production credit to disallow the credit for G or PG rated films

that depicts or includes persons smoking. The bill also requires the film production company to

submit in writing their intent to refrain from depicting or including persons smoking for G or PG

rated films.

There is no effective date so the default effective date is June 15, 2007.

FISCAL IMPLICATIONS

The fiscal implications are difficult to determine. Many of the films produced in New Mexico

are R-rated or PG-13. Of 17 films that received the credit that information about ratings could be

found, only 2 were PG and none were G-rated.

Senate Bill 1078 – Page

2

SIGNIFICANT ISSUES

According to an article in New Scientist, seeing stars in movies smoking is a factor in 52 percent

of adolescents who begin smoking, making it a significant health issue. The authors and others

think that movies with smoking should be automatically rated R for mature audiences.

(

http://www.newscientist.com/article.ns.id=dn3812

)

Mississippi State University developed a survey of attitudes and perceptions about smoking and

has released a study “Attitudes About Smoking in the Movies." From the executive summary:

More than a decade of research has established that U.S. movies are a major recruiter of

new teen smokers in the United States: about 390,000 each year, of whom 120,000 will

ultimately die from tobacco-related diseases unless current trends are altered. This

national survey of adults demonstrates substantial and growing public and parental

support for voluntary policy changes by Hollywood to reduce this toll, including an R-

rating for almost all future tobacco scenes.

http://smokefreemovies.ucsf.edu/pdf/SocialClimate_movie_0205.pdf

NM Film Office:

1) There is no way of knowing what rating a film will be issued until after the film

has been completed – well after a film has applied for the New Mexico Film Production

Tax Rebate.

2) Utilizing the voluntary Motion Picture Association of America (MPAA)–

administered rating system is an unlawful delegation of legislative authority to private

entities, which is supported by a large body of federal and state case law. The MPAA

Rating System is voluntary and strictly advisory with no force of local, state or federal

law and cannot legally be mandated or enforced by government or an agency of

government, be it federal, state or local.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Relates to HB757 and SB802, which change features of the tax credit.

NF/mt