HOUSE BILL 238

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Tara L. Lujan

 

 

 

 

 

AN ACT

RELATING TO ECONOMIC DEVELOPMENT; CREATING THE INDEPENDENT THEATER SPONSORSHIP PROGRAM AS A THREE-YEAR PILOT PROJECT TO PROVIDE SPONSORSHIP PAYMENTS TO INDEPENDENT THEATERS; PROVIDING FOR PROGRAM ELIGIBILITY, PROGRAM TERMS AND REPORTING REQUIREMENTS; MAKING AN APPROPRIATION.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. [NEW MATERIAL] PILOT PROJECT--INDEPENDENT THEATER SPONSORSHIP PROGRAM--ELIGIBILITY--PROGRAM TERMS-- REPORTING AND EVALUATION.--

          A. The "independent theater sponsorship program" is created as a three-year pilot project to provide sponsorship payments to independent theaters and measure the effect of sponsorship payments on the economic development of municipal business districts. The independent theater sponsorship program is intended to demonstrate that sponsorship payments to independent theaters help to maintain the viability of independent theaters and revitalize municipal business districts. The independent theater sponsorship program shall be administered by the economic development department.

          B. An eligible participant in the independent theater sponsorship program is a theater that is:

                (1) located in a municipal business district that is:

                     (a) participating in a main street program pursuant to the Main Street Act; or

                     (b) designated as an arts and cultural district pursuant to the Arts and Cultural District Act; and

                (2) owned by a person that owns only one theater.

          C. Subject to appropriation, the economic development department shall determine which independent theaters are eligible to participate in the independent theater sponsorship program and the amount of independent theater sponsorship payments. The amount of a sponsorship payment shall be individualized for each participant and adjusted based on the participant's financial capacity, operating capability and sponsorship opportunities and the availability of matching public or private funds; provided that a state sponsorship shall not exceed two thousand dollars ($2,000) per month. A sponsorship payment may be expended on capital improvements or operating expenses, as provided by rule.

          D. The economic development department shall:

                (1) promulgate rules for the form and manner of sponsorship applications, procedures and criteria for reviewing applications, the methodology for evaluating potential participants and sponsorship obligations of participants; and

                (2) evaluate the fiscal impact of the independent theater sponsorship program on municipal business districts.

          E. The economic development department shall report to the appropriate interim legislative committees by no later than November 1 of each year the independent theater sponsorship program is in operation on the number and locations of participants and the amount of sponsorship payments to participants and matching funds received from participants. No later than October 1, 2029, the economic development department shall provide a final report to the legislative finance committee and the appropriate interim legislative committee on the outcomes of the program for the participants, the fiscal impact of the program on municipal business districts and other recommendations that the economic development department deems appropriate.

     SECTION 2. APPROPRIATION.--One million dollars ($1,000,000) is appropriated from the general fund to the economic development department for expenditure in fiscal years 2027 through 2029 for the independent theater sponsorship program. Any unexpended balance remaining at the end of fiscal year 2029 shall revert to the general fund.

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2026.

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