BILL ANALYSIS AND FISCAL IMPACT REPORT	Page 1 of  1

DATE:  February 27, 2001	Submitted by: TAXATION AND REVENUE DEPT.
	T. GLENN ELLINGTON, SECRETARY
BILL NUMBER: SCTC Substitute for SB - 763

SPONSOR: Senate Corporations and Transportation Committee

BILL SHORT TITLE: Local Option Minor League Baseball Stadium Act

CONFLICTS, DUPLICATES, COMPANIONS: HB – 907 seeks to accomplish the same general purpose as this bill, but imposes a vendor tax on lessors of the new stadium to be built partially with money from the tax. This bill, in contrast, imposes a tax only on lodging.

DESCRIPTION: This bill proposes a number of provisions that may result in the funding and building of a minor league baseball stadium within the municipal boundaries of Albuquerque. This bill, however, does not involve the Department in the collection or administration of the tax imposed. The principal provision of this bill is a local option increase in lodger’s tax for Albuquerque from the current 5% to 6.25%. Half the increase must be devoted to the same general purposes as the current 5% lodgers tax – advertising, publicizing and promoting tourist-related facilities and attractions and tourist-related events – while half the increase may be used for the purpose of acquiring land for, designing, constructing, renovating, etc. a minor league baseball stadium in Albuquerque. The stadium fee revenue portion of the increase in lodger’s tax may be used to retire revenue bonds issued for building or renovating the stadium.

EFFECTIVE DATE: emergency clause – effective on signing.

FISCAL IMPACT: note: FY 1999 lodger’s tax receipts for the city of Albuquerque were $8.092 M. On a proportional basis, the proposed 1.25% tax would generate a little over $2 M. Half of this revenue, or $1 M would be available to retire bonds sold to construct a new stadium or renovate the existing stadium. $1 M per year at 5.5% for 30 years would generate about $17M in bonds. This is about half the amount requested by the mayor’s committee for either renovating or building a new stadium.

ADMINISTRATIVE IMPACT: none on the Department. Any tax imposed will be collected and administered by the city of Albuquerque.

TECHNICAL ISSUES:
1.	 Page 10, line 5 “capitol” should be “capital”.

2.	 Article IV, Section 15 of the New Mexico Constitution provides, “No law shall be passed except by bill, and no bill shall be so altered or amended on its passage through either house as to change its original purpose.” There is little case law on this point. In particular there has been no litigation on the use or  propriety of using dummy bills to enact substantive legislation. This bill was originally filed as a “dummy bill”, with no substantive content, and a title that reads, “for the public peace, health, safety and welfare”. The substitute bill is substantive and necessarily goes far beyond “broadening the act and making it more comprehensive as to details” because the original bill had no content. This standard was determined in Black Hawk Consolidated Mines Co. V. Gallegos, 52 NM 74, 191 P.2d 996 (1948). The constitutionality of the entire act is thus suspect, no matter how well intentioned.

OTHER IMPACTS AND ISSUES:
1.	See HB-907 for background and discussion of issues. 

2.	Total taxes on lodging in Albuquerque would become 12.0625%. This level of tax might impact negatively on hotel occupancies or hotel profits or both.