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--- version:introduced version
+++ version:(document, no version)
@@ -1,43 +1,127 @@
-SENATE BILL 48
+Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC)  for standing finance
+committees of the Legislature. LFC does not assume respon sibility for the accuracy of these reports  if they
+are used for other purposes.
 
-57th legislature - STATE OF NEW MEXICO - second session, 2026
+F I S C A L    I M P A C T    R E P O R T
 
-INTRODUCED BY
+BILL NUMBER: Senate Bill 48
+SHORT TITLE: State Fairgrounds District Bonds
+SPONSOR: Stewart
+LAST
+UPDATE:
+ORIGINAL
+DATE:  1/24/26
 
-Mimi Stewart and Janelle Anyanonu
+ANALYST: Torres
 
-AN ACT
+REVENUE*
+(dollars in thousands)
+Type FY26 FY27 FY28 FY29 FY30 Recurring or
+Nonrecurring
+Fund
+Affected
+Bond
+Proceeds $92,000.0     Nonrecurring
+State
+Fairgrounds
+District Funds
+Debt
+Service
+Payment
+ About
+($6,700.0)
+About
+($6,700.0)
+About
+($6,700.0)
+About
+($6,700.0) Recurring
+State
+Fairgrounds
+District Funds
+Parentheses indicate revenue decreases.
+*Amounts reflect most recent analysis of this legislation.
 
-RELATING TO FINANCE; AUTHORIZING THE ISSUANCE OF BONDS SECURED
-BY THE STATE GROSS RECEIPTS TAX DISTRIBUTION AND THE GAMING TAX
-DISTRIBUTION FOR THE STATE FAIRGROUNDS DISTRICT PURSUANT TO THE
-STATE FAIRGROUNDS DISTRICT ACT.
+Sources of Information
+LFC Files
 
-BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
+Agency or Agencies Providing Analysis
+New Mexico Attorney General
+State Board of Finance
+New Mexico Finance Authority
+Expo New Mexico
 
-     SECTION 1.  Section 6-35-1 NMSA 1978 (being Laws 2025,
-Chapter 83, Section 1) is amended to read:
+SUMMARY
 
-     "6-35-1.  SHORT TITLE.--[Sections 1 through 12 of this
-act] Chapter 6, Article 35 NMSA 1978 may be cited as the "State
-Fairgrounds District Act"."
+Synopsis of Senate Bill 48
 
-     SECTION 2.  A new section of the State Fairgrounds
-District Act is enacted to read:
+Senate Bill 48 (SB48) authorizes and approves the issuance of revenue bonds by the State
+Fairgrounds District pursuant to the State Fairgrounds District Act. The bill permits the district to
+issue bonds up to $92 million in net proceeds.
 
-     "[NEW MATERIAL] AUTHORIZATION OF ISSUANCE OF BONDS.--The
-legislature authorizes and approves the district to issue
-bonds, pursuant to the provisions of Paragraph (5) of
-Subsection C of Section 6-35-7 NMSA 1978, in an amount not to
-exceed ninety-two million dollars ($92,000,000) in net proceeds
-of the five hundred million dollars ($500,000,000) in net
-proceeds authorized to be issued by the district by Subsection
-A of Section 6-35-7 NMSA 1978, secured by all or a portion of
-the gross receipts tax distribution and the gaming tax
-distribution made pursuant to the provisions of Section
-7-1-6.73 NMSA 1978, pledged to pay the principal of and
-interest on the bonds, with such issuance of bonds by the
-district pursuant to the provisions of the State Fairgrounds
-District Act."
+The bonds are to be secured by all or a portion of the state gross receipts tax (GRT) distribution
+and the gaming tax distribution attributable to economic activity within the State Fairgrounds
+District and distributed pursuant to Section 7 -1-6.73 NMSA 1978. The pledged revenues are
+dedicated to repayment of principal and interest on the bonds issued by the district.
 
-- 2 -
+This bill does not contain an effective date and, as a result, would go into effect 90 days after the
+Legislature adjourns, which is May 20, 2026.
+Senate Bill 48 – Page 2
+
+FISCAL IMPLICATIONS
+
+SB48 does not appropriate funds directly from the general fund; however, it authorizes bonding
+against the long- term dedication and diversion of state -levied gross receipts and gaming tax
+revenues that would otherwise flow to the general. These revenues were diverted to the district in
+the 2025 legislation, Senate Bill 481.
+
+The pledge of state -imposed taxes creates an implicit fiscal exposure. In the event pledged
+revenues underperform, the district may need to extend the repayment period, pledge a higher
+share of future increments, or limit distributions back to the general fund for an extended
+duration.
+
+Estimates of proceeds and debt service within the FIR  are from the State Board of Finance and
+cash flow analysis provided to the State Board of Finance by the district. Specifically, the Board
+of Finance notes:
+The District estimates annual expenditures of about $1.6 million for the Series 2026A
+bonds, covering debt service and administrative costs, and approximately $5.1 million for
+the 2026B bonds, totaling $6.7 million in debt service each year.
+• The District also projected short -term financing, estimated in December at $1.3
+million annually, utilizing tax revenues that will not be committed to debt service.
+• These revenues represent sufficient debt service coverage to repay $92 million in
+bonds
+authorized under SB48.
+ The District estimates a 1.25x debt service coverage ratio for the $92 million bond
+issuance. Generally, a 1.0x debt service coverage ratio means the issuer (the
+District) has sufficient revenue to cover debt service payments.
+
+SIGNIFICANT ISSUES
+
+The District may issue bonds only after the following approvals are obtained: (1) the State Board
+of Finance approves the proposed bond issuance and the district development plan prepared
+pursuant to Section 6- 35-10 of the Act; (2) the State Board of Finance determines the bond
+proceeds will be used for projects consistent with the development plan and the Act; (3) the State
+Board of Finance determines the projects will generate sufficient revenues to repay the bonds;
+(4) the New Mexico Finance Authority approves the Master Indenture and any amendments; and
+(5) the Legislature approves the bond issuance. SB 48 satisfies the final approval requirement.
+
+Issuance of the bonds will reduce the district’s remaining bonding authority to $408 million.
+Revenues received pursuant to Section 7- 1-6.3 will be irrevocably pledged to repayment of the
+bonds until they are fully retired and will not be available for any other authorized district
+purposes.
+
+The New Mexico Finance Authority (NMFA) adds: “the Act tasks the NMFA with reviewing
+and approving the Master Indenture prior to the Issuance of the Bonds. The NMFA has reviewed
+the draft Master Indenture and NMFA’s comments have been incorporated into the final form of
+the Master Indenture. The NMFA will confirm prior to any bond closing that no substantive
+changes have been made to the approved form of the Master Indenture.”
+
+Senate Bill 48 – Page 3
+
+On December 9, 2025, and December 16, 2025, the State Board of Finance approved the
+proposed issuance of the Series 2026A bonds ($22,345,000) and the Series 2026B bonds
+($67,358,225) and determined the proposed issuance was in furtherance of the approved Phase A
+and Phase B plans issued by the District and would generate sufficient revenue to repay the
+bonds.
+
+IT/sgs/dw/sgs