INDEPENDENT THEATER SPONSORSHIP PROGRAM

HB0238

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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