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

 

 

SPONSOR

Park

DATE TYPED

2/15/04

HB

339/aHJC

 

SHORT TITLE

Tort Claims Post-Judgment Interest

SB

 

 

 

ANALYST

Maloy

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

NFI

 

NFI

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

LFC Files

 

Responses Received From

Administrative Offices of the Courts

The Department of Transportation

 

SUMMARY

 

            Synopsis of HJC Amendment

 

The House Judiciary Committee amendment to House Bill 339 strikes that portion of the new provision requiring the interest be compounded daily. 

 

Synopsis of Original Bill

 

The bill amends Section 41-4-19 of the Tort Claims Act (“TCA”) to all post-judgment interest at the rate of two percent over the prime rate on judgments in tort lawsuits brought under the TCA against governmental entities or public employees.  

 

Significant Issues:   

 

The Department of Transportation notes:

 

  • Post-judgment interest is currently not provided under the TCA.  Furthermore, NMSA 1978, Section 56-8-4(D), prohibits the award of post-judgment interest against the state and its political subdivisions unless it is provided by statute or common law.  Construing Sections 41-4-19 and Section 56-8-4(D) together, the New Mexico Supreme Court has ruled that the award of post-judgment interest is prohibited under the TCA.  Trujillo v. City of Albuquerque, 1998-NMSC-031, 125 N.M. 721.  This bill will change existing law and allow plaintiffs to collect post-judgment interest against governmental entities and public employees. 

 

The Administrative Office of the Courts notes:

 

  • This bill allows interest to be added to a judgment under the Tort Claims Act until the judgment is paid.  The bill requires computing the interest rate daily.  The bill does not state who will calculate the interest

 

FISCAL IMPLICATIONS

 

This bill does not contain an appropriation.

 

The Department of Transportation states:

 

  • The bill amends Section 41-4-19 of the Tort Claims Act (“TCA”) by allowing post-judgment interest at the rate of two percent over the prime rate on judgments in tort lawsuits brought under the TCA against governmental entities or public employees.   

 

SJM/yr