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

SPONSOR Lundstrum

DATE TYPED 02/02/05 HB 68

SHORT TITLE Fees for Bank Accounts of Certain Minors

SB

ANALYST McSherry

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

NFI NFI

Indeterminate Recurring

General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Regulations and Licensing Department

SUMMARY

Synopsis of Bill

House Bill 68 proposes a limit on the amount of fees that would be assessed by banks and credit

unions on a savings account held by a minor under the age of fourteen years to twelve dollars

($12.00) per year. In addition, federal associations would be limited to the same twelve-dollar

($12.00) fee on a savings account held by a minor who is under the age of fourteen years.

Significant Issues

The Regulations and Licensing Department (RLD) asserts that preemption under federal law

would not allow a limit on fees assessed on the products and services offered by a federally-

chartered-institution. RLD points out that the director of the Financial Institutions Division (FID)

in the State of New Mexico has no regulatory authority over federal chartered institutions and

would not be able to enforce the proposed amendment.

PERFORMANCE IMPLICATIONS

FID states that the proposed statute would limit the income earned by New Mexico financial in-

stitutions and could potentially undermine the ability of NM financial institutions to compete

with federal associations.

House Bill 68 -- Page 2

FISCAL IMPLICATIONS

There is not an appropriation associated with HB 68. According to RLD, NM banks could incur

a reduction in revenues should the bill be enacted.

ADMINISTRATIVE IMPLICATIONS

See significant issues.

TECHNICAL ISSUES

HB 68 proposes to regulate federal institutions.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

RLD relates that if this bill is not enacted, there will remain parity between state and federally

chartered institutions, and there will be no limit on the amount charges for service to minors by

financial institutions.

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