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

SPONSOR García, M.H.

DATE TYPED 2/28/05

HB 1026

SHORT TITLE Require Verifiable Paper Ballots

SB

ANALYST Medina

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

Minimal Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to the Election Code

Duplicates Senate Bill 962

SOURCES OF INFORMATION

LFC Files

Responses Received From

Secretary of State

SUMMARY

Synopsis of Bill

House Bill 1026 amends the Election Code as it relates to voting machines to require that all vot-

ing systems used in elections produce a voter-verifiable paper ballot as the form on which a voter

records a vote by marking on the ballot. The bill provides that this paper ballot be the official

ballot of record for recounts and audits. It also sets a deadline for implementation of July 1,

2008, or until adequate funding for machine replacement is secured, for counties that do not own

or use machines that produce a voter-verifiable paper ballots.

This bill further allows for the Secretary of State to test and certify voting systems if they have

been previously certified by other states or by the National Association of State Election Direc-

tors. It requires testing to be completed within six months. If a voting machine manufacturer has

not applied for certification in New Mexico, the manufacturer would not be required to pay for

the costs of testing and certification.

House Bill 1026 -- Page 2

Significant Issues

According to the Secretary of State, this bill limits the type of voting machine used in New Mex-

ico to an optical scan type that have not been certified as compliant with the federal Help Amer-

ica Vote Act of 2002 (HAVA) voting system requirements for disabled and language minority

populations.

The Secretary of State notes that pursuant to Section 1-9-2 NMSA 1978 a voting machine manu-

facturer must federally certify and independently test their voting machines. These same manu-

facturers must apply for certification and testing with the Secretary of State prior to June 1

st

of

each odd numbered year. Furthermore, the manufacturer is further required pursuant to Section

1-9-14 NMSA 1978 to pay for the testing and certification of that voting system in New Mexico.

Section 1-9-2 NMSA 1978 does not specify a voting system be certified in any other state.

However, the statute does require an application for certification in New Mexico. This bill car-

ries an emergency clause.

FISCAL IMPLICATIONS

The fiscal implications of this bill are contingent on the type of voting machines/systems pur-

chased. The Secretary of State intends to spend $8 million to $9 million in federal funds on vot-

ing machine replacement in the 2005 calendar year in order to comply with the federal Help

America Vote Act of 2002. The Secretary of State has set the fee for voting system testing at

three hundred dollars. Since this bill requires the Secretary of State to pay for testing (or not re-

quire manufacturers to pay for testing), the fiscal impact depends on the number of machines the

Secretary of State tested.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

This bill duplicates Senate Bill 962.

TECHNICAL ISSUES

The Secretary of State suggests that it is important to note Section 1-9-2 NMSA 1978 as it relates

to the provisions of this bill. The section reads:

“A. All voting systems approved for use in New Mexico shall meet federal election standards,

conform to state information technology rules, standards and practices and be tested by an inde-

pendent authority.

B. A person desiring to have a type of voting system approved for use in New Mexico may

apply to the secretary of state to have the system examined and approved. At the time application

is made, the applicant shall direct the independent testing authority to submit its report on the

system to the secretary of state.

C. Upon receipt of the report from the independent testing authority, the secretary of state

shall examine and study the system. As part of the examination, the secretary of state shall re-

quire the system to be independently inspected by two voting system experts and shall require

from each of them a written report on the results of their inspection.

D. Upon completion of his examination, the secretary of state shall make a written report on

the result of his examination and findings and shall file such report, together with the inspection

reports of the two voting system experts, in the office of the secretary of state. Such reports and

House Bill 1026 -- Page 3

findings are public records.

E. The secretary of state shall inform the applicant in writing of the findings. If the findings

show that the voting system type is adequate for the election needs of New Mexico, it shall be

deemed approved for use at elections in the state.”

Section 1-9-14 NMSA 1978 requires that the applicant manufacturer of voting systems pay for

testing its system for certification. The Secretary of State has set this rate at three hundred dol-

lars.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

A voter-verifiable paper ballot would not be required to be produced and used as the official bal-

lot of record in the state’s elections.

DXM/lg