Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

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

SPONSOR Smith

ORIGINAL DATE

LAST UPDATED

2/1/06

HB

SHORT TITLE Severance Tax Bond Court Projects

SB 561

ANALYST Kehoe

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$33,500.0

Non-Recurring Severance Tax Bond

Capacity

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Administrative Office of the Courts (AOC)

SUMMARY

Synopsis of Bill

Senate Bill 561 authorizes the issuance of Severance Tax Bonds (STBs) plan, design, construct,

renovate, expand, or make mechanical upgrades to seven judicial complexes; and to plan, design,

and construct a new Court of Appeals building.

FISCAL IMPLICATIONS

The Severance Tax Bond capacity available for capital outlay projects in 2006 totals $244.3 mil-

lion. The capital projects totaling $33.5 million within this bill meet the definition of “capital

projects” for funding from severance tax bond capacity.

SIGNIFICANT ISSUES

According to statute, housing district courts is the responsibility of the counties. However, the

Legislature has authorized state funding for district court facilities in previous years. Housing

for the Court of Appeals is a state responsibility. According to the Administrative Office of the

Courts, the judiciary prioritized courthouse renovations and new facilities as part of the unified

budget. The Court of Appeals project is the judiciary’s priority capital project.

Since its inception 40 years ago, the Court of Appeals has grown from four to ten members who

Senate Bill 561 – Page

2

have been housed partly in the Supreme Court building and partly in a satellite office adjacent to

the Law School in Albuquerque.

Both spaces occupied by the court are inadequate and their sharing of offices is causing crowd-

ing and unsafe conditions for other users of current facilities. A new facility on land to be do-

nated by the University of New Mexico will house the full court in one building, promote public

efficiency and make the court more accessible to the communities from which the bulk of its

cases originate. A new library would not be necessary, inasmuch as the proposed court would be

in close proximity to the UNM Law Library. In addition to providing an efficient setting for ap-

pellate court proceedings, the Supreme Court will gain much needed space, and commute time

for court personnel and litigants would be reduced. The courts close proximity to the Law

School will provide opportunities for enhanced legal research, student internships, shared library

material and other tangible aspects.

OTHER SUBSTANTIVE ISSUES

On behalf of the Supreme Court Law Library, Court of Appeals, Jury and Witness program,

Magistrate Courts, and all 13 judicial district courts, AOC will request $7.5 million for a variety

of capital outlay needs of the courts. State law requires counties to provide a building space for

the courts located throughout the state; however, the courts are responsible for furnishing, equip-

ping and maintaining the interior needs of the courts. A majority of the requests pertain to sur-

veillance and security upgrades, assistive listening equipment, video arraignment and communi-

cation equipment, storage equipment, and replacement of furniture more than 30 years old.

LMK/yr