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

SPONSOR Papen

ORIGINAL DATE

LAST UPDATED

1/31/07

HB

SHORT TITLE

County Valuation Protest Board Liability

SB 540

ANALYST C.Sanchez

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates,

HB 519

SOURCES OF INFORMATION

LFC Files

Responses Received From

General Services Department (GSD)

Administrative Office of the Courts (AOC)

SUMMARY

Synopsis of Bill

Senate Bill 540 amends Section 41-4-3 NMSA 1978 to provide “public employee" tort claims

immunity for members of county valuation protests boards.

1)

Section 41-4-4 NMSA provides that a governmental entity and any public employee

while acting within the scope of duty are granted immunity from liability for any tort

except as waived by the New Mexico Religious Freedom Restoration Act [28-22-

1NMSA 1978] and by Sections 41-4-5 through 41-4-12 NMSA 1978…

2)

Section F (3) includes within the definition of “public employee," “persons acting on

behalf or in service of a governmental entity in any official capacity, whether with or

without compensation."

Senate Bill 540 – Page

2

FISCAL IMPLICATIONS

There may be a minimal administrative cost for statewide update, distribution and documentation

of statutory changes.

SIGNIFICANT ISSUES

Under the Tort Claims Act, the Risk Management Division (RMD) of the General Services

provides legal defense to covered public employees and officers who are sued in connection with

their public service duties, including civil rights and general liability, and pays the costs of

defense, attorney fees and any awards for judgment or settlement.

The two appointed, private-citizen members of county valuation protests boards are paid $80 a

day as independent contractors when the board meets, and independent contractors are excluded

from the Tort Claims Act in the definition of “public employee" unless specifically exempted.

SB 540 adds these board members to the exceptions.

ADMINISTRATIVE IMPLICATIONS

At most, RMD anticipates minimal caseload increase.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Duplicates HB 519.

Relates to SB 49 and SPAC/S SB 23

OTHER SUBSTANTIVE ISSUES

County valuation protests boards hear valuation protests of property tax cases. These boards

have three members: an employee of the Taxation and Revenue Department (TRD) and two

private citizens appointed by the local board of county commissioners. As a state employee, the

TRD member is covered by the Tort Claims Act. The other two members are paid $80 a day as

independent contracts when the board meets.

ALTERNATIVES

Subsection E of Section 7-38-25 NMSA 1978 (the enabling statute for these boards) could be

amended to remove the phrase “as independent contractors".

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

County valuation protests board members would not be covered by the Tort Claims Act and

would pay their own legal costs if sued for actions taken in connection with their work for the

county.

Senate Bill 540 – Page

3

QUESTIONS

Are members of county valuation protest boards included within this group as working in service

of a governmental entity.

CS/mt