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

SPONSOR Gutierrez

ORIGINAL DATE

LAST UPDATED

1/18/08

HB 54

SHORT TITLE Define Probate Code "Security Account"

SB

ANALYST Wilson

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY08 FY09 FY10 3 Year

Total Cost

Recurring or

Non-Rec

Fund

Affected

Total

$0.1

Non-Recurring General

Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Administrative Office of the Courts (AOC)

SUMMARY

Synopsis of Bill

House Bill 54 amends Section 45-6-301 NMSA 1978 to expand the definition of “security

account" within the Uniform Probate Code to include a person’s investment, management or

custody account with a trust company or bank with trust powers. The account includes securities

in the account, a cash balance in the account and cash, cash equivalents, interest, earnings or

dividends earned or declared on a security in the account, whether or not credited to the account

before the owner’s death. The amendment does not affect interests in real property.

FISCAL IMPLICATIONS

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

of statutory changes.

SIGNIFICANT ISSUES

This bill extends the provisions of the Transfer on Death Security Registration provision of the

Uniform Probate Code (Sections 45-6-301 to 45-6-311 NMSA 1978) to trust companies and the

trust departments of banks.

Also this bill adds a definition for “security account" that is not contained in the final model act

drafted by and approved and recommended for enactment in all states by the National

Conference of Commissioners on Uniform State Laws.

DW/bb