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(Parenthesis ( ) Indicate Expenditure Decreases)

(Parenthesis ( ) Indicate Revenue Decreases)

Conflicts with Senate Bill 264

SOURCES OF INFORMATION

Administrative Office of the Courts (AOC)

New Mexico Finance Authority (NMFA)

SUMMARY

Synopsis of Bill

Senate Bill 438 clarifies the authorization for a previous NMFA/AOC bond issue and authorizes the NMFA to issue an additional series of bonds for court automation after July 1, 1999, in an amount not to exceed $3,500,000. The bill also amends language pertaining to the distribution of funds for repayment of NMFA debt in order to provide for the additional bond issue.

Significant Issues

The 1996 Legislature authorized the NMFA to issue $8,500,000 in bonds to automate the courts. A legislatively approved increase in filing fees and costs generated into the court automation fund provided the necessary funds to repay the bonds. The Court Automation Fee is currently pledged to NMFA debt service on $8,500,000 in outstanding Court Automation Fee Revenue Bonds.

Senate Bill 438 clarifies authorization previously received for the issuance of the Court Automation Fee Revenue Bonds and authorizes the issuance of an additional $3.5 million in court Automation Fee Revenue Bonds. After all debt service is paid annually on the Court Automation Fee Revenue Bonds, any monies not necessary for debt service are available for appropriation by the Legislature to the Administrative Office of the Courts.

According to the AOC, the courts have a number of unmet automation needs. The additional bonds would finance procurement of an appellate case management information system for the Supreme Court; procure a uniform statewide jury management system; enhance and broaden implementation of electronic filing; and upgrade and replace automated systems.

Officials of the AOC and NMFA have confirmed that payment of additional bond debt service can be accommodated within projected revenues from the existing court automation fee, therefore, no court fee increase is sought. Additional bonds will be issued with the understanding that payments of principal will be delayed until the remainder of the first automation bond issuance has been paid off, and until then, only interest payments will be made.

FISCAL IMPLICATIONS

Issuance of an additional $3.5 million in bonds would decrease the amount of the Court Automation Fee revenue available for appropriation by the legislature to the Administrative Office of the Courts by approximately $145,000 each year through FT 2003.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

Senate Bill 264 conflicts with Senate Bill 438. The passage of Senate Bill 264 would have a negative impact on the Court Automation Fund, which has been obligated as the repayment stream proposed by Senate Bill 438.

LMK/gm