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

SPONSOR HVEC

DATE TYPED 3/9/05

HB 1103/HVECS

SHORT TITLE Voting System Purchase Moratorium

SB

(Public Peace, Health, Safety and Welfare)

ANALYST Medina

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

Or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

($9,000.0)

Non-Recurring Federal HAVA

Fund

(Parenthesis ( ) Indicate Revenue Decreases)

Relates to the Election Code

Conflicts with the federal Help America Vote Act (HAVA)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Secretary of State

SUMMARY

Synopsis of Bill

House Voters and Elections Committee Substitute for House Bill 1103 enacts a moratorium on

the acquisition of voting systems that do not provide a voter verifiable and auditable paper trail

by the state and its political subdivisions. The bill further requires the Legislative Council to re-

House Bill 1103/HVECS -- Page 2

quest the appropriate legislative interim committee or task force to report with recommendations

to the Legislature on voting system issues, including voting system security, cost, reliability, and

ease of use and accuracy by December 15, 2005.

Significant Issues

This moratorium conflicts with the provisions of the federal Help America Vote Act of 2002

(HAVA). The Secretary of State notes the following significant issues as they relate to this con-

flict:

•

Federal Help America Vote Act of 2002 (HAVA) funds for the purchase of HAVA com-

pliant voting systems must be expended before January 1, 2006 or the money will revert

back to the federal government. The Secretary of State has approximately $9 million dol-

lars left in the HAVA account earmarked for the purchase of voting machines. Imposing

a moratorium of March 1, 2006 will result in the federal HAVA money reverting.

•

The National Association of State Election Directors (NASED) is reviewing and revising

HAVA-compliant voting system standards. The new NASED voting system standards

will not be released until June 2005. This gives the Secretary of State little time to certify

one or more of these systems for use in New Mexico by the January 1, 2006 HAVA

deadline. It is uncertain if the June NASED certification report of certified acceptable

voting systems will include those systems with a voter verified paper audit trail.

•

HAVA provisions require at least one HAVA-compliant voting system be available for

use in every precinct in New Mexico by January 1, 2006. This means the HAVA compli-

ant machines need to be purchased well before this date.

FISCAL IMPLICATIONS

The General Appropriation Act of 2005 sets a budget of $13.5 million in federal funds for ex-

penditure by the Secretary of State on HAVA-mandates, including the purchase of updated vot-

ing machines.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

The HAVA mandates that all funds disbursed by the federal government to the states for compli-

ance with the Act be expended by January 1, 2006, two months prior to the date of the proposed

moratorium.

ALTERNATIVES

The Secretary of State recommends the following amendment as a safeguard to protect the

HAVA funds available for the purchase of voting machines subject to the federal Americans

With Disabilities Act:

“On Page 1, Line 20, after the period insert a new sentence to read:

‘Provided, however, that voting systems purchased in New Mexico under the provisions

of the federal Help America Vote Act to assist voters subject to the provisions of the fed-

eral American Disabilities Act are not subject to this Act.’”

House Bill 1103/HVECS -- Page 3

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

The Secretary of State’s federal HAVA funds will not be in jeopardy of reverting to the federal

treasury.

POSSIBLE QUESTIONS

Does the Help America Vote Act include any provisions requiring voting machines that provide

a voter verifiable and auditable paper trail.

DXM/njw