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

SPONSOR Sánchez, M.

DATE TYPED 2/3/05

HB

SHORT TITLE Increase Worthless Check Processing Fee Limit

SB 232

ANALYST Medina

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

Indeterminate

Indeterminate Recurring

District Attorney

Fund

(Parenthesis ( ) Indicate Revenue Decreases)

Partially conflicts with HB 514

SOURCES OF INFORMATION

LFC Files

Responses Received From

First Judicial District Attorney

Public Defender Department (PDD)

SUMMARY

Synopsis of Bill

Senate Bill 232 proposes increases to the limits on district attorney worthless check processing

fees. Worthless check processing fees are assessed by district attorneys against persons convicted

of or admitting guilt to violating Section 30-36-4 NMSA 1978, which makes it unlawful to issue

in exchange for anything of value, with intent to defraud, any check, draft or order for payment

of money upon any bank or other depository, knowing at the time of the issuing that the offender

has insufficient funds in the bank or depository for the payment of such a check.

The following table, provided by the First Judicial District Attorney illustrates the current fee

structure and the proposed fee structure.

Senate Bill 232 -- Page 2

Current Fees

Proposed Fees

$5 if the amount of the worthless check is

< $25

$10 if the amount of the worthless check is $100

or less

$10 if the amount is $25 but < $100

$50 if the amount is > $100 but not more than

$500

$30 if the amount is $100 or more but <$300 $75 if the amount is > $500 but not more than

$1,000

$50 if the amount is $300 or more but <$500 $100 if the amount is > $1,000

$75 if the amount is $500 or more

Significant Issues

The worthless check fees collected by the district attorneys are remitted to the district attorney

fund from which the Administrative Office of the District Attorneys (AODA) budgets a portion

for its operating budget for expenditure on staff training for all district attorney offices. In FY04

the district attorneys collected and remitted $291.6 to AODA for this purpose.

According to the Public Defender Department, indigent clients of the Department will not be

able to pay the fees. Inability to pay a fee should not be the criterion for waiving prosecution for

people who acknowledge violating the worthless check statute.

FISCAL IMPLICATIONS

Increases to the fee structure will increase the amount of revenue deposited in the district attor-

ney fund and the Legislature will need to adjust the revenues budgeted from this fund, which

would likely entail budgeting more funding for AODA to administer training to district attorney

staff.

CONFLICT

HB 514: According to the First Judicial District Attorney, while this bill would increase revenue

for AODA, if the felony limit amount is changed (HB 514), this could have a significant negative

impact on the amount of revenue collected and the ability of AODA to carry out it statutory obli-

gations including the training of district attorney staff.

ALTERNATIVES

The Public Defender Department recommends an amendment that specifies that inability to pay

a fee will not affect whether prosecution is waived for those who acknowledge violation of the

worthless check statute.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

The district attorneys will continue to collect worthless check fees based on the current fee struc-

ture.

DXM/yr