NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

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

 

 

 

SPONSOR:

Foley

 

DATE TYPED:

02/19/03

 

HB

464

 

SHORT TITLE:

Special Plates for Retired State Police

 

SB

 

 

 

ANALYST:

Hayes

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

$0.1

$0.1

Recurring

Motor Vehicle Division, GF: $10 per plate

 

$0.1

$0.1

Recurring

State Road Fund:  $9.98 per plate

 

$0.1

$0.1

Recurring

*Local Govts:  $5.02 per plate

(Parenthesis ( ) Indicate Revenue Decreases)

*Local Government funds include distributions to various county general funds and roads funds, municipal road uses, and county and municipal general funds.

 

Relates to various specialty license plates proposed by the House and Senate.

 

SOURCES OF INFORMATION

 

Responses Received From

Taxation and Revenue Department (TRD)

State Highway and Transportation Department (SHTD)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 464 adds a new section to the Motor Vehicle Code to direct TRD to issue a special design license plate for retired NM state police officers.  The special license plate would be issued for a one-time fee of $25 in addition to the regular motor vehicle registration fees.

 

The TRD secretary will approve the final plate design for retired NM state police officers in accordance with New Mexico law.

 

 

     Significant Issues

 

  1. Section A of the bill also requires the person wanting the special license plate must submit proof to TRD that he is a retired state police officer.  Such proof shall include the submission of a retirement commission from the New Mexico State Police.

 

  1. According to Section B and C, a person who misrepresents himself as a retired state police officer is guilty of a petty misdemeanor and shall be sentenced pursuant to Section 31-19-1 NMSA 1978.

 

  1. Of the $25 fee, $10 is to be appropriated and retained by the Motor Vehicle Division (MVD) to cover the costs of manufacturing and issuing the license plates.  The remaining $15 would be deposited with the State Treasurer for credit to the Motor Vehicle Suspense Fund for distribution in accordance with Section 66-6-23 NMSA 1978 (see Revenue table on page 1). 

 

FISCAL IMPLICATIONS

 

The portion of the fee that MVD receives ($10) would cover the cost of the license plate in the out years, but the initial costs for production would need to be absorbed by the division.

 

The U.S. Census Bureau’s 2000 Statistical Abstract of the United States reports approximately 435 State Police Officers in New Mexico in 1996.  New Mexico Public Employees Retirement Association (PERA) staff estimated between 400 and 450 retired State Police Officers.  The fiscal impact during the first year would probably involve the sale of fewer than 500 plates. This would provide less than $5,000 in revenue to the Motor Vehicle Division, which probably would not cover the cost of production.  The impact on the State Road Fund would be less than $4,000, and the impact on local government funds would be minimal.

 

After the first year, the recurring demand and revenue generated from these license plates would probably involve fewer than 100 plates per year (less than $1,000).

 

It is unclear whether demand would outweigh the costs of manufacturing the retired state police officer license plates given the number of state police retiring each year.

 

RELATIONSHIP

 

Other special “prestige” license plates have been proposed during the 2003 session:

 

HB 75,   Armed Forces Retirees Special License

HB 201, Special Plates for Retired Firefighters (duplicate of SB 496)

HB 378, Special Plates for Retired NM Letter Carriers

HB 379, Special Plates for Letter Carriers

HB 520, Special Plates for National Guard Members

HB 566, Special Plates for Supporting Spayed Pets

HB 602, Special Plates for Retired NM National Guard (duplicate of SB 622)

HB 635, Special Plates for NM Fraternal Order of Police

HB 656, Special Plates for Wildlife Artwork

HB 704, Special Plates for Civil Air Patrol, New Mexico Wing

SB 197,  License Plate for Active Duty Servicemen

SB 210,  License Plates for Retired State Police

SB 211,  License Plates for NM Mail Carriers

SB 493,  Special Plates for NM HS Rodeo Association

SB 496,  Special Plates for Retired Firefighters (duplicate of HB 201)

SB 549,  Special Plates for Search and Rescue Members

SB 622,  Special Plates for Retired NM National Guard (duplicate of HB 602)

           

CMH/njw