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.
The most recent FIR
version (in HTML & Adobe PDF formats) is available on the Legislative
Website. The Adobe PDF version includes
all attachments, whereas the HTML version does not. Previously issued FIRs and attachments may be
obtained from the LFC in
SPONSOR: |
Heaton |
DATE TYPED: |
|
HB |
716 |
||
SHORT TITLE: |
Motor Vehicle Suspense Fund Distributions |
SB |
|
||||
|
ANALYST: |
|
|||||
APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
FY03 |
FY04 |
FY03 |
FY04 |
|
|
|
$1,500.0 |
|
See Narrative |
Recurring |
OSF |
|
|
|
|
|
|
(Parenthesis
( ) Indicate Expenditure Decreases) *To be distributed according to formula in
Section 66-6-23.1 NMSA 1978 and municipal and private fee agents.
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
$1,500.0 |
$1,500.0 |
Recurring |
OSF |
|
(Indeterminate) |
|
Recurring |
OSF |
(Parenthesis ( ) Indicate Revenue Decreases)
Responses
Received From
Taxation
& Revenue Department (TRD)
State
Highway and Transportation Department (SHTD)
SUMMARY
Synopsis
of Bill
House Bill 716
increases the administrative service fees from $.50 to $1.00 for each transaction
or service performed and then increases the distribution of that fee to the
municipal and private fee agents for transactions they perform. Fees for transactions performed by the Motor
Vehicle Division (MVD) are distributed by formula in 66-6-23.1.
HB 716 also increases
the distribution for driver’s licenses, identification cards, registration and
title transactions by $2.00 to local offices and contracted fee agents for
transactions they perform.
HB 716 clarifies that the fees collected for
overweight permits for liquid haulers are to be distributed to the State Road
Fund. While Section 66-7-413.4 does
state that “Revenue from the permit fee shall be used to build, maintain repair
or reconstruct the highways and bridges of this state”, there is no specific
statutory distribution of these fees to the state road fund. The reference to Section 66-7-413 added by HB
716 repairs technical problem created in 2001.
Significant
Issues
The cost of providing motor vehicle services is
increasing. The administrative service
fee increase will be distributed to the beneficiaries who will be performing
the services.
FISCAL IMPLICATIONS
The fiscal impact is
as follows:
1. TRD estimates $1,500.0 will be collected by raising the administrative service fee from $.50 to $1.00. These funds will be distributed to municipal and private fee agents for transactions they perform.
ADMINISTRATIVE IMPLICATIONS
Many
private fee agents operate under specific contracts with the MVD. It is possible that all such contracts will
have to be re-executed effective
Extensive
changes to the MVD computer system will have to be made in regard to the fee increase
and revenue distribution changes.
TECHNICAL ISSUES
The
MVD has experienced disagreements with municipal and fee agents when
interpreting application of administrative fees “for each item or
transaction” (see Section 1, Subsection A on page 1, line 25). This should probably be clarified. For example, issuing a vehicle title and obtaining
the initial vehicle registration might be considered one transaction that
includes two items.