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:

Martinez

 

DATE TYPED:

3/17/03

 

HB

 

 

SHORT TITLE:

License Plate For Active Duty Servicemen

 

SB

197/aSPAC/aHTC

 

 

ANALYST:

Wilson

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

 

 

$21.6

Non-recurring

Motor Vehicle Suspense Fund

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

$7.0

Unknown

Recurring

OSF

 

$8.0

Unknown

Recurring

Motor Vehicle Suspense Fund *

(Parenthesis ( ) Indicate Revenue Decreases) *To be distributed according to the formula in Sections 66-6-23 and 66-6-23.1.

 

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

 

SOURCES OF INFORMATION

 

Responses Received From

 

SUMMARY

 

      Synopsis of HTC Amendment

 

The House Transportation Committee amendment creates standardized special registration plates with logos to show state support for worthy public purposes. The amendment states the authorizing statute shall provide for collection of fees that, at a minimum, will cover the costs to the Motor Vehicle Division (MVD) of development, manufacture and issuance of the special registration plates and logos.

 

Standardized special registration plates, on the standardized areas, shall:

 

  • Display the colors of the state flag, red lettering on a yellow background and the phrases "New Mexico USA" and "Land of Enchantment";

 

  • Provide a space for applying the special registration logo, centered at the left edge of the plate, between the attachment holes, beginning one-fourth inch in from the edge of the plate and having the following dimensions: four and one-eighth inches in height and three and one-eighth inches in width;

 

  • Provide a vehicle registration number, to be assigned by the MVD consisting of five alphanumeric characters displayed to the right of the special logo area.

 

The HTC amendment states MVD will design the balance of the plate in consultation with the public purpose interest group requesting the special registration plate. This group shall provide evidence acceptable to MVD that it will generate a minimum number of prepaid applications as determined by the MVD for the special registration plate with logo and give a prepayment to the MVD in an amount sufficient to cover the plate and logo cost of the initial order.  Furthermore,

the interest group shall provide a sample of the requested artwork design in a format specified by the plate manufacturer for the specialized logo.

 

The fee for the special registration plate that will be collected in addition to the regular motor vehicle registration fee is increased to $25 from $15.  TRD is appropriated $10 of the special fee to defray the cost of making and issuing special registration plates for uniform service members. The remaining $15 shall be deposited in the motor vehicle suspense fund for distribution pursuant to Section 66-6-23 NMSA 1978.

 

The standardized provisions of the amendment are effective July 1, 2003. The balance of the bill is effective on January 1, 2004.

 

     Synopsis of SPAC Amendment

 

The Senate Public Affairs Committee amendment changes “servicemen” to" “uniform, service members,” thereby making special registration plates available to active duty servicewomen.

 

     Synopsis of Original Bill

 

Senate Bill 197 requires the Taxation and Revenue Department to issue special registration license plates to active duty servicemen.

 

     Significant Issues

 

The Legislature may wish to give active duty servicemen distinctive licenses plates in order to both honor them and to identify military personnel in an emergency situation.

 

FISCAL IMPLICATIONS

 

TRD is authorized to charge a fee of $15.00 in addition to the regular motor vehicle registration fee for the special registration plate for active duty service men. $7.00 of the fee collected for each special registration shall be retained by TRD and is appropriated to TRD to defray the cost of making and issuing special registration plates. The remaining $8 will be deposited in the motor vehicle suspense fund and distributed according to the formula in Sections 66-6-23 and 66-6-23.1.

 

The US Census of 2000 estimates the number of armed servicemen in New Mexico to be 11,192.  The estimates above assume that 1,000 people (or 9%) of this population will choose to purchase this plate for $15 the first year it is available.  It’s likely this number will decrease in subsequent years.

 

The portion of the fee that goes to TRD administration will cover the cost of the plates in the out-years but the initial costs will have to be paid by the Motor Vehicle Division.  SB 197 will create the need for a new plate requiring initial funding of approximately $15,000.  This is calculated at 3,000 plates x $5.00 per plate.

 

The system work required to put in the new codes for the plate is estimated at $6,600.

 

ADMINISTRATIVE IMPLICATIONS

 

TRD will require some staff resources to design and issue the special plates to active servicemen.

 

RELATIONSHIP

 

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, License Plates for Civil Air Patrol, New Mexico Wing

HB 760, Special Commemorative Route 66 License Plate (duplicate of SB 770)

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)

SB 693,  License Plates for Disabled Veterans

SB 770,  Special Commemorative Route 66 License Plate (duplicate of HB 760)

 

DW/njw:sb:yr