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

 

 

 

SPONSOR:

Rainaldi

 

DATE TYPED:

02/25/03

 

HB

 

 

SHORT TITLE:

Special Plates for NM HS Rodeo Association

 

SB

493

 

 

ANALYST:

Hayes

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

 

 

 

$0.1

$0.1

-0-

Nonrecurring

Motor Vehicle Division, General Fund: $10 per plate

$0.1

$0.1

$0.1

Recurring

NM HS Rodeo   Association

-0-

-0-

$0.1

Recurring effective FY06

*Local Govts:  $3.33 per plate

-0-

-0-

$0.1

Recurring effective FY06

State Road Fund:  $6.67 per plate

(Parenthesis ( ) Indicate Revenue Decreases)                                                                    $0.1 = unknown revenue amount

 

*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)

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 493 adds a new section to Chapter 66-3-424 NMSA 1978 by directing the Motor Vehicle Division of the Taxation and Revenue Department to establish and issue a special New Mexico High School Rodeo Association license plate.  The special license plate will be $35.00 for the initial issuance, and if the individual wishes to retain the rodeo association license plate in subsequent years.

 

The effective date of the provisions of this legislation is July 1, 2003.

 

     Significant Issues

 

  1. MVD will be responsible for promulgating procedures for application for and the issuance of the rodeo association license plate pursuant to Sections A and B of the bill.
  2. The $35 fee is in addition to the regular annual motor vehicle registration fees.

 

  1. Of the $35 fee, $10 is to be appropriated and retained by MVD in fiscal years 2004 and 2005 to the costs of manufacturing and issuing the license plates.  Beginning in FY06, the $10 fee will be credit to the motor vehicle suspense fund for distribution in accordance with Section 66-6-23 NMSA 1978.  A new distribution is created from the motor vehicle suspense fund to the Taxation and Revenue Department.

 

  1. The remainder of the fee, $25, shall be distributed to the NM High School Rodeo Association to be used in its scholarship program.

 

FISCAL IMPLICATIONS

 

Pursuant to SB 493, the portion of the fee that MVD receives, $10, would cover the cost of manufacturing the rodeo license plate its first two years.  After FY05, no revenue is directed to MVD to continue covering the cost of production.

 

According to TRD, there are less than 300 members of the NM High School Rodeo Association.  It is unknown if all of these members would acquire the specialty license plate.  In this analysis, it is assumed that the fiscal impact during the first year would probably involve the sale of fewer than 300 plates.  If so, revenue to the state, specifically MVD, would be less than $3,000.  A minimum order of sheeting/shipping/design/labor costs MVD approximately $5,000. 

 

After the first or second year of issuance, the recurring demand and revenue generated from the rodeo association plates would be minimal.

 

It is unclear whether demand would outweigh the costs of manufacturing the New Mexico High School Rodeo Association license plates.

 

RELATIONSHIP

 

Other specialty license plates requested 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, License Plates for Civil Air Patrol, New Mexico Wing

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

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)

SB 693,  License Plates for Disabled Veterans

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

 

POSSIBLE QUESTIONS

 

  1. What is the estimated demand for these license plates?  If $25 of each vehicle registration plate fee is directed to the NM High School Rodeo Association, will enough funding be provided to support the scholarship program from the sales of the license plates?

 

  1. After FY05, revenue is no longer being appropriated to MVD for production costs.  Why? 

 

  1. Who will be responsible for the design of the license plate?

 

CMH/yr/njw