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SPONSOR: |
Leavell |
DATE TYPED: |
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HB |
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SHORT TITLE: |
Commercial Vehicle Insurance Info MVD |
SB |
559 |
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ANALYST: |
Hayes |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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NFI |
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(Parenthesis
( ) Indicate Expenditure Decreases)
Responses
Received From
Taxation
and Revenue Department (TRD)
SUMMARY
Synopsis
of Bill
Section 66-5-205.1
NMSA 1978 regarding motor vehicle insurance currently reads that the Taxation
and Revenue Department secretary shall adopt and promulgate rules requiring
insurance carriers to report canceled, terminated and newly-issued motor
vehicle insurance policies each month to the department. Senate Bill 559 amends sub-section (D) to
state that in the case of commercial vehicles, the insurer may report at the
policy level or at the vehicle level.
In addition, a new
sub-section (E) defines a “commercial vehicle policy” as one that:
·
Covers five or more motor vehicles
·
Insures a motor vehicle rated or insured
as a business or commercial vehicle
·
Insures a motor vehicle licensed by the
state as a commercial vehicle
·
Covers a motor vehicle issued to a named
insured who is not a natural person
Significant
Issues
ADMINISTRATIVE IMPLICATIONS
According to TRD, the
commercial vehicle section of the Taxation and Revenue Department will need to
involve Lockheed, Affiliated Computer Systems (ACS) to make extensive changes
to the existing system if this bill is enacted.
Daily updates and file information will need to be exchanged between MVD
and all insurer carriers pertaining to commercial vehicle companies. To do so will require enhancements to current
computer applications, including mainframe and web applications, analysis,
design, coding, testing, documentation and implementation. TRD estimates that it will cost approximately
$20,300 to make system modifications if SB 559 is enacted.
POSSIBLE QUESTIONS
CMH/sb