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 Suite 101 of the State Capitol Building North.

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

SPONSOR:	Hurt		DATE TYPED:	2/25/03		HB
SHORT TITLE:		License Plates for Disabled Veterans				SB	693
					ANALYST:		Wilson

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY03	FY04	FY03	FY04
			See Narrative		OSF

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY03	FY04
		($Unknown)	Recurring	Motor Vehicle Suspense Fund

(Parenthesis ( ) Indicate Revenue Decreases)

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

Duplicates HB 915

SOURCES OF INFORMATION

LFC files

Response Received from

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

Senate Bill 693 allows a person who is a veteran of the armed forces of the United States and was 100% disabled while serving in the armed forces of the United States to receive a distinctive registration plate for a motorcycle. Current law allows a disabled veteran to receive a registration plate for up to two vehicles. SB 693 allows one or both of these vehicles to be a motorcycle. No fee will be collected for either the special plate or the regular passenger motor vehicle registration plate or the regular motorcycle registration fees.

Significant Issues

The Motor Vehicle Division (MVD) currently issues Veteran Motorcycle Plates under Section 66-4-412.1 NMSA 1978. The MVD also issues special motorcycle plates for disabled persons under Section 66-3-15.1 NMSA 1978. With a change in language to either of these statutes, motorcycle plates could be issued to 100% Disabled Veterans at no cost and would save the Division many dollars in not having to design, produce and procure a new plate.

FISCAL IMPLICATIONS

If there are 100% disabled veterans currently registering motorcycles who will now receive a special plate as well as free registration, these fees will be lost revenue. It is estimated that the loss will be insignificant.

TRD estimates that creating a new plate that will require initial funding of approximately $8,000 to $20,000. This is calculated at 2,000 and 5,000 plates x $4.00 per plate. This does not include the cost of the new forms and system work required to put in the new codes.

The current budget for plates does not include the costs for the design, production and distribution of new plates to include but not limited to system time requirements, cost of designing, procurement, distribution of new forms and training requirements of all staff. Initial funding would have to be provided.

ADMINISTRATIVE IMPLICATIONS

The MVD will have to create new forms, codes and a financial program for the new plate code.

Artwork for the plates will be designed and approved thru our vendor for short run graphics.

RELATIONSHIP/DUPLICATION

Duplicates HB 915

Relates to:

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

TECHNICAL ISSUES

By adding the new language to the current Section 66-3-412.1 (Special Motorcycle Plates for Armed Forces Veterans) or Section 66-3-15.1 Special plates for disabled persons, will allow 100% Disabled Veterans to have a Veteran Motorcycle Plate at no cost. This will save the state much time and money in not having to produce a new plate.

DW/njw:yr