Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may also 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

Cravens

DATE TYPED

2/12/2004

HB

 

 

SHORT TITLE

Collection of Ignition Interlock Fees

SB

476

 

 

ANALYST

Valenzuela

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

 

 

See Narrative

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

 

($190.0)

($190.0)

Recurring

Interlock Device Fund

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

LFC Files

 

Responses Received From

Department of Finance and Administration

Department of Transportation

Administrative Office of the Courts

Taxation and Revenue Department

Public Defenders Department

 

SUMMARY

 

Synopsis of Bill

 

Senate Bill 476 substitutes a flat $10 fee imposed on persons convicted of DWI for the ignition interlock fund instead of a fee in the amount of ten percent of the amount charged to lease, install, service and remove each device.  The bill requires the vendor to collect the fee and transmit the monies to the local government division of the department of finance and administration.

 

 

 

Significant Issues

 

The current process has become an administrative burden to both the DFA and the ignition interlock service providers, which the NMDOT licenses and oversees.  The fee structure in the current law is complex and difficult to administer. 

 

According to DFA, advocates of this law estimate fewer than 2,000 interlocks were installed on vehicles in FY03. For FY04, the estimates could increase by from 25 percent to 50 percent.

 

FISCAL IMPLICATIONS

 

Senate Bill 476 would reduce revenues into the ignition interlock fund by a magnitude of 10. The table below illustrates this impact. As an example, given an ignition interlock cost of $1,050, the fund would lose $190 thousand annually if 2,000 devices were installed.

 

Revenue Comparison: $10/fee vs. 10 percent of cost

Number of

At

At

 

 Installations 

 $           10.00

  10 percent   

Difference

2000

 $     20,000.00

 $     210,000.00

 $  (190,000.00)

2500

        25,000.00

        262,500.00

   (237,500.00)

3000

        30,000.00

        315,000.00

   (285,000.00)

 

The interlock device fund receives an annual appropriation from the local DWI grant fund of $300 thousand. Under SB476, DFA is provided authority to take a 5 percent administration fee from the fund. As such, DFA could receive an appropriation of approximately $16 thousand to assist its efforts to administer the fund.

 

ADMINISTRATIVE IMPLICATIONS

 

According to DFA, SB476 will make administration of this fund significantly easier. By changing the law to one simple $10 payment at installation, SB476 will reduce the number of payments for an individual offender from 12 to 1. 

 

MFV/lg:yr