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

SPONSOR Lujan, B

DATE TYPED 2/28/05

HB 1087/aHJC

SHORT TITLE Mandatory Financial Responsibility Penalties

SB

ANALYST Ford

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

Minimal – See

Narrative

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

$0.1

See Narrative

Recurring

General Fund

$0.1

See Narrative

Recurring Motor Vehicle Di-

vision

(Parenthesis ( ) Indicate Revenue Decreases)

Conflicts with SB 603

SOURCES OF INFORMATION

LFC Files

Responses Received From

Administrative Office of the Courts (AOC)

SUMMARY

Synopsis of HJC Amendment

The House Judiciary Committee amendment adds a new section of the bill to amend Section 66-

5-205.1 NMSA 1978 by changing a cross-reference to the reinstatement fee in Section 66-5-33.1

NMSA 1978. This change ensure that the two sections conform to each other.

House Bill 1087/aHJC -- Page 2

Synopsis of Original Bill

House Bill 1087 raises the fee charged for reinstatement of a vehicle registration that has been

revoked or suspended from $25 to $100. The bill also raises the penalty, from $300 to $500, for

a second or subsequent violation of provisions prohibiting operation of an uninsured motor vehi-

cle or a vehicle without valid evidence of financial responsibility.

Significant Issues

According to the AOC, evidence of financial responsibility, as a substitute for motor vehicle in-

surance, can be achieved with a surety bond or a cash deposit of $60,000 with the state treasurer.

FISCAL IMPLICATIONS

The bill will result in an indeterminate revenue increase to the Motor Vehicle Division (MVD) of

the Taxation and Revenue Department as a result of the increased fee for reinstating registration

and to the general fund as a result of the increased penalty for a repeat offense of driving without

auto insurance. There may be minor costs to the MVD to update information to drivers.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

This bill amends the same code section as Senate Bill 603, which seeks to increase ignition inter-

lock device requirements for drivers whose license has been revoked due to a DWI conviction.

EF/yr:lg