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

SPONSOR Marquart

DATE TYPED 03/12/05 HM 62

SHORT TITLE

Enforce Highway Beautification Act

SB

ANALYST Moser

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

NFI

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Department of Transportation

SUMMARY

Synopsis of Bill

This memorial would strongly encourage the New Mexico Department of Transportation

(NMDOT) to vigorously enforce the Highway Beautification Act, so as to cause the abatement

and removal of junkyards within the state. The memorial would also require the NMDOT to re-

port to the New Mexico Legislature on or before November 1, 2005 concerning its junkyard en-

forcement efforts.

Significant Issues

The NMDOT argues that although this memorial would seem to have the worthy goal of assur-

ing the removal or abatement of junkyards within the state, it fails to take into account the lim-

ited remedies and problems contained within the applicable statutes. The Highway Beautifica-

tion Act, in pertinent part, charges the NMDOT with licensing, and regulating New Mexico

junkyards. Secs. 67-12-1, et seq. NMSA 1978. However, the NMDOT is left with little real en-

forcement authority, which would bring about the remediation or removal of junkyards.

The Act provides that junkyards are allowed to seek and receive a license from the NMDOT.

They are to pay a minimal annual fee under the act. Most, if not all true junkyards are licensed

and current with their fees. In the few instances where they have been late, a letter has brought

quick compliance. Further, junkyards legally in existence when the act was enacted are to be

House Memorial 62 -- Page 2

considered “grandfathered” for purposes of enforcement.

If the NMDOT determines that a junkyard should be moved, screened or removed, the act pro-

vides this is to be done through a procedure similar to the condemnation process. Damages are

to be paid to the owner for his losses or damage. However, the Act provides that no damages are

to be paid where there is no “federal aid participation” (Sec. 67-12-10 (D) NMSA 1978). Ac-

cordingly, the NMDOT cannot pay damages unless there are federal funds to help pay them.

The NMDOT has been advised by representatives of the Federal Highway Administration

(FHWA) have informed that no federal funds are available for this purpose and that the NMDOT

should confine its enforcement activity to the collection of the annual fee. The Act does not pro-

vide any other enforcement mechanism that would not require federal funds. This has had the

effect to basically prevent the NMDOT from taking any actions to effect the removal or abate-

ment of New Mexico junkyards. In the absence of such funding, the NMDOT is limited as to its

options to bring about the removal or abatement of junkyards within New Mexico. NMDOT

feels that the passage of this memorial by itself would have little or no effect upon that situation

GM/rs:lg