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

SPONSOR Grubesic

DATE TYPED 2/21/05

HB

SHORT TITLE Commercial Driver’s Changes

SB 243/aSJC

ANALYST Rosen

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

$14,100.0

(See Fiscal Implications)

$28,200.0

(See Fiscal Implications)

Recurring Federal Aid High-

way Funds to New

Mexico

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Attorney General’s Office (AGO)

Department of Public Safety (DPS)

Taxation and Revenue Department (TRD)

FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE

SUMMARY

Synopsis of SJC Amendment

Senate Judiciary Committee amendment to Senate Bill 243 changes definitions and provisions to

comply with federal requirements:

•

amends Section 3 of the motor vehicle code replacing “shall not” with “It is unlawful to”

for an employer to knowingly allow, require, permit or authorize a driver to drive a

commercial vehicle under certain circumstances;

•

eliminates TRD’s responsibility to develop a medical fitness test for applicants;

•

requires the applicant, rather than TRD, to certify that the commercial vehicle used to

take the test is the same class and representative of the same endorsement for which the

applicant has applied;

•

provides that the period of disqualification of holders of commercial driver’s licenses

shall run concurrently with any revocation or suspension for the same offense; and

•

adds another reason for disqualification if the person submits to a chemical testing pursu-

ant to the Implied Consent Act and the test results indicate an alcohol concentration of

Senate Bill 243/aSJC -- Page 2

four one hundredths or more if the person is driving a commercial vehicle.

Synopsis of Original Bill

Senate Bill 243 makes changes to the Motor Vehicle Code relating to commercial drivers li-

censes, some of which are needed to bring the state into compliance with federal law governing

commercial driver’s licenses (CDLs):

Section 1: The definition of “conviction” is amended to comply with the mandated federal defi-

nition and expands the definition of “conviction” in the current Motor Vehicle Code to include

an administrative determination of a violation of the Implied Consent Law (with regard to com-

mercial driver’s licenses); forfeiture of bail; payment of a fine or court cost; and a violation of a

condition of release without bail. Current law defines “conviction” to include a plea of guilty or

nolo contendere or a finding of guilt by a court. The expanded definition allows the considera-

tion of events such as bail forfeiture or release violations when determining whether enhanced

sentencing for motor vehicle offenses (DWI for example) is appropriate. It also allows the Mo-

tor Vehicle Division (MVD) to impose penalties based upon those events, as opposed to being

limited to imposition based upon a plea of guilty or adjudication of guilt by a court.

Section 2: Provides two new definitions under the CDL Act. Both were developed based on fed-

eral recommendations. One definition provides the meaning of “commercial driver’s license in-

formation system” since the terms are used later in the Act. The terms “director” and “division”

refer to the director of MVD.

Section 3: Stipulates that a commercial license will not be issued unless that applicant has passed

a medical test developed by MVD. Also, an applicant will not be licensed if they take the test

more than three times in a year. Also, if an applicant commits an offense during testing, MVD

shall not issue them a license for at least one year.

Section 4: The vehicle used for the skills test portion of an application would have to be in the

same class as that of the license being applied for, preventing applicants from applying for li-

censes allowing them to operate one class of motor vehicle yet taking the driving test using an-

other class of vehicle. (Federal mandate)

Section 5: Requires MVD to use and provide information to the Commercial Driver’s License

Information System (CDLIS) when issuing or revoking a commercial driver’s license, or when a

licensee has been convicted, disqualified, or had his/her status changed (within ten days of the

MVD’s receipt of that information). CDLIS is a central database mandated by the federal Com-

mercial Motor Vehicle Safety Act of 1986 that contains information on all commercial vehicle

operators in the United States. CDLIS enables states to exchange information about the driving

records and driver's licenses of commercial motor vehicle drivers, helping to assure that only one

license is issued to a driver and that drivers currently disqualified are prevented from obtaining a

commercial drivers license. (Federal mandates)

Section 6: Sets blood alcohol levels above which a licensee would lose their license, correspond-

ing with federally-mandated levels. Adds new criteria for disqualifying operators from operating

commercial vehicles upon a blood alcohol content test result of .08 for those 21 and over, and .02

for those under 21. Current law allows disqualification for violations of the Implied Consent

Law, DWI convictions, and other conduct. This bill would expand the disqualification based

upon blood alcohol test results alone. (Federal mandate)

Senate Bill 243/aSJC -- Page 3

Section 7: Allows the Director of MVD to collect penalties immediately upon “conviction” (un-

der the new definition) for violating an “out-of-service” order (a declaration by a law enforce-

ment officer in the U.S., Canada, or Mexico that a driver, vehicle, or motor carrier operation may

not operate. (Federal mandate)

Section 8: The director would collect penalties for railroad crossing violations. (Federal man-

date)

Section 9: The Department would have to keep motor vehicle records for 55 years, instead of 25

years as under present law.

Significant Issues

According to AGO, expanding the definition of “conviction” to include release condition viola-

tions and bail forfeiture, without an actual adjudication of guilt, may be challenged as a violation

of due process if that conduct is used to enhance sentences or impose penalties under the Motor

Vehicle Act.

PERFORMANCE IMPLICATIONS

MVD will have to provide for medical fitness tests; furnish information to CDLIS within ten

days of its receipt; collect penalties based upon the newly expanded definition of “conviction”,

and certify the conformity of vehicle use during tests and those vehicles covered by the license

applied for.

FISCAL IMPLICATIONS

DOT reports it has received notification from the Federal Highway Administration that the fiscal

impact of this bill is quantifiable and probable. According to FHWA, and New Mexico FHWA

Division, DOT is facing the withholding of from 5% to 10% of the state’s ordinary level of fed-

eral funds. DOT currently is eligible for about $300 million of FHWA “authorization”, of which

about $282 million is projected to be actually funded in the federal budget. If this bill does not

pass, New Mexico appears to almost certainly be faced with the withholding of federal funds

amounting to between $14 million and $30 million per year.

MVD might be able to collect additional penalties based upon the expanded definition of “con-

viction” contained in this bill.

ADMINISTRATIVE IMPLICATIONS

TRD indicates moderate impact on MVD. MVD will have to provide for medical fitness tests;

furnish information to CDLIS within ten days of its receipt; collect penalties based upon the

newly expanded definition of “conviction”, and certify the conformity of vehicle use during tests

and those vehicles covered by the license applied for.

TECHNICAL ISSUES

TRD indicates resolution of two substantives issues, not addressed in the current version of the

bill, is needed to reach full federal compliance:

Senate Bill 243/aSJC -- Page 4

1.

When there is a revocation and disqualification action for the same violation period, the

actions need to run concurrently, except for the 120-day disqualification. MVD already

does this by policy, but the federal government requires that it be in statute.

2.

The statute needs to state that the state can use “serious offenses” received in a person-

ally-owned vehicle to take a disqualification action against a commercial driver.

DPS indicates this bill conflicts with current statutes related to blood alcohol levels: Section 66-

8-102, Section 66-8-110 (b)(3), and 66-8-112.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

A federal audit of MVD related to CDL statutes and processes may result in a qualified audit

opinion and jeopardize New Mexico’s share of federal highway funds.

MVD will not be required to submit new information on commercial drivers to the national data-

base, the blood alcohol content level would not be a basis in and of itself or disqualifying a

driver, applicants for commercial drivers licenses will not be required to undergo medical fitness

tests.

JR/yr