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F I S C A L I M P A C T R E P O R T
SPONSOR Campos
DATE TYPED 3/2/05
HB
SHORT TITLE Children’s Trust Motorcycle License Plates
SB 971
ANALYST Wilson
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
See Narrative
REVENUE
Estimated Revenue
FY05 FY06
Subsequent
Years Im-
pact
Recurring or
Nonrecurring
Fund Affected
Minimal Minimal Recurring Children’s Trust Fund ($15 per plate)
Minimal
Non-
Recurring
MVD administration ($5 per plate – one
time)
Minimal Minimal Recurring State Road Fund ($3.73 per plate in renewal
years)
Minimal Minimal Recurring Local Govts – 66-6-23.1 formula ($1.27 at
renewal)
(Parenthesis ( ) Indicate Revenue Decreases)
* The number of Children’s Artwork motorcycle plates that will be requested is unknown, but
expected to be small. $15 per plate will be distributed to the Children’s Trust Fund every year.
$5 per plate will be distributed to the Motor Vehicle Division ( MVD) for the cost of production
in the first year each plate is requested. After the first year, $5 of each renewal fee is distributed
to the State Road Fund and local governments under the Section 66-6-23.1 formulaic distribu-
tion.
Duplicates HB 248/HTCS
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Transportation (DOT)
pg_0002
Senate Bill 971-- Page 2
SUMMARY
Synopsis of Bill
Senate Bill 971 provides for the Motor Vehicle Division (MVD) to issue special motorcycle
registration plates featuring the artwork of the children of New Mexico. The fee, in addition to
regular vehicle registration fees, will be $20 per year for the motorcycle plate. The owner of the
motorcycle may apply for and pay the additional fee each year in order to retain the special
children’s artwork plate.
Significant Issues
The bill states that the children’s trust fund board of trustees shall determine the color and design
of the plate. As the bill stands, it does not conform to 66-3-424 passed in the 2003 session to
eliminate the proliferation of specialty plates and to standardize the design to retain the distinct-
iveness of the New Mexico “yellow” plate. As such, passage of the bill will mean that MVD
will have to pay for artwork and silk-screening to create the special plate.
The current design on the children’s passenger plate may not fit on the motorcycle plate due to
the 4”x 6” size of the plate. The motorcycle plate will only allow for an image of 1½”x1½” to be
placed on the plate. When the design is shrunk to fit on the plate it may be distorted and may
have to be re-designed.
FISCAL IMPLICATIONS
$15 per plate will be distributed to the Children’s Trust Fund every year. $5 per plate will be
distributed to MVD for the cost of production in the first year each plate is requested. After the
first year, $5 of each renewal fee is distributed to the State Road Fund and local governments
through Section 66-6-23 to the Section 66-6-23.1 formulaic distribution.
ADMINISTRATIVE IMPLICATIONS
TRD is not able to forecast, with reasonable accuracy, the number of initial fees that will be paid
as people purchase these plates or the percentage of plates for which renewal fees will be paid.
The following are some of the upfront costs that the MVD will incur:
o
Artwork costs - $150.00 to $400.00 (depending on color scheme)
o
Silkscreen setups - $80.00 to $200.00 (depending on color scheme)
o
Suffix setup - $200.00
MVD will be required to order a minimum of 500 plates, costing approximately $1,390.00, de-
pending on the cost of the plate. Total costs to MVD for producing the special plate will be ap-
proximately $2,190.00. MVD could lose money if enough special plates are not sold to break-
even, especially in the first year of issuance.
DUPLICATION
Duplicates HB 248/HTCS
DW/yr