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

SPONSOR Sandoval

ORIGINAL DATE

LAST UPDATED

1/30/06

HB 520

SHORT TITLE Special Patriot License Plate

SB

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Companion to SB 515

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

FY08

* $1.4 – $7.0 $1.4 – $7.0 Recurring

Motor Vehicle Sus-

pense Fund

($7 per plate)

* $1.6 – $8.0 $1.6 – $8.0 Recurring

Armed Forces Veter-

ans License Fund

($8 per plate)

(Parenthesis ( ) Indicate Expenditure Decreases)

*No revenue is anticipated for FY06, because the commemorative license plate has not been de-

signed or produced. The FY07 and FY08 revenues are estimated on sale of 200 to 1,000 Special

Patriot Registration Plates.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Transportation (DOT)

Department of Veterans’ Services (DVS)

Aging and Long Term Services Department (ALTSD)

No Response Received From

Taxation and Revenue Department(TRD)

House Bill 520 – Page

2

SUMMARY

Synopsis of Bill

HB 520 mandates the creation of a special patriot registration plate to be issued upon request by

the Motor Vehicle Division of the Taxation and Revenue Department for an additional one-time

fee of $25. The revenue from the special patriot registration plate fee would be distributed as

follows:

•

$10.00 to be retained by the MVD for the manufacture and issuance of the registra-

tion plates

•

$7.00 to the state treasurer for credit to the motor vehicle suspense fund for distribu-

tion in accordance with Section 66-6-23 NMSA 1978; and

•

$8.00 to the state treasurer for credit to the armed forces veterans license fund for dis-

tribution pursuant to Section 66-3-419 NMSA 1978, a portion of which goes to fund

senior centers.

SIGNIFICANT ISSUES

According to DVS, this plate would offer those who do not qualify for an Armed Forces Veteran

Plate an opportunity to show their pride and patriotism while at the same time, supporting the

Department of Veterans Services, who will receive $8.00 from each plate to fund outreach pro-

grams throughout New Mexico.

The $25 fee is waived in subsequent years wherein the vehicle owner is issued a validating

sticker in lieu of the issuance of a Special Patriot Registration Plate.

ADMINISTRATIVE IMPLICATIONS

The current revenue system has only three more revenue codes left to use. Each new type of

revenue distribution will require its own revenue code. TRD is currently working on updating

the system to avoid this limitation. If more than three special plates are mandated by legislation

during this session, extensive work will have to be done to the revenue system in order to ac-

commodate the additional plates

According to DOT, because an effective date is not specified in the bill, the law would be effec-

tive 90 days following adjournment (May 19, 2006). Any effective date falling on any day other

than the first of the month may be difficult to administer should the special plates become avail-

able to the public prior to that date. An effective date corresponding to the first of June 2006 or

any first day of the month thereafter would facilitate transitioning to administer the new law.

The Department of Veterans Services along with the Motor Vehicle Division would need to de-

sign the plate. DVS would also assist with the promotion of this plate.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Companion to Senate Bill 515.

BE/mt