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

SPONSOR Griego

ORIGINAL DATE

LAST UPDATED

2/07/07

3/05/07 HB

SHORT TITLE Weight Distance Tax and Penalty Enforcement

SB 496/aSCORC/aSF1

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

$0.1*

$0.1* Recurring General Fund

$0.1*

$0.1* Recurring Road Fund

(Parenthesis ( ) Indicate Revenue Decreases)

*Indeterminate but positive impact anticipated from increased penalties.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Public Safety (DPS)

Department of Transportation (DOT)

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of SFl Amendment

Senate Floor amendment number 1 adds a $50 penalty for failure to register with a base state

under the Federal Unified Carrier Registration Act of 2005.

Senate Bill 496/aSCORC/aSF1 – Page

2

Synopsis of SCORC Amendment

The Senate Corporation and Transportation Committee (SCORC) amendment reduces the

increase in the penalties and inserts a 14-day time period for the Motor Vehicle Division of TRD

to issues tax-id permits.

Synopsis of Original Bill

Senate Bill 496 would allow New Mexico to detain trucks at ports of entry (POE) if the vehicle

is not in compliance with weight distance tax (paragraph (E) to Section 65-1-26, NMSA 1978).

The Bill also requires law enforcement officers to notify the Motor Transportation Division of

accidents involving commercial motor carriers. In addition, the bill allows buses and

combination vehicles to exceed current length limitations under certain conditions. Finally, the

bill increases penalties for excess weight violations in Sections 66-7-411, Section 66-8-116,

Sections 66-8-116.2 and 66-8-116.2.

According to DPS, Senate Bill 496 is a “clean up" bill intended to clarify, modify and bring into

compliance with federal regulations existing state statutes as they pertain to commercial motor

vehicles (CMV), over-dimensional vehicles, and maximum driving time for drivers of

commercial motor vehicles.

FISCAL IMPLICATIONS

Through additional enforcement mechanisms of the weight distance tax, more revenue should

flow to the state road fund. By increasing penalties additional revenue will be generated for the

general fund. Neither DOT nor DPS could estimate a revenue impact.

SIGNIFICANT ISSUES

According to DOT, the Federal Motor Carrier Safety Administration (FMCSA) has notified

Oregon that the state can no longer require carriers to show Oregon weight distance tax

credentials before they can be allowed to proceed through a port of entry (POE).

SB 496 avoids the problem that was the focus of the dispute between the federal government and

Oregon by making no reference to credentials or tax ID cards. Rather, it allows the Motor

Transportation Division (MTD) to detain a carrier when MTD has reason to believe the vehicle

has not paid weight distance tax (the carrier has not filed a weight distance tax return, or filed

one declaring no taxes are owed, or has allowed its weight distance tax account to be

deactivated.) Any of those three determinations allow the port of entry of MTD officer to

conclude that carrier/vehicle has not complied with weight distance taxes and should be detained

until it does.

If enacted, DOT believes this bill should enhance collection of weight distance tax.

DPS summarizes the bill as follows:

•

Requires every law enforcement agency that investigates a crash involving a CMV,

which results in bodily injury, death or towing of vehicle(s) from the scene to submit a

report within twenty-four (24) hours after the investigation is complete to DPS. Currently

there is no written requirement that these reports be submitted to DPS for entry, and there

Senate Bill 496/aSCORC/aSF1 – Page

3

is a serious backlog of reports to be entered. This will improve the timeliness and quality

of data entered into relevant databases and prevents possible federal penalties for the lack

of timeliness of the data entry for these crash reports. To that end, DPS has a sincere

interest in ensuring that the required crash reports are entered and uploaded in a timely

manner, so that federal funding that comes to the agency is not jeopardized. (66-7-207

Written Reports of Accidents)

•

Removes the requirement for a New Mexico State Police escort for over-dimensional

vehicles that exceed twenty-feet (20’) in width. The Oversize/Overweight Permit Office

of the Department of Public Safety is responsible for determining the need and type(s) of

escorts required for over-dimensional movements. (66-7-314 Movement of Hazardous

Vehicle-Escort)

•

The bill brings NM statute into compliance with federal regulations by:

o

Allowing a commercial bus to exceed forty-five feet when operating on National

Network Highways.

o

Allowing certain combination vehicles defined as “specialized equipment" to

exceed sixty-five feet.

o

Allows a “saddle-mount" vehicle to be considered specialized equipment which

may not exceed ninety-seven (97’) feet.

o

Provides an incentive for the use of vehicles with “idle reduction technology" by

allowing an increase in weight limitations by four-hundred (400) pounds. This is

intended to reduce the amount of pollutants emitted by CMV’s that are allowed to

idle for long periods of time.

•

Doubles penalties for excess weight violations, which will aid in the protection of our

highway infrastructure by providing a stronger deterrent to exceeding weight laws.

•

Provides for an increased penalty for second, third and subsequent convictions of failure

to operate an over-dimensional vehicle without and over-dimensional permit.

•

Increases the penalty for Failure to Register a Motor Carrier from $100.00 to $300.00.

•

Significantly increases the penalty for Failure to Carry Tax ID Permit from $50.00 to

$300.00. This will provide a deterrent for carriers to avoid reporting weight distance

taxes due the state. (66-8-116)

•

Adds penalty assessment amounts for CMV Driver hours of service violations that were

previously court appearance only violations or not in compliance with Federal Regulation

updates related to maximum driving time. This will give the violator the option of either

appearing in court or submitting a penalty assessment for the violation. Due to the nature

of the trucking business, many times it is difficult for drivers to return to New Mexico for

a court appearance. The penalty assessment will allow a driver to mail a penalty rather

than appearing in court. (66-8-116)

•

Provides for an increased penalty for Failure to Stop at a Port-of-Entry or Inspection

Station for second, third and subsequent convictions to a maximum of $500.00. (66-8-

116)

Senate Bill 496/aSCORC/aSF1 – Page

4

PERFORMANCE IMPLICATIONS

DPS notes that due to a lack of timeliness in reporting CMV related crashes, New Mexico has

been identified as a “red state" by the Federal Motor Carrier Safety Administration. SB 496

should improve reporting. Currently crash reports are submitted sporadically to NMDOT by

state, county and local law-enforcement agencies for entry. There is no negative impact on

NMDOT for not entering the crash reports in a timely manner. DPS will ensure that the reports

are entered into the relevant databases in a timely manner.

DPS finds that by removing the requirement for a New Mexico State Police (NMSP) escort for

vehicles that exceed twenty-feet (20’) in width will reduce manpower demands on NMSP and

allow DPS to focus on the missions of each respective division. The Oversize/Overweight

Permit Office of the DPS would be responsible for determining the need and type(s) of escorts

required for over-dimensional movements, and will ensure through the issuance of permits that

proper and adequate private escorts are provided for the movement being made.

The increased penalty assessment amounts for CMV related offenses will allow DPS Motor

Transportation Division Police personnel to more effectively carry out the mission of

commercial motor vehicle enforcement. Increased penalties will foster a change in carrier and

driver behavior which will bring about greater compliance with tax laws and should also result in

increased traffic safety and protection of highway infrastructure.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

DPS finds that if SB 496 is not enacted, New Mexico will be in non-compliance with certain

Federal Regulations as they pertain to highways and surface transportation. DPS which is

currently lacking in manpower, will continue to utilize valuable personnel and equipment assets

for over-dimensional load escorts, a service which can be safely performed by a certified private

or for hire escort. The state will lose some ability to collect and enforce weight distance tax

laws, which contribute significantly to the Road Fund. In addition, failure to enact the above

captioned bill could result in continued deterioration of our roads and bridges due to excess

weight violations, and increase in safety violations, economic difficulties for the motor carrier

industry.

BE/nt