HOUSE MEMORIAL 76

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Ray Begaye

A MEMORIAL

REQUESTING THE HUMAN SERVICES DEPARTMENT TO CONDUCT A STUDY OF THE IMPACT OF MANDATORY AUTOMOBILE LIABILITY INSURANCE ON LOW-INCOME HOUSEHOLDS.

     WHEREAS, New Mexico law mandates an owner of a motor vehicle to either have automobile liability insurance or demonstrate the financial ability to cover the costs incurred should an accident occur; and

     WHEREAS, the annual cost of purchasing automobile liability insurance can be quite expensive, exceeding one thousand dollars ($1,000) per year, depending on various factors, including the age, sex and driving record of the driver, the geographic area in which the vehicle is registered and the kind of vehicle being driven; and

     WHEREAS, people living in poverty or near poverty may not be able to afford to purchase automobile liability insurance; and

     WHEREAS, the inability to afford automobile liability insurance, coupled with the general lack of availability of public transportation, impairs the ability of people living in or near poverty to find employment and contribute meaningfully to society; and

     WHEREAS, the 2009 federal poverty level for a household of two is fourteen thousand five hundred seventy dollars ($14,570) per year, or one thousand two hundred fourteen dollars ($1,214) per month; and

     WHEREAS, according to a 2003 study conducted by New Mexico voices for children titled Bare Bones Budgets, the federal poverty levels understate poverty by one hundred thirty-six percent to two hundred forty-seven percent; and

     WHEREAS, people living in poverty or near poverty frequently must do without necessities, or make choices between needs, such as food, clothing, health care or insurance; and

     WHEREAS, people living in or near poverty may rely on an automobile to travel to and from places of employment; however, the cost of maintaining that automobile must often be balanced with other necessary expenditures; and

     WHEREAS, people living in poverty or near poverty can and often do qualify for various public assistance programs with incomes above the federal poverty level; and

     WHEREAS, requiring people living at or near the federal poverty level to purchase automobile liability insurance may force them to use scarce personal resources for that purpose while foregoing other needs;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the human services department be requested to conduct a study of the impact of mandatory automobile liability insurance on low-income households; and

     BE IT FURTHER RESOLVED that the human services department consult with the motor vehicle division of the taxation and revenue department, the insurance division of the public regulation commission, the university of New Mexico and others in conducting the study; and

     BE IT FURTHER RESOLVED that the study consider creating an alternative to the requirement to purchase automobile liability insurance for households between one hundred percent and two hundred fifty percent of the federal poverty levels; and

     BE IT FURTHER RESOLVED that the study investigate the guidelines presented by other human services department programs to which people have access, such as temporary assistance for needy families, food stamps and medicaid and consider the appropriateness of applying guidelines such as these to the purchase of automobile liability insurance; and

     BE IT FURTHER RESOLVED that the human services department consult with appropriate entities to consider whether extending this requirement to people unable to afford the annual premium is a fair requirement; and

     BE IT FURTHER RESOLVED that a report of the findings and recommendations of the study be presented to the interim legislative health and human services committee at its November meeting and that the report be sent to the governor, the secretaries of health and transportation, the consumer protection division of the office of the attorney general and the director of the motor vehicle division of the taxation and revenue department; and

     BE IT FURTHER RESOLVED that a copy of this memorial be transmitted to the secretary of human services.

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