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|
SPONSOR: |
Jennings |
DATE TYPED: |
02/04/02 |
HB |
|
||
|
SHORT TITLE: |
Motor Vehicle Suspense Fund Distribution |
SB |
362 |
||||
|
|
ANALYST: |
Gilbert |
|||||
REVENUE
|
Estimated Revenue |
Subsequent Years Impact |
Recurring or Non-Rec |
Fund Affected |
|
|
FY02 |
FY03 |
|
|
|
|
|
$ 165.0 |
$ 165.0 |
Recurring |
Mun. Fee Agents (operating M. V. Offices)
– Administrative Fees |
|
|
$ 1,000.0 |
$ 1,000.0 |
Recurring |
State
Road Fund (Section 66-6-23.1) – Administrative Fees |
|
|
$ 500.0 |
$ 500.0 |
Recurring |
Local
Governments (Section 66-6-23.1) – Administrative Fees |
|
$ 62.0 |
$ 750.0 |
$ 750.0 |
Recurring |
OSF/Local
- Mun. Fee Agents (operating M. V. Offices) – Transaction Fees |
|
$ (41.0) |
$ (500.0) |
$ (500.0) |
Recurring |
State
Road Fund (Section 66-6-23.1) – Transaction Fees |
|
$ (21.0) |
$ (250.0) |
$ (250.0) |
Recurring |
Local
Governments (Section 66-6-23.1) – Transaction Fees |
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates: HB 371 and SB 366
LFC Files
Response Receive From
State Highway and Transportation Department
(SHTD)
No Response Received
Department of Finance & Administration (DFA)
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis
of Bill
Senate Bill 362
amends Sections 66-2-16 and 66-6-23 NMSA 1978 (Laws of 1978, Chapter 35,
Section 20) by doubling the administrative services fees collected by the Motor
Vehicle Division of the Taxation and Revenue Department or its agents. This fee
is used to defray the costs of operation
and rendering
of services to the public. This bill
also amends Section 66-6-23 NMSA 1978 to mod-
ify the
disposition of fees from the motor vehicle suspense fund and to clarify that
all fees collected for excessive weight permits (pursuant to Section 66-7-413.4
NMSA 1978) shall be distributed to the state road fund.
Significant
Issues
This bill (Section
66-2-16A) increases the administrative service fee from $0.50 to $1.00 for each
item, transaction, or service performed by the agent or the department, and is
collected in addition to all other fees and taxes imposed.
According to this bill, disposition of fees
(Section 66-6-23 NMSA 1978) to municipalities, counties or fee agents operating
a motor vehicle office would be increased from $6.00 to $8.00 per drivers
license and from $3.00 to $5.00 per identification card, motor vehicle, motor
boat registration or title transaction performed. In addition, municipalities, counties or fee agents operating a
motor vehicle office will receive $1.00 instead of the current $0.50 for each
administrative service fee remitted by that county or municipality to the motor
vehicle suspense fund.
The
administrative fees collected by municipal fee agents are distributed back to
those fee agents. Administrative fees
collected by the Motor Vehicle Division are distributed to the State Road Fund
and local governments under Sections 66-6-23 and 66-6-23.1 NMSA 1978.
FISCAL IMPLICATIONS
The FY02 impact
results from the July 1, 2002 effective date of this bill, which will affect
the distribution of June 2002 revenue.
The State Highway and
Transportation Department (SHTD) provided revenue estimates for this bill.
ADMINISTRATIVE IMPLICATIONS
This bill would require the Taxation and Revenue
Department Motor Vehicle Division to change their policies
and procedures and modify relevant automated systems. Additional statewide staff training would also be necessary for
implementation of this bill.
TECHNICAL ISSUES
Section
66-7-413.4 states that “Revenue from the
permit fee shall be used to build, maintain repair or reconstruct the highways
and bridges of this state.” However, there is no specific statutory distribution
of these fees to the State Road Fund.
The SHTD requests a
technical correction to page 4, line 22 of SB 362 to resolve this issue. On line 22 after pursuant to, SHTD
recommends inserting Section 66-7-413 and.
The SHTD also points
out that the language distributing the increased administrative fee will be effective
for distribution the month prior to the first month in which the increased fee
is collected. Alternatively, Section 2 of the bill could be given an effective
date of August 1, 2002 in order to eliminate the FY02 fiscal impact and
eliminate this technical issue.
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