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

SPONSOR HTC

DATE TYPED 2/23/05

HB 248/HTCS

SHORT TITLE Children’s Artwork Motorcycle License Plates

SB

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.

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

The House Transportation Committee substitute for House Bill 248 provides for the Motor

House Bill 248/HTCS -- Page 2

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.

DW/lg:yr