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F I S C A L I M P A C T R E P O R T
SPONSOR Taylor
ORIGINAL DATE
LAST UPDATED
2/8/2007
HB
SHORT TITLE Limit Auto Recycler Licenses
SB 331
ANALYST Schuss
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Environment (DOE)
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
Senate Bill 331 would amend Section 66-4-2 of the Motor Vehicle Code to limit the number of
auto recycler licenses based on county population. Under provisions of the bill the department
would be allowed to issue one recycler’s license per 8,500 people in counties that have a
population of 120,000 or less, or one recycler’s license per 13,500 people could be issued in
counties that have a population of more than 120,000.
FISCAL IMPLICATIONS
TRD states that there are no fiscal impacts of this bill. Currently the recyclers’ license fee is $50
per primary location. License Fees are distributed to the State Road Fund, $37.33 (74.65
percent) and to local governments, $12.67(25.35 percent). Recyclers are allowed to have
unlimited supplemental locations throughout the state, there is no fee for supplemental locations.
pg_0002
Senate Bill 331 – Page
2
TECHNICAL ISSUES
According to TRD, SB 331 does not address how the Motor Vehicle Division (“MVD") should
allocate limited licenses in the event that the cap is reached in a given county. For example, if a
license comes up for renewal, it is not clear whether MVD should allow the current license
holder to retain the license or if that person is added to a waiting list. Also, there are no
“grandfather" provisions for current license holders.
By limiting the number of licenses to census data, the bill essentially sets a quota that is only
updated every 10 years and could create a significant barrier to entry for new businesses. There
is no way to ensure auto recyclers will be evenly disbursed throughout the county, they will more
than likely locate near large urban areas. There are no provisions regarding supplemental lots. A
recycler could be licensed in one county but have a supplemental lot in a county that is over the
allotted licenses.
OTHER SUBSTANTIVE ISSUES
TRD included the following in their analysis:
Limiting the number of “Auto Recyclers" license may have a negative impact
considering the future domestic growth of New Mexico, as our population grows so will the
number of vehicles being bought, sold and eventually dismantled. As the demand continues to
grow, so should the supply.
By basing recycler licenses on census data, this bill will create a lag in the issuance of
licenses and new licenses will only be issued every 10 years. According to the 2000 Census the
total population of the state was 1.8 million, using the provisions of this bill MVD would be
allowed to issue 179 auto recycler licenses. Current census estimates the population at 1.95
million, a 7.5% increase, and 13 more recycler licenses could be issued. The census report is not
available for at least one year after the data has been collected, this could create even longer
delays in issuing recyclers licenses.
In most cases the allotted recyclers licenses per county appear to be adequate, there
would be no loss of revenue, Bernalillo and Chaves counties would be close to their allotted
amount.
The chart on the following page breaks down the auto recyclers licenses by county.
pg_0003
Senate Bill 331 – Page
3
Rank
County
2000 Census
Count
Auto
Recyclers
License
Allotted
Currently
Issued
Still
Available
1
Bernalillo County 556,678
41
38
3
2
Dona Ana County 174,682
13
2
11
3
Santa Fe County
129,292
10
3
7
4
San Juan County
113,801
13
7
6
5
Sandoval County
89,908
11
11
6
McKinley County 74,798
9
2
7
7
Valencia County
66,152
8
2
6
8
Otero County
62,298
7
2
5
9
Chaves County
61,382
7
6
1
10 Lea County
55,511
7
2
5
11 Eddy County
51,658
6
2
4
12 Curry County
45,044
5
1
4
13 Rio Arriba County 41,190
5
1
4
14 Grant County
31,002
4
4
15 San Miguel County 30,126
4
2
2
16 Taos County
29,979
4
2
2
17 Cibola County
25,595
3
1
2
18 Luna County
25,016
3
3
19 Lincoln County
19,411
2
2
20
Los Alamos
County
18,343
2
2
21 Socorro County
18,078
2
2
22 Roosevelt County
18,018
2
2
23 Torrance County
16,911
2
2
24 Colfax County
14,189
2
2
25 Sierra County
13,270
2
2
26 Quay County
10,155
1
1
27 Hidalgo County
5,932
1
1
28 Mora County
5,180
1
1
29 Guadalupe County 4,680
1
1
30 Union County
4,174
1
1
31 Catron County
3,543
1
1
32 De Baca County
2,240
1
1
33 Harding County
810
1
0
1
Total
1,819,046
179
73
106
BS/csd