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

SPONSOR SCORC

ORIGINAL DATE

LAST UPDATED

2/7/08

2/10/08 HB

SHORT TITLE Public Peace, Health, Safety & Welfare

SB CS/551/aSCORC

ANALYST Peery-Galon

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

FY10

$25.0

$25.0 Recurring State Road Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Taxation and Revenue Department (TRD)

Homeland Security and Emergency Management Department (HSEMD)

Department of Public Safety (DPS)

No Responses Received From

Department of Transportation

New Mexico State University

SUMMARY

Synopsis of SCORC Amendment

The Senate Corporations and Transportation Committee amendment to Senate Bill 551 changes

the following:

•

On page 5, line 18, after “possession" strikes the remainder of the line and strikes lines 19

and 20 and inserts “a copy of the restrictions imposed by the state transportation

commission pursuant to Section 66-7-415 NMSA 1978 regarding the size and weight of

vehicles operated on a highway under the jurisdiction of that commission";

•

On page 5, line 22, after the comma inserts “freight trailer or utility"; and

•

On page 5, line 24, strikes “the field" and inserts “an agricultural area that lies within

New Mexico or within New Mexico and in an adjacent state".

Synopsis of SCORC Substitute

Senate Bill CS/551/aSCORC – Page

2

The Senate Corporations and Transportation Committee Substitute for Senate Bill 551 provides

an exception to port of entry requirements for vehicles transporting agricultural products. An

agricultural product transport vehicle is excluded if the agricultural product transport vehicle has

cleared the port of entry at least once and has successfully passed a commercial vehicle safety

alliance level 1 inspection during the current harvest season. The proposed legislation defines

“agricultural product transport vehicle" as a motor vehicle, freight trailer or utility trailer or a

combination used exclusively for hauling agricultural products harvested in the field. The

proposed legislation also creates a special permit for an annual fee of $250 for agricultural

product transport vehicles to transport loads for multiple trips. The multiple trip special permits

may be issued for up to 5,000 pounds over the gross vehicle weight and the agricultural product

transport vehicle is not to operate on highways for which a stricter size or weight limit is

required by federal law. The agricultural product transport vehicle is not to operate on routes

identified as having deficient bridge structures.

FISCAL IMPLICATIONS

TRD states the fiscal impact on the State Road Fund could be positive as result of the increased

number of $250 overweight permits, and could be negative if the exception from stopping at

ports of entry has a negative influence on weight-distance tax compliance. TRD notes the net

fiscal impact to the State Road Fund might very well be negative.

DPS states the $250 overweight permits would generate in excess of $25,000 to the State Road

Fund.

SIGNIFICANT ISSUES

TRD reports the modest overweight allowance and permit in the proposed legislation probably

addresses a reasonable issue that may be troublesome to the industry. TRD states presumably it

is difficult to gauge the weight of agricultural product loads when products are loaded in the

field. TRD notes it is unclear why these vehicles should be excluded from all port of entry

inspection provisions.

HSEMD states that agricultural product transport vehicles’ traveling in and out of the state into

Mexico should not receive this exception. HSEMD states although the vehicles will be required

to pass through international ports of entry, they should also be required to be inspected at New

Mexico ports of entry each time they enter the state if they have exited the country and returned.

HSEMD notes because of the possible homeland security threat of dangerous cargo being

transported from Mexico, the exception should not apply to crossing international borders.

DPS states the proposed legislation would assure public safety through the inspection of each

vehicle that will be transporting agriculture products. This will provide a positive impact for the

agriculture industry, as well as, the residents of New Mexico.

PERFORMANCE IMPLICATIONS

DPS states employees of the Motor Transportation Division will need to be available to conduct

inspections at the time the vehicle enters New Mexico ports of entry. This may place a burden

on the operations of the ports of entry.

Senate Bill CS/551/aSCORC – Page

3

ADMINISTRATIVE IMPLICATIONS

TRD notes the permits would be administered by the Motor Transportation Division of the

Department of Public Safety.

DPS states there will be additional overweight permits ordered through the Santa Fe Oversize

Permit Office.

TECHNICAL ISSUES

TRD states on page 4, lines 16 and 17, the term “during the current harvest season" is probably

too vague and ill-defined to be useful in administration of these provisions, particularly since

different croups may have different harvest seasons. Some specific time period should be

specified, with reference at least to major crops or crop groups.

TRD states the $250 annual permit for overweight agricultural product transport vehicles should

probably include a specification directing the permit fee revenue to the State Road Fund. While

current law Section 66-7-413 NMSA might be considered sufficient direction of the revenue, it is

not clear since other sections include specific provisions regarding the recipient of the revenue.

OTHER SUBSTANTIVE ISSUES

TRD states agricultural product transport vehicles do not qualify for the current overweight

permits available under Section 66-7-413 NMSA 1978, since those permits are allowed only for

“nondivisible" loads. Nondivisible loads are loads that cannot be partially unloaded to meet

normal weight limitations. TRD states it is difficult to gauge the weight of agricultural product

loads when products are loaded in the field, and the relatively small 5,000 pound overweight

allowance would provide a reasonable degree of tolerance for loads slightly in excess of weight

limitations. However, since the proposed legislation also allows these vehicles to bypass ports of

entry, it is difficult to see how the 5,000 pound threshold would be monitored. TRD states

agricultural transport vehicles might frequently run at weights well in excess of the 5,000 pound

overweight threshold.

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