BILL ANALYSIS AND FISCAL IMPACT REPORT	Page 1 of  2

DATE: February 22, 2001	Submitted by: TAXATION AND REVENUE DEPT.       
	T. GLENN ELLINGTON, SECRETARY
BILL NUMBER:  HB-822

SPONSOR:  Representative Rios

BILL SHORT TITLE:  National Guard Registration Plates

CONFLICTS, DUPLICATES, COMPANIONS:  SB-740

DESCRIPTION:  This bill would allow retired members of the New Mexico National Guard to retain their special National Guard vehicle license plate upon retirement.  Retired National Guard members would be required to pay a $15 annual fee for the special plate (active members pay no special fee – see Technical Issues). 

EFFECTIVE DATE:  Not specified – assume 90 days following adjournment (approx. June 15, 2001)

FISCAL IMPACT (Thousands of dollars)   Parenthesis ( ) indicate a revenue loss:

Estimated Impact on Revenues    	Recurring or		
			Nonrecurring	Funds	
	(FY 2001-2002)	(FY 2002-2003)	     Impact     	         Affected         	
	(*)	(*)	Recurring	State Road Fund (66.541%)	
	(*)	(*)	Recurring	Counties (20.064%)	
	(*)	(*)	Recurring	Municipalities (5.358%)	
	(*)	(*)	Recurring	Counties & Municipalities (8.037%)	

Under this bill’s provisions retired National Guard members could register their vehicles for the annual fee of $15 per vehicle and not have to pay regular vehicle registration fees.  The National Guard reports approximately 80 National Guard members retire each year, but told the department they have no information on the total number of retired National Guard members.  It is likely that all retirees would choose to retain their National Guard plate for a $15 annual fee (to avoid regular registration fees), resulting in a continuing  revenue loss for the State Road Fund and local governments.
 
TECHNICAL ISSUES:
•	Active members of the National Guard receive their special plates for no charge, and do not pay regular motor vehicle registration fees. This bill appears to exempt retired members of the National Guard from paying vehicle registration fees. Under current law, retired National Guard members are required to turn-in their National Guard plates upon retirement and begin paying regular motor vehicle registration fees.  They are eligible for an Armed Forces Veteran plate for a one-time fee of $15, in addition to regular motor vehicle registration fees.

ADMINISTRATIVE IMPACT:  No significant impact on the Motor Vehicle Division.  

The Division has just recently taken back duties of issuing National Guard plates (previously administered by the National Guard), and is in the process of introducing a new National Guard plate design.  Since the bill would allow retired members to be treated the same as active members, the new plate design will not have to accommodate a special decal indicating “retired”.

An alternative solution might be to amend Section 66-3-419 NMSA 1978 to specify a “Retired National Guard” decal be available with the Armed Forces Veteran plate, or possibly even a Legislative Memorial could request the Division consider providing a “Retired National Guard” decal for the Armed Forces Veteran plate (see Other Impacts and Issues).

OTHER IMPACTS AND ISSUES:

•	Section 66-3-419 NMSA 1978 allows retired members of the National Guard to obtain Armed Forces Veteran plates for a one-time fee of $15.  Along with the Armed Forces Veteran plate, veterans may elect to receive a veteran-designation decal indicating the veteran’s special history (medal of honor, ex-prisoner of war, disabled veteran, Pearl Harbor survivor, Navajo code talker, Vietnam veteran, etc.), but there is no special decal listed in statute for “retired National Guard”.  Amending Section 66-3-419 NMSA 1978 to provide this category is an alternative solution.  

•	HB-822 is similar to SB-740, but SB-740 requires retired members to turn-in the active National Guard upon retirement, and allows them to apply for a new retired National Guard special plate.  HB-822 allows a member to “retain” their plate upon retirement.  Both bills appear to exempt National Guard retirees from paying regular vehicle registration fees.