BILL ANALYSIS AND FISCAL IMPACT REPORT	Page 1 of  2

DATE: March 13, 2001	Submitted by: TAXATION AND REVENUE DEPT.       
	T. GLENN ELLINGTON, SECRETARY

BILL NUMBER:  SB-740 as amended by the Senate Corporations & Transportation Committee (2/24/2001)
	and by the House Appropriations and Finance Committee (3/11/2001)
SPONSOR:  Senator Papen

BILL SHORT TITLE:  Special Plates for Retired National Guard

CONFLICTS, DUPLICATES, COMPANIONS:  HB-822

DESCRIPTION:  This bill would allow retired members of the New Mexico National Guard to qualify for a special Retired National Guard vehicle license plate.  Retired National Guard members would pay a $15 annual fee for the special plate (active members pay no special fee) in addition to regular motor vehicle registration fees.  The HCTC amendment appears to clarify the intent there be different special plate designs for active and retired members of the National Guard.  The HAFC amendment specifies that retired National Guard members would be subject to regular motor vehicle registration fees.

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%)	
	(?)	(?)	Recurring	Armed Forces Veterans License Fund	

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.  The department has no information on the number of retired National Guard members who may choose to pay an additional $15 annual fee for a National Guard Plate, or who may choose the National Guard Plate over the Armed Forces Veteran Plate.  Presumably there would be some decrease in the number of requests for the Armed Forces Veteran Plate.  The $15 fee for the Retired National Guard plate would be distributed to the State Road Fund and local governments pursuant to Sections 66-6-23 and 66-6-23.1 NMSA 1978.
 
ADMINISTRATIVE IMPACT:  Some adverse administrative impact on the Motor Vehicle Division.  Production of a new special Retired National Guard plate would be necessary, and the Division has not budgeted money for new special plate designs.  The minimum cost is about $5 thousand to produce the minimum number of plates (1,800), plus the cost of design and administration.

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.  

OTHER IMPACTS AND ISSUES:

•	SB-740 is similar to HB-822, 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, and appears to exempt National Guard retirees from paying regular vehicle registration fees.

•	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.