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

SPONSOR:	Martinez		DATE TYPED:	2/9/03		HB	105
SHORT TITLE:		Requirements for MVD Permits & Licenses				SB
					ANALYST:		Wilson

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY03	FY04	FY03	FY04
			See Narrative

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY03	FY04
	(47.0)		Recurring	State Road Fund
	(23.0)		Recurring	Counties & Municipalities

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

Responses Received From

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

House Bill 105 prohibits a minor from obtaining an instructional permit or provisional driver’s license unless the minor is enrolled in, and attending a public school, private school, home school or state institution.

HB 105 also prohibits carrying a passenger while operating a motorcycle on an initial license issued to persons 13 years of age or older to operate a motorcycle no more than 100 cubic centimeters displacement.

Significant Issues

Proponents believe that driving a car is a privilege and should only be given to minors who are in school. They believe that denying a minor a license to drive is an incentive to keep minors from dropping out of school.

TRD states requiring people to be licensed as a driver is primarily for the health and safety of the motoring public. Using this process for secondary aims, such as forcing minors to stay in school, dilutes its focus and increases its cost.

FISCAL IMPLICATIONS

The Motor Vehicle Division does not compile data on licenses and permits issued by age. The fiscal impact was derived from Census Bureau estimates of population by age group, and State Department of Education reports on school enrollment and dropout percentages. The fiscal impact presented above assumes approximately 7,000 minors who would otherwise be eligible for licensure will no longer qualify under HB 105.

The fees for provisional driver’s licenses and instructional permits are $13.00 and $2.00, respectively. These revenues are distributed pursuant to Section 66-6-23 NMSA 1978. Approximately two-thirds goes to the State Road Fund and one-third to various local funds.

ADMINISTRATIVE IMPLICATIONS

Applicants would be required to provide additional documentation to verify applicant is enrolled in and attending school when applying for a permit or provisional license. MVD will have to train its personnel on valid documentation. Wait times for customers could increase in smaller MVD offices that don’t have an information desk where a clerk checks a customer’s documentation for a particular transaction.

ANA/njw