Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Hochman-Vigil
LAST UPDATED
ORIGINAL DATE 2/17/2025
SHORT TITLE Autonomous Vehicle Act
BILL
NUMBER House Bill 148
ANALYST Simon
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
TRD
No fiscal
impact
$500.0
No fiscal
impact
$500.0 Nonrecurring
Motor Vehicle
Suspense
Fund
NMDOT
No fiscal
impact
Up to $300.0 Up to $300.0 Up to $600.0 Recurring
State Road
Fund
Federal Highway
Funds
No fiscal
impact
Unknown,
possibly
substantial
Unknown,
possibly
substantial
Recurring
State Road
Fund
Total
No fiscal
impact
Up to $800.0 Up to $300.0 Up to $1,100.0
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Taxation and Revenue Department (TRD) Economic Development Department (EDD) Department of Public Safety (DPS) Department of Transportation (NMDOT) Agency Declined to Provide Analysis
Office of Superintendent of Insurance (OSI)
SUMMARY
Synopsis of House Bill 148
House Bill 148 (HB148) would amend the Motor Vehicle Code to allow autonomous motor
vehicles to be operated on New Mexico’s roadways provided a human operator is physically
present behind the steering wheel and has the ability to take control of the vehicle, the driver has
a valid driver’s license and the person is competent to operate the vehicle, and the owner,
operator, or manufacturer has certified to the Department of Transportation (NMDOT) the House Bill 148 – Page 2
vehicle has been tested for at least 10 thousand miles. The requirement for a human operator
would sunset in 2036. A human operator must take control of a vehicle to yield to an emergency
vehicle or school bus, in a school or construction zone, or in a parking area for parks,
playgrounds, schools, libraries, or swimming or sports facilities. Additionally, the bill would
prohibit autonomous commercial motor vehicle operations on a public highway, except for
testing, unless other purposes have been approved by the National Highway Traffic Safety
Administration.
The bill would require autonomous vehicles to record and store data from vehicles sensors,
inward and outward facing dashboard cameras, interior indicators the autonomous system is
engaged, and safety alerts for human operators. Safety systems may not be disabled or degraded.
The bill amends the section of current law requiring drivers to have insurance to include
coverage for death, bodily injury, and property damage of $150 thousand for autonomous motor
vehicles and of $5 million for autonomous commercial vehicles. Current law requires coverage
of $10 thousand for property and $50 thousand for bodily injury or death of two or more people.
The effective date of this bill is January 1, 2026.
FISCAL IMPLICATIONS
NMDOT anticipates HB148 would require additional staffing through either new employees or
reallocating current employees to receive vehicle certification and data, review and approve
operating plans, and track data related to autonomous vehicle crashes. Analysis from the
department does not project a potential fiscal impact for this new responsibility. Assuming the
new functions would require between 1 and 3 FTE and based on a projected average cost of $90
thousand per FTE in NMDOT’s Modal Program, where motor vehicle regulation is currently
housed, this could lead to increased costs of between $90 thousand and $270 thousand. The
department might also realize rulemaking and other costs.
NMDOT notes the approval of autonomous vehicle plans could subject the department to
additional liability but does not project possible liabilities that could result. NMDOT
recommends amending the bill to indemnify the state from any liability that could arise from the
approval of an autonomous vehicle operating plan.
The bill would require the Taxation and Revenue (TRD) to create a new endorsement for
commercial driver’s licenses, add a new exam type for autonomous vehicles, and make other
changes to TRD’s IT systems, which the department estimates would require $405 thousand in
contracts and $100 thousand in costs to create autonomous vehicle endorsements. In addition, the
department projected $117 thousand in staffing costs. TRD anticipates these costs to be
nonrecurring. Because the staffing costs are reported as nonrecurring, it is assumed TRD would
not need to add additional staffing and would need to manage staffing within available resources.
Analysis from NMDOT notes the importance of complying with federal regulations regarding
driver’s licenses. NMDOT states:
An additional potential fiscal impact could result if the bill’s section requiring TRD to
create a new operator classification for [commercial driver’s license] holders is
determined to be in conflict with federal [commercial driver’s license] regulations. Such
conflict with the federal regulations could result in the loss of federal highway funding. House Bill 148 – Page 3
SIGNIFICANT ISSUES
NMDOT notes regulation of automotive equipment is regulated by the National Highway Traffic
Safety Administration and the department would have to adhere to already established
regulations. Plan approvals would be based on consistency with federal regulations.
The bill would require owners or operators of autonomous vehicles to report to NMDOT in the
event of crash or collision with a vehicles, person, or object, a near collision, or other failure of
an automated driving system, including traffic violation, autonomous disengagements, or
unplanned stops. Owners and operators have 48 hours to report information in the event of a
collision that results in property damage, injury, or death. NMDOT would be required to report
annually on the performance and impact of autonomous vehicles, including the vehicles safety
records. Analysis from the Department of Public Safety notes this would require updates to the
standardized statewide crash report.
The bill includes a new commercial driver’s license endorsement for autonomous commercial
vehicles. Analysis from TRD notes the Federal Motor Carrier Administration (FMCSA) issues
guidelines on endorsements and testing requirements. The department states “introducing a
separate state-level endorsement would not provide any regulator or operational benefit” because
the endorsement would not be recognized at the federal level. The department states:
Federal law classifies commercial AVs as standard Class A, B, or C vehicles when
stationary, meaning drivers with the appropriate class endorsement can operate them
without an additional AV endorsement under FMCSA rules. This state-specific
endorsement would not provide any practical benefit and could create regulatory
misalignment. Additionally, [TRD] would be responsible for defining and establishing
the criteria for acceptable training documentation provided by the AV manufacturer or its
designated representatives as a requirement for issuing the AV endorsement.
The bill would create new, higher minimum insurance requirements for autonomous vehicles.
Currently, drivers are required to have $10 thousand in coverage for property damage or
destruction, $25 thousand in coverage for bodily injury or death of one person, and $50 thousand
in coverage for bodily injury or death of two or more people. The bill would require autonomous
vehicles to have $150 thousand in coverage or, for commercial motor vehicles, $5 million in
coverage. It is unclear what impact these requirements will have on automobile insurance in New
Mexico. Communication from the Office of Superintendent of Insurance stated the bill did not
impact the Office of Superintendent of Insurance and the agency declined to provide an analysis
of HB148.
Analysis from the Economic Development Department notes the requirements of the bill
eliminates cost savings and logistical advantages autonomous vehicles have the potential to
offer. The department also notes the vehicle requirements included in the bill would make it
more expensive to operate autonomous vehicles in New Mexico and that surrounding states do
not have similar requirements to those included in the bill. As a result, the bill could deter
autonomous vehicle operators form locating, manufacturing, or testing in New Mexico.
JWS/SL2