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 Terrazas/Dow/Sanchez/Montoya/Hall
LAST UPDATED
ORIGINAL DATE 2/22/2025
SHORT TITLE Off-Highway Motor Vehicles on Roads
BILL
NUMBER House Bill 371
ANALYST Montano
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
No fiscal impact No fiscal impact No fiscal impact
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Department of Transportation (NMDOT) Department of Public Safety (DPS) Agency Analysis was Solicited but Not Received From
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of House Bill 371
House Bill 371 (HB371) amends the Off-Highway Motor Vehicle Act to grant local and county
elected authorities the ability to authorize off-highway motor vehicles (OHVs) to operate on
paved streets and highways within their jurisdictions. This bill removes the prior requirement for
approval by the State Transportation Commission, giving local governments full control over
OHV regulations in their areas.
The bill also allows local and county governments to establish their own speed limits and
operating restrictions for OHVs operating on paved roads. It maintains existing prohibitions on
OHV use on limited-access highways, freeways, and certain state-owned lands, unless
specifically allowed by law.
FISCAL IMPLICATIONS
There are no fiscal implications with HB371.
House Bill 371 – Page 2
SIGNIFICANT ISSUES
The Department of Transportation (NMDOT) contends that denying the State Transportation
Commission (STC) and NMDOT the responsibility to regulate the types of vehicles that can
access the streets and highways may negatively affect NMDOT’s performance measures for
safety with the federal government and performance measures established each year for the state.
From NMDOT:
HB371 further denies the STC and NMDOT the right to regulate vehicles that have
access to paved roads or highways that NMDOT has sole responsibility for. HB371 is
also in direct contravention of Section 66-7-303 NMSA 1978 (granting authority to
regulate speeds zones on state highways and roads to the secretary of NMDOT) and
Section 66-7-304 NMSA 1978 (requiring NMDOT approval of speed limits set by
counties on state highways and roads).
The Manual of Uniform Traffic Control Devices (MUTCD), a national standard for
traffic control devices, requires an engineering study be used to establish speed limits.
The engineering study must be performed in accordance with traffic engineering
practices. Many local and elected county officials do not have access to this area of
expertise.
Posted speed limits are used to determine a variety of design features on a roadway,
including but not limited to horizontal curvature, vertical curvature, intersection sight
distance, stopping sight distance, horizontal clearance, need for barriers, etc. Establishing
a higher speed limit for off-road vehicles would allow these vehicles to drive at faster
speeds than the facility is designed for.
PERFORMANCE IMPLICATIONS
NMDOT states:
HB371 would require NMDOT to monitor and be familiar with numerous local and
county rules and regulations that may be contrary to each other, instead of one set of rules
established by the [State Transportation Commission (STC)].
ADMINISTRATIVE IMPLICATIONS
NMDOT states:
HB371 would also negate Commission Policy 71 in which the STC has already
established rules for off-highway motor vehicles to operate on paved streets and
highways.
Every county would be required to create speed limits and operating restrictions for OHVs,
which may minimally increase administrative workloads.
NM/hj/hg