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 Jaramillo
LAST UPDATED
ORIGINAL DATE 2/14/2025
SHORT TITLE Lowrider Capital License Plate
BILL
NUMBER Senate Bill 327
ANALYST Leger
REVENUE*
(dollars in thousands)
Type FY25 FY26 FY27 FY28 FY29
Recurring or
Nonrecurring
Fund
Affected
Fee
No fiscal
impact
Indeterminat
e but
minimal loss
Indeterminat
e but
minimal loss
Indeterminat
e but
minimal loss
Indeterminat
e but
minimal loss
Recurring
MVD
Suspense
Fund
Fee
No fiscal
impact
Indeterminat
e but
minimal
gain
Indeterminat
e but
minimal
gain
Indeterminat
e but
minimal
gain
Indeterminat
e but
minimal
gain
Recurring
Department
of Cultural
Affairs
Parentheses ( ) indicate revenue decreases.
*Amounts reflect most recent analysis of this legislation.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
TRD MVD
No fiscal
impact
($42.7)
No fiscal
impact
($42.7) Recurring
Other state
funds
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
New Mexico Tourism Department (TD) New Mexico Taxation and Revenue Department (TRD)
Agency Analysis was Solicited but Not Received From
Department of Cultural Affairs (DCA)
SUMMARY
Synopsis of Senate Bill 327
Senate Bill 327 (SB327) enacts a new section of the motor vehicle code to create a lowrider
capital of the world special registration plate for cars, trucks, motorcycles, and tow trailers. The
plate would have a logo designed pursuant to Section 66-3-424 NMSA 1978, developed by the
Motor Vehicle Division (MVD) in collaboration with the Espanola Lowrider Association. The Senate Bill 327 – Page 2
initial fee for the plate would be $50 in addition to regular motor vehicle or tow trailer
registration fees, or $40 in addition to the regular motorcycle registration fee, and the renewal fee
would be $20. Of the additional motor vehicle or tow trailer fees, $12 of the initial fee would be
retained by MVD to defray the cost of making and issuing the plate and $38 of the initial
registration fee, and the entire $20 of subsequent renewal fees, would be distributed to the
Department of Cultural Affairs (DCA) for the development of museum exhibits explaining the
importance of lowrider history and culture. For the additional fees for motorcycles, $7 would be
retained by MVD to defray the cost of making and issuing the plates and $33 of the initial fee
and the entire $20 renewal would be distributed to DCA. The bill provides a formula starting in
2028 to determine whether MVD should continue to offer the plate.
The effective date of this bill is July 1, 2025.
FISCAL IMPLICATIONS
MVD says the creation of the new specialty plate must be in accordance with existing state
statute under Section 66-3-424 NMSA 1978, which requires prepayment to the division in an
amount sufficient to cover the plate and logo costs of the initial order. The initial fee to purchase
plates is $800: $250 for design and artwork costs while $5.50 is charged for each plate in the
initial batch of 100.
Revenues from fees ($38 from initial registration fee and $20 from renewal fee) will go to DCA
to create and distribute materials or for the development of museum exhibits explaining the
importance of lowrider history and culture to the world and New Mexico. It is estimated the
revenue will be minimal.
Implementation of this bill will have a moderate impact on TRD’s Information Technology
Division. The agency estimates a time to develop, test and implement the changes of
approximately 640 hours, or 4 months, for an estimated $42.7 thousand of staff workload cost.
SIGNIFICANT ISSUES
The New Mexico Tourism Department reports it is currently promoting the Route 66 Centennial
and hopes to attract car enthusiasts, historians, and collectors. A stronger official connection to
lowrider culture might lead to an increase for event promotion in relation to lowriders,
potentially boosting museum visits and tourism activities.
The Taxation and Revenue Department provides the following breakdown of the fiscal impact of
SB327.
It is unknown how many of these plates will be requested. MVD’s total cost of
manufacturing and distributing each license plate is approximately $10, which includes
materials and shipping. The $12 fee will be adequate to cover MVD's initial costs for
producing and issuing the motor vehicle version license plate. The $7 fee will not be
sufficient to cover MVD’s initial costs for producing and issuing the motorcycle version
license plate. MVD recommends that both plate versions have a similar fee of $12 to be
retained by MVD.
Senate Bill 327 – Page 3
ADMINISTRATIVE IMPLICATIONS
TRD expresses concern about the proposed effective date.
The process of creating the artwork for specialty plates as well as the approval processes
both internal and with the requesting party can be lengthy, MVD requests that the
effective date of this bill be January 1, 2026, instead of July 1, 2025
.
TECHNICAL ISSUES
TRD highlights two items for reconsideration:
This bill proposes the issuance of a plate for a “tow trailer”; however, the term “tow
trailer” is not currently defined in statute, creating ambiguity regarding what type of
trailer this applies to. Additionally, certain trailers, such as tow dollies and motorcycle
trailers, are exempt from registration, while others, such as utility and box trailers, are
already registered and assigned distinct trailer plates that include “TR” for proper
identification. Introducing a separate plate for “tow trailers” would add unnecessary
complexity and increase the variety of specialty plates that MVD must manage. MVD
recommends removing the provision for a tow trailer plate from this bill.
The bill proposes that MVD shall issue “a standard lowrider capital of the world special
registration plate for motorcycles with the same design as the motor vehicle plates
issued”. Motorcycle plates are much smaller than motor vehicle plates and do not
consistently allow for the same design. It is recommended that the language be updated
from “same design” to “similar design”.
JL/hj/rl