A. The division shall adopt rules governing the use of vehicles used by state agencies or by other persons pursuant to Subsection I of this section, including driver requirements and responsibilities, under what circumstances someone can be assigned a state vehicle on a permanent or semipermanent basis and when custody of a state vehicle can be vested in another state agency.

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B. The division may determine that it is impractical to retain custody of certain state vehicles, and it may provide that custody reside in another state agency in the following cases:

(1)     the state vehicle is used for emergency or law enforcement purposes; or

(2)     the state vehicle is a department of transportation, energy, minerals and natural resources department, department of game and fish or homeland security and emergency management department passenger vehicle, truck or tractor or heavy road equipment.

C. Except as provided in Subsections F, G and H of this section, all state vehicles shall be marked as state vehicles. Each side of the vehicle shall be marked, in letters not less than two inches in height, with the following designation of ownership: “State of New Mexico, ……. Department” or “State of New Mexico Department of ………” and naming the department using the vehicle.

D. Except as provided in Subsections F, G and H of this section, all state vehicles shall have specially designed government registration plates.

E. Except as provided in Subsections F, G and H of this section, all state vehicles owned or in the custody of state agencies that have law enforcement functions shall be marked and have state government registration plates.

F. State vehicles used for legitimate undercover law enforcement purposes are exempt from the requirements of Subsections C, D and E of this section and may be issued an undercover license plate when it is determined by the division that issuance of such a license plate is necessary to protect legitimate undercover law enforcement activities.

G. State vehicles used for sensitive activities other than legitimate undercover law enforcement purposes are exempt from the requirements of Subsections C, D and E of this section and may be issued a protective license plate when it is determined by the division that issuance of such a license plate is necessary to protect the health, safety or welfare of a state employee using a state-owned vehicle for sensitive activities. The standards for the issuance of a protective license plate pursuant to this subsection shall be determined by rule jointly promulgated by the division and the motor vehicle division of the taxation and revenue department.

H. A state agency may seek custody of state vehicles as an exception to Subsection B of this section or an exemption to the provisions of Subsection C of this section by making a written request to the director, specifying the reasons for the proposed custody or exemption. The director may approve the custody or exemption, in writing, indicating the duration and any conditions of the custody or exemption.

I. The division shall adopt rules permitting individuals enrolled in the state’s adaptive driving program to use special-use state vehicles for evaluation and training purposes in that program.