A. No later than six months from the effective date of this 2016 act, the department shall establish and begin to issue to qualified applicants licenses and identification cards that meet federal requirements to be accepted by federal agencies for official federal purposes. The department shall adopt the general design marking known as gold star pursuant to the Department of Homeland Security REAL ID Security Plan Guidance Handbook to implement the provisions of this subsection.

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B. Provided that a person whose license or identification card expires on or after July 1, 2020 provides the required documentation and qualifies for the license or identification card issued pursuant to Subsection A of this section, the person may:

(1)     exchange that person’s valid New Mexico-issued license or identification card for a license or identification card issued pursuant to Subsection A of this section with an identical expiration date at no cost; or

(2)     apply for a new license or identification card issued pursuant to Subsection A of this section.

C. The secretary shall adopt rules providing for the proration of a:

(1)     refund for the remaining period that a person’s license or identification card would have been valid; or

(2)     credit for the remaining period that a person’s license or identification card would have been valid toward the cost of a new license or identification card.