The bill amends Section 66-8-130 of the New Mexico Statutes to establish regulations for municipalities that implement a municipal penalty assessment program for traffic violations detected by automated cameras or devices. It allows municipalities to use such technology for detecting speeding infractions but imposes strict limitations on their actions. Specifically, municipalities are prohibited from imposing penalties that exceed existing statutory limits, using private entities for the collection of unpaid penalties, reporting unpaid fines to credit agencies, impounding vehicles solely for nonpayment of penalties, and paying third-party administrators based on the number of penalties issued.

Additionally, the bill clarifies that all penalty assessments under the municipal program must be processed by the municipal court, with collected fines deposited in the municipality's treasury. It also introduces a definition for "credit reporting agency" to ensure clarity in the context of the bill. Overall, the legislation aims to regulate the use of automated violation detection while protecting the rights of individuals subject to penalties.