SB0201

SENATE BILL 201

56th legislature - STATE OF NEW MEXICO - second session, 2024

INTRODUCED BY

Steven P. Neville and Peter Wirth

AN ACT

RELATING TO TRANSPORTATION; CLARIFYING DUTIES FOR THE DEPARTMENT OF TRANSPORTATION RELATED TO THE REGULATION OF RAILWAY COMPANIES, TRANSPORTATION NETWORK COMPANIES AND MOTOR CARRIERS; CHANGING THE APPEALS PROCESS BY MAKING DEPARTMENT DECISIONS APPEALABLE TO DISTRICT COURT; UPDATING DEFINITIONS AND OTHER PROVISIONS OF THE MOTOR CARRIER ACT; REPEALING SECTIONS OF THE NMSA 1978 RELATING TO CARRIER INSPECTION FEES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1. Section 65-2A-3 NMSA 1978 (being Laws 2003, Chapter 359, Section 3, as amended) is amended to read:

"65-2A-3. DEFINITIONS.--As used in the Motor Carrier Act:

A. "ability to provide certificated service" means that an applicant or carrier can provide reasonably continuous and adequate transportation service of the type required by its application or its operating authority in the territory authorized or sought to be authorized;

B. "ambulance service" means the intrastate transportation of sick or injured persons in an ambulance meeting the standards established by the department under the Ambulance Standards Act;

C. "amendment of a certificate" means a permanent change in the type or nature of service, territory or terms of service authorized by an existing certificate;

D. "antitrust laws" means the laws of this state relating to combinations in restraint of trade;

E. "base state" means the registration state for an interstate motor carrier that either is subject to regulation or is transporting commodities exempt from regulation by the federal motor carrier safety administration pursuant to the unified carrier registration system;

F. "cancellation of an operating authority" means the voluntary, permanent termination of all or part of an operating authority;

G. "certificate" means the authority issued by the department to a person that authorizes the person to offer and provide a certificated service as a motor carrier;

H. "certificated service" means one of the following transportation services:

(1) an ambulance service;

(2) a household goods service;

(3) a shuttle service;

(4) a specialized passenger service; or

(5) a taxicab service;

I. "change in a certificate" means the voluntary amendment, cancellation, change in form of legal entity of the holder, lease, reinstatement, transfer or voluntary suspension of a certificate;

J. "charter service" means the compensated transportation of a group of persons in a motor vehicle who, pursuant to a common purpose, under a single contract, at a fixed charge for the motor vehicle and driver, have acquired the exclusive use of the motor vehicle to travel together under an itinerary either specified in advance or modified after having left the place of origin;

K. "commuter service" means the intrastate transportation of passengers in motor vehicles having a capacity of seven to fifteen persons, including the driver, provided to a volunteer-driver commuter group that shares rides to and from the workplace or training site, where participation is incidental to the primary work or training-related purposes of the commuter group, and where the fees paid by the participants do not exceed the costs for transportation, including gas and other trip-related expenses;

L. "compliance unit" means the designated unit within the department tasked with conducting administrative activities necessary to implement and enforce the provisions of the Motor Carrier Act;

[L.] M. "continuous and adequate service" means:

(1) for full-service carriers, reasonably continuous availability, offering and provision of transportation services through motor vehicles, equipment and resources satisfying safety and financial responsibility requirements under the Motor Carrier Act and department rule, that are reasonably adequate to serve the entire full-service territory authorized in the certificate, with reasonable response to all requests for service for the nature of passenger service authorized, based on the nature of public need, expense and volume of demand for the type of service authorized during seasonal periods; and

(2) for general-service carriers, reasonably continuous availability and offering of transportation services through motor vehicles, equipment and resources satisfying safety and financial responsibility requirements under the Motor Carrier Act and department rule for the nature of the transportation service authorized in the certificate;

[M.] N. "contract driver" means a person who contracts with a motor carrier as an independent contractor to drive a vehicle pursuant to an operating authority issued to the motor carrier;

[N.] O. "department" means the department of transportation;

[O.] P. "endorsement" means the specification in a certificate of the territory in which the carrier is authorized to operate, the nature of service to be provided by a certificated passenger service and any additional terms of service that may be reasonably granted or required by the department for the particular authority granted;

[P.] Q. "fare" means the full compensation charged for transportation by a tariffed passenger service;

[Q.] R. "financial responsibility" means the ability to respond in damages for liability arising out of the ownership, maintenance or use of a motor vehicle in the provision of transportation services;

[R.] S. "fitness to provide a transportation service" means that an applicant or carrier complies with state law as provided in the Motor Carrier Act or by rule of the department;

[S.] T. "for hire" means that transportation is offered or provided to the public for remuneration, compensation or reward of any kind, paid or promised, either directly or indirectly;

[T.] U. "full service" means one of the following certificated passenger services that are endorsed and required to meet specific standards for the provision of service to or throughout a community:

(1) an ambulance service;

(2) a scheduled shuttle service; or

(3) a municipal taxicab service;

[U.] V. "general service" means one of the following certificated services that provides transportation services of the type authorized, but is not required to provide unprofitable or marginally profitable carriage:

(1) a general shuttle service;

(2) a general taxicab service;

(3) a specialized passenger service; or

(4) a household goods service;

[V.] W. "highway" means a way or place generally open to the use of the public as a matter of right for the purpose of vehicular travel, even though it may be temporarily closed or restricted for the purpose of construction, maintenance, repair or reconstruction;

[W.] X. "holder of an operating authority" means the grantee of the operating authority or a person that currently holds all or part of the right to exercise the authority through a transfer by operation of law;

[X.] Y. "household goods" means personal effects and property used or to be used in a dwelling when a part of the equipment or supply of the dwelling and other similar property as the federal motor carrier safety administration may provide by regulation, but shall not include property moving to or from a factory or store, other than property the householder has purchased to use in the householder's dwelling that is transported at the request of, and the transportation charges are paid to the carrier by, the householder;

[Y.] Z. "household goods service" means the intrastate transportation, packing and storage of household goods for hire;

[Z.] AA. "interested person" means a motor carrier operating in the territory involved in an application or grant of temporary authority, a person affected by an order of the department or a rule proposed for adoption by the department or a person the department may deem interested in a particular matter;

[AA.] BB. "interstate motor carrier" means a person providing compensated transportation in interstate commerce, whether or not the person is subject to regulation by the federal motor carrier safety administration;

[BB.] CC. "intrastate motor carrier" means a motor carrier offering or providing transportation for hire by motor vehicle between points and places in the state;

[CC.] DD. "involuntary suspension" means the temporary cessation of use of all or part of an operating authority ordered by the department for cause for a stated period of time or pending compliance with certain conditions;

[DD.] EE. "lease of a certificate" means an agreement by which the holder of a certificate grants to another person the exclusive right to use all or part of the certificate for a specified period of time in exchange for consideration, but does not include an agreement between a motor carrier and its contract driver;

[EE.] FF. "lease of equipment" means an agreement whereby a motor carrier obtains equipment owned by another person for use by the motor carrier in the exercise of its operating authority; [but does not include an agreement between a motor carrier and its contract driver;

FF.] GG. "motor carrier" or "carrier" means a person offering or providing transportation of persons, property or household goods for hire by motor vehicle, whether in intrastate or interstate commerce;

[GG.] HH. "motor carrier organization" means an organization approved by the department to represent motor carriers and to discuss and propose industry interests and matters other than rates, as well as discussing and proposing rates and other matters pertaining to statewide tariffs;

[HH.] II. "motor vehicle" or "vehicle" means a vehicle, machine, tractor, trailer or semitrailer propelled or drawn by mechanical power and used on a highway in the transportation of property, household goods or persons, but does not include a vehicle, locomotive or car operated exclusively on rails;

[II.] JJ. "nature of service" means the type of transportation service to be provided by a certificated passenger service as set forth in Subsection A of Section 65-2A-8 NMSA 1978;

[JJ.] KK. "nonconsensual tow" means the compensated transportation of a motor vehicle by a towing service, if such transportation is performed at the request of a law enforcement officer or without the prior consent or authorization of the owner or operator of the motor vehicle;

[KK.] LL. "notice period" means the period of time specified in Section 65-2A-6 NMSA 1978; [following publication of notice during which the department may not act;

LL.] MM. "objection" means a document filed with the department by an interested person or a member of the public during the notice period for an application for a certificate, or for amendment, lease or transfer of a certificate, that expresses an objection to, or provides information concerning, the matter before the department;

[MM.] NN. "operating authority" means a certificate, warrant, unified carrier registration or temporary authority issued by the department to a motor carrier;

[NN.] OO. "passenger" means a person other than the driver of a motor vehicle transported in a motor vehicle;

[OO.] PP. "passenger service" means a transportation service offered or provided for the transportation of passengers by motor vehicle;

[PP.] QQ. "predatory rate or practice" means the knowing and willful requirement by a carrier that a passenger or shipper pay a rate, fare or other charge in excess of the rates and charges or in a manner other than in accordance with terms of service as provided by law, as provided in a tariff governing the carrier or as provided in a preexisting written contract regarding the carriage, when such charge is made:

(1) by a passenger carrier as a prior condition for the provision of transportation or continued transportation of a passenger; or

(2) as a prior condition by a towing service carrier performing nonconsensual tows or a household goods service carrier for delivery of, release of or access to vehicles or household goods by the shipper or registered owner;

[QQ.] RR. "process" means, in the context of legal process, an order, subpoena or notice issued by the department or an order, subpoena, notice, writ or summons issued by a court;

[RR.] SS. "property" means movable articles of value, including [cadavers] hazardous matter, farm products, livestock feed, stock salt, manure, wire, posts, dairy products, livestock hauled in lots of twenty-five thousand pounds or more, farm or ranch machinery and the items transported by a towing service, but does not include household goods or unprocessed farm products transported by a farmer from the place of harvesting to market, storage or a processing plant;

[SS.] TT. "protest" means a document in the form of a pleading filed with the department by a full-service carrier that expresses an objection to an application before the department for a certificate for passenger service, for ambulance service [or for passenger service pursuant to a public-charge contract] or for amendment, lease or transfer of such a certificate:

(1) when the territory involved in the application includes all or a portion of the full-service territory of the protesting carrier; and

(2) for a carrier other than an ambulance service carrier, when the grant of the application will, or presents a reasonable potential to, impair, diminish or otherwise adversely affect its existing provision of full-service passenger service to the public within its full-service territory;

[TT. "public-charge contract" means a contract or contractual arrangement between a motor carrier and a third party for passenger service that requires or allows the motor carrier to charge passengers a fare for the transportation service to be provided pursuant to the contract;]

UU. "rate" means a form of compensation charged, whether directly or indirectly, by a person for a transportation service subject to the jurisdiction of the department;

VV. "record of a motor carrier" means an account, correspondence, memorandum, tape, disc, paper, book or transcribed information, or electronic data information, including the electronic hardware or software necessary to access the electronic data information in its document form, regarding the operation of a motor carrier;

WW. "registration year" means a calendar year;

XX. "revocation" means the involuntary, permanent termination of all or part of an operating authority ordered by the department for cause;

YY. "shipper" means a person who consigns or receives property or household goods for transportation;

ZZ. "shuttle service" means the intrastate transportation of passengers for hire pursuant to a set fare for each passenger between two or more specified terminal points or areas and includes both scheduled shuttle service and general shuttle service as follows:

(1) "scheduled shuttle service" means a shuttle service that transports passengers to and from an airport both through prior arrangement and through presentment at terminal locations, on the basis of a daily time schedule filed with the department, that must be met in a timely fashion with a vehicle present at the terminal location regardless of the number of passengers carried on any run, if any, and that includes general shuttle service; and

(2) "general shuttle service" means a shuttle service that is not required to operate on a set schedule, that may optionally use a grid map to specify distant or adjacent terminal areas and that is not required to accept passengers other than pre-arranged passengers;

AAA. "specialized passenger service" means the intrastate transportation for hire of passengers with special physical needs by specialized types of vehicles, or for specialized types of service to the public or community, as the department may by rule provide;

BBB. "tariff" means a document filed by a tariffed service carrier that has been approved by the department and sets forth the transportation services offered by the motor carrier to the general public, including the rates, terms of service and applicable time schedules relating to those services;

CCC. "tariffed service" means one of the following transportation services authorized by the department for the provision of service on the basis of rates and terms of service contained in a tariff approved by the department:

(1) an ambulance service;

(2) a household goods service;

(3) a shuttle service;

(4) a specialized passenger service;

(5) a taxicab service; or

(6) a towing service performing nonconsensual tows;

[DDD. "taxicab association" means an association, cooperative or other legal entity whose members are taxicab drivers, which shall be treated in the same manner as any other applicant with regard to applications for a certificate for general taxicab service or for full-service municipal taxicab service and which shall be subject in the same manner to all other provisions, requirements and limitations of the Motor Carrier Act;

EEE.] DDD. "taxicab service" means intrastate transportation of passengers for hire in a motor vehicle having a capacity of not more than eight persons, including the driver, for which the passenger or other person engaging the vehicle is allowed to specify not only the origin and destination points of the trip but also, within reason, the route taken by the vehicle, any intermediate stop, any optional waiting at a stop and any other passengers transported during the trip and that charges a fare for use of the vehicle primarily on the basis of a drop-flag fee, cumulative mileage and cumulative wait time through a taxicab meter used to cumulate and display the fare to the passenger and includes both municipal taxicab service and general taxicab service, as follows:

(1) "municipal taxicab service" means a taxicab service that deploys vehicles at all times of the day and year, is centrally dispatched and reasonably responds to all calls for service within its endorsed full-service territory regardless of profitability of the individual trip, in addition to the transportation service provided by a general taxicab service; and

(2) "general taxicab service" means a taxicab service that need not be dispatched, that may pick up on-demand passengers through flagging or at a taxicab stand or queue, that need not deploy vehicles in any particular manner and that may charge for trips to destination points or places outside of the taxicab service's certificated territories on the basis of a set fare;

[FFF.] EEE. "terms of service" means all terms, aspects, practices, limitations, conditions and schedules of service other than specific rate amounts pertaining to a tariffed service;

[GGG.] FFF. "towing service" means the use of specialized equipment, including repossession services using towing equipment, to transport or store:

(1) a damaged, disabled or abandoned motor vehicle and its cargo;

(2) a motor vehicle to replace a damaged, disabled or abandoned motor vehicle;

(3) parts and equipment to repair a damaged, disabled or abandoned motor vehicle;

(4) a motor vehicle whose driver has been declared unable to drive by a law enforcement officer;

(5) a motor vehicle whose driver has been removed from the scene or is unable to drive; or

(6) a motor vehicle repossessed or seized pursuant to lawful authority;

[HHH.] GGG. "transfer of a certificate" means a permanent conveyance of all or part of a certificate;

[III.] HHH. "transfer by operation of law" means that all or a part of a grantee's interest in an operating authority passes to a fiduciary or other person by application of established rules of law;

[JJJ.] III. "transportation service" means transportation subject to the jurisdiction of the department, offered or provided by a motor carrier, that requires the carrier to obtain an operating authority from the department under the Motor Carrier Act, regardless of whether the motor carrier has obtained appropriate operating authority from the department;

[KKK.] JJJ. "verification" means a notarized signature verifying the contents of the document or other filing or a signature verifying the contents of the document or other filing under penalty of perjury, expressly providing that the signatory swears or affirms the contents under penalty of perjury as provided in Subsection A of Section 65-2A-33 NMSA 1978;

[LLL.] KKK. "voluntary suspension" means the department-authorized cessation of use of all or part of a certificate at the request of the holder for a specified period of time, not to exceed twelve consecutive months;

[MMM.] LLL. "warrant" means the authority issued by the department to a person that authorizes the person to offer and provide a warranted service as a motor carrier;

[NNN.] MMM. "warranted service" means one of the following intrastate transportation services offered or provided for hire:

(1) a charter service;

(2) a property transportation service; or

(3) a towing service; and

[OOO.] NNN. "weight-bumping" means the knowing and willful statement of a fraudulent weight on a shipment of household goods."

SECTION 2. Section 65-2A-4 NMSA 1978 (being Laws 2003, Chapter 359, Section 4, as amended) is amended to read:

"65-2A-4. POWERS AND DUTIES OF THE DEPARTMENT.--

A. In accordance with the Motor Carrier Act, the department shall:

(1) issue operating authorities for a motor carrier operating in New Mexico;

(2) establish minimum requirements for financial responsibility for motor carriers; provided that the financial responsibility standards required shall not be inconsistent with applicable federal standards;

(3) establish safety requirements for intrastate motor carrier motor vehicles and drivers subject to the jurisdiction of the department; provided that the safety requirements shall not be inconsistent with or more stringent than applicable federal safety standards;

(4) establish reasonable requirements with respect to continuous and adequate service to be provided under an operating authority;

(5) regulate the rates of tariffed service carriers to the extent provided in the Motor Carrier Act, including rates and terms of service for storing household goods and motor vehicles;

(6) determine matters of public interest and other matters relating to authorities, rates, territories, nature of service and other terms of service of motor carriers;

(7) have jurisdiction to determine any matter under the Motor Carrier Act relating to any transportation service carrier that has not obtained an appropriate operating authority from the department;

(8) subpoena witnesses and records, enforce its subpoenas through a court and, through the court, seek a remedy for contempt;

(9) hold a public hearing [specific to a protest or a request by the traffic safety bureau of the department that has been filed within the notice period in opposition to or in consideration of an application] as permitted by the Motor Carrier Act;

(10) create a statewide tariff for household goods service carriers establishing maximum rates that may be charged by carriers; and

(11) adopt rules, issue orders and conduct activities necessary to implement and enforce the Motor Carrier Act.

B. The department may:

(1) designate inspectors who may inspect the records, facilities and equipment of a motor carrier subject to the Motor Carrier Act [and who shall have the powers of peace officers in the state's political subdivisions with respect to a law or rule that the department is empowered to enforce pursuant to Section 65-1-6 NMSA 1978, excluding the enforcement authority granted to the New Mexico state police division of the department of public safety];

(2) institute civil actions in the district court of Santa Fe county in its own name to enforce the Motor Carrier Act, its orders and rules, and in the name of the state to recover assessments of administrative fines;

(3) from time to time, modify the type and nature of service, territory and terms of service of operating authorities previously issued, and change or rescind rates previously approved;

(4) establish statewide tariffs as needed for voluntary and optional use by tariffed service carriers; and

(5) adopt rules to implement these powers."

SECTION 3. Section 65-2A-5 NMSA 1978 (being Laws 2003, Chapter 359, Section 5, as amended) is amended to read:

"65-2A-5. APPLICATIONS IN GENERAL--MINISTERIAL GRANTS OF AUTHORITY--WHEN PUBLIC HEARINGS REQUIRED.--

A. A person shall file an application for any matter for which department approval is required. An application shall be made in writing, verified and in a form that contains information and is accompanied by proof of service upon interested persons as required by the department.

B. The department shall simplify to the extent possible the process for approving applications. The department may hold a public hearing on its own initiative or specific to an objection that has been filed within the notice period in opposition to or in consideration of an application.

C. The department shall hold a public hearing on an application whenever a protest is filed concerning the application during the notice period or the [traffic safety bureau] compliance unit of the department requests a hearing during the notice period.

D. The department may approve or deny an application in whole or in part, or allow or require particular terms of service as it may find reasonable and appropriate. If no objection, protest or request for hearing by the [traffic safety bureau] compliance unit of the department is filed during the notice period, the department may grant the application by ministerial action, if the application complies with the provisions of the Motor Carrier Act and the rules of the department regarding fitness, ability, financial responsibility and safety."

SECTION 4. Section 65-2A-6 NMSA 1978 (being Laws 2003, Chapter 359, Section 6, as amended) is amended to read:

"65-2A-6. NOTICE.--

A. The department shall electronically [publish] notice [regarding] an application [before the department] for a certificate or for a change in a certificate, regarding proposed rulemaking, or regarding other orders of [the department of] general application, by posting a copy of the notice or document on the department's [internet] website and sending electronic mail to all motor carriers, public officials or agencies, or other persons or entities who have previously supplied electronic mail addresses to the department for the purpose of publication, advising such persons of the filing and posting. If the department in its discretion should also require publication by newspaper, the requirement is met if notice is published once in a newspaper of general circulation in the state. The department shall not act on an application for a certificate or for an amendment, lease or transfer of a certificate less than twenty days after the date notice was published.

B. Whenever the Motor Carrier Act requires publication of notice regarding any other matter, the requirement is met if notice is published once in a newspaper of general circulation in the state. The department shall not act on a matter less than ten days after the date notice was published."

SECTION 5. Section 65-2A-8 NMSA 1978 (being Laws 2003, Chapter 359, Section 8, as amended) is amended to read:

"65-2A-8. CERTIFICATES FOR PASSENGER SERVICE.--

A. The department may issue a certificate for a passenger service as follows:

(1) a certificate for an ambulance service;

(2) a certificate for a shuttle service shall be endorsed for nature of service as a scheduled shuttle service or as a general shuttle service;

(3) a certificate for a specialized passenger service shall be endorsed for nature of service as provided by department rule; and

(4) a certificate for a taxicab service shall be endorsed for nature of service as a municipal taxicab service or as a general taxicab service.

B. Except as provided in this section and in Section 65-2A-13 NMSA 1978, the department shall issue a certificate allowing a person to provide passenger service after notice and public hearing requirements are met, if:

(1) the applicant is fit and able to provide the transportation service to be authorized by the certificate;

(2) the applicant is in compliance with the safety and financial responsibility requirements of the Motor Carrier Act, the rules of the department and other applicable federal and state laws and rules; and

[(3) for an application for ambulance service, the transportation service to be provided under the certificate is or will serve a useful public purpose that is responsive to a public demand or need; and

(4)] (3) the applicant has filed a tariff as provided in Section 65-2A-20 NMSA 1978.

C. Before granting a certificate for passenger service, the department shall consider any objections or protests that were filed within the notice period.

D. Before granting a certificate for ambulance service, the department shall also consider the effect that issuance of the certificate would have on existing ambulance service in the territory.

E. A certificate issued by the department for provision of passenger service shall contain one or more endorsements, each of which shall specify the:

(1) nature of service to be rendered;

(2) territory authorized to be served; and

(3) reasonable terms of service as the department may allow or require for the particular certificate.

F. Territorial endorsements to a certificate for passenger service shall:

(1) be limited to territory sought in the application that will be served in a reasonably continuous and adequate manner beginning within thirty days of the issuance of the certificate or such other definite period or date as the department may provide for a particular application and shall generally be authorized on the basis of county or incorporated municipal boundaries, subject to other specification reasonably allowed or required by the department;

(2) except for shuttle services, authorize transportation between points and places within the specified territory, and from points and places within the specified territory to all points and places in the state and return, unless otherwise expressly allowed or specified in the terms of service in the endorsement to the certificate; and

(3) for shuttle services, provide for transportation between two or more specified end or intermediate terminal points or areas, and authorize pick-up or drop-off of passengers throughout a terminal area, but shall not authorize transportation between points and places within a single terminal area or the provision of transportation services in any other areas of the state."

SECTION 6. Section 65-2A-11 NMSA 1978 (being Laws 2003, Chapter 359, Section 11, as amended) is amended to read:

"65-2A-11. TEMPORARY AUTHORITY.--

A. The department may without notice grant temporary authority to an applicant for a certificate or for amendment, lease or transfer of all or part of a certificate for a period not to exceed the duration of the application process, if it finds that:

(1) the notice period for such application has not yet expired, the application is one directly involving public safety, a governmental program or a specific public event, there is an urgent and immediate public need for such service and the public may be harmed by waiting for the notice period to expire;

(2) the applicant for temporary authority has a complete application for a certificate or for amendment, lease or transfer of all or part of a certificate pending before the department;

(3) the applicant is fit to provide the transportation service requested, is able to provide any certificated service requested and is in compliance with the safety and financial responsibility requirements of the Motor Carrier Act and the rules of the department; and

(4) satisfactory proof of urgent and immediate need has been made by verified proof as the department shall by rule prescribe.

B. An applicant for temporary authority as a tariffed service carrier shall file tariffs covering the transportation services for which temporary authority is being sought.

C. If a hearing is held before a hearing examiner for any reason on an application for a certificate or for amendment, lease or transfer of all or part of a certificate or for a tariff rate increase, the applicant may [move in such proceeding for] request without payment of fees or additional proceedings a grant of temporary authority or rate [approval] increase for a period not to exceed the duration of the application process. [and any protesting carrier or the traffic safety bureau of the department may move in such proceeding for reconsideration or modification of any grant of temporary authority previously granted by the department or the hearing examiner. The hearing examiner in the proceeding shall hold an expedited preliminary public hearing on the grant of temporary authority on the issues in the proceeding and the testimony evidence presented in the hearing on such procedural basis as the department shall by rule prescribe] The department may modify or condition the grant of temporary authority as to the contested terms or rates of service.

D. Motor carriers operating under temporary authority shall comply with the requirements of the Motor Carrier Act and the rules of the department.

E. A grant of temporary authority shall not create a presumption that permanent authority will be granted."

SECTION 7. Section 65-2A-12 NMSA 1978 (being Laws 2003, Chapter 359, Section 12, as amended) is amended to read:

"65-2A-12. WARRANTS.--

A. The department shall issue a warrant that allows a person to provide warranted service as a charter service, towing service or motor carrier of property if the department finds that the applicant is in compliance with the financial responsibility and safety requirements of the Motor Carrier Act and the rules of the department.

B. A towing service carrier performing nonconsensual tows is subject to tariff rates and terms of service. A towing service carrier performing nonconsensual tows shall not use the same motor vehicles, equipment and facilities used by another warranted towing service carrier performing nonconsensual tows.

C. A warrant shall not be transferred or leased to another person.

D. The department may without notice or a public hearing [cancel] revoke a warrant if the owner fails to operate under the warrant for twelve consecutive months or fails to provide proof of financial responsibility as required by the department for four consecutive months."

SECTION 8. Section 65-2A-13 NMSA 1978 (being Laws 2003, Chapter 359, Section 13, as amended) is amended to read:

"65-2A-13. PROTESTS, OBJECTIONS AND HEARINGS.--

A. Any interested person or any member of the public may provide information to the department or express an objection to any application for a certificate, or for amendment, lease or transfer of a certificate, during the notice period for the application by filing a written objection in regard to the application. The department shall consider any objections filed in regard to determining whether to hold a hearing on the application. The department is not required to hold a hearing pursuant to any objection but may, in its discretion or on its own motion for any reason, hold a hearing on any application for a certificate or for an amendment, lease or transfer of a certificate.

B. The department shall hold a hearing on an application whenever a protest is filed within the notice period or the [traffic safety bureau] compliance unit of the department files a request for a hearing relative to an application within the notice period. The department shall allow a protesting carrier to proceed as an intervenor in the application proceeding.

C. In any hearing held on an application:

(1) the applicant has the burden of proving that the applicant meets the requirements of the Motor Carrier Act and the rules of the department for the application at issue, the burden of demonstrating with reasonable specificity the nature and scope of its proposed transportation service, the burden of proving any particular factual matters that the department [or the traffic safety bureau of the department] may identify and require, the burden of proving any additional allegations and matters of public interest that it may raise and, if the application pertains to ambulance service, the burden of proving that the ambulance service that currently exists in the territory sought in the application is inadequate and that the proposed service is directly responsive to a public need and demand for the service proposed;

(2) a protesting carrier has the burden of proving all matters of fact pertaining to its full-service operation within its certificated full-service territory, the burden of proving the potential impairment or adverse impact on its existing full-service operation by the transportation service proposed by the applicant and the burden of proving all other allegations and matters of public interest that it may raise. The protesting carrier's proof should include, without limitation, a demonstration with reasonable specificity of the nature of the existing full service being provided, the volume of passengers transported, economic analysis related to expenses and revenues of the full-service operation and the anticipated economic, business or functional effect of the proposed service on the existing provision of, or rates for, full-service transportation within the full-service territory;

(3) the department may allow other interested persons to intervene, either generally or on the basis of specific facts or issues. A permissive intervenor has the burden of proof for its position on all factual matters and legal issues that it alleges and on which it is permitted to intervene; and

(4) all parties to a hearing may base their demonstration and proof on business data, experienced persons and mathematical calculations. Expert testimony shall not be required of any party but may be provided at the option of a party.

D. The department shall not grant an application:

(1) for a certificate for ambulance service, or for amendment, lease or transfer of such a certificate, if it finds after hearing that the existing ambulance service is provided on a reasonably continuous and adequate basis in the territory in which the new service is sought or that the holder of the certificate or lessee providing the existing ambulance service in such territory is willing and able to provide, and does subsequently provide, reasonably continuous and adequate service within such territory, as specified by department order;

(2) for a new certificate for general taxicab service within the full-service territory of a protesting municipal taxicab service carrier; or

(3) for a certificate for any passenger service other than those identified in Paragraphs (1) and (2) of this subsection, or for amendment, lease or transfer of such a certificate, within a protesting full-service carrier's full-service territory, if it finds after hearing that the grant of the application presents a reasonable potential to impair, diminish or otherwise adversely affect the existing provision of full-service passenger service to the public in the full-service territory or if the application is otherwise contrary to the public interest in the full-service territory. In considering the potential effect on provision of transportation services to the public in regard to such an application, the department shall consider all evidence presented pertaining to such potential effect, including evidence of the effect that diversion of revenue or traffic may have on the provision of full-service passenger service to the community. Diversion of revenue or traffic from an existing motor carrier shall not, however, be sufficient grounds for denying the application without a showing that the diversion presents a reasonable potential to affect the provision of full-service passenger service to the community."

SECTION 9. Section 65-2A-15 NMSA 1978 (being Laws 2003, Chapter 359, Section 15, as amended) is amended to read:

"65-2A-15. MULTIPLE OPERATING AUTHORITIES AND BUSINESS TRADE NAMES ALLOWED.--

A. A person may simultaneously hold certificates for different kinds of certificated services and warrants for different kinds of warranted service within the same territory.

B. Any motor carrier that holds more than one certificate for the same kind and nature of certificated service in the same territory shall file an application with the department to consolidate the operating authorities.

C. The department shall not grant any new operating authority to a motor carrier that duplicates the operating authority of the same kind and for the same territory already held by that motor carrier.

D. Certificated service carriers holding both a certificate and warrant for related services may use the same vehicles and may transport passengers and property, or mixed loads of household goods and property, pursuant to those authorities in the same vehicles and on the same trip.

E. Every certificated or warranted service carrier shall file with [the traffic safety bureau of] the department all business trade names under which the carrier operates its service or services authorized and shall provide [the traffic safety bureau of] the department with proof of financial responsibility for all business trade names in addition to its legal name. The department shall accept business trade names as submitted by a carrier. Filing with [the traffic safety bureau of] the department shall not, by itself, establish or otherwise affect the ownership or right to use a business trade name under the intellectual property laws of the state of New Mexico."

SECTION 10. Section 65-2A-20 NMSA 1978 (being Laws 2003, Chapter 359, Section 20, as amended) is amended to read:

"65-2A-20. TARIFFS.--

A. A tariffed service carrier shall not commence operations or perform a new service under its operating authority without having an approved tariff on file with the department.

B. A tariffed service carrier shall file with the department proposed tariffs showing the rates for transportation and all related activities and containing a description of the type and nature of the service, territory and all terms of service for transportation and related services. The rates shall be stated in terms of United States currency. Tariffs for individual carriers shall also include the carrier's legal name, all business trade names used by the carrier, contact information, information for service of process, the territory authorized for each transportation service listed in the tariff and any terms of service contained in the operating authorities for that particular carrier. Each tariffed service carrier operating pursuant to a statewide tariff shall file with the department a tariff statement referencing the statewide tariff being used and include the carrier's legal name, all business trade names used by the carrier, contact information, information for service of process, the territory authorized for that carrier and any terms of service contained in the operating authority for that particular carrier.

C. A tariffed service carrier shall not charge, or permit its agents, employees or contract drivers to charge, a different or additional rate, or to use different or additional practices or terms of service, for transportation or for a service rendered to or for the user of the service other than the rates and terms of service specified in approved tariffs in effect at the time, except:

(1) for ambulance and household goods service carriers, in accordance with rates and terms of service established by federal or state law for federal or state governmental programs or operations; and

(2) for tariffed passenger service carriers other than ambulance service carriers, in accordance with the rates and terms of service established by governmental programs or operations in which they voluntarily participate.

D. A tariffed service carrier shall not pay or refund, directly or indirectly to any person, a portion of the rate specified in its approved tariff, offer to a person privileges or facilities, perform a service or remit anything of value, except:

(1) in accordance with tariffs approved by the department;

(2) for ambulance and household goods service carriers, in accordance with rates and terms of service established by federal and state law for federal and state governmental entities, programs or operations;

(3) for tariffed passenger service carriers other than ambulance service carriers, in accordance with the rates and terms of service established by governmental programs or operations in which they voluntarily participate; or

(4) in settling or resolving a claim by a customer.

E. The department shall post on its [internet] website electronic copies of all currently approved individual and statewide tariffs, and all tariff statements filed by carriers using statewide tariffs, in a manner to facilitate public access, review and comparison of rates and terms of service. A certificated passenger service carrier other than an ambulance service carrier shall post its tariff rates in each vehicle used in the provision of its transportation service.

F. A tariffed service carrier shall file an application with the department for any change in the tariff, accompanied by the proposed tariff, at least twenty days prior to implementation of the amended rates and terms of service contained in the tariff. Except as provided in this section, an amended tariff shall be approved and become effective twenty days after filing of the application for a change in the tariff. The department shall post notice of each application for a change in a tariff along with a copy of the proposed tariff on [the department] its website.

G. No [changes in] proposed terms of service [disapproved by the traffic safety bureau of] shall become effective if the department identifies a change as inconsistent with the Motor Carrier Act [rule of the] or other law, department rules or the [individual] operating authority of the carrier [or otherwise in violation of law shall become effective or be part of the approved tariff]. The following terms of service contained in a tariff shall not be considered inconsistent with, or predatory or discriminatory in nature under the Motor Carrier Act or department rule:

(1) a carrier may decline or terminate service under circumstances that reasonably appear to present a physical danger to the driver, to another employee of the carrier or to passengers or, for carriers other than ambulance service carriers, a danger to the condition of the motor vehicle or cargo;

(2) a carrier is not responsible for cancellations or delays due to weather or road conditions when reasonably required for safety or when due to road construction, road closures, law enforcement stops or similar matters beyond the control of the carrier;

(3) a passenger service carrier may require that all firearms carried by any passenger other than an authorized law enforcement officer be unloaded and placed in a locked area of the vehicle during transport, along with all ammunition and any other weapons; or

(4) a passenger service carrier other than an ambulance service carrier may decline or terminate service when the passenger cannot give an adequate description of, or direction to, the destination or cannot transfer into or out of the motor vehicle without requiring physical assistance from the driver.

H. An application for amendment of tariff rates that increases any tariff rate to a level greater than that previously approved by the department for a full-service carrier or a towing service providing nonconsensual tows shall not become effective until approved by the department as reasonable under Section 65-2A-21 NMSA 1978. The department shall hold a hearing appropriate to the type of transportation service provided by the carrier for any such application, if requested by the applicant or by the [traffic safety bureau] compliance unit of the department, or if ordered in the discretion of the department. The department may provide for reasonable periodic rate increases for full-service carriers or towing services providing nonconsensual tows pursuant to a rate escalator or adjustment clause for any or all rates of a carrier on such basis as the department finds reasonable.

I. A person may make a complaint in writing to the department that a rate or term of service [contained in a tariff, or a rate otherwise charged or practice otherwise effected] is inconsistent with or in violation of the Motor Carrier Act, department rule or the operating authority or current tariff of the motor carrier. The department may suspend the operation of a rate, term of service or practice for a period not to exceed sixty days to investigate its reasonableness. If the department finds that a rate charged by a tariffed carrier, or a term of service or practice effected by a tariffed carrier, is unauthorized, predatory or discriminatory, the department shall prescribe the rate or the maximum or minimum rate to be observed or the terms of service to be made effective."

SECTION 11. Section 65-2A-23 NMSA 1978 (being Laws 2003, Chapter 359, Section 23, as amended) is amended to read:

"65-2A-23. MOTOR CARRIER ORGANIZATIONS.--

A. A tariffed service carrier may enter into discussions with another tariffed service carrier to establish a motor carrier organization. The organization shall obtain authorization from the department before its members enter into any discussions concerning the rates contained in a statewide tariff. The department may authorize the creation of a motor carrier organization to discuss and promote industry matters, other than the rates of individual carriers, if the organization:

(1) allows any intrastate motor carrier authorized to provide the same type of service to become a member of the organization and allows a member carrier to discuss matters before the organization and to vote upon any proposal;

(2) does not interfere with a member carrier's right to establish its own tariff [and does not change or cancel an independently established tariff];

(3) does not file an objection, protest or complaint with the department against a tariff item [independently] published by or for [the account of] a member carrier;

(4) does not permit its employees or an employee committee to file or act upon a proposal effecting a change in a tariff item published by or for the account of a member carrier; and

(5) proposes matters concerning statewide tariffs for approval by the department.

B. A member carrier of the organization shall file with the department information as the department may by rule prescribe.

C. A motor carrier organization approved by the department pursuant to this section shall be subject to accounting, recordkeeping, reporting and inspection requirements as the department may by rule prescribe.

D. The department may, upon complaint or upon its own initiative, investigate and determine whether a motor carrier organization previously authorized by it is not in conformity with the requirements of this section or with the terms and conditions upon which the motor carrier organization was granted authorization. The department may modify or terminate its authorization of a motor carrier organization found to be noncompliant with the requirements of this rule.

E. The antitrust laws of the state shall not apply to discussions concerning general industry matters, terms of service or any matters concerning a statewide tariff, including the rates contained in a statewide tariff, by member carriers of a motor carrier organization authorized by the department."

SECTION 12. Section 65-2A-24 NMSA 1978 (being Laws 2003, Chapter 359, Section 24, as amended) is amended to read:

"65-2A-24. MOTOR VEHICLE LEASES--DRIVER CONTRACTS.--

A. An intrastate motor carrier shall not lease a motor vehicle or operate a leased motor vehicle in the course of its transportation service except as provided by department rule. The department may approve a motor vehicle lease without notice or a public hearing.

B. A motor carrier may use employed or contract drivers [or taxicab association member drivers] in the provision of a transportation service. Regardless of the provisions of any written or oral agreement between a motor carrier and a contract driver [or taxicab association member driver], motor carriers providing transportation services that use contract drivers [or taxicab association member drivers] remain fully responsible to the department for complying with all provisions of the Motor Carrier Act and department rules applicable to transportation service carriers.

C. Motor carriers providing intrastate transportation services that use contract drivers [or taxicab association member drivers] shall maintain, at their principal places of business within the state, a current written agreement with each such driver. No agreement with any contract driver [or taxicab association member driver] shall contain any provision contrary to a provision of the Motor Carrier Act or a rule of the department. Each written agreement shall contain a clause that requires the contract driver [or taxicab association member driver] to adhere to all provisions of the Motor Carrier Act and to all department rules applicable to transportation service carriers."

SECTION 13. Section 65-2A-27 NMSA 1978 (being Laws 2003, Chapter 359, Section 27, as amended) is amended to read:

"65-2A-27. INVOLUNTARY SUSPENSION, REVOCATION OR AMENDMENT OF OPERATING AUTHORITIES–REINSTATEMENT.--

A. The department shall immediately suspend, without notice or a public hearing, the operating authority of a motor carrier for failure to continuously maintain the forms and amounts of financial responsibility prescribed by department rule.

B. The department may immediately suspend, without notice or a public hearing, the operating authority of a motor carrier for violation of a safety requirement of the Motor Carrier Act, the department's rules or the rules of the New Mexico state police division of the department of public safety, if the violation [endangers] creates an immediate danger to the public health or safety.

C. The department may, upon complaint or the department's own initiative and after notice and a public hearing, if required, order involuntary suspension, revocation or amendment, in whole or in part, of an operating authority for failure to:

(1) comply with a provision of the Motor Carrier Act;

(2) comply with a lawful order or rule of the department;

(3) comply with a term of service of an operating authority or tariff; or

(4) render reasonably continuous and adequate service under a certificate.

D. The department may approve an application for reinstatement of an operating authority following involuntary suspension if it finds, after notice and public hearing requirements are met, that:

(1) the reasons for the involuntary suspension no longer pertain; and

(2) the holder of the operating authority is fit, and a certificate holder is able, to provide the authorized transportation services, and the holder will comply with the Motor Carrier Act and the rules of the department."

SECTION 14. Section 65-2A-35 NMSA 1978 (being Laws 2003, Chapter 359, Section 35, as amended) is amended to read:

"65-2A-35. APPEAL TO [SUPREME] DISTRICT COURT.--

A. A [motor carrier or other interested] person aggrieved by a final [order or determination] decision of the department issued pursuant to the Motor Carrier Act may appeal to the [supreme] district court pursuant to Section 39-3-1.1 NMSA 1978 within thirty days [The appellant shall pay to the department the costs of preparing and transmitting the record to the court] of the final decision.

B. The pendency of an appeal shall not automatically stay the order appealed from. [The appellant may petition the department or the supreme court for a stay of the order.

C. The appeal shall be on the record of the hearing before the department and shall be governed by the appellate rules applicable to administrative appeals. The supreme court shall affirm the department's order unless it is:

(1) arbitrary, capricious or an abuse of discretion;

(2) not supported by substantial evidence in the record; or

(3) otherwise not in accordance with law.]

C. The appellant shall pay to the department the costs of preparing and transmitting the record to the court."

SECTION 15. Section 67-3-6.1 NMSA 1978 (being Laws 2023, Chapter 100, Section 1) is amended to read:

"67-3-6.1. DEPARTMENT OF TRANSPORTATION--POWERS AND DUTIES--[COMMON] RAILWAY COMPANIES--TRANSPORTATION NETWORK COMPANIES--MOTOR CARRIERS.--

A. [With respect to common carriers] The department of transportation shall:

(1) [fix, determine, supervise] regulate [and control all charges and rates of] railway [express, sleeping car and other] companies, transportation network companies and [common] motor carriers within the state;

(2) determine any matters of public [convenience and necessity with respect to matters] interest subject to its regulatory authority over railway companies, transportation network companies or motor carriers as provided by law;

(3) require railway companies and [other common] motor carriers to provide and maintain adequate equipment, depots, stock pens, station buildings, agents and facilities for the accommodation of shippers and passengers and for receiving and delivering freight and express and to provide and maintain necessary crossings, culverts, sidings and other facilities for convenience and safety whenever in the department's judgment the public interest demands;

(4) require railway companies [transportation companies] and [common] motor carriers to provide such reasonable safety appliances and use such reasonable safety practices as may be necessary and proper for the safety of employees and the public as required by federal or state laws and rules;

(5) change, amend and rescind rates;

(6) enforce its rules through administrative sanctions and in the courts; and

(7) carry out all other duties and have all other powers provided by law.

B. The department of transportation may subpoena witnesses and documents, enforce its subpoenas through any court and, through the court, punish for contempt.

C. The department of transportation has the power, after notice and hearing of record, to determine and decide any question and to issue orders relating to its powers and duties.

D. An interested party may appeal from a final [order] decision of the department of transportation by filing a notice of appeal with the [supreme] district court [asking for review of the order] pursuant to Section 39-3-1.1 NMSA 1978 within thirty days of the final [order] decision. The appellant shall pay to the department any costs of preparing and transmitting the record to the court.

E. The pendency of an appeal shall not automatically stay the [order] decision appealed. [from. The appellant may seek to obtain a stay from the department of transportation or the supreme court.

F. The appeal shall be on the record of the hearing before the department of transportation and shall be governed by the appellate rules applicable to administrative appeals. The supreme court shall affirm the department's order unless it is:

(1) arbitrary, capricious or an abuse of discretion;

(2) not supported by substantial evidence in the record; or

(3) otherwise not in accordance with law.

G.] F. In the case of a failure or refusal of a person to comply with [an order] a decision of the department of transportation within the time prescribed in the [order] decision or within thirty days after the [order] decision is entered, whichever is later, unless a stay has been granted, the department shall seek enforcement of the [order] decision in the district court. The enforcement hearing shall be held on an expedited basis. At the hearing, the sole question shall be whether the person has failed to comply with or violated the [order] decision."

SECTION 16. Section 67-3-6.2 NMSA 1978 (being Laws 2023, Chapter 100, Section 2) is amended to read:

"67-3-6.2. DEPARTMENT OF TRANSPORTATION MAY INSPECT BOOKS AND RECORDS.--The department of transportation or person authorized by the department in writing under its seal to make an examination shall have the right at all times to inspect the books, papers and records of [all such] railway companies, transportation network companies [and common] or motor carriers doing business in this state relating to any matter pending before or being investigated by the department. Any officer, agent or employee of any such company or corporation or any person in charge of such books, papers and records who refuses to permit examination or who conceals, destroys or mutilates or attempts to conceal, destroy or mutilate any such books, papers or records or remove the same beyond the limits of the state for the purpose of preventing examination shall be deemed guilty of a misdemeanor and upon conviction may be fined not to exceed five hundred dollars ($500) or imprisoned in the county jail not more than six months."

SECTION 17. REPEAL.--Sections 67-3-6.3 through 67-3-6.5 NMSA 1978 (being Laws 2023, Chapter 100, Sections 3 through 5) are repealed.

SECTION 18. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2024.

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