NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

The most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Maes

 

DATE TYPED:

03/12/03

HB

 

 

SHORT TITLE:

Motor Carrier Act

 

SB

698/aSCORC/aSJC

 

 

ANALYST:

Gilbert

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

$0.1 See Narrative

$0.1 See Narrative

Recurring

General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

 

Duplicate HB 880

 

SOURCES OF INFORMATION

 

LFC Files

 

Response Received From

Public Regulation Commission (PRC)

 

SUMMARY

 

     Synopsis of SJC Amendment

 

Senate Judiciary Committee amendment to Senate Bill 698 clarifies that, in compliance with the Motor Carrier Act, the commission shall not implement safety requirements that are inconsistent with or more stringent than applicable federal safety standards.

 

SB 698/aSJC also removes language from the original bill that would have amended NMSA 1978, § 66-7-413(M) to only require motor carriers of manufactured homes to maintain warrants or single state registration receipts as evidence of certain insurance requirements. With this amendment, all motor carriers requesting oversize permits would need to maintain warrants or single state registration receipts as evidence of insurance.

 


     Synopsis of SCORC Amendment

 

Senate Corporations and Transportation Committee amendment to Senate Bill 698 provides detailed definitions for “taxicab service” and “terminal shuttle service”.

 

Section 16. [new material] interstate motor carriers is amended as follows:

 

D. Compliance by an interstate motor carrier with the provisions of the federal Intermodal Surface Transportation Efficiency Act of 1991 shall not authorize a carrier to provide intrastate transportation services in New Mexico. An interstate motor carrier wishing to provide compensated transportation in intrastate commerce shall apply for the appropriate intrastate operating authority from the commission.  A taxicab service or terminal shuttle service is engaged in nonexempt intrastate business within the state regardless of a prior exemption if its service provides, with regard to any service run, for both:

 

(1)    initiation of the transportation of one or more passengers within this state; and

 

(2) delivery to a departure point within this state of one or more passengers whose transportation on that service run was initiated at a point within this state.".

 

Section 38(D), pertaining to exemptions to the Motor Carrier Act, is amended to only exempt county and municipal bus transportation systems

 

     Synopsis of Original Bill

 

Senate Bill 698 enacts a new Motor Carrier Act and repeals provisions of the current Act NMSA 1978, § 65-2-80 through NMSA 1978, § 65-2-127 and NMSA 1978, § 65-4-1 through NMSA 1978, § 65-4-18. The purpose of this bill is to comply with Federal preemption of former Public Regulation Commission (PRC) responsibilities relating to property carriers, clean-up language in the current Motor Carrier Act, make this Act consistent with the PRC Act, and to make needed revisions to the current Act.

 

     Significant Issues

 

Key provisions of SB 698 (new Motor Carrier Act) are outlined below:

 

q    Deletes sections of the former Act pertaining to regulation of motor carriers of property where authority for such regulation has been preempted by the Federal government.

 

q    Creates a new type of operating authority (warrant) for motor carriers over which the PRC has limited authority.

 


q    Adds authority for the PRC to suspend without notice or a hearing the operation authority of a motor carrier for failure to maintain appropriate insurance coverage or for violation of any safety requirement that would endanger public health or safety.

 

q    Adds authority for the Motor Transportation Division to immediately order a motor carrier, without notice or a hearing, to take a vehicle out of service for violation of any safety requirements of Federal or state law or rules that would endanger the public health or safety.

 

q    Simplifies terminology by changing certificates of public convenience and necessity to “certificate” and certificate of registration to ‘warrant”.

 

q    Clarifies that the PRC has authority to issue certificates and permits without a hearing if no person protests the application and staff does not request a hearing.

 

q    Adds provisions to permit electronic filing of documents and electronic payment of fees.

 

q    Adds requirements that motor carriers applying for temporary authority have a complete application for permanent authority or for a change in their authority pending before the PRC.

 

q    Adds provisions for compensation of witnesses appearing before the PRC pursuant to a subpoena.

 

FISCAL IMPLICATIONS

 

The PRC states that adoption of this bill will result in a small increase in revenue associated with a new $25 fee for warrant applications.

 

ADMINISTRATIVE IMPLICATIONS

 

This bill would clarify and streamline PRC responsibilities under the Motor Carrier Act.

 

OTHER SUBSTANTIVE ISSUES

 

A PRC prepared side-by-side comparison of the current Motor Carrier Act and significant provisions of the proposed Act is attached.

 

RLG/yr:njw

Attachment


ATTACHMENT SB 698

PUBLIC REGULATION COMMISSION

2003 LEGISLATION MOTOR CARRIER ACT REWRITE

Agency Contacts:  Avelino A. Gutierrez 827-4565

and Dave Baca 827-4048

 

F = Make consistent w/ Federal preemption

C = Clean up of previously archaic language

M= Make consistent with PRC Act or streamline

N= No change

A = Additions/Amendments to Motor Carrier Act

 

 

I.       NEW MEXICO PUBLIC REGULATION COMMISSION RECOMMENDATIONS

OF LAWS TO REPEAL

 

 CURRENT

 SECTION             DESCRIPTION                  STATUS               PROPOSED CHANGE             

65-2-80 to 65-2-127

Motor Carrier Act

 

Repeal and replace

New Motor Carrier Act proposed-F,C,M,N,P,A

65-4-1 to 65-4-18

Motor Carrier Transportation Agents

Repealed, but not replaced

Not applicable-F

 

 

 

II.      NEW MEXICO PUBLIC REGULATION COMMISSION

COMPARISON OF CURRENT AND PROPOSED MOTOR CARRIER LAW

 

CURRENT

SECTION         DESCRIPTION                NEW SECTION     PROPOSED CHANGE

65-2-80

Short title

65-2-128

Same as previous section.

65-2-81

Declaration of Policy

65-2-129

Essentially the same as previous section.

65-2-82

Definitions

65-2-130

Many definitions changed, either modified, deleted, or added; “broker” eliminated-F, “certificate”-modified-F, “clerk”-M , “commission”-N, “common motor carrier”-C,F,P, “contract motor carrier”-C,F,P,  “farm carrier”-C,F, “highway”-C, “household goods”-C,F, “interested parties”-C, “irregular route”-N, “lease”-, “license”-C, “motor carrier”-F,C,P, “motor vehicle”-F, “permit”-F,C,P ,“person”-eliminated, “regular route”-C, “services”-C, “transportation”-eliminated, in substantive part of Motor Carrier Act, “shipper”,-N, “single-line rate”-eliminated, in substantive parte of Motor Carrier Act, “state”-eliminated, “towing company”-changed to towing services, “weight bumping” –C.

POLICY QUESTION:  Whether the definition of “commuter service” should be broadened to eliminate the requirement that the volunteer drivers determine the daily vanpool route and that the route generally begin at home and end at the individual workplace or training site?

POLICY QUESTION:  Whether the commission should require farm carriers to obtain a warrant instead of a certificate of registration?  (This would be accomplished by listing the commodities carried under the current definition of “farm carriers” (requires a certificate of registration) under the definition of  “property” (would require a warrant).)

POLICY QUESTION:  Whether the exemption from obtaining any authority from the commission in current law applicable to motor vehicles being used in the transportation of, or carrying a cargo consisting exclusively of, unprocessed farm products as  a part of harvesting from the place of production to market or to storage or to a processing plant, be restricted to farmers only?

POLICY QUESTION:  Whether the commission should no longer require vehicle escort services to hold authority from the commission? (Same as POLICY QUESTION under § 66-7-413 below.)   

65-2-83

Powers and duties of commission

65-2-131

POLICY QUESTION:  Whether, unlike the current motor carrier act, the new motor carrier act should explicitly state that the Commission regulates safety? (§ 63-7-1.1 currently contains explicit safety requirement.)

65-2-84

Certificate of convenience and necessity; requirement; standards for issuance

65-2-135, -136

F, C, M

65-2-85

Certificate of convenience and necessity; application; hearing and notice; protests

65-2-132, -133, & -135

F, C, M

65-2-86

Certificate of convenience and necessity; terms and conditions; removal of certain restrictions

65-2-131, -137

F, C, M

65-2-87

Permit; requirement; standards for issuance; contracts to be filed

65-2-137, -139

F, C, M

 

65-2-88

Permit; application; hearing and notice; protests

65-2-132, -133, &  -140

F, C, M

65-2-89

Permit terms and conditions; not limit on number of contracts

65-2-131, & -137

F , C, M

65-2-90

Common carriers and contract carriers; dual authority to transport property

65-2-137, -142

F, C, M

65-2-91

Motor carrier brokers for transportation of property; license required; standards for issuance; rules and regulations; commission authority; exemptions

None

Proposed to be repealed-F.

65-2-92

Suspension, revocation or amendment of certificates, permits and licenses

65-2-141, -154

F, C, M

POLICY QUESTION:  Whether the Commission should be given the authority to immediately suspend, without notice or a public hearing, the operating authority of any motor carrier for failure to maintain appropriate insurance for violation of any safety requirement of the motor carrier act, the commission’s rules, or the rules of the motor transportation division of the department of public safety if such violation would endanger the public health or safety?

POLICY QUESTION: Whether the commission may, at the request of the owner, change the form of ownership of a certificate of public convenience or necessity or contract carrier permit without notice or hearing? 

65-2-93

Transfers of certificates, permits and licenses

65-2-141

C, M

POLICY QUESTION:  Whether in a transfer of a certificate of public convenience and necessity or contract carrier permit, the transferee should be required to buy the operating equipment of the transferor?

POLICY QUESTION:  Whether the commission may at the request of the owner reinstate a certificate of public convenience or necessity or contract carrier permit following voluntary suspension without notice or hearing?

65-2-94

Power to grant temporary authority; notice to authorized carriers; hearings; requirements

65-2-138

POLICY QUESTION:  Whether an applicant for temporary authority should be required to have a complete application for permanent authority pending before the Commission in order for the Commission to grant the temporary authority?

 

65-2-95

Household goods agents; responsibilities of carriers; complaints; investigations; hearing and notice; compliance; antitrust exemption

65-2-152

C

65-2-96

Establishment of just and reasonable rates and practices; joint rate; through routes; unreasonable preferences; suspension; complaints; rate standards

65-2-148

C, M

65-2-97

Filing of tariffs; deviations and refunds prohibited; tariff changes

65-2-141, -147

C, M

65-2-98

Motor carrier agreements; commission approval; requirement; antitrust immunity; termination

65-2-150

C, M

65-2-99

Rates; liability based on value

65-2-152

C, M

65-2-100

Motor carriers of property; receipts

65-2-152

C, M

65-2-101

Annual reports; access to information; production of information

65-2-156

C, M

POLICY QUESTION:  Whether the commission should have the authority to collect financial information as part of the annual report?

POLICY QUESTION:  If the commission is given the authority to collect financial information, whether the public should have access to such financial information?

 

 

65-2-102

Household goods carrier operations; regulatory requirements; protection of individual shippers; performance standards; estimates; weighing

65-2-152

C, M

65-2-103

Household goods rates; estimates; guarantees of service

65-2-152

C, M

65-2-104

Household goods carriers; dispute settlement programs; commission approval; requirements; attorney’s fees

65-2-153

C, M

POLICY ISSUE:  Whether voluntary dispute settlement programs should apply to all household carrier disputes instead of only in the case of collect-on-delivery transportation of household goods?

65-2-105

Leasing of motor vehicle equipment; commission approval; appearance before commission; circumvention of laws or regulations

65-2-151

C, M

POLICY ISSUE:  Whether the new motor carrier act should contain a provision which requires the commission to specify by rule which of the two parties to a motor vehicle lease will be responsible for complying with financial responsibility and safety requirements?

65-2-106

Witnesses; fees and charges; attendance and testimony required; production of documents required; compelling attendance and testimony, oaths; certifications; subpoenas; service; quorum; investigation; taking testimony

65-2-158

C, M

POLICY QUESTION:  Whether witnesses appearing before the commission pursuant to a subpoena should be compensated as provided under the courts of this state?

65-2-107

Time schedules; approval by commission; failure to adhere to schedules; compliance with maximum speed limits

65-2-149

C, M

65-2-108

Discontinuance of seasonal operations; posting notice; abandonment of service; notice to commission; cancellation of certificate

65-2-141

C, M

65-2-109

Special rates for students and senior citizens; free transportation prohibited; exceptions

65-2-157

C, M

65-2-110

Financial responsibility; ticket reclaim bonds; C.O.D. bonds; public liability and property damage; cargo liability and interchange charge liability bonds or insurance policies; self-insurance; amounts; considerations

65-2-145

C, M

65-2-111

Agent for service of process

65-2-155

C, M

65-2-112

Motor transportation division to furnish field information

65-2-156

C, M

65-2-113

Expenditures for administration

None

Proposed to be repealed-F.

65-2-114

Police powers for inspectors

65-2-131

C, M

65-2-115

Interstates carriers; certificate of registration; procedure

65-2-134, -143

C, M

65-2-115.1

Interstate carriers; establishment of single state registration system

65-2-134, -143

C, M

65-2-116

Farm carriers; registration; commission jurisdiction; applicability; exemptions

65-2-139

C, M

65-2-117

Orders to discontinue, rectify or prevent violations; administrative penalties; continuing violations; penalties cumulative; actions to recover fines

65-2-159

C,M

POLICY QUESTION:  Whether motor carriers of persons should also be liable for administrative fines of up to $10,000 for knowingly utilizing a motor carrier not properly authorized by the commission?  (Currently, only shippers are liable.)

65-2-118

Written orders; publication (repealed effective 1/1/99)

None

Not re-adopted

65-2-119

Effective date of orders (repealed effective 1/1/99)

None

Not re-adopted

65-2-120

Appeal to supreme court

65-2-162, 63-7-1.1

N

65-2-121

Criminal penalties; false statements; false reports; false entries; commission employee divulging information; weight-bumping; other violations; civil penalties for household goods violations; arrest and prosecution of violators

65-2-160

N

65-2-122

Prior certificates and permits

65-2-167

C, M

65-2-123

Enforcement of orders

65-2-117, -131

C, M

65-2-124

Effect on interstate and foreign commerce

None

Not needed

65-2-125

Fees; refunds; disposition of receipts; forfeiture of deposits

65-2-163

C,M

POLICY QUESTION:  Whether the Commission should collect a $25 fee for warrant applications?

65-2-125.1

Administration of fee collection and distribution

None

Propose to repeal

65-2-126

Exemptions

65-2-144, -165

C, M

65-2-127

Effect on municipal powers

65-2-166

C, M

 

 

III.     NEW MEXICO PUBLIC REGULATION COMMISSION RECOMMENDATIONS

OF ADDITIONAL MOTOR CARRIER ACT SECTIONS TO ENACT

 

CURRENT

SECTION         DESCRIPTION                NEW SECTION     PROPOSED CHANGE

None

Use of equipment for common and contract motor carriage

65-2-137 F

POLICY ISSUE:  Whether common and contract motor carriers may share equipment as long as common motor carrier service does not suffer?  (Currently, contract motor carriers required to dedicate equipment to the contract and may not use that equipment in the provision of common motor carriage.)

None

Warrants

65-2-139

POLICY ISSUE:  Whether motor carriers of property, commuter services, charter services, and towing services should be required to obtain a warrant as proof of compliance with safety and financial responsibility?

POLICY ISSUE:  Whether warrants should be cancelled if the owner fails to operate under the warrant for twelve consecutive months?

None

Safety requirements for motor vehicles and drivers used in compensated transportation

65-2-146

POLICY ISSUE:  Whether the Commission should have authority to prescribe safety and driver requirements for motor vehicles weighing 26,000 pounds or less or carrying 15 or fewer persons (including the driver) used by intrastate motor carriers?  (No other state or federal agency has the authority to prescribe safety and driver requirements over this class of drivers and vehicles.)

None

Electronic filing and certification of documents; electronic payment of fees

65-2-164

POLICY ISSUE:  Whether the new motor carrier act should contain provisions that allow for rules that provide for electronic filing and certification and electronic payment of fees?

None

Transition

65-2-167

 

None

Effective date

Section to be assigned by Legislative Council Service

Propose effective date of July 1, 2003

 

 

IV.     NEW MEXICO PUBLIC REGULATION COMMISSION RECOMMENDATIONS

OF REVISIONS TO OTHER MOTOR CARRIER LAWS

 

CURRENT

SECTION         DESCRIPTION                NEW SECTION     PROPOSED CHANGE

65-1-6

Field enforcement of motor carrier act and regulations

Same

C, M

POLICY ISSUE:  Whether the motor transportation division of the department of public safety should be required to enforce in the field the motor carrier act and rules promulgated under that act?

66-7-413

Permits for excessive size and weight; special notification required on movement of manufactured homes

Same

C, M

POLICY ISSUE:  Whether as a reflection of federal preemption of intrastate regulation of property, escort vehicles should no longer be required to hold authority from the commission?

66-8-116.2

Penalty assessment misdemeanors; motor carrier act

Same

Refer to currently issued authority from commission as finable offense-F