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

SPONSOR Griego

ORIGINAL DATE

LAST UPDATED

02/01/2006

HB

SHORT TITLE

Motor Carrier Act Federal Compliance

SB 447

ANALYST Moser

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

FY08

$3,500*

$3,500*

Recurring State Road Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

* The proposed legislation adds a penalty for failure to register with a base state under the pending Uni-

fied Carrier Registration Act of 2005. The revenues to be received from adding this penalty are antici-

pated to be positive but are also anticipated to be negligible.

Companion to HB419

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Regulation Commission (PRC)

NM Department of Transportation (NMDOT)

Department of Public Safety (DPS)

SUMMARY

Synopsis of Bill

Senate Bill 447 amends NMSA 1978, § 65-2A-16 to replace the Single State Registration Sys-

tem (“SSRS”) with the Uniform Carrier Registration Act (“UCR”) in order to conform with

changes in federal law that take effect January 1, 2007. The changes in federal law repeal SSRS

and replace it with UCR System. SSRS is a federal program run by the states and in New Mex-

ico administered by the Public Regulation Commission (“Commission”). SSRS requires inter-

state for-hire motor carriers to register annually with one state that participates in the SSRS pro-

gram (“base state”) and provide the base state evidence of its federal motor carrier registration

and financial responsibility filings.

Senate Bill 447 – Page

2

The motor carrier is also required to pay an annual fee to the base state and other states that the

motor carrier will have vehicles traveling through in the calendar year. Under SSRS no state is

allowed to charge a motor carrier more than $10 per vehicle per year. In New Mexico the Com-

mission annually collects $3.5 million dollars from SSRS. That money is deposited into the

State Road Fund.

On August 11, 2005, the President signed the Uniform Carrier Registration Act of 2005, which

repeals SSRS and replaces it with UCR effective January 1, 2007. UCR requires all interstate

motor carriers, private and for-hire, to register with a base state and provide information to the

base state concerning the registration of the interstate operations of that motor carrier and proof

of its federal financial responsibility filings. Under UCR, motor carriers are required to pay to

the base state a fee based on a progressive tiered system tied to the number of power units owned

by the motor carrier. The tiered system is required to be designed to collect and distribute to

each state the same amount the state collected under the last year of SSRS.

SB 447 also adds a penalty assessment misdemeanor to the motor vehicle code for failure to reg-

ister under UCR. The same penalty assessment misdemeanor fine amount ($50) is currently

provided in law for failure to carry a SSRS receipt.

FISCAL IMPLICATIONS

The PRC indicates that SB 447 has no fiscal impact to the Public Regulation Commission

(“Commission”). However, if SB 447 or its companion HB 419, do not pass in this legislative

session, the State Road Fund stands to lose $3.5 million dollars next fiscal year. If SB 447 does

not pass in this or the next legislative session, the State Road Fund would permanently lose $3.5

million dollars. Also, if SB 447 does not become law, the Motor Transportation Division of the

Department of Public Safety would lose penalty assessment revenue since the Division would no

longer be allowed to issue citations to interstate motor carriers who do not participate in a pro-

gram of this nature.

SIGNIFICANT ISSUES

DPS indicates that the Unified Carrier Registration Act of 2005 has not been implemented. The

date of January 1, 2007 is in the Notice of Proposed Rulemaking and is not firm. The Federal

Motor Carrier Safety Administration (FMCSA) has not completed a Final Rule on this issue.

FMCSA does intend to issue a final rule in 2006; although there is no specific date. Within this

final rule, several issues have not been addressed. Each jurisdiction (State) has three years to

adopt the regulations from the federal register.

The PRC indicates that although the first registration year does not begin until January 1, 2007,

states that wish to participate in UCR in that first registration year will have to start registering

motor carriers under UCR in September 2006. The PRC feel that delaying this bill until the next

legislative session would cause confusion in the motor carrier industry and to enforcement au-

thorities that inevitably occurs when there is a gap of time between similar regulatory programs.

Additionally, the PRC argues that without enabling legislation New Mexico might not be entitled

to any monies under UCR in that first registration year if it does not have implementing legisla-

tion in effect on January 1, 2007.

Senate Bill 447 – Page

3

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

SB 447 is a companion to HB 419.

TECHNICAL ISSUES

The PRC states that because some states and some in the motor carrier industry have proposed

that the dates of repeal of SSRS and implementation of UCR change from January 1, 2007 to

January 1, 2008, SB 447 has a contingent effective date that would allow the PRC the flexibility

to delay the repeal of SSRS and the implementation date of UCR.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

The PRC states that if SB 447 is not enacted, the State Road Fund will lose $3.5 million dollars

per year. Also, if SB 447 is not enacted, interstate motor carriers based in New Mexico will no

longer register with the Commission. This would include motor private carriers that did not par-

ticipate in SSRS but who are required to register under UCR. Also, if SB 447 does not become

law, the Motor Transportation Division of the Department of Public Safety would lose penalty

assessment revenue since the Division would no longer be allowed to issue citations to interstate

motor carriers who do not participate in a program of this nature.

GM/nt