SB0468

SENATE BILL 468

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Rod Adair

AN ACT

RELATING TO THE REGULATION OF MOTOR CARRIERS; CREATING A FREE MARKET FOR MOTOR CARRIERS OF PERSONS OTHER THAN AMBULANCES; ELIMINATING THE REQUIREMENT FOR A CERTIFICATE OR PERMIT AND THE REGULATION OF TARIFFS FOR THOSE MOTOR CARRIERS; ENSURING EQUALITY OF FEES FOR APPLICANTS AND INTERVENORS; MAKING AN APPROPRIATION.

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

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

"65-2A-1. SHORT TITLE.--[Sections 1 through 40 of this act] Chapter 65, Article 2A NMSA 1978 may be cited as the "Motor Carrier Act"."

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

"65-2A-2. TRANSPORTATION POLICY.--It is the policy of this state to foster the development, coordination and preservation of a safe, sound and adequate motor carrier system, requiring financial responsibility and accountability on the part of motor carriers, providing for economic regulation of ambulance services, motor carriers of [persons and] household goods and towing services performing nonconsensual tows and by streamlining and promoting uniformity of state regulation of motor carriers."

SECTION 3. 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. "ambulance service" means the scheduled or unscheduled compensated transportation over irregular routes of passengers in ambulances;

[A.] B. "amendment" means a permanent change in the type of service or territory authorized by an existing certificate or permit;

[B.] C. "antitrust laws" means the laws of this state relating to combinations in restraint of trade;

[C.] D. "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 single state registration system;

[D.] E. "cancellation" means the voluntary, permanent termination of all or part of an operating authority;

[E.] F. "certificate" means the operating authority issued by the commission to intrastate common motor carriers [of persons or household goods];

[F.] G. "change in a certificate or permit" means the amendment, cancellation, change in tariff, change in form of ownership, lease, reinstatement, transfer or voluntary suspension of a certificate or permit;

[G.] H. "change of name" means a change in the legal name of the owner of an operating authority or in the does-business-as name of the motor carrier, but does not include a change in the form of ownership;

[H.] I. "commission" means the public regulation commission;

[I.] J. "common control" means control of more than one operating authority of the same kind for the same or overlapping territory;

[J.] K. "common motor carrier" means a person offering compensated ambulance service or transportation of household goods by motor vehicle to the general public, [whether] over [regular or] irregular routes, [or] under [scheduled or] unscheduled service, but does not include commuter services;

[K.] L. "common tariff" means a tariff applying to two or more common motor carriers;

[L.] M. "commuter service" means a person who provides seven- to fifteen-passenger motor vehicles to a volunteer-driver commuter group that shares rides to and from the workplace or training site, where participation is open to the public and incidental to the primary work or training-related purposes of the commuter group, and where the volunteer drivers have no employer-employee relationship with the commuter service;

[M.] N. "contract motor carrier" means a person offering compensated ambulance service or transportation of household goods by motor vehicle under individual agreements with particular customers or shippers;

[N.] O. "control" means the power to direct or cause the direction of the management and policies of a motor carrier deriving from:

(1) ownership of a sole proprietorship, if the operating authority is held by an individual as a sole proprietor;

(2) ownership of ten percent or more of the voting stock of the corporation, if the operating authority is held by a corporation;

(3) a partnership interest in a general partnership, if the operating authority is held by a general partnership;

(4) an interest in a limited partnership of ten percent or more of the total value of contributions made to the limited partnership, or entitlement to ten percent or more of the profits earned or other compensation paid by the limited partnership, if the operating authority is held by a limited partnership;

(5) a membership interest of ten percent or more in a limited liability company, if the operating authority is held by a limited liability company; or

(6) capacity as a trustee, personal representative or other person with a fiduciary duty to a motor carrier;

[O.] P. "electronic filing" means submission of a document by facsimile, electronic mail or other electronic transmission;

[P.] Q. "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;

[Q.] R. "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;

[R.] S. "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 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;

[S.] T. "incidental carrier" means a motor carrier of persons that transports passengers using vehicles designed to transport sixteen or more passengers, including the driver, and for which the customer pays either directly or indirectly;

[T.] U. "interested person" means a motor carrier operating over the routes or in the territory involved in an application or grant of temporary authority, a person affected by a rule proposed for adoption by the commission or a person the commission may deem interested in a particular matter;

[U.] V. "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;

[V.] W. "intrastate motor carrier" means a person providing compensated transportation by motor vehicle between points and places in the state;

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

[X.] Y. "irregular route" means that the route to be used by a motor carrier is not restricted to a specific highway within the territory the motor carrier is authorized to serve;

[Y.] Z. "lease of a certificate or permit" means an agreement by which the owner of a certificate or permit grants to another the exclusive right to use all or part of the certificate or permit for a specified period of time in exchange for consideration;

[Z.] AA. "lease of equipment" means an agreement whereby a motor carrier obtains equipment owned by another for use by the motor carrier in the exercise of its operating authority;

[AA.] BB. "motor carrier" means a person offering compensated transportation of persons or property by motor vehicle, whether in intrastate or interstate commerce;

[BB.] CC. "motor carrier organization" means an organization approved by the commission to discuss and propose a common tariff for a group of motor carriers or to represent motor carriers that have adopted the common tariff;

[CC.] DD. "motor carrier of persons" means a person who provides compensated transportation of persons on a highway in the state;

[DD.] EE. "motor 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 or persons, but does not include a vehicle, locomotive or car operated exclusively on rails;

[EE.] FF. "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;

[FF.] GG. "operating authority" means a certificate, permit, warrant [single trip ticket, single state registration receipt] or temporary authority issued by the commission to a motor carrier;

[GG.] HH. "permit" means the operating authority issued by the commission to intrastate contract motor carriers [of persons or household goods];

[HH.] II. "process" means an order, subpoena or notice issued by the commission or an order, subpoena, notice, writ or summons issued by a court;

[II.] JJ. "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;

[JJ.] KK. "protest" means a document filed with the commission by an interested person that expresses an objection to a matter before the commission;

[KK.] LL. "rate" means a form of compensation charged, whether directly or indirectly, by a person for a transportation service subject to the jurisdiction of the commission;

[LL.] MM. "record" means an account, correspondence, memorandum, tape, disc, paper, book or transcribed information regarding the operation of a motor carrier;

[MM.] NN. "registration year" means a calendar year;

[NN. "regular route" means a route used by a motor carrier within the territory in which the motor carrier is authorized to serve that is fixed by its operating authority;]

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

PP. "shipper" means a person who consigns or receives goods for transportation;

[QQ. "single state registration receipt" means the document issued annually to a motor carrier operating in interstate commerce evidencing that proof of financial responsibility and safety has been filed with the base state and that the annual per vehicle fees have been paid for that registration year;

RR.] QQ. "tariff" means a document filed by an ambulance service, a motor carrier of [persons or] household goods or a towing service performing nonconsensual tows that has been approved by the commission and sets forth the transportation services offered by the motor carrier to the general public, including the rates, terms and conditions [and applicable time schedules relating to those services, including] and includes a common tariff;

[SS. "taxicab service" means a common motor carrier engaged in unscheduled passenger transportation in a motor vehicle having a capacity of not more than eight passengers, including the driver, not operated on a regular route or between specified places, and that:

(1) is licensed as a taxicab service by a state or local jurisdiction; or

(2) if not licensed or regulated by a state or local jurisdiction as a taxicab service, is offered by a person that:

(a) provides local transportation for a fare determined, except with respect to transportation to or from airport, train or bus terminals, primarily on the basis of the distance traveled; and

(b) does not primarily provide transportation to or from one or more airport, train or bus terminals;

TT. "terminal shuttle service" means a common motor carrier engaged in passenger transportation service that:

(1) is prearranged by contract or operated by hire on a regular route, allowing for deviation to pick up or drop off passengers, between specified or generally specified points; and

(2) primarily provides transportation to or from one or more airport, train or bus terminals but may also provide for intermediate pickup or departure of passengers;

UU.] RR. "towing services" means the use of specialized equipment, including repossession services using towing equipment, to transport:

(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;

[VV.] SS. "transfer of a certificate or permit" means a permanent conveyance of all or part of a certificate or permit;

[WW.] TT. "transfer by operation of law" means that the ownership of or interest in a certificate or permit passes to another by application of established rules of law;

[XX.] UU. "voluntary suspension" means the commission-authorized cessation of use of all or part of a certificate or permit at the request of the motor carrier for a specified period of time;

[YY.] VV. "warrant" means the operating authority issued by the commission to charter services, towing services, commuter services, [and] motor carriers of property and, except for ambulance services, motor carriers of persons; and

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

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

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

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

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

(2) establish minimum requirements for financial responsibility for a motor carrier;

(3) establish safety requirements for intrastate motor carrier motor vehicles and drivers subject to the jurisdiction of the commission, 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 intrastate common motor carriers [of persons and household goods] and towing services performing nonconsensual tows, including rates for storing household goods and motor vehicles;

(6) determine matters of public convenience and necessity relating to [motor carriers] ambulance services and intrastate motor carriers of household goods;

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

(8) hold a public hearing specific to a protest or request that has been filed timely in opposition to or in consideration of an application; and

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

B. The commission may:

(1) designate inspectors who may inspect the records 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 commission is empowered to enforce pursuant to Section 65-1-6 NMSA 1978, excluding the enforcement authority granted to the motor transportation 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 of service, territory, terms, conditions and limitations of [operating authorities] certificates or permits previously issued, and change or rescind rates previously adopted as needed; and

(4) adopt rules to implement these powers."

SECTION 5. Section 65-2A-7 NMSA 1978 (being Laws 2003, Chapter 359, Section 7) is amended to read:

"65-2A-7. OPERATING AUTHORITIES IN GENERAL.--

A. A certificate, permit or warrant shall be effective from the date issued by the commission and shall remain in effect until canceled or revoked. [A single state registration receipt for interstate motor carriers shall be effective only for the registration year for which it is issued. A single trip ticket shall be effective only for the duration of the trip for which it is issued.]

B. A motor carrier shall carry a copy of its operating authority in each motor vehicle it operates in New Mexico.

C. A motor carrier shall render reasonably continuous and adequate service as the commission may by rule prescribe.

D. A motor carrier shall comply with lawfully adopted rules of the commission."

SECTION 6. Section 65-2A-8 NMSA 1978 (being Laws 2003, Chapter 359, Section 8) is amended to read:

"65-2A-8. CERTIFICATES FOR [INTRASTATE COMMON MOTOR CARRIERS OF PERSONS] AMBULANCE SERVICES.--

A. [A common motor carrier of persons] An ambulance service shall not provide compensated intrastate transportation in the state without a certificate from the commission.

B. Except as provided in this section, the commission shall issue a certificate allowing a person to provide compensated intrastate transportation as [a common motor carrier of persons] an ambulance service after notice and public hearing requirements are met, if:

(1) the person is fit, willing and able to provide the [transportation] ambulance service to be authorized by the certificate;

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

(3) the [transportation] ambulance service to be provided under the certificate is or will serve a useful public purpose that is responsive to a public demand or need.

C. Before granting a certificate to an [intrastate common motor carrier of persons] ambulance service, the commission shall consider the effect that issuance of the certificate would have on existing [motor carriers] ambulance services; provided that the commission shall not find diversion of revenue or traffic from an existing [motor carrier] ambulance service to be, in and of itself, sufficient grounds for denying the certificate.

D. A certificate issued by the commission to an [intrastate common motor carrier of persons] ambulance service shall specify the:

(1) service to be rendered;

(2) territory to be served; and

(3) reasonable terms, conditions and limitations as the public convenience and necessity may require [and, if necessary:

(a) terminals between which service is to be provided; or

(b) routes, schedules and intermediate and off-route points on the route for regular route service]."

SECTION 7. Section 65-2A-10 NMSA 1978 (being Laws 2003, Chapter 359, Section 10, as amended) is amended to read:

"65-2A-10. PERMITS FOR INTRASTATE CONTRACT MOTOR CARRIERS [OF PERSONS OR HOUSEHOLD GOODS].--

A. A contract motor carrier shall not provide compensated intrastate transportation [of persons or household goods] in the state without first having applied for and obtained a permit from the commission.

B. Except as provided in this section, the commission shall issue a permit allowing a person to provide compensated intrastate transportation as a contract motor carrier [of persons or household goods] after notice and public hearing requirements are met, if:

(1) the person is fit, willing and able to provide the transportation to be authorized by the permit;

(3) the transportation to be provided under the permit is or will be consistent with the public interest.

C. Before granting a permit to an [intrastate contract motor carrier of persons] ambulance service, the commission shall consider:

(1) the number of customers to be served by the [carrier] ambulance service;

(2) the nature of the transportation proposed to be provided;

(3) whether granting the permit would endanger or impair the operations of [motor carriers] ambulance services to an extent contrary to the public interest;

(4) the effect that denying the permit would have on the person applying for the permit and its customers; and

(5) the changing character of the requirements of the applicant's customers.

D. The commission shall not issue a permit to an intrastate contract motor carrier [of persons] if it finds that the authority sought will impair the provision of transportation services by a certificated intrastate common motor carrier [of persons] then serving the same territory.

E. Before granting a permit to an intrastate contract motor carrier of household goods, the commission shall consider:

(1) whether granting the permit would endanger or impair the operations of carriers to an extent contrary to the public interest; and

(2) the effect that denying the permit would have on the person applying for the permit and its shippers.

F. A permit issued by the commission shall specify the business of the intrastate contract motor carrier, the scope of the authority granted to it and the terms, conditions and limitations of the authority.

G. An intrastate contract motor carrier [of persons or household goods] shall file with the commission each contract under which it intends to operate. The commission shall approve a contract and authorize operations if it finds that the contract is consistent with the public interest and the provisions of this section.

H. The commission shall not limit an intrastate contract motor carrier [of persons or household goods] to a fixed number of contracts.

I. A motor carrier owning a certificate and a permit for the same type of service may use the same equipment for both common and contract services provided that shared use does not impair the provision of transportation services under the certificate."

SECTION 8. Section 65-2A-11 NMSA 1978 (being Laws 2003, Chapter 359, Section 11) is amended to read:

"65-2A-11. TEMPORARY AUTHORITY FOR INTRASTATE COMMON OR CONTRACT MOTOR CARRIERS [OF PERSONS OR HOUSEHOLD GOODS].--

A. The commission may without notice grant temporary operating authority to an intrastate common or contract motor carrier [of persons or household goods] for a period not to exceed ninety days if it finds that:

(1) there is an urgent and immediate need for such service; and

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

B. Satisfactory proof of urgent and immediate need shall be made by affidavit or other verified proof as the commission shall by rule prescribe.

C. An applicant for temporary authority as a common motor carrier shall file tariffs covering the transportation services for which temporary authority is being sought.

D. After temporary authority has been granted to a common motor carrier, the applicant shall give notice of the grant of temporary authority to [a motor carrier] common motor carriers authorized to perform the service [temporarily authorized] in the same or overlapping territory. If such a motor carrier or the staff of the transportation division of the commission files a written request for a hearing within twenty-five days of the date notice was mailed, the commission shall hold a public hearing and make such further determination with respect to the grant of temporary authority as the public interest may require.

E. Intrastate motor carriers operating under temporary authority shall comply with the requirements of the Motor Carrier Act and the rules of the commission.

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

SECTION 9. Section 65-2A-12 NMSA 1978 (being Laws 2003, Chapter 359, Section 12) is amended to read:

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

A. It is unlawful for any commuter service, charter service, towing service, [or] motor carrier of property or, except for an ambulance service, a motor carrier of persons to provide compensated intrastate transportation in the state without a warrant from the commission.

B. The commission shall issue a warrant that allows a person to provide compensated intrastate transportation as a commuter service, charter service, towing service, [or] motor carrier of property or, except for an ambulance service, a motor carrier of persons if the commission finds that the person is in compliance with the financial responsibility and safety requirements of the Motor Carrier Act and the rules of the commission.

C. A person may protest an application for a warrant if the person has reason to believe that the applicant does not meet the safety or financial responsibility requirements of the Motor Carrier Act and the rules of the commission.

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

E. The commission may without notice or a public hearing cancel a warrant if the owner fails to operate under the warrant for twelve consecutive months."

SECTION 10. Section 65-2A-14 NMSA 1978 (being Laws 2003, Chapter 359, Section 14) is amended to read:

"65-2A-14. CHANGES IN CERTIFICATES OR PERMITS.--

A. A change in a certificate, permit or tariff shall not be valid or effective without the approval of the commission.

B. The commission may, for good cause and after notice and public hearing requirements are met, authorize the following changes in all or part of a certificate or permit at the request of the person owning the certificate or permit if the commission finds:

(1) that the proposed rates are reasonable, non-predatory and nondiscriminatory for a change in a tariff;

(2) that the applicant meets the requirements pursuant to Section [8 of the Motor Carrier Act] 65-2A-8 NMSA 1978 for an amendment of a certificate as [a common motor carrier of persons] an ambulance service;

(3) that the applicant meets the requirements pursuant to Section [10 of the Motor Carrier Act] 65-2A-10 NMSA 1978 for an amendment of a permit as [a contract motor carrier of persons] an ambulance service;

(4) that the applicant meets the requirements pursuant to Section [9 of the Motor Carrier Act] 65-2A-9 NMSA 1978 for an amendment of a certificate as a common motor carrier of household goods;

(5) that the applicant meets the requirements pursuant to Section [10 of the Motor Carrier Act] 65-2A-10 NMSA 1978 for an amendment of a permit as a contract motor carrier of household goods;

(6) that for a transfer of all or part of a certificate or permit:

(a) the transferee-applicant is fit, willing and able to provide the authorized transportation services and to comply with the Motor Carrier Act and the rules of the commission;

(b) the transferor-applicant has rendered reasonably continuous and adequate service prior to the application for lease or transfer;

(c) accrued taxes, rents, wages of employees and other indebtedness pertaining to all or part of a certificate or permit proposed to be transferred have been paid by the transferor-applicant or assumed by the transferee-applicant;

(d) the transfer does not have the effect of destroying competition or creating a monopoly; and

(e) the transfer is not inconsistent with the public interest; or

(7) that for a lease of all or part of a certificate or permit:

(a) the lessee-applicant is fit, willing and able to provide the authorized transportation services and to comply with the Motor Carrier Act and the rules of the commission;

(b) the lessor-applicant has rendered reasonably continuous and adequate service prior to the application for lease;

(d) the lease is not inconsistent with the public interest.

C. The commission may, without notice or a public hearing, authorize the following changes in all or part of a certificate or permit at the request of the person owning the certificate or permit:

(1) cancellation of the certificate or permit;

(2) voluntary suspension of the certificate or permit;

(3) change in the form of ownership of the certificate or permit; and

(4) reinstatement of the certificate or permit following voluntary suspension."

SECTION 11. Section 65-2A-18 NMSA 1978 (being Laws 2003, Chapter 359, Section 18, as amended) is amended to read:

"65-2A-18. FINANCIAL RESPONSIBILITY.--

A. The commission shall prescribe minimum requirements for financial responsibility for all motor carriers, including incidental carriers pursuant to this section. [Rules regarding financial responsibility of incidental carriers shall be adopted by July 1, 2006 by the commission, and implementation of the financial responsibility requirements for incidental carriers shall begin on July 1, 2006.]

B. A motor carrier or incidental carrier shall not operate on the highways of this state without having filed with the commission proof of financial responsibility in the form and amount as the commission shall by rule prescribe. The maximum amount of financial responsibility, as determined by the commission, for incidental carriers shall not exceed that required of other motor carriers.

C. In prescribing minimum requirements for financial responsibility for motor carriers, the commission shall consider:

(1) the creation of sufficient incentives to motor carriers to maintain and operate their equipment in a safe manner;

(2) the number of passengers being transported;

(3) the nature of the transportation services provided by the motor carrier; and

(4) other factors necessary to ensure that motor carriers maintain an appropriate level of financial responsibility.

D. The commission may authorize a motor carrier to carry its own insurance in lieu of filing a policy of insurance, certificate showing the issuance of a policy of insurance or a surety bond. In approving an application to be self-insured, the commission shall consider:

(1) the financial stability of the carrier;

(2) previous loss history of the carrier;

(3) the safety record of the carrier;

(4) the size, nature of operations and other operating characteristics of the carrier; and

(5) other factors necessary for the protection of passengers, shippers and the public.

E. Notwithstanding any requirement of the New Mexico Insurance Code to the contrary, the commission may accept proof of public liability insurance from an insurer not authorized in New Mexico if

[(1) the insurance is for an interstate motor carrier transporting commodities exempt from regulation by the federal motor carrier safety administration participating in the single state registration system for those motor carriers; and

(2)] the insurer is authorized to write public liability insurance in at least one other state.

F. All motor carriers shall carry proof of financial responsibility in each motor vehicle they operate in this state."

SECTION 12. Section 65-2A-20 NMSA 1978 (being Laws 2003, Chapter 359, Section 20) is amended to read:

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

A. An intrastate common motor carrier [of persons or household goods] or a towing service performing nonconsensual tows shall not commence operations or perform a new service under its operating authority without approval of a tariff from the commission.

B. An intrastate common motor carrier [of persons or household goods] and a towing service performing nonconsensual tows shall file with the commission proposed tariffs showing the rates, terms and conditions for transportation and related services between points in its territory. The rates shall be stated in terms of United States currency.

C. An intrastate common motor carrier [of persons or household goods] or a towing service performing nonconsensual tows shall not charge, or permit its bona fide agents or employees to charge, a different rate for transportation or for a service rendered to or for the user of the service other than the rates specified in approved tariffs in effect at the time. The rates of an otherwise valid tariff are not applicable when a medicaid program directly pays for services.

D. An intrastate common motor carrier [of persons or household goods] or a towing service performing nonconsensual tows shall not refund, directly or indirectly, 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 in accordance with tariffs approved by the commission.

E. A person may make a complaint in writing to the commission that an individual or joint rate or practice is in violation of the Motor Carrier Act. The commission may suspend the operation of a rate or practice for a period not to exceed sixty days to investigate its reasonableness. If the commission finds that an individual or joint rate charged by an intrastate common motor carrier [of persons or household goods] or a towing service performing nonconsensual tows, or an individual or joint practice of any intrastate common motor carrier [of persons or household goods] or any towing service performing nonconsensual tows affecting the rate, is unreasonable, predatory or discriminatory, the commission shall prescribe the rate or the maximum or minimum rate to be observed or the practice to be made effective.

F. The commission may establish and revise statewide common tariffs for common motor carriers and towing services performing nonconsensual tows."

SECTION 13. Section 65-2A-21 NMSA 1978 (being Laws 2003, Chapter 359, Section 21) is amended to read:

"65-2A-21. RATES.--

A. An intrastate common motor carrier [of persons or household goods] and a towing service performing nonconsensual tows shall observe reasonable, nonpredatory and nondiscriminatory rates and practices for the transportation services they provide. An unreasonable, predatory or discriminatory charge for service is unlawful.

[B. Reduced rates for students traveling between their homes and their schools and for persons sixty-five years of age or older shall not be considered discriminatory within the meaning of this section. A motor carrier shall not furnish free transportation to persons except to bona fide owners, officers or employees of the motor carrier and their dependents. Stockowners of incorporated motor carriers shall not be considered owners for purposes of this subsection.

C.] B. An intrastate common motor carrier [of persons or household goods] or a towing service performing nonconsensual tows shall not give an unreasonable advantage to a person, point of entry, territory or classification of motor carrier in any respect; provided that towing services performing nonconsensual tows may charge rates lower than the rates in their approved tariff to members of not-for-profit motor clubs after those rates have been filed with the commission; and further provided that this subsection shall not be construed to apply to disadvantages to the transportation service of other motor carriers.

[D.] C. A common motor carrier of household goods shall establish and observe just and reasonable rates and practices relating to the manner and method of presenting, marking, packing and delivering household goods for transportation and other matters relating to the transportation of household goods.

[E.] D. An intrastate common motor carrier [of persons or household goods] and a towing service performing nonconsensual tows shall establish with each other reasonable through routes and joint rates and practices. Participating motor carriers shall have the duty to establish reasonable practices in connection with joint transportation and reasonable and equitable divisions of the joint rates adopted so as not to unduly prefer or prejudice any participating motor carrier.

[F.] E. In proceedings to determine the reasonableness of rates, the commission shall authorize revenue levels that are adequate under honest, economical and efficient management to cover total operating expenses, including the operation of leased motor vehicles, and depreciation, plus a reasonable profit. The rules adopted by the commission to implement this section shall allow a carrier to achieve revenue levels that will provide a flow of net income, plus depreciation, adequate to support prudent capital outlays, ensure the repayment of a reasonable level of debt, permit the raising of needed equity capital and attract and retain capital in amounts adequate to provide a sound motor carrier transportation system in the state."

SECTION 14. Section 65-2A-23 NMSA 1978 (being Laws 2003, Chapter 359, Section 23) is amended to read:

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

A. An intrastate common motor carrier of household goods may enter into discussions with another intrastate common motor carrier of household goods to establish a motor carrier organization. The organization shall obtain authorization from the commission before its members enter into any discussions concerning a common tariff. The commission shall not enter an order authorizing a motor carrier organization except after notice and public hearing requirements are met. The commission may authorize the creation of a motor carrier organization if the organization:

(1) allows a member carrier to discuss a tariff proposal filed with it, provided that only those carriers with authority to participate in the transportation to which the proposal applies may vote upon the 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 a protest or complaint with the commission 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;

(5) makes available, upon request, the name of the proponent of a rate or tariff item filed with it, admits the public to a meeting at which rates or tariff items will be discussed or voted upon and makes available the vote cast by a member carrier on a proposal before the motor carrier organization;

(6) prohibits a carrier to vote on behalf of one or more other member carriers without specific written notarized authority from the member carrier being represented;

(7) makes a final disposition of a rate or tariff item filed with the motor carrier organization within one hundred twenty days from the date the proposal is filed, except that if unusual circumstances require, the organization may extend the period, subject to review by the commission;

(8) adopts reasonable quorum standards for its meetings; and

(9) will propose common tariffs for approval by the commission.

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

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

D. The commission 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 commission 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 a common tariff by member carriers of a motor carrier organization authorized by the commission.

F. The motor carrier organization shall obtain approval of a common tariff from the commission before its member carriers may operate pursuant to the common tariff. The commission shall not enter an order approving a common tariff except after notice and public hearing requirements are met. The commission may approve a common tariff if the common tariff is limited to matters relating to transportation services provided by the member carriers party to the common tariff. The commission shall approve or disapprove a common tariff, in whole or in part, and may prescribe such terms and conditions as the public interest may require. The antitrust laws of the state shall not apply to common motor carriers who operate pursuant to a common tariff approved by the commission.

G. In any proceeding in which a party to the proceeding alleges that a member carrier voted, discussed or agreed on a common tariff in violation of this section, that party has the burden of showing that the vote, discussion or agreement occurred. A showing of parallel behavior shall not by itself satisfy that burden."

SECTION 15. Section 65-2A-27 NMSA 1978 (being Laws 2003, Chapter 359, Section 27) is amended to read:

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

A. The commission shall immediately suspend or revoke, 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 commission rule.

B. The commission 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 commission's rules or the rules of the motor transportation division of the department of public safety, if the violation endangers the public health or safety.

C. The commission may, upon complaint or the commission'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 commission;

(3) comply with a term, condition or limitation of an operating authority; or

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

D. The commission 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 owner of the operating authority is fit, willing and able to provide the authorized transportation services and to comply with the Motor Carrier Act and the rules of the commission."

SECTION 16. Section 65-2A-36 NMSA 1978 (being Laws 2003, Chapter 359, Section 36) is amended to read:

"65-2A-36. FEES.--

A. The commission shall charge and collect the following fees:

(1) for filing an application for a certificate as an intrastate common motor carrier, [of persons or household goods] two hundred fifty dollars ($250);

(2) for filing an application for a permit as an intrastate contract motor carrier, [of persons or household goods] two hundred fifty dollars ($250);

(3) for filing an application for a warrant as an intrastate commuter service, charter service, towing service, [or] motor carrier of property or, except for an ambulance service, a motor carrier of persons, twenty-five dollars ($25.00);

(4) for filing an application for intrastate temporary authority as a common or contract motor carrier, [of persons or household goods] one hundred dollars ($100);

(5) for filing an application for extension of temporary authority, fifty dollars ($50.00);

(6) for filing an application for a change in an intrastate tariff, two hundred dollars ($200);

(7) for filing an application for lease or transfer of a certificate or permit, two hundred dollars ($200);

(8) for filing an application for reinstatement of a certificate or permit following voluntary or involuntary suspension, one hundred dollars ($100);

(9) for filing an application for voluntary suspension of a certificate or permit, fifteen dollars ($15.00);

[(10) for filing an application for a single trip ticket, five dollars ($5.00) per vehicle per trip;

(11) for a single state registration receipt for interstate motor carriers, ten dollars ($10.00) per vehicle per registration year or portion of a registration year;

(12)] (10) for filing a change of name, ten dollars ($10.00);

[(13) for filing proof of financial responsibility, fifteen dollars ($15.00) per filing;

(14)] (11) for filing an equipment lease, five dollars ($5.00) per vehicle leased;

[(15)] (12) for a miscellaneous filing, five dollars ($5.00) per document;

[(16)] (13) for certifying copies of a record, order or operating authority, fifteen dollars ($15.00);

[(17)] (14) for copies of written commission documents or records, one dollar ($1.00) per page, in addition to any applicable certification charge; [and

(18)] (15) for copies of other commission records, including electronic media, an amount set by the commission, in addition to any applicable certification charge; and

(16) for each intervention on an application for a certificate or permit, two hundred fifty dollars ($250) to be paid by the intervenor.

B. The secretary of state shall charge and collect a fee of four dollars ($4.00) for each process from a court served upon the secretary of state as the designated agent for service of process by operation of law.

C. The "motor transportation fee fund" is created in the state treasury. The commission shall collect all fees at the time an application is filed or service is provided and shall remit them to the state treasurer, who shall deposit them in the fund. At the end of each month, the state treasurer shall transfer the unencumbered balance in the fund to the state road fund.

D. If a fee has been erroneously paid, the person having paid the fee may apply for a refund in writing to the commission no later than sixty days after the erroneous payment. Upon approval of the application by the commission, the amount erroneously paid shall be refunded from the motor transportation fee fund to the person who made the payment.

E. An application shall be fully completed within sixty days or the fee submitted with the application shall be forfeited to the state. If the applicant renews the application, [he] the applicant shall pay the applicable fee."

SECTION 17. TEMPORARY PROVISION--TRANSITION.--A certificate or permit held on June 30, 2011 by an intrastate motor carrier of persons, other than an ambulance service, shall be null and void on July 1, 2011. Upon surrender of a certificate or permit prior to July 1, 2011, the public regulation commission shall issue a warrant to an intrastate motor carrier of persons, other than an ambulance service, if the motor carrier has valid proof of financial responsibility and current vehicle inspection certificates on file with the commission. The commission shall not charge the warrant application fee otherwise required in Section 65-2A-36 NMSA 1978.

SECTION 18. REPEAL.--Sections 65-2A-17, 65-2A-22 and 65-2A-30 NMSA 1978 (being Laws 2003, Chapter 359, Sections 17, 22 and 30) are repealed.

SECTION 19. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.

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