BILL ANALYSIS AND FISCAL IMPACT REPORT	Page 1 of  2

DATE:  February 26, 2001	Submitted by: TAXATION AND REVENUE DEPT.
	T. GLENN ELLINGTON, SECRETARY
BILL NUMBER: HB - 925

SPONSOR: Representative Taylor

BILL SHORT TITLE: Border Motor Carrier Act

DESCRIPTION: This bill defines Dona Ana and Luna counties as a border commercial zone. This area is, in effect, a transportation free trade zone. The state, county or a municipality may make no laws regulating the operation of motor carriers within the zone. A foreign commercial motor vehicle is exempt from the general requirements for motor vehicle registration in the state if the motor vehicle is engaged solely in transportation of cargo across the border, providing the truck remain a limited amount of time within the zone. In addition, the truck must be registered somewhere. If the truck remains in the state less than 24 hours, financial responsibility requirements are also waived. A foreign motor carrier may not transport persons or cargo in intrastate commerce unless registered and insured and only after having been granted federal interstate or state intrastate rights under the applicable federal or state laws. The bill provides for annual permits under a few circumstances. (1) if a Mexican truck exceeds the 24 hour rule, or the 48 hour rules described in section 4 of the bill; or (2) if the Mexican truck is not validly registered in Mexico or is registered in a Mexican state that does not reciprocally recognize New Mexican registration. The fee for this annual permit is as specified in 66-6-4 NMSA (truck registration), without any prorate provisions. The bill also provides for temporary permits under similar circumstances, except the fee is $25 for a 72-hour permit, $50 dollars for a 144-hour permit. A third permit, known as “one-trip or 30-day permit” is also allowed which permits the applicant to travel between a border crossing point, specified intermediate points and a destination point and thence returning. Under most circumstances, this 1-trip permit does not allow the applicant to haul persons or cargo, only the vehicle itself except (maybe) chartered buses. In most cases, the 30-day permit may be issued only to a non-commercial car or truck less than 10,000 pounds GVW. The fee for this 1-trip/30-day permit is $5 (cash, certified check, or money order).  Section 8 of the bill provides that “anyone apprehended for violating a registration law of the state shall not be issued a permit under this section”, but must purchase an unapportioned registration by applying directly to the Department and paying (with money order, cash or certified check) the full amount of registration fee (up to $151 per unit for 24,000 to 26,000 pound trucks or $129.50 for trucks in excess of 48,000 and subject to the weight-distance tax) plus any Motor Vehicle Code penalties for driving without a valid registration.

EFFECTIVE DATE: not stated – 90 days after adjournment (June 17).

FISCAL IMPACT: probably none. This is not a revenue bill, but a device to restrict Mexican truckers to Dona Ana and Luna counties.

ADMINISTRATIVE IMPACT: The division would have to establish offices in Santa Teresa and Columbus, in addition to the contract office in Anthony. Otherwise, the requirements of this bill become punitive and would be overturned under NAAFTA on application to World Court. Opening these two border offices is not in the FY 2002 budget request of MVD.

TECHNICAL ISSUES
1.	No one in the Department is sufficiently familiar with the provisions of NAAFTA to state with any certainty whether the provisions of the bill violate any provision of NAAFTA, particularly the annual and temporary permit provisions. Apparently, this is an attempt to force reciprocity between Mexican states and New Mexico. For years, the different insurance rules for private vehicles as well as commercial motor carriers have been an issue. This bill puts pressure on Mexican official process by imposing substantial fees on Mexican truckers who have loads to deliver outside the border zone. 
2.	The bill makes no provisions for the payment of weight-distance tax for travel within or without the zone. This should be clarified.

OTHER IMPACTS AND ISSUES:
1.	There are substantial concerns among law enforcement officials that Mexican trucks are not as safe as their American counterparts, that the drivers are not as well trained or limited by the same driver time limit rules and other concerns. There are companion concerns that Mexican trucking firms have a substantially lower cost structure – with non-union labor and less safe trucks. These complainants fear losing reasonably high-wage jobs and remunerative routes in the state to the Mexican truckers. These are, perhaps, political more than economic arguments.