SB0480

SENATE BILL 480

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

Cisco McSorley

AN ACT

RELATING TO MOTOR CARRIERS; AMENDING AND ENACTING SECTIONS OF THE MOTOR CARRIER ACT; PROVIDING REQUIREMENTS AND PROVISIONS FOR MOTOR CARRIERS USING SMALL PASSENGER VEHICLES SIMILAR TO THOSE CONTAINED IN THE TRANSPORTATION NETWORK COMPANY SERVICES ACT TO PROVIDE FOR COMPETITION; SIMPLIFYING AND CLARIFYING ADMINISTRATIVE PROCEDURES; PROVIDING FOR A SIMPLIFIED WARRANT AUTHORITY FOR NON-EMERGENCY MEDICAL TRANSPORT SERVICES.

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 by Laws 2013, Chapter 73, Section 2 and by Laws 2013, Chapter 77, Section 2) 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 commission under the Ambulance Standards Act;

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

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

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. "commission" means the public regulation commission;

L. "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 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. "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 commission rule, [which] 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, competition and

the availability of other transportation and the effects of

competition by both competing transportation services and

competing transportation network company services on the public

need, volume of demand and expense of providing full service in

the full-service territory; 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 commission rule for the nature of the transportation service authorized in the certificate;

N. "contract driver" means a person who contracts with a motor carrier as an independent contractor, or one leased through an employee leasing contractor, to drive a vehicle pursuant to an operating authority issued to the motor carrier;

O. "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 commission for the particular authority granted;

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

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;

R. "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 commission;

S. "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. "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. "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. "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. "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. "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. "household goods service" means the intrastate transportation, packing and storage of household goods for hire;

Z. "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 commission or a rule proposed for adoption by the commission or a person the commission may deem interested in a particular matter;

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

CC. "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;

DD. "lease of a certificate or permit" means an agreement by which the holder of a certificate or permit grants to another person the exclusive right to use all or part of the certificate or permit 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. "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. "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. "motor carrier organization" means an organization approved by the commission 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. "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. "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. "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. "non-emergency medical transport service" means a person who has been issued and possesses a current letter of

intent by the human services department to perform as a medicaid fee-for-service provider for non-emergency medical transportation of passengers, who provides scheduled medically necessary transportation of passengers not requiring medical monitoring or medical intervention and who is compensated for carriage either wholly through a contract with an authorized medicaid provider or by charging passengers a fare for transportation, but not both;

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

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

[MM.] NN. "operating authority" means a certificate, permit, warrant, unified carrier registration or temporary authority issued by the commission 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. "permit" means the authority issued by the commission to a person that authorizes the person to offer and provide a permitted service as a motor carrier;

[QQ.] RR. "permitted service" means the intrastate transportation of passengers or household goods for hire pursuant to a contract between the motor carrier and another person;

[RR.] SS. "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;

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

[TT.] UU. "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;

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

(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;

[VV.] WW. "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;

[WW.] XX. "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;

[XX.] YY. "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;

[YY.] ZZ. "registration year" means a calendar year;

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

[AAA.] BBB. "shipper" means a person who consigns or receives property or household goods for transportation;

[BBB.] CCC. "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 commission, [which] 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;

DDD. "small passenger vehicle" means a passenger vehicle used by a passenger service other than an ambulance service with a carriage capacity of eight or fewer persons, including the driver, that is typically a sedan, sport utility vehicle or minivan; provided that a small passenger vehicle does not include a truck primarily designed to carry property, a stretcher van, a wheelchair van or an ambulance;

[CCC.] EEE. "specialized passenger service" means a limousine service, a tour and sightseeing service or a service providing 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 commission may by rule provide;

[DDD.] FFF. "tariff" means a document filed by a tariffed service carrier 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 of service and applicable time schedules relating to those services;

[EEE.] GGG. "tariffed service" means one of the following transportation services authorized by the commission for the provision of service on the basis of rates and terms of service contained in a tariff approved by the commission:

(1) an ambulance service;

(2) a household goods service;

(3) a non-emergency medical transport service that charges passengers a fare for transportation;

[(3)] (4) a shuttle service;

[(4)] (5) a specialized passenger service;

[(5)] (6) a taxicab service; or

[(6)] (7) a towing service performing nonconsensual tows;

[FFF.] HHH. "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;

[GGG.] III. "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] small passenger vehicles 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, or, at the passenger's option, carriage to a destination without passenger direction of route or waiting pursuant to a predetermined calculated full fare based on a drop-flag fee and cumulative mileage as provided by tariff, and may use variable pricing as provided by tariff, 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] for at least eighteen hours per day on all days of the 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;

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

[III.] KKK. "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;

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

[KKK.] MMM. "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;

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

[MMM.] OOO. "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;

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

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

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

(1) a charter service;

(2) a commuter service;

(3) a non-emergency medical transport service;

[(3)] (4) a property transportation service; or

[(4)] (5) a towing service; and

[QQQ.] SSS. "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 by Laws 2013, Chapter 73, Section 3 and by Laws 2013, Chapter 77, Section 3) 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 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 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 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 commission;

(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 transportation division of the commission that has been filed within the notice period in opposition to or in consideration of an application;

(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 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 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 rates for the provision of medical services or treatment on scene by an ambulance service when the ambulance service does not provide transportation of the person treated; and

(5) adopt rules to implement these powers."

SECTION 3. Section 65-2A-6 NMSA 1978 (being Laws 2003, Chapter 359, Section 6, as amended by Laws 2013, Chapter 73, Section 5 and by Laws 2013, Chapter 77, Section 5) is amended to read:

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

A. The commission shall electronically publish notice regarding an application before the commission for a certificate or permit or for a change in a certificate or permit, regarding proposed rulemaking, or regarding other orders of the commission of general application, by posting a copy of the notice or document on the commission's internet web site 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 commission for the purpose of publication, advising such persons of the filing and posting. Such notice shall be sufficient under law, regardless of any notice requirements under the Public Regulation Commission Act. If the commission 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 commission shall not act on an application for a certificate or permit or for an amendment, lease or transfer of a certificate or permit 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 commission shall not act on a matter less than ten days after the date notice was published."

SECTION 4. Section 65-2A-12 NMSA 1978 (being Laws 2003, Chapter 359, Section 12, as amended by Laws 2013, Chapter 73, Section 11 and by Laws 2013, Chapter 77, Section 11) is amended to read:

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

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

B. In order to be eligible for issuance of a

non-emergency medical transport service warrant, an applicant

shall have been issued and possess a currently valid letter of

intent by the human services department to perform as a medicaid fee-for-service provider for non-emergency medical transportation of passengers.

C. A warranted non-emergency medical transport

service shall be compensated for carriage either wholly through a contract with an authorized medicaid provider or by charging passengers a fare for transportation, but not both. A non-emergency medical transport service that charges passengers a fare for transportation is a tariffed service, shall file a warrant and is subject to tariff rates and terms of service. A warranted non-emergency medical transport service may add or change medicaid fee-for-service contract providers and may have multiple contract providers.

D. A warranted non-emergency medical transport

service shall only provide scheduled medically or therapeutically necessary transportation of passengers to or from a required medical or therapeutic appointment and shall only provide transportation for passengers not requiring medical monitoring or medical intervention, including medical monitoring or medical intervention to maintain the passenger's level of response, airway, breathing and circulatory status, with the exception of self-administered oxygen. The use of self-administered oxygen shall not exceed six liters per minute via a nasal cannula, and the oxygen container shall be secured in accordance with state and federal law.

[B.] E. 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.] F. A warrant shall not be transferred or leased to another person.

[D.] G. 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 or fails to provide proof of financial responsibility as required by the commission for four consecutive months."

SECTION 5. Section 65-2A-18 NMSA 1978 (being Laws 2003, Chapter 359, Section 18, as amended by Laws 2013, Chapter 73, Section 16 and by Laws 2013, Chapter 77, Section 16) is amended to read:

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

A. Passenger services providing service in small passenger vehicles shall maintain for those vehicles a combined single-limit public liability insurance policy providing for a minimum level of coverage per occurrence for bodily injury, death and property damage in at least the amount required for transportation network companies as primary automobile liability for death, bodily injury and property damage while a transportation network company driver is engaged in a prearranged ride, as provided in the Transportation Network Company Services Act. The commission shall prescribe minimum requirements for financial responsibility for the use of motor vehicles other than small passenger vehicles by all motor carriers.

B. A motor 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.

C. In prescribing minimum requirements for financial responsibility for motor carriers, the commission shall adopt the same minimum liability insurance requirements as those required by the federal motor carrier safety administration for interstate motor carriers for all motor vehicles for carriage of property or household goods and for all passenger motor vehicles with such capacities. The commission shall adopt reasonable minimum liability insurance requirements for the use of passenger motor vehicles with capacities less than those regulated by the federal motor carrier safety administration and in doing so shall consider the number of passengers being transported and the nature of the transportation services provided by the motor carriers using vehicles of those capacities.

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 unified carrier 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 6. Section 65-2A-19 NMSA 1978 (being Laws 2003, Chapter 359, Section 19, as amended by Laws 2013, Chapter 73, Section 17 and by Laws 2013, Chapter 77, Section 17) is amended to read:

"65-2A-19. SAFETY REQUIREMENTS FOR MOTOR VEHICLES AND DRIVERS.--

A. A motor carrier shall provide safe and adequate service, equipment and facilities for the rendition of transportation services in this state.

B. The commission shall prescribe safety requirements for drivers and for motor vehicles weighing twenty-six thousand pounds or less or carrying fifteen or fewer persons, including the driver, used by intrastate motor carriers operating in this state; provided that the commission shall not require safety standards for small passenger vehicles and the drivers of small passenger vehicles greater than those required for transportation network service drivers and driver vehicles pursuant to the Transportation Network Company Services Act. The commission may prescribe additional requirements related to safety for vehicles and drivers other than small passenger vehicles and the drivers of small passenger vehicles, including driver safety training programs, vehicle preventive maintenance programs, inquiries regarding the safety of the motor vehicles and drivers employed by a motor carrier, and the appropriateness of the motor vehicles and equipment for the transportation services to be provided by the motor carrier.

C. A commuter service shall certify that it has a program providing for an initial drug test for a person seeking to be a commuter service driver. The program shall use reasonable collection and analysis procedures to ensure accurate results, require testing only for substances controlled by federal regulation of commercial motor carriers and ensure the confidentiality of the test results and medical information obtained.

D. The motor transportation division of the department of public safety may immediately order, without notice or a public hearing, a motor vehicle to be taken out of service for violation of a federal or state law or rule relating to safety if the violation would endanger the public health or safety.

E. The commission shall implement rules requiring carriers to obtain criminal background reports for all employed or contract drivers of certificated service carriers and for all other persons employed by certificated household goods service carriers who enter private dwellings in the course of household goods service."

SECTION 7. Section 65-2A-20 NMSA 1978 (being Laws 2003, Chapter 359, Section 20, as amended by Laws 2013, Chapter 73, Section 18 and by Laws 2013, Chapter 77, Section 18) 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 commission.

B. A tariffed service carrier shall file with the commission 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, and all other information required by the transportation division of the commission. 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 commission 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] along with all information required by the transportation division of the commission.

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 commission;

(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 commission shall post on its internet web site 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 commission for any change in the tariff, accompanied by the proposed tariff, at least [twenty] ten days prior to implementation of the amended rates and terms of service contained in the tariff. Except as provided in this section for ambulance services and towing services providing nonconsensual tows, an amended tariff shall be approved and become effective [twenty] ten days after filing of the application for a change in the tariff, [The commission shall post notice of each application for a change in a tariff along with a copy of the proposed tariff on the commission web site] except for specific terms of service as may be disapproved within that period by the transportation division of the commission.

G. No changes in terms of service disapproved by the transportation division of the commission as inconsistent with the Motor Carrier Act, rule of the commission, 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 commission 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 by an ambulance service or a towing service providing nonconsensual tows shall be submitted to the transportation division of the commission for review prior to filing and shall include all materials required by the commission. An application by an ambulance service or a towing service providing nonconsensual tows for amendment of tariff rates that increases any tariff rate to a level greater than that previously approved by the commission [for a full-service carrier or a towing service providing nonconsensual tows] shall not become effective until approved by the commission as reasonable under Section 65-2A-21 NMSA 1978. The commission 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 transportation division of the commission, or if ordered in the discretion of the commission. The commission 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 commission finds reasonable.

I. A person may make a complaint in writing to the commission 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, commission rule or the operating authority or current tariff of the motor carrier. The commission 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 commission 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 commission shall prescribe the rate or the maximum or minimum rate to be observed or the terms of service to be made effective."

SECTION 8. Section 65-2A-24 NMSA 1978 (being Laws 2003, Chapter 359, Section 24, as amended by Laws 2013, Chapter 73, Section 22 and by Laws 2013, Chapter 77, Section 22) is amended to read:

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

A. An intrastate motor carrier [shall not] may lease a motor vehicle or operate a leased motor vehicle in the course of its transportation service [except as] by providing notice to the transportation division of the commission in such form and manner as may be provided by commission rule [The commission may approve a motor vehicle lease without notice or a public hearing] and by paying the fee specified for an equipment lease pursuant to Section 65-2A-36 NMSA 1978. The leased vehicle shall comply with all applicable laws and all safety and financial responsibility requirements under the Motor Carrier Act and commission rule for the nature of the transportation service and vehicle before being placed into service, and the motor carrier leasing the vehicle shall be and remain responsible at all times for insuring that the leased vehicle complies with all applicable laws and all safety and financial responsibility requirements under the Motor Carrier Act and commission rule.

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 commission for complying with all provisions of the Motor Carrier Act and commission 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 commission. 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 commission rules applicable to transportation service carriers."

SECTION 9. Section 65-2A-35 NMSA 1978 (being Laws 2003, Chapter 359, Section 35) is amended to read:

"65-2A-35. APPEAL TO SUPREME COURT.--

A. A motor carrier or other interested person aggrieved by a final order or determination of the commission issued pursuant to the Motor Carrier Act may appeal to the supreme court within thirty days; provided that, if a motion to reopen, reconsider or rehear a final order or determination of the commission is timely filed pursuant to commission rule, the time for appeal shall be extended until thirty days after the commission's disposition of such motion. The appellant shall pay to the commission the costs of preparing and transmitting the record to the court.

B. The pendency of an appeal shall not automatically stay the order appealed from. The appellant may petition the commission or the supreme court for a stay of the order. If a motion to reopen, reconsider or rehear a final order or determination of the commission is timely filed pursuant to commission rule, the commission shall retain jurisdiction to rule on any such motion regardless of the filing of an appeal.

C. The appeal shall be on the record of the hearing before the commission and shall be governed by the appellate rules applicable to administrative appeals. The supreme court shall affirm the commission'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."

SECTION 10. Section 65-2A-39 NMSA 1978 (being Laws 2003, Chapter 359, Section 39) is amended to read:

"65-2A-39. EFFECT ON MUNICIPAL POWERS.--

A. Nothing contained in the Motor Carrier Act shall be construed:

[A.] (1) to limit or restrict the police jurisdiction or power of a municipality over its streets, highways and public places except as otherwise provided by law; and

[B.] (2) in respect to matters other than rates and service regulations, to repeal a power of a municipality:

[(1)] (a) to adopt and enforce reasonable police regulations and ordinances in the interest of the public safety, morals and convenience; or

[(2)] (b) to protect the public against fraud, imposition or oppression by motor carriers within their respective jurisdiction.

B. No municipality or other local entity may impose a tax on or require a license for a transportation service or its driver for the delivery of passenger transportation service, except for generally applicable business licenses or taxes.

C. Nothing in this section prohibits an airport

with more than one million annual enplanements, as reported

by the federal aviation administration in the previous

calendar year, from charging transportation passenger

lane access, parking, booth rental or similar set fees or from

establishing other requirements to operate at that airport."

SECTION 11. A new section of the Motor Carrier Act is enacted to read:

"[NEW MATERIAL] TRANSITION.--Certificates and permits for specialized service as a non-emergency medical transport service issued prior to July 1, 2017 shall, on and after that date, become warrants for non-emergency medical transport service. The commission may require holders of such certificates and permits to exchange their certificates for newly issued warrants."

SECTION 12. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2017.

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