Article courtesy of the International Business Accelerator
By Jerry Pacheco
In my 20 years of working the legislative session to support initiatives related to international trade, I have to say that the 2011 session was the most successful one that I can remember. The following are bills that passed the 2011 New Mexico legislative that will have an impact particularly on cross-border commerce:
HB 24 (Border overweight cargo zone bill): This bill passed both houses and is sitting on the governor’s desk waiting for her signature. Because this bill was endorsed by the governor during the session, it is highly likely that she will sign this. After signature, this bill will become law on July 1st.
This bill, sponsored by Mary Helen Garcia in the House of Representatives and supported by Senator Mary Kay Papen in the Senate, creates a six-mile zone around the Santa Teresa and Columbus Ports of Entry. It allows for reducible loads above the maximum 80,000 lbs, but not exceeding 96,000 lbs (a 15% increase in weight). There will be a $250 annual permit per truck/unit for haulers of irreducible loads within the zone.
The creation of these overweight zones will help create a new economic development opportunity by attracting importers of products from Mexico, such as tile and cement, which can bring their loads into warehouses located within the zone. The loads can then be broken down and distributed from these warehouses throughout the rest of the U.S. It is estimated that up to 100 jobs within the zones could be created within the first year of their establishment.
This bill was supported by the New Mexico Border Authority, the New Mexico Department of Transportation, and the Motor Transportation Department.
HB 322 (Revolving border infrastructure fund): This bill, which was sponsored by Representative Mary Helen Garcia, passed both houses and is sitting on the governor’s desk waiting for her signature. Because this bill was endorsed by the governor during the session, it is highly likely that she will sign this. After signature, this bill will become law on July 1st.
HB 322 creates a permanent Border Infrastructure Fund, to be managed by the New Mexico Border Authority, to plan, design, and construct border infrastructure. Border infrastructure needs are intimately tied to manufacturing, international logistics, and foreign trade patterns, which are often complex and require a comprehensive approach to be properly addressed. The creation of a permanent fund would allow the New Mexico Border Authority to finance multi-year, all-inclusive, border infrastructure plans.
Currently, border infrastructure development is conducted by reacting to specific crises with isolated projects; funding is usually contingent to availability and subject to politics involved in obtaining executive or legislative capital outlay allocations. A predictable funding source allows for proactive and methodical border planning and development, taking into account both present and future needs.
HB 523/SB 179 (diesel tax abatement bill – these were companion bills in the House and Senate): Both of these bills passed both houses and are sitting on the governor’s desk waiting for her signature. The House bill was sponsored by Representative Jane Powdrell-Culbert and the Senate bill was sponsored by Senator Cynthia Nava. The governor will have the option of signing either bill, which is critical for Union Pacific Railroad (UPR) to proceed with its publicly announced project to establish a diesel refueling station and swamp yards (intermodal yards) in Santa Teresa, New Mexico.
Union Pacific Railroad’s investment in its Santa Teresa project will exceed $400 million and have an overall economic impact of $500 million for the New Mexico economy. The construction of these facilities will create 3,000 jobs during the construction phase from 2011 to 2015, and will eventually be headquarters for more than 600 permanent jobs.
The UPR project was the first major economic development project announced by New Mexico Governor Susana Martinez and Secretary Jon Barela a week after the new administration took office.
SB 373 (Capital Outlay Reauthorization): This bill was sponsored by Senator Carlos Cisneros and most likely will be signed by Governor Martinez. The $800,000 that had long ago been appropriated to complete the planned hazmat station at the Santa Teresa Airport reverted, due to the slowness in the advancement of this project. SB 373 reauthorized the $800,000 so that the facility can now be completed. An additional $250,000 was reauthorized for the Santa Teresa Safety Inspection Station.
