(Approved September 15, 2012) AN ACT
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1 (H. B. 3987) (Conference) (No ) (Approved September 15, 2012) AN ACT To amend Sections 2.37 and of Act No , as amended, known as the Puerto Rico Vehicles and Traffic Act, in order to modify the trailers and semi-trailers registration process and fees; and for other purposes. STATEMENT OF MOTIVES Pursuant to Section 2.37 of Act No , as amended, known as the Puerto Rico Vehicles and Traffic Act, the Secretary of Transportation and Public Works has the ministerial duty to establish and maintain an updated register of all motor vehicles, trailers, and semi-trailers authorized to travel in the public highways of the Island. In order to fulfill said purpose, the Secretary is empowered to issue every maritime transport company, fleet owner, cargo generator, terminal operator, or the agent thereof in Puerto Rico an authorization or special permit that allows the use of said public highways by van trailers and semi-trailers. On the other hand, Article XIV of Regulations 6281 of January 2, 2001, entitled Regulations to establish ownership, provisional registers, issue, expiration, renewals, duplicates, denial and revocation of regular and special permits, staggered payment of fees, identification of vehicle exempt from registration and trailer s number control, establishes the procedure to be followed for the registration and payment of fees for trailers proceeding from the United States and other jurisdictions.
2 Both, Section 2.37 of Act No. 22, supra, and Article XIV of Regulations 6281, present procedural problems for their implementation that require that the same be addressed urgently, to wit: 1. General lack of awareness in the citizenry of the provisions of Section 2.37 and the absence of adequate Regulations to enforce the same, not only with respect to its interpretation, but also in the application of the provisions and powers granted to the State by the law. 2. Absence of a data capture form of the entities in order to enforce the pertinent provisions of the law. 3. Difficulty in the collection of fees. 4. Irreconcilable differences between the provisions of law and the Regulations, and the consequent lack of administrative flexibility. It is necessary to include the pertinent information of the owner of the motor vehicle and of the owner of the trailer or semi-trailer (whether natural or juridical persons) in the Motor Vehicle Registry. Furthermore, it is convenient to have a registry of cargo generating companies and maritime transport companies. The owners or cargo generators, as well as maritime transport companies and haulers, appear in the various documents carried by the operator of the truck that hauls the trailer (Equipment Interchange Agreement or TIR, Manifests, etc.), in addition to the records of the Public Service Commission. Fee payment process is somewhat of a problem. The maritime transportation companies must visit the CESCO and present the ship manifest within five (5) days after the vessel s arrival to the Island. They must also show evidence of their authorization to operate in Puerto Rico. This transaction is required to obtain the tags for the containers received the previous year. This requisite is extremely onerous and has become impractical, since maritime transportation companies
3 receive several ships every week, which entails several visits to the CESCO in a short period of time. The Department of Transportation and Public Works (DTOP) is in charge of receiving the payment by means of an Internal Revenue voucher for all container trailers received in the immediately preceding calendar year; as said information is stated in the manifest provided by the maritime transportation company. In exchange for the payment made by means of an Internal Revenue voucher, the DTOP issues the corresponding payment certification to the maritime transportation company, as well as the tags mentioned in subsection (g) of Section 2.37 of Act No. 22, supra, in a number equal to that of the container trailers included in the submitted manifest. If it is indeed true that the maritime transportation company pays fifteen dollars ($15) in advance, multiplied by the total of container trailers included in the manifest, this does not mean that each one of said vehicles may travel during the year on the thoroughfares for merely having paid the fifteen dollars ($15) on account of travel fees. It is for this reason that in subsection (k) of Section 2.37 a thirty (30)-day limit is established for said vehicles to be moved from the Special Register to the Motor Vehicles Trailers and Semi-trailers Register of the agency. As provided in Section 2.05, after thirty (30) days of permanence of the trailer or semi-trailer in Puerto Rico, it shall be permanently registered in said Register. Therefore, the tags issued allow trailers and semi-trailers to provisionally travel for thirty (30) days and not for one year. In order to travel for a period of time greater than that authorized through the provisional registration (30 days), the formal registration is necessary, as well as the payment of fees this entails. The thirty (30)-day effective period, in turn, provides a competitive advantage for
4 trailers registered in Puerto Rico, when compared to those proceeding from the United States and other jurisdictions for the following reasons: 1. Trailers proceeding from the United States and other jurisdictions pay fifteen dollars ($15.00) for the right to travel up to a maximum of thirty (30) days. That is to say, the fees are at a rate of fifty cents ($0.50) per day. On the other hand, trailers registered in Puerto Rico by local transportation companies pay sixty-five dollars ($65.00) as annual fee. That is to say, the fees are at a rate of eighteen cents ($0.18) per day. 2. Pursuant to subsection (k) of Section 2.37 of Act No. 22, supra, in the case of a trailer proceeding from the United States or other jurisdiction that stays in the Island for more than thirty (30) days, the maritime transport company shall permanently register the same as required by Sections 2.05 and 24.04(a)(9)(iii) and pay sixty five dollars ($65.00) for travel fees and shall not receive the fifteen dollar ($15.00) credit corresponding to the special thirty (30)-day tag. That is to say that once the special thirty (30)-day term has elapsed, trailers proceeding from the United States and other jurisdictions shall pay annual fees in the amount of eighty dollars ($80.00) (at a rate of twenty-two cents ($0.22 per day), whereas trailers owned by local maritime transportation companies shall pay sixty five dollars ($65.00) annually (at a rate of eighteen cents ($0.18) per day). The practical effect of this regulatory system does not promote an adequate flow of commerce between Puerto Rico and the United States of America, nor commerce between the United States of America with other nations. For such reason, the concerns of the maritime transportation industry must be addressed, as well as those that in justice and equity would allow the Department to maintain an adequate traffic infrastructure. On the other hand, the current system poses a problem for the Puerto Rico Police, the municipal police, independent truck operators, and land transportation
5 companies. Police officers often issue traffic tickets to truckers when they haul trailers that do not have the provisional tag required by law, yet the truth is that the land carrier is not the owner of the trailers; the maritime transportation companies that are the owners of the trailers are the ones responsible for the payment of the provisional tag. For such reason, the carriers hand over the traffic ticket to the maritime transportation company and the latter pays the fine. Under the new proposed system, this problem would be solved since police officers would issue a traffic ticket to the maritime transportation companies that have trailers traveling on the thoroughfares without having paid the fees, and said ticket would be registered at the CESCO under the registration number of said company, so that when the company pays the provisional fees for the trailers for the next year, it would also have to pay the fines of the previous year. Therefore, the truck operators shall not have to pay the consequences for a third party s failure to pay the fees. The work of the Police would be simplified since the DTOP shall notify the Police Corps the companies that have still not paid the provisional travel fees of trailers registered outside of Puerto Rico, and the former may detect, in plain sight, when stopping a land carrier if the trailer he is driving is entitled to travel on the thoroughfares of Puerto Rico. ACAA land carrier insurance would cover any bodily injuries or death caused by the carrier while hauling the trailers through Puerto Rico thoroughfares. The Federal Aviation Administration Authorization Act expressly prohibits the States, including Puerto Rico, to enact any law that requires a motor carrier or leasing company to display any form of identification on their vehicles other than forms of identification required under Section of Title 49 of the United States Code (49 USC 14506(a)). For such reason, maritime transportation
6 companies or trailer lessors cannot be required to display a tag as presently provided by the law.
7 Taking into consideration all the aforesaid circumstances, the Legislative Assembly of Puerto Rico deems it necessary to establish a practical operating system for the transportation of trailers that shall benefit all sectors, including the Government of Puerto Rico. BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF PUERTO RICO: Section 1.- Section 2.37 of Act No , as amended, known as the Puerto Rico Vehicle and Traffic Act, is hereby amended to read as follows: Section Special Permits to Non-residents Special permits shall be issued to motor vehicles, trailers, or semi-trailers issued outside of Puerto Rico, subject to the following rules: (a) The Secretary shall issue, within a term that shall not exceed one hundred twenty (120) days and within any twelve (12)-month period, to any owner of a motor vehicle, trailer, or semi-trailer authorized to travel in any state or jurisdiction of the United States or in any foreign country that so requests, a motor vehicle, trailer, or semi-trailer permit, as the case may be; provided, that said motor vehicle, trailer, or semi-trailer is used for private and not for commercial purposes. (b) Motor vehicles, trailers, or semi-trailers to which the permit is issued shall be registered in the motor vehicle, trailer, or semi-trailer registry pursuant to the provisions of Sections 2.05 and 2.06 of this Act. (c) Commercial container trailers or semi-trailers proceeding from the United States or any other foreign country shall be registered in the Department upon payment of the corresponding fees in a special registry to be established by the Secretary. (d) The fees to be paid for registering trailers and semi-trailers shall be computed on the basis of one hundred dollars ($100) multiplied by the daily average of trailers or semi-trailers that the company kept traveling on the thoroughfares of the jurisdiction of Puerto Rico during the immediately preceding
8 calendar year. The Secretary shall provide, through regulations, the requirements and form of payment to comply with this special registry. (e) The Secretary shall issue a number to each maritime company, terminal operator, and/or owner of the fleet of trailers and semi-trailers certifying that they have complied with their annual duty pursuant to subsection (c). (f) The maritime companies, terminal operators, or owners of trailers and semi-trailers fleets shall include in all Equipment Interchange Receipts the number of the certificate issued by the Secretary authorizing a trailer or semitrailer fleet to travel on the thoroughfares of Puerto Rico. The Equipment Interchange Receipts shall contain a certification of the operator of the motor vehicle guaranteeing that the trailer or semi-trailer has been duly inspected. To omit this certification shall entail a fine of two hundred dollars ($200) to the operator of the heavy motor vehicle. The operator of the motor vehicle may be required to show the Equipment Interchange Receipt, which he/she must carry at all times when operating that type of vehicle on the thoroughfares of Puerto Rico. (g) Every maritime transportation company, terminal operator, or owner of a fleet of trailers or semi-trailers shall submit to the Department, not later than July 15 of the current year, a calculation of the number of trailers and semi-trailers pursuant to the provisions of subsection (d) of this Section. Said companies or their authorized agents shall be responsible for paying to the Secretary of the Department of the Treasury the amount owed as provided in subsection (d). (h) Every maritime transportation company, terminal operator, and/or owner of a fleet of trailers or semi-trailers shall be responsible for keeping a record of all trailers or semi-trailers that have traveled on the thoroughfares of Puerto Rico during the past five (5) years.
9 (i) The Department shall conduct periodic audits to oversee faithful compliance with the Act and its regulations. Should said audit indicate payments in excess a credit shall be granted; if otherwise, the Department shall issue a notice for collection of the pending balance. The preceding shall proceed provided the Company shows that there was no intention of submitting false information or of defrauding the Department. (j) After the corresponding payments have been made pursuant to subsection (d), the commercial trailers and semi-trailers in transit between Puerto Rico, the United States, or any other foreign country may travel on the thoroughfares of Puerto Rico for a maximum term of one (1) year. (k) Maritime transportation companies, terminal operators, or owners of a fleet of trailers or semi-trailers that fail to pay the fees pursuant to subsection (d) shall be guilty of an administrative fault that shall entail a five hundred dollar ($500) fine. (l) Container trailers whose license plates or vehicle license tags from the State or country of origin have expired shall be registered under the name of the maritime transportation company which so requests, upon payment of the corresponding fees established in this Act. (m) Trailers or semi-trailers arriving in Puerto Rico to be shipped to another port outside of the Island shall not be deemed to be in transit on the thoroughfares of Puerto Rico. (n) This Act shall be of prospective application as of the date of its approval; however, natural and juridical persons to whom this Act applies shall have the obligation to pay the travel fees corresponding to the June 2011 to July 2012 period in order to satisfy and settle any past, present, or future obligation or dispute relating to travel fees prior to the date of approval of this Act. The travel
10 fee for the June 2011 to July 2012 period shall be payable in the same manner established by these amendments. Section 2.- Section of Act No , as amended, known as the Puerto Rico Vehicle and Traffic Act, is hereby amended to read as follows: Section Fees to be paid Regarding the fees to be paid under this Act, the following rules shall be followed: (a) (1) (9) (iv) The fees to be paid for the registration of commercial container trailers and semi-trailers proceeding from the United States or from any foreign country shall be computed on the basis of one hundred dollars ($100) multiplied by the daily average of trailers or semi-trailers that the company kept traveling on the thoroughfares of the jurisdiction of Puerto Rico during the immediately preceding calendar year, of which fifty dollars ($50) shall be covered into DISCO and the remainder shall be covered into the funds of the Highways and Transportation Authority for the construction and improvements to the thoroughfares of Puerto Rico. Section 3.- Effectiveness This Act shall take effect immediately after its approval.
11 CERTIFICATION I hereby certify to the Secretary of State that the following Act No (H. B. 3987) (Conference) of the 7 th Regular Session of the 16 th Legislative Assembly of Puerto Rico: AN ACT to amend Sections 2.37 and of Act No , as amended, known as the Puerto Rico Vehicles and Traffic Act, in order to modify the trailers and semi-trailers registration process and fees; and for other purposes. has been translated from Spanish to English and that the English version is correct. In San Juan, Puerto Rico, on this 5 th day of February, Juan Luis Martínez Martínez Director
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