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ELECTRICITY
INDUSTRY: Policy
Proposal for Structural Reform of the Mexican Electricity Industry
Secretariat of Energy (Secretaría de
Energía), 1999;
Presently a legislative bill (Iniciativa Presidencial)
submitted to Congress. |
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The
Federal Executive has submitted to Congress a legislative bill to
amend Articles 27 and 28 of Mexico's Federal Constitution. The proposed
amendment is intended to provide a basis for Aprofound structural
reform of the national electricity industry in order to assure an
adequate supply of reliable, high quality and competitively priced
electricity in the long term. |
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With
the purpose of informing all interested parties as to the scope of
the constitutional reform initiative presented by the government,
Mexico's Secretary of Energy has outlined a policy proposal regarding
this important question in a document titled: Policy Proposal for
Structural Reform of the Mexican Electricity Industry. This document
may be consulted at the web site of Mexico's Presidencia, and is available
in English, French and Spanish. |
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The
Proposal consists of 75 pages, and it is divided into the following
sections: I Overview (pages 3-13); II The Current Structure of the
Industry (pages 14-24); III The New Electricity Industry (pages 25-37);
IV The Electricity Market (pages 38-48); V Regulatory Framework (pages
49-61); VI Reform Process (62-69); VII Transition and final structure
of the industry (pages 70-74), including a Glossary (page 75). |
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The
legislative bill that President Zedillo submitted to Congress generated
a strong opposition from both PAN and PRD representatives. It
is expected that this bill will be discussed and debated (and probably
amended) at the forthcoming an extraordinary session of Mexico's Federal
Congress to take place from the end of May until mid-June, 1999. |
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COMMERCIAL
CIVIL AVIATION: Regulations to the Civil Aviation Act.
Diario Oficial of December 7, 1998.
It entered into force the following day.
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The
Regulations to the Civil Aviation Act (Reglamento de la Ley de Aviación
Civil) were formulated by the Secretary of Communications and Transportation.
They were based upon the Federal Public Administration Act (Ley Orgánica
de la Administración Pública Federal) and the Civil
Aviation Act (Ley de Aviación Civil). The regulations aspire
to update and modernize the structure of Mexico's aviation industry.
Their principal objective is to regulate civil aviation activities
throughout Mexico, without adversely affecting those international
treaties on civil aviation matters to which Mexico is a party.
More specifically, the regulations set forth changes to public air
transportation services, in particular passenger, cargo, and mail
flights. The new enactment subjects public flights to fixed routes,
itineraries and radio frequencies, and imposes tariffs and taxes to
be paid for the operation of private (commercial) airlines.
Furthermore, the regulations include a number of safety measures that
must be followed by private commercial airlines intended to insure
the safety of those individuals who fly in Mexico, whether Mexican
nationals or foreigners. Other articles enunciate the rules for international
flights who enter into the Mexican Airspace. |
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The
Regulations repealed (1) Regulations to Article 320 of the General
Act of Means of Communication; (2) Regulations for the Establishment
of Priorities for Aerial Transports; (3) Regulations for the Operation
of Civil Airplanes; (4) Regulations for Search and Rescue and Investigation
of Airplane Accidents; (5) Regulations on Airplane Hangars and Workshops;
(6) Regulations on Air Traffic; (7) Regulations for the Licensing
of Technical Air Personnel; (8) Regulations for Technical Schools
of Aeronautics; (9) Regulations for Aerial Meteorological Services;
and (10) Regulations on Aeronautic Telecommunications and Radio-Aids
for Aeronautical Navigation. |
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The
Regulations are composed of 198 sections (Artículos), divided
into seven titles: I. General Provisions (Artículos 1-2); II
Aero-Transportation (Artículos 3-72); III Aeronautic
technical personnel, and of Technical Centers for the Development
and Training of Personnel (Artículos 73-97); IV Civil
(Private) airplanes, and their Operations and Maintenance (Artículos
98-151); V Services of Aeronautical Navigation and Air Traffic
Rules (Artículos 152-174); VI Search and Rescue Operations,
and Investigations of Airplane Accidents (Artículos 175-190);
VII Verification and Formulation of Air-Traffic Control Rules
and Sanctions for violations (Artículos 191-198). |
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COPYRIGHT
LAW: Regulations to the Federal Copyright Act.
Diario Oficial of May 22, 1998.
It entered into force the following day. |
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On
May 22, 1998 Mexico enacted Regulations to the Ley del
Derecho de Autor (Mexico=s Federal Copyright Act). These regulations
were formulated by the Secretary of Public Education. In general,
their objective is to detail and expand the provisions of the Federal
Copyright Act. The enforcement of both of these federal enactments
corresponds to the Secretariat of Public Education (Secretaría
de Educacion Pública) through the National Institute on Copyright
(Instituto Nacional del Derecho de Autor) and, in certain cases enunciated
by the law, to the Mexican Institute of Industrial Property (Instituto
Mexicano de la Propiedad Industrial). In effect, the new regulations
amended or repealed all the previous legislative enactments which
use to govern copyright law in Mexico. |
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The
Regulations repealed (1) The Regulations for the Recognition of Exclusive
Copyrights of Authors, Translators, and Editors; (2) Any other provisions
contrary to the newly enacted regulations. |
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The
Regulations are composed of 184 sections (Artículos).
The Regulations are divided into 14 Titles: I. General Provisions
(Artículos 1-4); II. Copyright questions (Artículos
5-15); III. Transfer of Rights (Artículos 16-26); IV.
Protection of the Copyright (Artículos 27-37); V. Limitations
to the Copyright (Artículos 38-46); VI. Rights regarding National
Symbols and Popular Cultures (Artículos 47-48); VII. Other
related rights (Artículos 49-52); VIII. Registry (Articulos
53-85); IX. International Numbers (Artículos 86-102);
X. The National Institute on Copyright (Artículos 103-107);
XI. Collective Rights (Articulos 108-136); XII. Settlement
of Controversies (Artículos 137-155); XIII. Administrative
Proceedings (Artículos 156-173); XIV. Violations of Commercial
Materials (Artículos 174-184). |
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MAQUILADORA
INDUSTRY: Decree for the Promotion
and Operation of the Maquiladora Industry.
Diario Oficial of June 1, 1998;
It entered into force the following day. |
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This
decree was enacted by President Zedillo and its major objective is
to promote the establishment and regulate the operation of legal entities
known as AMaquiladoras@ which are partially or fully devoted to the
export of manufactured goods. The decree repealed a previous
decree on the same subject published on December 22, 1989. |
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The
decree, formulated by the Secretariat of Commerce and Industrial Development
(SECOFI), is composed of 32 sections (Artículos) and is divided
into three chapters: I. General Provisions (Artículos 1-3);
II. The Manufacturing Export Programs (Artículos 4-27);
and III. Task Force for the Maquiladora Industry (Artículos
28-32). Chapter one is devoted to legal definitions. Chapter
two describes the process of registering a Maquiladora by SECOFI,
also outlining certain rights and duties applicable to the Maquiladora
industry. The final chapter sets forth the creation of a Task Force
made up of government officials whose purpose is to rigidly apply
and enforce the rules contained in the new decree. |
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FOREIGN
INVESTMENT: Regulations to the Foreign
Investment Act of 1993 and to the National Register of Foreign Investments
Diario Oficial of September 8, 1998;
It entered into force 20 days later,
(Except for Paragraph 4 of Articulo 18 which entered into force sixth
months later). |
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On
September 8, 1998, the government of Mexico through the Secretariat
of Commerce and Industrial Development (SECOFI) enacted the Reglamento
de la Inversion Extranjera y del Registro Nacional de Inversiones
Extranjeras. The purpose of this legislative enactment by Mexico=s
Executive Power is to regulate the volume, type and domestic
behavior of foreign investments in Mexico. |
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Since
the enactment of the new Foreign Investment Act in 1993 (D.O. of December
28, 1993), business persons, investors and legal practitioners within
and outside Mexico awaited patiently for over five years for
regulations to detail the 1993 Act. Prior to the enactment of
the current 1998 regulations, the provisions of the 1993 Act were
to be interpreted pursuant to the preceding Regulations which, although
enacted in 1989, formally Acomplemented@ the 1973 Act to Promote Mexican
Investment and Regulate Foreign Investment. In reality, the now old
1989 Regulations were formulated to advance a new and more flexible
legal regime to govern foreign investment; a regime which run contrary
to the rigid and nationalistic regime based on 1973 Foreign Investment
Act. Legal scholars have pointed out the unconstitutionality of the
1989 Regulations. However, no legal action was ever taken against
these important regulations because of the favorable and modern regime
that they established welcoming and promoting foreign investment.
In many respects, the 1989 Regulations Bnow finally repealed by the
current 1998 RegulationsB, may be characterized as the direct source
and legal basis for the 1993 Foreign Investment Act, still in force.
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The
1998 Regulation are composed of 49 sections (Artículos) divided
into eight titles. I General Provisions (Artículos 1-4), sets
forth general definitions of legal terms used in the Act; in addition,
it enumerates specific industries not subject to the rules and principles
of the Act, such as freight, warehousing, and some activities associated
with the generation of electricity and oil. II Of the Acquisition
of Real Estate, the Exploitation of Mines and Water, and of Trusts
(Articulos 5-12). This title governs the acquisition of real estate
in Mexico, both in the Restricted Zone and elsewhere, for commercial
and residential purposes. Interestingly, contrary to Article 27 (I)
of the Federal Constitution, the new regulations detail how a Mexican
corporation with foreign investment may acquire the direct ownership
of real estate anywhere in Mexico, even in the Restricted Zone, when
said acquisition takes place for commercial purposes. Trust contracts,
known as AFideicomisos@ and now valid for fifty years, must
continue to be used for residential purposes. III Of Societies (Companies,
Artículos 13-20). This title enunciates the rules foreigners
must comply with to invest and participate in Mexican legal entities,
in particular when the company in question does not contain the so-called
AExclusion of Foreigners Clause@ (Cláusula de Exclusión
de Extranjeros). IV Of the Investment by Foreign Legal Entities
(Artículo 21). This sets out the manner in which foreign corporations
must register with the Mexican government to be authorized to conduct
business in Mexico. V Of Neutral Investments (Artículos 22-25).
It establishes the requirements needed to obtain authorization from
the Mexican government to establish or modify neutral investments.
VI Of the National Commission of Foreign Investments (Comisión
Nacional de Inversiones Extranjeras, Artículos 26-29). This
title enumerates the legal and administrative duties imposed upon
this National Commission, including its internal rules of procedure.
VII Of the National Register of Foreign Investments (Registro Nacional
de Inversiones Extranjeras, Articulos 30-46), sets out the organization,
activities, and basic inscriptions to be made by the Registry, whose
major objective is to organize, keep and maintain an official
register of all foreign investments in Mexico. The Register is divided
into three Asections:@ 1) Foreign individuals and foreign legal entities;
2) Societies (Companies); and, 3) Trust contracts (Fideicomisos).
VIII Of Supplementary Provisions (Artículos 47-49).
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LABOR
LAW: 1998 General Rules for the Inspection and Application of Sanctions
for Violations to the Federal Labor Act (Ley Federal del Trabajo).
Diario Oficial of July 6, 1998.
It entered into force the following day. |
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On
July 6, 1998 Mexico enacted the Reglamento General para la Inspección
y Aplicación de Sanciones por Violaciones a la Legislación
Laboral. These federal regulations were formulated by the Secretariat
of Labor and Social Welfare (Secretaría del Trabajo y Previsión
Social). In general, the regulations= objective is to enunciate
the procedure to be followed in the conduct of inspections and the
application of sanctions for violations committed to Mexico=s Federal
Labor Law in specific workplaces. More specifically, these regulations
establishes the requirements for becoming labor inspectors, enumerates
their duties as well as the types of industries subject to inspections.
Furthermore, the regulations also specify the different sanctions
that may be imposed for violations committed in workplaces.
The final title describes the proceedings that may be directed against
a given company, the contents of said proceedings and the administrative
avenues that a factory or company owner may use in court to challenge
the imposition of sanctions. |
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These
regulations repealed (1) the Regulations for Federal Labor Inspections
(Reglamento de Inspección Federal del Trabajo); (2) Regulations
Establishing the Procedure for the Application of Administrative Sanctions
for Violations to the Federal Labor Act (Reglamento que Establece
el Procedimiento para la Aplicación de Sanciones Administrativas
por Violaciones a la Ley Federal del Trabajo). |
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The
Regulations are divided into the following Titles: I. General Provisions
(Articulos 1-6); II Inspection Visits, with chapter 1 on labor
inspectors (Articulos 7-11); chapter 2 on the practice of inspections
(Articulos 12-27), and chapter 3 on the responsibilities of inspectors
(Articulos 28 & 29); III Administrative Procedure for the
Application of Sanctions, with chapter 1 on the initiation of proceedings
(Articulos 30-32), chapter 2 on the substance of the proceedings (Articulos
33-36), chapter 3 on resolutions (Articulos 37-41), and chapter 4
on the means of contesting (Impugnación) (Articulo 42). |
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NOTE:
Last Updated: May 14, 1999
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Author
& General Coordinator:
JORGE A. VARGAS
Professor of Law,
University of San Diego School of Law
Published by ©West
Group (1998)
To purchase this book
please click on icon below:

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