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April 2010 Report

30/04/2010

Mexican Senate Report.

 

The Mexican Senate approved a law that protects all personal information in possession of third parties.
Last April, the Mexican Senate approved the Protection of Personal Information in Possession of Third Parties Federal Law  (“LFPDP” for its Spanish initials). The LFPDP has as main objective the regulation of all the information in posession of third parties (i.e. hospitals, retail stores, telecomunication companies, etc.) in order for it to be used accordingly to its purpose. Furthermore, all companies (except banks) involved in the transfer of such information (i.e. databases), will be subject to the LFPDP.

 

Mexico’s next step on infrastructure.
The Senate approved in commissions the Public-Private Partnerships Law (“LAPP” for its Spanish initials). The LAPP will regulate (if approved by the House of Representatives before this year end) the long term contractual relationships between the public and private sector in which the private sector will be in charge of developing infrastructure and providing a service to the government and the government will pay for the service to be rendered.
The most relevant highlights of the LAPP are:

  • The introduction of a clear and specific legal framework for PPP as PPP would be excluded from the public procurement laws.
  • Even though it is a federal law it regulates state and municipal PPP (when the funds are federal) superseding the current state laws.
  • Concessions granted by the government would be for up to 40 years;
  • The private sector could present projects for the government to consider sponsoring and not just wait for the government to announce them. In these cases, if the Government agrees to pursue such PPP project and the initial promoter of the project does not result the winner of the bid, then such promoter would be entitled to reimbursement of the expenses incurred for the generating project.
  • The distribution of risks would be specified since the publication of the bid requirements.
  • A PPP project would be considered, for purposes of expropriating the necessary real estate, as of public interest.
  • The rights derived from the PPP contract may be given as guaranty. The shares or stocks of the special purpose vehicle may also be given as guaranty or conveyed.
  • In the event of dispute, arbitration is acknowledged as means of conflict resolution.
  • Congressional discussion revealed that the focus will be on new roads, hydraulic infrastructure, prisons and hospitals.

 

House of Representatives Report.

 

Oral trials for commercial disputes.
In order to make a more efficient process on commercial trials, the House of Representatives referred a bill to the Senate that would include a new chapter on the Commercial Code. If approved by the Senate, this bill would open the possibility for oral commercial trials.
Even though these oral commercial trials would only be applicable to disputes not exceeding USD$20,000.00, this is a great step in our judicial process.

 

More deductions to employers.
Representatives of the Institutional Revolutionary Party (“PRI” for its Spanish initials) referred a bill that includes an article to the Income Tax Law in which another deduction to employers is granted under such law. This article provides that, if an employer hires persons of more than 60 years of age or women that are the only income to their families, the employer may deduct from his income 30% of the tax withheld to such employees.

 

Technological waste to be considered as dangerous waste.
Representatives of the Green Ecologist Party (“PVEM” for its Spanish initials) referred a bill that provides the definition, management and disposal of “technological waste”. This type of waste shall be disposed on special places to be determined by the authorities, and they may not be incinerated nor imported to Mexico.