New Mexico 2025 Regular Session

New Mexico House Bill HB539 Compare Versions

Only one version of the bill is available at this time.
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2828 HOUSE BILL 539
2929 57
3030 TH LEGISLATURE
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4242 FIRST SESSION
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4545 2025
4646 INTRODUCED BY
4747 Raymundo Lara
4848 AN ACT
4949 RELATING TO SPECIAL DISTRICTS; CREATING THE CAMINO REAL
5050 REGIONAL UTILITY AUTHORITY; PROVIDING POWERS AND DUTIES;
5151 PROVIDING FOR THE ISSUANCE OF REVENUE BONDS.
5252 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
5353 SECTION 1. A new section of Chapter 73 NMSA 1978 is
5454 enacted to read:
5555 "[NEW MATERIAL] CAMINO REAL REGIONAL UTILITY AUTHORITY--
5656 CREATED--BOARD--ELECTION--TERMS.--
5757 A. The "Camino Real regional utility authority" is
5858 created. The authority shall be governed by a board of
5959 directors consisting of seven elected members who are water
6060 consumers who reside within the geographical boundaries of the
6161 authority's service area. The elected board of directors shall
6262 serve staggered terms to be established in the governance
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9090 document developed by the board.
9191 B. All elections of the authority shall be
9292 conducted pursuant to the provisions of the Local Election Act
9393 and voted upon by the qualified electors registered to vote
9494 within the geographical boundaries of the authority's service
9595 area. Board members shall be elected at the regular local
9696 election. Vacancies on the board shall be filled by the
9797 remaining board members, and a person appointed to fill a
9898 vacancy shall serve until the next regular local election. A
9999 person appointed to fill a vacancy shall be a qualified elector
100100 who resides within the authority's service area."
101101 SECTION 2. A new section of Chapter 73 NMSA 1978 is
102102 enacted to read:
103103 "[NEW MATERIAL] BOARD--POWERS--DUTIES.--
104104 A. The Camino Real regional utility authority board
105105 is granted all powers necessary and appropriate to carry out
106106 the purposes of this 2025 act. All powers, privileges and
107107 duties vested in or imposed upon the authority shall be
108108 exercised and performed by the board; provided that the board
109109 may delegate its powers by resolution to an officer or agent of
110110 the board, with the exception of the following powers:
111111 (1) adoption of board rules, policies and
112112 procedures;
113113 (2) ratification of acquisition of property;
114114 (3) initiation or continuation of legal
115115 .230750.4
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143143 action, except that initiation and filing of liens for unpaid
144144 rates and charges and suits for payment thereof and
145145 discontinuance of service for failure to pay such rates and
146146 charges may be delegated;
147147 (4) establishment of fees, tolls, rates or
148148 charges, except that the board may retain or appoint a panel of
149149 water, wastewater or engineering experts to make
150150 recommendations to the board regarding the approval of proposed
151151 projects, as well as increases to residential, commercial and
152152 industrial water rates; and
153153 (5) issuance of revenue bonds.
154154 B. Meetings of the board shall be held at the call
155155 of the chair or whenever three members shall so request in
156156 writing. A majority of members then serving constitutes a
157157 quorum for the transaction of any business. Except as provided
158158 in Subsection C of this section, the affirmative vote of at
159159 least a majority of a quorum present shall be necessary for any
160160 action to be taken by the board. A vacancy in the membership
161161 of the board shall not impair the right of a quorum to exercise
162162 all rights and perform all duties of the board.
163163 C. The non-delegable powers and duties provided in
164164 Subsection A of this section shall only be effective upon
165165 resolution passed by a supermajority of five members of the
166166 board.
167167 D. The board shall promulgate and adhere to rules,
168168 .230750.4
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196196 policies and procedures that govern the board's conduct.
197197 E. A member of the board having a financial
198198 interest or possible interest in the outcome of any policy,
199199 decision or determination before the board shall be
200200 disqualified from voting on the issue. A member's status as a
201201 ratepayer or customer of the authority shall not be deemed to
202202 constitute a financial interest or possible interest for the
203203 purposes of this section.
204204 F. Subject to Subsections B through D of this
205205 section, the board may:
206206 (1) adopt bylaws;
207207 (2) fix the time and place of meetings and the
208208 method of providing notice of the meetings in accordance with
209209 the Open Meetings Act;
210210 (3) promulgate orders, resolutions, policies
211211 and rules necessary for the governance and management of the
212212 affairs of the authority and the execution of the powers vested
213213 in the authority;
214214 (4) maintain offices at a place as the board
215215 may designate;
216216 (5) employ a director, who may employ and
217217 retain necessary staff;
218218 (6) establish user classifications;
219219 (7) fix and from time to time increase or
220220 decrease water rates, fees or other charges for water delivery
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249249 or other related services or facilities operated or made
250250 available by the authority, subject to the following
251251 conditions:
252252 (a) until paid, all rates, tolls or
253253 charges constitute a perpetual lien on and against the property
254254 served, and any such lien may be foreclosed in the same manner
255255 as provided by the laws of New Mexico for the foreclosure of
256256 real estate mortgages and shall not be subject to any
257257 limitations period, statutory or otherwise;
258258 (b) the board shall prescribe and
259259 enforce rules by which properties shall be connected with and
260260 disconnected from the facilities of the authority, including
261261 payment plans to avoid discontinuing service to delinquent
262262 accounts; and
263263 (c) after giving reasonable notice, the
264264 board shall shut off or discontinue service for unauthorized
265265 connections, illegal connections or connections for which
266266 rates, tolls or other charges are delinquent in payment. The
267267 board may file suit in a court of competent jurisdiction to
268268 recover costs associated with an unauthorized, illegal or
269269 delinquent connection, including the cost of water delivered,
270270 charges for connection and disconnection, damages and attorney
271271 fees; and
272272 (8) adopt an operating budget that supports
273273 the full cost of operation, maintenance and replacement as
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302302 established by an asset management plan and a rate-setting
303303 analysis."
304304 SECTION 3. A new section of Chapter 73 NMSA 1978 is
305305 enacted to read:
306306 "[NEW MATERIAL] AUTHORITY--POWERS.--
307307 A. The Camino Real regional utility authority is a
308308 public body politic and corporate, separate and apart from the
309309 city of Sunland Park and Dona Ana county. The authority is a
310310 special district and political subdivision of the state. The
311311 authority is not subject to the jurisdiction of or approval
312312 from the public regulation commission and is not subject to the
313313 provisions of the Public Utility Act. The authority is granted
314314 all powers necessary and appropriate to carry out the
315315 provisions of this section.
316316 B. The authority created pursuant to this section
317317 shall replace the entity of the same name previously created by
318318 a joint powers agreement between the city of Sunland Park and
319319 Dona Ana county, and this authority shall succeed to all of the
320320 entity's assets and liabilities and its service area, and the
321321 authority shall provide water and wastewater services within
322322 the entity's service area, as it may be modified or expanded by
323323 the authority.
324324 C. The authority may:
325325 (1) sue and be sued;
326326 (2) enter into contracts, including contracts
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355355 with the city of Sunland Park or Dona Ana county for
356356 procurement services;
357357 (3) borrow money and issue revenue bonds
358358 pursuant to Subsection E of this section;
359359 (4) acquire, dispose of or encumber real and
360360 personal property and any interest in such property, including
361361 leases, easements and water rights from a willing seller only;
362362 (5) design, develop, construct, operate,
363363 maintain, purchase or contract for water systems and pipelines
364364 to connect systems and sources with the authority's customers;
365365 (6) be allowed a water use planning period not
366366 to exceed forty years and may hold water rights based on a
367367 water development plan submitted to and approved by the state
368368 engineer, the implementation of which shall not exceed forty
369369 years from the date of the application to change the place or
370370 purpose of use of an acquired water right;
371371 (7) have and exercise the power of eminent
372372 domain in the manner provided by law for the condemnation of
373373 private property within the boundaries of the authority for the
374374 construction, maintenance and operation of water and wastewater
375375 facilities and to acquire, maintain, contract for or condemn
376376 for use as part of the authority privately owned water and
377377 wastewater facilities used for the collection, treatment and
378378 disposal of wastewater. The authority shall not take any
379379 property unless it is necessary for rights of way and easements
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408408 and for the use and placement of facilities and infrastructure
409409 elements, including pipelines, structures, pump stations and
410410 related appurtenances. The authority shall not acquire water
411411 rights through eminent domain; and
412412 (8) construct and maintain works and establish
413413 and maintain facilities across or along any public street or
414414 highway and through any vacant public lands that are the
415415 property of the state and construct works and establish and
416416 maintain facilities across any stream of water or watercourse,
417417 all in accordance with applicable state and federal permitting
418418 authority.
419419 D. The authority is subject to:
420420 (1) the provisions of the Procurement Code;
421421 (2) the provisions of the Eminent Domain Code;
422422 (3) the limitations imposed by Section 72-1-9
423423 NMSA 1978 regarding water rights obtained or water rights
424424 condemned pursuant to a water development plan; and
425425 (4) the provisions of Chapter 72 NMSA 1978
426426 regarding any change to the point of diversion or the place or
427427 purpose of use of any water right to any place selected by the
428428 authority in order to make the water available to the
429429 authority.
430430 E. The authority may issue "utility system revenue
431431 bonds" and obligations for acquiring real and personal property
432432 needed for the regional utility system and for extending,
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461461 enlarging, renovating, repairing or otherwise improving water
462462 facilities and wastewater facilities or for any combination of
463463 these purposes. The authority may issue revenue anticipation
464464 notes with maturities not exceeding thirteen months upon terms
465465 approved by the board of directors. The authority shall
466466 irrevocably pledge net revenues from the operation of the
467467 regional utility system for payment of the principal, premiums
468468 and interest on the revenue bonds or other obligations. It is
469469 unlawful to divert, use or expend money received from the
470470 issuance of utility system revenue bonds for any purpose other
471471 than the purpose for which the utility system revenue bonds
472472 were issued. Utility system revenue bonds:
473473 (1) may have interest, appreciated principal
474474 value or any part of interest or appreciated principal value
475475 payable at intervals or at maturity as the authority
476476 determines;
477477 (2) may be subject to prior redemption at the
478478 authority's option at such time and upon such terms and
479479 conditions with or without the payment of a premium as
480480 determined by the authority;
481481 (3) may mature at any time not exceeding fifty
482482 years after the date of issuance;
483483 (4) may be serial in form and maturity or may
484484 consist of one bond payable at one time or in installments or
485485 may be in another form as determined by the authority;
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514514 (5) shall be sold for cash at, above or below
515515 par and at a price that results in a net effective interest
516516 rate that does not exceed the maximum permitted by the Public
517517 Securities Act; and
518518 (6) may be sold at a public or negotiated
519519 sale.
520520 F. The bonds authorized by the authority and their
521521 income shall be exempt from all taxation by the state or its
522522 political subdivisions.
523523 G. The members of the board of directors of the
524524 authority may adopt a resolution declaring the necessity for
525525 the issuance of utility system revenue bonds or other
526526 obligations and may authorize the issuance of utility system
527527 revenue bonds or other obligations by an affirmative vote of a
528528 majority of all members of the board of directors of the
529529 authority.
530530 H. Except for the purpose of refunding previous
531531 utility system revenue bond issues, the authority shall not
532532 sell utility system revenue bonds payable from pledged revenues
533533 after the expiration of three years from the date of the
534534 resolution authorizing their issuance. Any period of time
535535 during which a utility system revenue bond is in litigation
536536 shall not count toward the determination of the expiration date
537537 of that issue."
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