New Mexico 2025 2025 Regular Session

New Mexico Senate Bill SB143 Introduced / Bill

Filed 01/27/2025

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SENATE BILL 143
57
TH LEGISLATURE 
-
 
STATE
 
OF
 
NEW
 
MEXICO
 
-
 FIRST SESSION
,
 
2025
INTRODUCED BY
George K. Muñoz and Benny Shendo, Jr. And Meredith A. Dixon
AN ACT
RELATING TO PUBLIC UTILITIES; CREATING THE UTILITY OVERSIGHT
FUND; INCREASING CERTAIN FEES AND CHANGING DISTRIBUTION OF
COLLECTED FEES AND PENALTIES; PROVIDING FOR THE ENFORCEMENT OF
FEES BY THE PUBLIC REGULATION COMMISSION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1.  A new section of the Public Utility Act is
enacted to read:
"[NEW MATERIAL] UTILITY OVERSIGHT FUND.--
A.  The "utility oversight fund" is created in the
state treasury.  The fund consists of fees collected pursuant
to Sections 62-8-8, 62-8-9 and 63-7-20 NMSA 1978, as well as
appropriations, gifts, grants and donations and earnings on
investment of the fund.  Balances in the fund shall not revert
to the general fund or any other fund at the end of a fiscal
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year.
B.  The utility oversight fund shall be administered
by the commission.  Money in the fund is subject to
appropriation by the legislature to the commission to carry out
its duties pursuant to the Public Utility Act.
C.  Disbursements from the utility oversight fund
shall be made by warrant of the secretary of finance and
administration pursuant to vouchers issued and signed by the
director of the administrative services division of the
commission or the director's authorized representative."
SECTION 2. Section 62-8-8 NMSA 1978 (being Laws 1967,
Chapter 96, Section 6, as amended) is amended to read:
"62-8-8.  INSPECTION AND SUPERVISION FEE.--
A. Each utility doing business in this state and
subject to the control and jurisdiction of the commission with
respect to its rates or service regulations shall pay annually
to the state a fee for the inspection and supervision of such
business in an amount equal to five hundred [six ] ninety
thousandths percent of its gross receipts from business
transacted in New Mexico for the preceding calendar year.  That
sum shall be payable on or before the [first ] last day of April
in each year.  An inspection and supervision fee shall be paid
by utilities in addition to all property, franchise, license,
intangible and other taxes, fees and charges provided by law. 
No similar inspection and supervision fee shall be measured by
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the amount of the gross receipts of such utility for the
calendar year next preceding the date fixed in this section for
the payment of the fee.  In the case of utilities engaged in
interstate business, the inspection and supervision fee shall
be measured by the gross receipts of those utilities from
intrastate business only for that preceding calendar year and
not in any respect upon receipts derived wholly or in part from
interstate business.  No inspection and supervision fee shall
be charged on the gross receipts from the sale of gas, water or
electricity to a utility regulated by the commission for resale
to the public.
B.  Prior to July 1, 2031, the fees established
pursuant to this section may be adjusted annually by the
commission; provided that any increase shall not be greater
than the prior year's increase in the employment cost index for
state and local government as published by the federal bureau
of labor statistics."
SECTION 3.  Section 62-8-9 NMSA 1978 (being Laws 1957,
Chapter 25, Section 1, as amended) is amended to read:
"62-8-9.  DISPOSITION OF FUNDS--INTEREST AND PENALTY ON
LATE PAYMENTS.--
A.  All fees and money collected under the
provisions of the Public Utility Act, including fees provided
for in Section 62-13-2 NMSA 1978 and including fees and charges
for inspection and supervision, for stenographic services and
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for transcripts of evidence, shall be remitted by the
commission to the state treasurer and credited to the utility
oversight fund not later than the day following receipt. 
Payments provided for in the Public Utility Act shall be
obligatory upon all utilities subject to the Public Utility
Act.
B.  When a fee is not paid on the date it is due,
interest shall be paid to the state on the amount due.  The
interest on the amount due shall start to accrue on the day
following the due date and will continue to accrue until the
total amount due is paid.  The rate of interest on a late fee
payment shall be fifteen percent per year, computed at the rate
of one and one-fourth percent per month.
C.  In addition to any interest due on a late fee
payment, a penalty shall be paid to the state for failure to
pay the fee when it was due.  The penalty imposed shall be two
percent of the amount of the fee due.
D.  The [attorney general, in the name of the state ]
commission shall bring suit to collect fees, interest and
penalties that remain unpaid."
SECTION 4. Section 62-13-2 NMSA 1978 (being Laws 1957,
Chapter 25, Section 2, as amended) is amended to read:
"62-13-2.  FEES.--The commission shall collect fees for
the following [fees], which shall be remitted to the state
treasurer not later than the day following receipt; provided
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that the commission may increase by administrative rule the
fees set forth in this section in amounts that do not exceed
the cost of administrative proceedings before the commission :
A.  for filing any rate schedule, service rule or
regulation or sample form, or amendment thereto, one dollar
($1.00);
B.  for filing each application, petition or
complaint, twenty-five dollars ($25.00);
C.  for copies of papers, testimony and records, the
reasonable cost of such copies as the commission may provide
from time to time by rule; and
D.  for certifying any copy of any paper, testimony
or record, two dollars ($2.00)."
SECTION 5. Section 62-14-8 NMSA 1978 (being Laws 1973,
Chapter 252, Section 8, as amended) is amended to read:
"62-14-8.  PENALTIES.--In addition to any other liability
imposed by law, an excavator, after a formal hearing and upon a
finding, who has failed to comply with Subsection C of Section
62-14-3 NMSA 1978 is subject to an administrative penalty of up
to five thousand dollars ($5,000) for a first offense as
assessed by the commission.  Thereafter, the commission may
assess an administrative penalty of up to a maximum of twenty-
five thousand dollars ($25,000) for subsequent violations of
Subsection C of Section 62-14-3 NMSA 1978.  In addition to any
other penalty imposed by law, an operator of underground
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pipeline facilities or underground utilities, excavator or
operator of a one-call notification system, after formal
hearing and upon a finding, who has willfully failed to comply
with Chapter 62, Article 14 NMSA 1978 shall be subject to an
administrative penalty of up to five thousand dollars ($5,000)
for a first offense as assessed by the commission.  Thereafter,
upon finding that a violation of Chapter 62, Article 14 NMSA
1978 has occurred, the commission may, upon consideration of
the nature, circumstances, gravity of the violation, history of
prior violations, effect on public health, safety or welfare
and good faith on the part of the person in attempting to
remedy the cause of the violation, assess an administrative
penalty up to a maximum of twenty-five thousand dollars
($25,000) per violation consistent with federal law.  No
offense occurring more than five years prior to the current
offense charged shall be considered for any purpose.  All
actions to recover the penalties provided for in this section
shall be brought by the commission.  All penalties recovered in
any such action shall be [paid into the state general ]
deposited in the current school fund."
SECTION 6. Section 63-7-20 NMSA 1978 (being Laws 1951,
Chapter 194, Section 1, as amended) is amended to read:
"63-7-20.  UTILITY INSPECTION--FEE.--
A.  Each utility doing business in this state that
is subject to the control and jurisdiction of the commission by
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virtue of the provisions of Article 11 of the constitution of
New Mexico with respect to its rates and service shall pay
annually to the commission a fee in performance of its duties
as now provided by law.  The fee for utilities shall not exceed
five hundred [eleven] ninety thousandths percent of its gross
receipts from business transacted in New Mexico for the
preceding calendar year.  This sum shall be payable annually on
or before April [1] 30 in each year.  No similar fee shall be
imposed upon the utility.  In the case of utilities engaged in
interstate business, the fees shall be measured by the gross
receipts of the utilities from intrastate business only for the
preceding calendar year and not in any respect upon receipts
derived wholly or in part from interstate business.  Prior to
July 1, 2031, the fees established pursuant to this section may
be adjusted annually by the commission; provided that any
increase shall not be greater than the prior year's increase in
the employment cost index for state and local government, as
published by the federal bureau of labor statistics.  As used
in this section, "utility" includes telephone companies and
transmission companies but does not include public utilities
subject to the Public Utility Act.  
B.  When a fee is not paid on the date it is due,
interest shall be paid to the state on the amount due.  The
interest on the amount due shall start to accrue on the day
following the due date and shall continue to accrue until the
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total amount due is paid.  The rate of interest on a late fee
payment shall be fifteen percent per year, computed at the rate
of one and one-fourth percent per month.
C.  In addition to any interest due on a late fee
payment, a penalty shall be paid to the state for failure to
pay the fee when it is due.  The penalty imposed shall be two
percent of the amount of the fee due.
D.  The [attorney general, in the name of the state ]
commission shall bring suit to collect fees, interest and
penalties that remain unpaid."
SECTION 7. Section 63-7-21 NMSA 1978 (being Laws 1951,
Chapter 194, Section 2, as amended) is amended to read:
"63-7-21.  DISPOSITION OF FEES.--All [moneys ] money
collected under the provisions of [Chapter 194, Laws of 1951 ]
Section 63-7-20 NMSA 1978 shall be deposited with the state
treasurer [and by him credited ] and shall be credited to the
[general] utility oversight fund."
SECTION 8. Section 70-3-2 NMSA 1978 (being Laws 1953,
Chapter 42, Section 3, as amended) is amended to read:
"70-3-2.  LICENSE--FEES--DISPOSITION.--[Each ] An operator
of a pipeline [or pipelines ] operated in the state [of New
Mexico] for the transportation of crude oil, natural gas or the
products derived [therefrom ] from either shall, during the
month of July, obtain a license for the operation of [such ] the
pipeline.  Application for [such ] a license shall be made upon
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a form to be provided by the [corporation ] public regulation
commission and shall be accompanied by the license fee
determined as [hereinafter ] provided in this section .  On
receipt of [such] the application and license fee, the
[corporation] public regulation commission shall issue a
license to the applicant for the current fiscal year.  All
license fees [so] collected shall be paid to the state
treasurer and [by him ] credited to the [general ] utility
oversight fund.
SCHEDULE OF ANNUAL LICENSE FEES
A.  [Each] A person, firm, association or
corporation transporting natural gas or [the ] natural gas
products [derived therefrom ] by pipeline [or pipelines ] in New
Mexico and operating a pipeline [or pipelines ] and appurtenant
facilities within New Mexico shall pay an annual license fee of
five hundred dollars ($500) at the time of making the
application required by this section.  An additional fee shall
be paid, measured by the aggregate installed rated horsepower
of compression facilities located within New Mexico and
operated by the licensee, in accordance with the following
schedule:
(1)  not exceeding [10,000 ] ten thousand
horsepower, the minimum fee with no additional fee;
(2)  more than [10,000 ] ten thousand horsepower
and not more than [30,000 ] thirty thousand horsepower, the
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minimum fee plus [$2,275.00 ] two thousand two hundred seventy-
five dollars ($2,275) ;
(3)  more than [30,000 ] thirty thousand
horsepower and not more than [50,000 ] fifty thousand
horsepower, the minimum fee plus [$4,000.00 ] four thousand
dollars ($4,000);
(4)  more than [50,000 ] fifty thousand
horsepower and not more than [75,000 ] seventy-five thousand
horsepower, the minimum fee plus [$5,000.00 ] five thousand
dollars ($5,000);
(5)  more than [75,000 ] seventy-five thousand
horsepower and not more than [100,000 ] one hundred thousand
horsepower, the minimum fee plus [$5,500.00 ] five thousand five
hundred dollars ($5,500); and
(6)  more than [100,000 ] one hundred thousand
horsepower, the minimum fee plus [$5,925.00 ] five thousand nine
hundred twenty-five dollars ($5,925) and plus [$75.00] seventy-
five dollars ($75.00) additional for each [10,000 ] ten thousand
horsepower or fraction thereof in excess of [100,000 ] one
hundred thousand horsepower.
B.  [Each] An operator of a pipeline [or pipelines ]
for the transportation of oil or [the ] oil products [derived
therefrom] shall pay [the following fees, based on the number
of miles of such line operated in New Mexico ] a basic fee of
five hundred dollars ($500) [and in addition ] plus fees based
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on the number of miles of pipeline operated in New Mexico ,
computed in accordance with the following schedule:
(1)  for all lines up to and including eight
inches in diameter:
[$13.00] (a)  thirteen dollars ($13.00)
per mile for the first [50 ] fifty miles;
[$ 7.00] (b)  seven dollars ($7.00) per
mile for the next [25 ] twenty-five miles;
[$ 4.00] (c)  four dollars ($4.00) per
mile for the next [25 ] twenty-five miles; and
[$ 1.00] (d)  one dollar ($1.00) per mile
for each mile in excess of [100 ] one hundred miles; and 
(2)  for all lines more than eight inches in
diameter:
[$18.00] (a)  eighteen dollars ($18.00)
per mile for the first [25 ] twenty-five miles;
[$13.00] (b)  thirteen dollars ($13.00)
per mile for the next [25 ] twenty-five miles;
[$ 9.00] (c)  nine dollars ($9.00) per
mile for the next [25 ] twenty-five miles;
[$ 6.00] (d)  six dollars ($6.00) per
mile for the next [25 ] twenty-five miles; and
[$ 2.00] (e)  two dollars ($2.00) per
mile for each mile in excess of [100 ] one hundred miles.
C. For the purposes of determining the license fees
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payable under the provisions of [this ] Subsection B of this
section, any pipeline owned by two or more persons, firms or
corporations shall be considered to be a separate pipeline
operation to be licensed as such in the name of the operator or
owners thereof.  The basic fee to be paid in the licensing of
such lines under the [foregoing ] fee schedule provided in
Subsection B of this section shall be:
(1)  five hundred dollars ($500) on lines less
than twenty inches in diameter; and
(2)  eight hundred fifty dollars ($850) on
lines twenty inches or more in diameter."
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