HOUSE BILL 539
57th legislature - STATE OF NEW MEXICO - first session, 2025
INTRODUCED BY
Raymundo Lara
AN ACT
RELATING TO SPECIAL DISTRICTS; CREATING THE CAMINO REAL REGIONAL UTILITY AUTHORITY; PROVIDING POWERS AND DUTIES; PROVIDING FOR THE ISSUANCE OF REVENUE BONDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of Chapter 73 NMSA 1978 is enacted to read:
"[NEW MATERIAL] CAMINO REAL REGIONAL UTILITY AUTHORITY--CREATED--BOARD--ELECTION--TERMS.--
A. The "Camino Real regional utility authority" is created. The authority shall be governed by a board of directors consisting of seven elected members who are water consumers who reside within the geographical boundaries of the authority's service area. The elected board of directors shall serve staggered terms to be established in the governance document developed by the board.
B. All elections of the authority shall be conducted pursuant to the provisions of the Local Election Act and voted upon by the qualified electors registered to vote within the geographical boundaries of the authority's service area. Board members shall be elected at the regular local election. Vacancies on the board shall be filled by the remaining board members, and a person appointed to fill a vacancy shall serve until the next regular local election. A person appointed to fill a vacancy shall be a qualified elector who resides within the authority's service area."
SECTION 2. A new section of Chapter 73 NMSA 1978 is enacted to read:
"[NEW MATERIAL] BOARD--POWERS--DUTIES.--
A. The Camino Real regional utility authority board is granted all powers necessary and appropriate to carry out the purposes of this 2025 act. All powers, privileges and duties vested in or imposed upon the authority shall be exercised and performed by the board; provided that the board may delegate its powers by resolution to an officer or agent of the board, with the exception of the following powers:
(1) adoption of board rules, policies and procedures;
(2) ratification of acquisition of property;
(3) initiation or continuation of legal action, except that initiation and filing of liens for unpaid rates and charges and suits for payment thereof and discontinuance of service for failure to pay such rates and charges may be delegated;
(4) establishment of fees, tolls, rates or charges, except that the board may retain or appoint a panel of water, wastewater or engineering experts to make recommendations to the board regarding the approval of proposed projects, as well as increases to residential, commercial and industrial water rates; and
(5) issuance of revenue bonds.
B. Meetings of the board shall be held at the call of the chair or whenever three members shall so request in writing. A majority of members then serving constitutes a quorum for the transaction of any business. Except as provided in Subsection C of this section, the affirmative vote of at least a majority of a quorum present shall be necessary for any action to be taken by the board. A vacancy in the membership of the board shall not impair the right of a quorum to exercise all rights and perform all duties of the board.
C. The non-delegable powers and duties provided in Subsection A of this section shall only be effective upon resolution passed by a supermajority of five members of the board.
D. The board shall promulgate and adhere to rules, policies and procedures that govern the board's conduct.
E. A member of the board having a financial interest or possible interest in the outcome of any policy, decision or determination before the board shall be disqualified from voting on the issue. A member's status as a ratepayer or customer of the authority shall not be deemed to constitute a financial interest or possible interest for the purposes of this section.
F. Subject to Subsections B through D of this section, the board may:
(1) adopt bylaws;
(2) fix the time and place of meetings and the method of providing notice of the meetings in accordance with the Open Meetings Act;
(3) promulgate orders, resolutions, policies and rules necessary for the governance and management of the affairs of the authority and the execution of the powers vested in the authority;
(4) maintain offices at a place as the board may designate;
(5) employ a director, who may employ and retain necessary staff;
(6) establish user classifications;
(7) fix and from time to time increase or decrease water rates, fees or other charges for water delivery or other related services or facilities operated or made available by the authority, subject to the following conditions:
(a) until paid, all rates, tolls or charges constitute a perpetual lien on and against the property served, and any such lien may be foreclosed in the same manner as provided by the laws of New Mexico for the foreclosure of real estate mortgages and shall not be subject to any limitations period, statutory or otherwise;
(b) the board shall prescribe and enforce rules by which properties shall be connected with and disconnected from the facilities of the authority, including payment plans to avoid discontinuing service to delinquent accounts; and
(c) after giving reasonable notice, the board shall shut off or discontinue service for unauthorized connections, illegal connections or connections for which rates, tolls or other charges are delinquent in payment. The board may file suit in a court of competent jurisdiction to recover costs associated with an unauthorized, illegal or delinquent connection, including the cost of water delivered, charges for connection and disconnection, damages and attorney fees; and
(8) adopt an operating budget that supports the full cost of operation, maintenance and replacement as established by an asset management plan and a rate-setting analysis."
SECTION 3. A new section of Chapter 73 NMSA 1978 is enacted to read:
"[NEW MATERIAL] AUTHORITY--POWERS.--
A. The Camino Real regional utility authority is a public body politic and corporate, separate and apart from the city of Sunland Park and Dona Ana county. The authority is a special district and political subdivision of the state. The authority is not subject to the jurisdiction of or approval from the public regulation commission and is not subject to the provisions of the Public Utility Act. The authority is granted all powers necessary and appropriate to carry out the provisions of this section.
B. The authority created pursuant to this section shall replace the entity of the same name previously created by a joint powers agreement between the city of Sunland Park and Dona Ana county, and this authority shall succeed to all of the entity's assets and liabilities and its service area, and the authority shall provide water and wastewater services within the entity's service area, as it may be modified or expanded by the authority.
C. The authority may:
(1) sue and be sued;
(2) enter into contracts, including contracts with the city of Sunland Park or Dona Ana county for procurement services;
(3) borrow money and issue revenue bonds pursuant to Subsection E of this section;
(4) acquire, dispose of or encumber real and personal property and any interest in such property, including leases, easements and water rights from a willing seller only;
(5) design, develop, construct, operate, maintain, purchase or contract for water systems and pipelines to connect systems and sources with the authority's customers;
(6) be allowed a water use planning period not to exceed forty years and may hold water rights based on a water development plan submitted to and approved by the state engineer, the implementation of which shall not exceed forty years from the date of the application to change the place or purpose of use of an acquired water right;
(7) have and exercise the power of eminent domain in the manner provided by law for the condemnation of private property within the boundaries of the authority for the construction, maintenance and operation of water and wastewater facilities and to acquire, maintain, contract for or condemn for use as part of the authority privately owned water and wastewater facilities used for the collection, treatment and disposal of wastewater. The authority shall not take any property unless it is necessary for rights of way and easements and for the use and placement of facilities and infrastructure elements, including pipelines, structures, pump stations and related appurtenances. The authority shall not acquire water rights through eminent domain; and
(8) construct and maintain works and establish and maintain facilities across or along any public street or highway and through any vacant public lands that are the property of the state and construct works and establish and maintain facilities across any stream of water or watercourse, all in accordance with applicable state and federal permitting authority.
D. The authority is subject to:
(1) the provisions of the Procurement Code;
(2) the provisions of the Eminent Domain Code;
(3) the limitations imposed by Section 72-1-9 NMSA 1978 regarding water rights obtained or water rights condemned pursuant to a water development plan; and
(4) the provisions of Chapter 72 NMSA 1978 regarding any change to the point of diversion or the place or purpose of use of any water right to any place selected by the authority in order to make the water available to the authority.
E. The authority may issue "utility system revenue bonds" and obligations for acquiring real and personal property needed for the regional utility system and for extending, enlarging, renovating, repairing or otherwise improving water facilities and wastewater facilities or for any combination of these purposes. The authority may issue revenue anticipation notes with maturities not exceeding thirteen months upon terms approved by the board of directors. The authority shall irrevocably pledge net revenues from the operation of the regional utility system for payment of the principal, premiums and interest on the revenue bonds or other obligations. It is unlawful to divert, use or expend money received from the issuance of utility system revenue bonds for any purpose other than the purpose for which the utility system revenue bonds were issued. Utility system revenue bonds:
(1) may have interest, appreciated principal value or any part of interest or appreciated principal value payable at intervals or at maturity as the authority determines;
(2) may be subject to prior redemption at the authority's option at such time and upon such terms and conditions with or without the payment of a premium as determined by the authority;
(3) may mature at any time not exceeding fifty years after the date of issuance;
(4) may be serial in form and maturity or may consist of one bond payable at one time or in installments or may be in another form as determined by the authority;
(5) shall be sold for cash at, above or below par and at a price that results in a net effective interest rate that does not exceed the maximum permitted by the Public Securities Act; and
(6) may be sold at a public or negotiated sale.
F. The bonds authorized by the authority and their income shall be exempt from all taxation by the state or its political subdivisions.
G. The members of the board of directors of the authority may adopt a resolution declaring the necessity for the issuance of utility system revenue bonds or other obligations and may authorize the issuance of utility system revenue bonds or other obligations by an affirmative vote of a majority of all members of the board of directors of the authority.
H. Except for the purpose of refunding previous utility system revenue bond issues, the authority shall not sell utility system revenue bonds payable from pledged revenues after the expiration of three years from the date of the resolution authorizing their issuance. Any period of time during which a utility system revenue bond is in litigation shall not count toward the determination of the expiration date of that issue."
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