February 9, 2000

Mr. President:

Your JUDICIARY COMMITTEE, to whom has been referred

has had it under consideration and reports same with recommendation that it DO PASS, amended as follows:

1. On page 3, between lines 12 and 13, insert the following new subsections to read:

"B. No new association shall be formed under the Sanitary Projects Act by original incorporation after January 1, 2000, and no new association shall be formed by reorganization after January 1, 2000, unless the predecessor entity was in existence on January 1, 2000, if the service area of either association includes property contiguous to an incorporated municipality. The restrictions on forming an association set forth in this subsection shall not apply if the contiguous incorporated municipality does not provide the services or cannot provide the services to be provided by the association at or below the cost proposed by the association.

C. No association may construct a project required in order to allow creation of a subdivision under the provisions of the Land Subdivision Act, the New Mexico Subdivision Act or Section 47-5-9 NMSA 1978; however, an association may construct a project serving a previously approved subdivision in the service area of the association.".

2. Reletter the succeeding subsections accordingly.

3. On page 5, line 24, remove the brackets and line-through.

4. On page 5, lines 24 and 25, strike "the department".

Respectfully submitted,

______________________________Michael S. Sanchez, Chairman

Adopted_______________________ Not Adopted_______________________

(Chief Clerk) (Chief Clerk)

Date ________________________

The roll call vote was 5 For 0 Against

Yes: 5

No: 0

Excused: Aragon, Davis, Stockard

Absent: None

S0143JU1 .131808.3