HOUSE BILL 185
49th legislature - STATE OF NEW MEXICO - first session, 2009
INTRODUCED BY
Joseph Cervantes
FOR THE WATER AND NATURAL RESOURCES COMMITTEE
AN ACT
RELATING TO SPECIAL DISTRICTS; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978 TO PROVIDE FOR THE CREATION OF THE LOWER RIO GRANDE PUBLIC WORKS AUTHORITY; PROVIDING FOR POWERS AND DUTIES OF THE AUTHORITY.
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] LOWER RIO GRANDE PUBLIC WORKS AUTHORITY.--
A. The "Lower Rio Grande public works authority" is created. The authority is a political subdivision of the state and shall be an independent public body. The authority is composed of Berino mutual domestic water consumers and mutual sewage works association, Desert Sands mutual domestic water consumers association, La Mesa mutual domestic water consumers association, Mesquite mutual domestic water consumers and mutual sewage works association and Vado mutual domestic water consumers association, all serving unincorporated communities within Dona Ana county.
B. The authority may adopt rules and resolutions, governance policies and procedures necessary to exercise the powers conferred pursuant to this section.
C. All functions, appropriations, money, records and equipment and all personal property and real property, including water rights, easements, permits and infrastructure, as well as all encumbrances, debts and liabilities pertaining to or owned by the founding entities shall be transferred to the authority.
D. The authority shall declare a service area consisting of the founding entities' service areas, and the authority may amend its service area as additional members join the authority. The authority's service area shall be designated on a plat filed in the public records of Dona Ana county.
E. The authority may provide for water and wastewater services, road improvements or renewable energy projects that are integral to the operation and maintenance of the authority's facilities or any combination or parts thereof.
F. The authority may exercise all powers allowed pursuant to law, including:
(1) regulating, supervising and operating the authority's facilities;
(2) establishing rates and imposing assessments, fees and charges and taking action necessary for the enforcement thereof;
(3) implementing water conservation and source water protection, including adopting rules and regulations relating to the drilling of domestic wells within the authority's service area pursuant to Sections 3-53-1.1 and 72-12-1.1 NMSA 1978;
(4) acquiring, holding and using water rights in an amount necessary to meet its reasonable needs within forty years;
(5) shutting off, after notice, unauthorized connections, illegal connections or a connection for which charges are delinquent in payment;
(6) entering into contracts with private entities, the state, municipalities, counties and the federal government and other public bodies to further its public purposes;
(7) entering into joint powers agreements with other governmental entities relating to providing public services;
(8) acquiring property and services and maintaining and operating its facilities;
(9) condemning property pursuant to the Eminent Domain Code;
(10) hiring and retaining agents, employees and consultants, as needed;
(11) adopting and using a governmental seal;
(12) placing a lien on property for unpaid assessments, charges and fees and enforcing the lien in a manner pursuant to law;
(13) suing and being sued and being a party to suits, actions and proceedings; and
(14) having and exercising all rights and powers necessary, incidental to or implied from the specific powers granted in this section.
G. The authority shall be subject to the:
(1) Open Meetings Act and Inspection of Public Records Act;
(2) Audit Act; and
(3) Procurement Code.
H. The authority shall not be subject to the jurisdiction of the public regulation commission, the provisions of the Public Utility Act, the requirements and review set forth in the Special District Procedures Act or, in the case of constructing publicly funded utility and public works projects, the zoning or planning jurisdiction or authority of any municipality or county.
I. The authority may issue utility system revenue bonds and obligations for acquiring real and personal property needed for the utility system and for extending, enlarging, renovating, repairing or otherwise improving its facilities. The authority may issue revenue anticipation notes with maturities and terms to be approved by the board of directors of the authority. The authority may pledge irrevocably net revenues from the operation of the utility system for payment of the principal, premiums and interest on the bonds. The utility system revenue bonds:
(1) may have interest, appreciated principal value or any part thereof 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, 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.
J. The authority's board of directors 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 authority's board of directors. Utility revenue bonds and the resolution authorizing their issuance shall not be subject to the approval of the public regulation commission pursuant to Section 3-23-3 NMSA 1978 and shall not be subject to voter approval pursuant to Section 3-23-2 NMSA 1978. The bonds authorized by the authority and their income shall be exempt from taxation by the state and its political subdivisions.
K. 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.
L. The authority shall be governed by a board of directors. The directors of the initial board shall consist of five directors representing each of the founding entities. The directors of the initial board shall serve until their successors are elected. After the terms of the initial directors are completed, the succeeding board of directors shall be elected by districts from a minimum of five and a maximum of seven electoral districts. Each director, at the time of election, shall reside within the electoral district of the authority from which that member is elected. The boundaries and the number of electoral districts shall be established by the initial board within two years of the creation of the authority. The board may in its governance document provide for redistricting upon any change in the authority's boundary. The elected board of directors shall serve staggered terms to be established in the governance document developed by the initial board."
Section 2. Section 3-53-1.1 NMSA 1978 (being Laws 2001, Chapter 207, Section 1) is amended to read:
"3-53-1.1. NEW DOMESTIC WATER WELLS--MUNICIPAL
AUTHORITY--PUBLIC WORKS AUTHORITY.--
A. A municipality or a public works authority may, by ordinance, restrict the drilling of new domestic water wells, except for property zoned agricultural, if the property line of the applicant is within three hundred feet of the municipal or the public works authority water distribution lines and the property is located within the exterior boundaries of the municipality or the public works authority.
B. No municipality or public works authority may deny authorization for a new domestic water well permit to an applicant if the total cost to the applicant of extending the municipal or the public works authority water distribution line, meter and hook-up to the applicant's residence exceeds the cost of drilling a new domestic water well.
C. A municipality or a public works authority that fails to authorize the drilling of a new domestic water well shall provide domestic water service within ninety days to the property owner under the municipal water provider's or the public works authority's usual and customary charges and rate schedules.
D. A municipality or a public works authority shall file with the state engineer its municipal ordinance or its resolution or rule restricting the drilling of new domestic water wells.
E. An applicant for a domestic water well located within the exterior boundaries of a municipality or a public works authority with a new domestic water well drilling ordinance shall obtain a permit to drill the well from the municipality or the public works authority subsequent to the state engineer's approval.
F. A municipality or a public works authority with a domestic water well drilling ordinance or resolution or rule shall act upon a new domestic water well permit application within thirty days of receipt of the request.
G. A municipality or a public works authority shall notify the state engineer of all municipal or public works authority permit denials for domestic well authorization.
H. An applicant may appeal the decision of the municipality or the public works authority to the district court in the county of the municipality or public works authority.
I. Nothing in this section shall limit the authority of the state engineer to administer water rights as provided by law.
J. The state engineer shall not be liable for actions taken in accordance with a municipal ordinance or a public works authority policy authorizing restriction of domestic well drilling within the exterior boundaries of a qualified municipality or public works authority."
Section 3. Section 72-12-1.1 NMSA 1978 (being Laws 2003, Chapter 298, Section 2) is amended to read:
"72-12-1.1. UNDERGROUND WATERS--DOMESTIC USE--PERMIT.--A person, firm or corporation desiring to use public underground waters described in this section for irrigation of not to exceed one acre of noncommercial trees, lawn or garden or for household or other domestic use shall make application to the state engineer for a well on a form to be prescribed by the state engineer. Upon the filing of each application describing the use applied for, the state engineer shall issue a permit to the applicant to use the underground waters applied for; provided that permits for domestic water use within municipalities or within the jurisdiction of a public works authority shall be conditioned to require the permittee to comply with all applicable municipal ordinances enacted pursuant to Chapter 3, Article 53 NMSA 1978 or all policies adopted by the public works authority."
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