HOUSE BILL 572
49th legislature - STATE OF NEW MEXICO - first session, 2009
INTRODUCED BY
Brian F. Egolf
AN ACT
RELATING TO LOCAL GOVERNMENT; ENACTING THE SOLAR ENERGY IMPROVEMENT SPECIAL ASSESSMENT ACT; AUTHORIZING COUNTIES TO IMPOSE, ADMINISTER AND DISBURSE SOLAR ENERGY IMPROVEMENT SPECIAL ASSESSMENTS TO ENCOURAGE THE DEVELOPMENT OF RESIDENTIAL SOLAR ENERGY IMPROVEMENTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. SHORT TITLE.--This act may be cited as the "Solar Energy Improvement Special Assessment Act".
Section 2. PURPOSE.--The purpose of the Solar Energy Improvement Special Assessment Act is to enable counties to promote the health, well-being and security of their communities by assisting their citizens in obtaining reliable, decentralized, environmentally sound sources of residential renewable energy through the use of the special assessment financing enabled by the establishment of solar energy improvement special assessments.
Section 3. ORDINANCE IMPOSING SOLAR ENERGY SPECIAL ASSESSMENT.--The board of county commissioners of a county may provide by ordinance for a solar energy improvement special assessment to be imposed on a single-family residential property within the boundaries of the county if the owner of the property requests the assessment. The purpose of the solar energy improvement special assessment shall be to increase access by residents of the county to the benefits of residential solar technology improvements by participation in a voluntary special assessment on their residential property, which can be used to facilitate financing arrangements for the eligible solar energy improvements.
Section 4. IMPLEMENTATION OF SOLAR ENERGY IMPROVEMENT SPECIAL ASSESSMENT.--A governing body enacting an ordinance providing for a solar energy improvement special assessment shall direct the county treasurer to include the solar energy improvement special assessment in the property tax bill for property subject to the assessment and to collect the assessment at the same time and in the same manner as property taxes are levied and collected if:
A. the property owner has submitted a written application, in a format approved by the county treasurer, requesting that the solar energy improvement special assessment be applied to the owner's property for the purpose of financing an eligible solar energy improvement on the property;
B. the county assessor has verified that the property owner requesting the solar energy improvement special assessment is the owner of record of the property with respect to which the solar energy improvement special assessment will be levied and that there are no delinquent taxes on the property;
C. the property owner has submitted certification, in a format approved by the county treasurer, that the improvements to the property:
(1) are eligible solar energy improvements;
(2) comply with guidelines for residential photovoltaic or solar thermal systems established by the energy, minerals and natural resources department; and
(3) will be installed in compliance with the guidelines established by the energy, minerals and natural resources department for installation of photovoltaic or solar thermal systems;
D. the property owner has submitted documentation, in a format approved by the county treasurer, of the proposed financing agreement for the solar energy improvements to the property to establish:
(1) that the financing will be provided by an entity that has been certified by the financial institutions division of the regulation and licensing department as a solar energy improvement financing institution, pursuant to the provisions of the Solar Energy Improvement Special Assessment Act;
(2) that the financing is for an amount, including principal, interest and administrative fees to the county, that is no more than forty percent of the assessed value of the property according to current county property tax records; and
(3) the annual amount of the solar energy improvement special assessment necessary to satisfy the financing agreement and the number of years the assessment shall be imposed on the property.
Section 5. SOLAR ENERGY IMPROVEMENT SPECIAL ASSESSMENT--AMOUNT--COLLECTION--LIEN CREATED.--
A. The amount of the solar energy improvement special assessment on a property shall be the amount necessary to pay the costs of the eligible solar energy improvements, the costs of the financing of the improvements when due and the administrative fees collected by the county. Agreements entered into by the owner of the property with the solar energy improvement financing institution and submitted pursuant to this section shall be conclusive regarding the amount that may be assessed against the property.
B. The solar energy improvement special assessment shall be levied and collected at the same time and in the same manner as property taxes are levied and collected. Money derived from the imposition and collection of the solar energy improvement special assessment shall be kept separately from other county funds.
C. A solar energy improvement special assessment shall constitute a lien on the property, which shall be effective during the period in which the assessment is imposed and shall have priority co-equal with other property tax liens.
Section 6. SOLAR ENERGY IMPROVEMENT SPECIAL ASSESSMENT--DISBURSEMENT OF PROCEEDS.--
A. Proceeds from a solar energy improvement special assessment on a property shall be disbursed by the county treasurer solely for the purpose of financing the solar energy improvements to that property and paying the applicable administrative fees to the county.
B. The county treasurer shall enter into an agreement with the solar energy improvement financing institution providing financing to the property owner specifying the procedures by which the treasurer shall transfer the revenue from the assessment to the institution.
Section 7. SOLAR ENERGY IMPROVEMENT FINANCING INSTITUTIONS--CERTIFICATION OF QUALIFIED ENTITIES.--The financial institutions division of the regulation and licensing department shall promulgate rules for the certification of financial institutions or other entities as solar energy improvement financing institutions. The rules shall ensure that a solar energy improvement financing institution is a member institution of the federal deposit insurance corporation or the national credit union administration or is an entity that the financial institutions division finds meets generally accepted criteria for financial stability and soundness.
Section 8. ADDITIONAL CRITERIA PROHIBITED.--A county shall not establish additional criteria for participation by property owners in the solar energy improvement special assessment beyond those set forth in the Solar Energy Improvement Special Assessment Act. A county shall not require, as a condition of being subject to a solar energy improvement special assessment, that a property comply with energy efficiency standards such as energy audits, appliance replacement or energy efficiency improvements.
Section 9. DEFINITIONS.--As used in the Solar Energy Improvement Special Assessment Act:
A. "eligible solar energy improvement" means a photovoltaic or solar thermal system installed on residential property;
B. "governing body" means the county commission of the county or the county council of an H class county;
C. "photovoltaic system" means an energy system that collects or absorbs sunlight for conversion into electricity; and
D. "solar thermal system" means an energy system that collects or absorbs solar energy for conversion into heat for the purposes of space heating, space cooling or water heating.
Section 10. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2009.
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