45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO UTILITIES; PROHIBITING ENCROACHMENT INTO AREA SERVED BY CERTAIN UTILITIES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. COMMUNITY WATER AND SEWER SERVICE ASSOCIATIONS RECEIVING FINANCIAL ASSISTANCE--SERVICE AREA--PROHIBITION OF ENCROACHMENT INTO SERVICE AREA--REMEDIES.--

A. During the period an association remains indebted to a state agency or instrumentality pursuant to a state financial assistance program, or a period during which a state agency or instrumentality has a security interest in the property of the association pursuant to a state financial assistance program, its service or area served shall not be curtailed or limited by the following actions, and the actions are prohibited:

(1) the annexation of area or extension of political subdivision boundaries that includes all or part of the area served by the association;

(2) the granting of a franchise or a certificate of public convenience and necessity to another utility to provide a service identical or similar to that provided by the association in the area served by the association;

(3) imposition of a requirement for the association to obtain a franchise because of actions described in Paragraph (1) of this subsection; or

(4) the extension or offering of services by another utility identical to those of the association in the area served by the association whether or not the services are extended or offered pursuant to a franchise or certificate granted pursuant to Paragraph (2) of this subsection.

B. An association may bring an action in the district court of the county in which the area served by the association is located to:

(1) enjoin a violation of the provisions of Subsection A of this section; or

(2) recover damages caused the association by a utility violating the provisions of Paragraph (4) of Subsection A of this section, and if the violating utility did not extend or offer the services pursuant to a franchise or certificate granted pursuant to Paragraph (2) of Subsection A of this section, the amount of damages recovered shall be tripled.

C. In any action brought pursuant to Subsection B of this section, an association that is successful in obtaining relief shall be awarded reasonable attorney fees and costs of the action.

D. As used in this section:

(1) "association" means an entity created pursuant to state law for the purpose of providing water or liquid waste disposal services, or both, to rural residents of unincorporated communities;

(2) "state financial assistance program" means an activity authorized by state law to be carried out by a state agency or instrumentality in which loans or grants of state funds are made to an association for the purpose of financing the provision of water or liquid waste disposal services in whole or in part to rural residents of unincorporated communities; and

(3) "utility" means an entity, whether or not regulated as a public utility pursuant to state law, that has authority to provide water or liquid waste disposal services to the public.