46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO MUNICIPALITIES; PROVIDING FOR TRIPLE DAMAGES FOR FRANCHISE FEE OVERCHARGES.

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

Section 1. Section 3-42-1 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-43-1) is amended to read:

"3-42-1. FRANCHISES--AUTHORIZATION.--

A. A municipality may grant by ordinance a franchise to any person, firm or corporation for the construction and operation of any public utility.

B. No franchise ordinance shall become effective until at least thirty days after its adoption, during which time the franchise ordinance shall be twice published in full, not less than seven days apart.

C. If during the thirty-day period a petition, signed by bona fide adult residents of the municipality equal in number to twenty percent of the number of those who voted at the last regular municipal election, and objection to the granting of the franchise is presented to the governing body of the municipality, the governing body of the municipality shall submit the question of granting the franchise to a vote of the qualified electors at a regular or special municipal election. If the date for the next regular municipal election is not more than ninety days after the date the petition is filed, the question shall be submitted at the regular municipal election; otherwise, a special municipal election shall be held.

D. If a majority of the qualified electors voting on the question favor the granting of a franchise, the franchise ordinance becomes effective. If a majority of the qualified electors voting on the question do not favor granting the franchise, the ordinance is repealed and the applicant for the franchise acquires no rights or privileges.

E. The expense of publishing the franchise ordinance and of holding a special election shall be paid by the applicant for the franchise.

F. No franchise ordinance shall be in effect for more than twenty-five years. The municipality may contract with the public utility for such services as are necessary for the health and safety of the municipality and may pay a sum agreed upon by the contracting parties for such services. G. A utility shall not overcharge its customers franchise fees it may pass through pursuant to a contract with a municipality. Upon the complaint of a customer, a municipality may require an overcharge to be refunded to the customer plus damages in the amount of three times the overcharge per customer."