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SPONSOR: |
Garcia |
DATE TYPED: |
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HB |
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SHORT TITLE: |
Utility Service Areas |
SB |
50/aSCONC |
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ANALYST: |
L. Kehoe |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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NFI |
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(Parenthesis
( ) Indicate Expenditure Decreases)
Duplicates Appropriation
in the General Appropriation Act
Relates to Appropriation
in the General Appropriation Act
LFC
Files
SUMMARY
Synopsis of SCONC Amendment
The
Senate Conservation Committee amendment to Senate Bill 50 expands the
definition of “association” to exclude licensed or certified septic tank,
liquid waste or on-site wastewater system installers, operators, maintenance
providers or pumpers as members of an association.
Synopsis of Original Bill
Senate Bill 50 prohibits encroachment by a
political subdivision, franchise or an extension of service or the offer of
services by another utility in an area served by a community
water and sewer association during the period an association is indebted to a
state agency or instrumentality, including the New Mexico Finance Authority
(NMFA). If encroachment should occur, an
association may bring an action in the district court of the county in which
the area served by the association is located.
Significant Issues
NMFA
makes loans to such associations secured solely by a security interest in the
association’s net system revenues.
Competition by other utility providers in these service areas may result
in a decrease in net revenues securing NMFA loans and may necessitate the
restructuring of a loan. Senate Bill 50
may curtail competition in service areas and may protect poor performing
utilities to continue service because of their indebtedness to the state or
governmental instrumentality.
Increased
competition may result in decreased revenues, thereby impairing NMFA loans.