SENATE BILL 651
47th legislature - STATE OF NEW MEXICO - second session, 2006
INTRODUCED BY
Phil A. Griego
AN ACT
RELATING TO MUNICIPALITIES; PERMITTING MUNICIPAL UTILITIES TO ACQUIRE, OPERATE, MAINTAIN, CONDEMN AND CONTRACT FOR NATURAL GAS PIPELINES; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 3-23-3 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-22-3, as amended) is amended to read:
"3-23-3. MUNICIPAL UTILITY--APPROVAL OF [NEW MEXICO] PUBLIC [UTILITY] REGULATION COMMISSION--EXCEPTIONS.--
A. If the acquisition of a utility is to be financed from funds received from the issuance and sale of revenue bonds, the price of the acquisition of the utility shall be approved by the [New Mexico] public [utility] regulation commission, and the commission shall require:
(1) a determination by appraisal or otherwise of the true value of the utility to be purchased; or
(2) an engineer's estimate of the cost of the utility to be constructed.
B. No revenue bonds shall be issued for the acquisition of such a utility until the [New Mexico] public [utility] regulation commission has approved the issue and its amount, date of issuance, maturity, rate of interest and general provisions.
C. The provisions of Subsections A and B of this section shall not apply to the condemnation by a municipality having a population of twenty-five thousand or more persons according to the 1990 federal decennial census of electricity facilities as authorized by Chapter 3, Article 24 NMSA 1978, sewer facilities as authorized by Chapter 3, Article 26 NMSA 1978 or water facilities as authorized by Chapter 3, Article 27 NMSA 1978.
D. The provisions of Subsections A and B of this section shall not apply to the condemnation of natural gas pipelines by a municipality that has owned and operated a municipal natural gas utility for a period of more than ten years."
Section 2. Section 3-25-2 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-24-2, as amended) is amended to read:
"3-25-2. NATURAL GAS OR GEOTHERMAL UTILITY--AUTHORIZATION TO ACQUIRE OR CONDEMN--CHARGES.--
A. A municipality may, if a satisfactory supply is not otherwise obtainable as determined by ordinance:
(1) acquire and operate natural gas or geothermal energy facilities for the distribution of natural gas or heat; or
(2) acquire, operate, maintain, contract for and condemn for use by a municipal utility natural gas pipelines for the transportation of natural gas or heat, whether or not the pipelines are privately owned; provided that use of the pipelines, except by the municipal utility, is subject to the jurisdiction of the public regulation commission.
B. A municipality owning and operating a natural gas utility shall measure the natural gas used by the person receiving the service by volume or energy content.
C. A municipality owning and operating a geothermal utility shall measure the heat used by the person receiving the service by fluid volume and temperature or energy content."
Section 3. Section 3-25-4 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-24-4, as amended) is amended to read:
"3-25-4. FINANCING [ACQUISITION] ACQUISITIONS OF AND CONDEMNATIONS BY NATURAL GAS OR GEOTHERMAL [UTILITY] UTILITIES.--The acquisition of facilities [of] or condemnation of property, including pipelines, by a municipal natural gas or geothermal utility shall only be financed from funds received from the issuance and sale of bonds as authorized in Sections 3-30-5 through 3-30-8 and 3-31-1 through 3-31-12 NMSA 1978 except as provided in Section 3-23-4 NMSA 1978."
Section 4. Section 3-25-5 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-24-5, as amended) is amended to read:
"3-25-5. NATURAL GAS OR GEOTHERMAL UTILITY--EMINENT DOMAIN POWER--PROCEDURE.--Any municipality acquiring a natural gas or geothermal utility or condemning property, including pipelines, may exercise the power of eminent domain within or without the municipal boundary for the purpose of acquiring property, or interest in property, whether or not the property is privately owned, for the location of or for the extension of the facilities or property of a natural gas or geothermal utility. Proceedings to obtain such condemnation shall be in the manner provided by the Eminent Domain Code."
Section 5. APPROPRIATION.--Seventy thousand dollars ($70,000) is appropriated from the general fund to the public regulation commission for expenditure in fiscal year 2007 for oversight of natural gas pipelines owned by municipal utilities. Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert to the general fund.
Section 6. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
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