HOUSE BILL 382

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

Greg Nibert and James R.J. Strickler and Rod Montoya and David M. Gallegos and Bob Wooley

AN ACT

RELATING TO COUNTIES; ENACTING THE MINERAL LEASE DISTRICTS ACT; PROVIDING FOR CREATION OF SPECIAL MINERAL LEASE DISTRICTS; PROVIDING FOR APPOINTMENT, POWERS AND DUTIES OF BOARDS OF DIRECTORS OF MINERAL LEASE DISTRICTS.

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

     SECTION 1. [NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Mineral Lease Districts Act".

     SECTION 2. [NEW MATERIAL] FINDINGS.--The legislature finds that:

          A. it is of statewide concern to maximize the amount of payment in lieu of taxes that counties in New Mexico receive annually;

          B. counties help manage thousands of acres of public lands in New Mexico, and payment in lieu of taxes funding from the federal government defrays county public land management costs;

          C. counties would not be able to fund important services and programs for New Mexico residents' enjoyment of public lands without maximizing payment in lieu of taxes funding to New Mexico;

          D. as a result of the United States department of the interior declaring that federal mineral lease payments to counties are to be counted as prior-year payments under the payment in lieu of taxes payment formula pursuant to 31 U.S.C. 6902, New Mexico counties will lose millions of dollars otherwise dedicated to public land management; and

          E. in order to maximize the amount of payment in lieu of taxes funding that New Mexico receives, county federal mineral lease payments must be protected from the new federal prior-year payment method. To that end, counties should have the ability to collaborate with state and local stakeholders within the framework of a mineral lease district to ensure protection of payment in lieu of taxes funding dedicated to public land management in New Mexico.

     SECTION 3. [NEW MATERIAL] DEFINITIONS.--As used in the Mineral Lease Districts Act:

          A. "district" means a mineral lease district created pursuant to the Mineral Lease Districts Act; and

          B. "funding" means the direct distribution of money from the federal mineral leasing program to New Mexico counties.

     SECTION 4. [NEW MATERIAL] POWER TO CREATE MINERAL LEASE DISTRICTS.--

          A. A county may create a mineral lease district through a resolution adopted by the board of county commissioners that sets forth:

                (1) the name of the county creating the district;

                (2) the names of any municipalities to be included in the proposed district that have enacted ordinances pursuant to the Mineral Lease Districts Act;

                (3) a description of the boundaries of the district;

                (4) the name of the district; and

                (5) the number of directors of the district.

          B. A district shall have no fewer than three directors for a district, and the total number of directors shall be an odd number.

          C. The governing body of a municipality may enact an ordinance proposing to join a district before the adoption of a resolution by a board of county commissioners.

          D. No later than the first business day after the adoption of a resolution creating a district, the county clerk and recorder shall transmit a certified copy of the resolution to:

                (1) the governing body of each municipality named in the resolution; and

                (2) the secretary of finance and administration.

           E. A district shall be active for two years from the date of the resolution creating the district. Prior to the end of the two-year period, the board of county commissioners may pass a reauthorizing resolution to continue the existence of the district for another two years.

     SECTION 5. [NEW MATERIAL] APPROVAL OF SERVICE PLAN.--The board of county commissioners of a county that creates a district shall adopt a district service plan no later than ninety days after the date of creating the district. The service plan shall include requirements for annual audits of all funding the district receives. Copies of the audits shall be sent annually to the state treasurer, the legislative finance committee and the state auditor.

     SECTION 6. [NEW MATERIAL] BOARD OF DIRECTORS--APPOINTMENT OR REMOVAL.--

          A. Immediately after the creation of a district, the board of county commissioners shall appoint a board of directors for the district. The number of directors on the board shall be as set forth in the resolution creating the district. At least one member of the board of directors shall be a county commissioner from the county that created the district. Other members may be representatives of the governing body of municipalities included in the district or other officials representing the interests of areas impacted by mineral lease activities.

          B. County commissioners from the county that creates a district that serve on the board of directors of the district shall not constitute a majority on the board of directors. The officers of the board of directors shall be the president and a secretary, who shall be elected annually by the board of directors from its own members.

          C. The term of each member of the board of directors shall be two years unless the district is reauthorized and the member is reappointed. The board of county commissioners of the county that creates a district shall have the power to remove any member of the board of directors for the district. Vacancies on the board of directors shall be filled by the board of county commissioners.

          D. All meetings of the board of directors for a district shall be held at locations that are within the boundaries of the district. The provisions of the location of

meetings may be waived only if the proposed change of location of a meeting of the board appears on the agenda of a meeting of the board and if a resolution is adopted by the board stating the reason for which a meeting of the board is to be held in a location other than under the provisions of this subsection and further stating the date, time and place of such meeting.

     SECTION 7. [NEW MATERIAL] BOARD OF DIRECTORS--POWERS AND DUTIES.--

          A. The board of directors of a district shall annually distribute all of the funding the district receives from the federal mineral leasing program to areas within the district that are socially or economically impacted by the development, processing or energy conversion of fuels and minerals leased under the federal Mineral Leasing Act. The district may use up to ten percent of the annual funding for any administrative costs of the district. The board of directors may review any reports or studies made and seek any additional reports or studies it deems necessary regarding the distribution of funding in the district.

          B. A district may cooperate or contract with any other district to provide any function or service lawfully authorized to each of the cooperating or contracting districts, including the sharing of costs, only if the cooperation or contracts are authorized by each district with the approval of each district's board of directors. Any contract providing for the sharing of costs may be entered into for any period, not to exceed the existence of the district and notwithstanding any provision of law limiting the length of any financial contracts or obligations of governments. Any such contract shall set forth fully the purposes, powers, rights, obligations and responsibilities, financial and otherwise, of the contracting parties. Where other provisions of law provide requirements for special types of intergovernmental contracting or cooperation, those special provisions shall control.

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