HOUSE BILL 195

55th legislature - STATE OF NEW MEXICO - first session, 2021

INTRODUCED BY

Raymundo Lara

AN ACT

RELATING TO SPECIAL DISTRICTS; CREATING THE CAMINO REAL REGIONAL UTILITY AUTHORITY; PROVIDING POWERS AND DUTIES; PROVIDING FOR THE ISSUANCE OF REVENUE BONDS.

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

     SECTION 1. A new section of Chapter 73 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] CAMINO REAL REGIONAL UTILITY AUTHORITY--CREATED--MEMBERSHIP--ADMINISTRATION OF UTILITY.--

          A. The "Camino Real regional utility authority" is created. The board of directors of the authority consists of seven members:

                (1) two municipal members who shall be city councilors appointed by the Sunland Park city council;

                (2) two county members who shall be county commissioners appointed by the Dona Ana county board of county commissioners;

                (3) one public member appointed by the municipal and county members; and

                (4) two public members appointed by the board from nominations by the state senator or the state representative whose district includes the authority service area; provided that if after a decennial redistricting, the service area includes two or more senate districts or includes two or more house of representatives districts, the senator or representative elected from the district that includes the largest geographical area of the service area shall nominate; and provided further that if the board rejects a nomination, it shall request the senator or representative to submit the name of another candidate.

          B. Terms of municipal and county members shall be for one year, and they may be reappointed at the discretion of the appointing body. The terms of the three public members shall be three years, and the public members may be reappointed at the discretion of the board.

          C. A municipal member shall designate another city councilor to serve in the member's absence, and a county member shall designate another county commissioner to serve in the member's absence.

          D. The authority is a public body politic and corporate, separate and apart from the city of Sunland Park and Dona Ana county. The authority is a special district and political subdivision of the state. The authority is not subject to the jurisdiction of or approval from the public regulation commission and is not subject to the provisions of the Public Utility Act. The authority is granted a water use planning period not to exceed forty years as set forth in Section 72-1-9 NMSA 1978.

          E. The authority created pursuant to this section shall replace the entity of the same name previously created by a joint powers agreement between the city of Sunland Park and Dona Ana county, and this authority shall succeed to all of the entity's assets and liabilities and its service area, and the authority shall provide water and wastewater services within the entity's service area, as it may be modified or expanded by the authority.

          F. The board of directors of the authority:

                (1) is granted all powers necessary and appropriate to carry out the purposes of this section, including the power to adopt resolutions and rules necessary to carry out the authority's powers and duties;

                (2) shall set policy and regulate, supervise and administer the provision of water and wastewater within the authority's service area, including the determination and imposition of rates for services; and

                (3) may enter into contracts, including contracts with the city of Sunland Park or Dona Ana county for procurement services.

          G. The authority may acquire, maintain, contract for, condemn and protect water and wastewater facilities. In carrying out its power pursuant to this subsection, the authority may:

                (1) condemn private property for the construction, maintenance and operation of water and wastewater facilities; and

                (2) acquire, maintain, contract for or condemn for use as part of the authority privately owned water and wastewater facilities used for the collection, treatment and disposal of wastewater.

          H. The authority is subject to:

                (1) the provisions of the Procurement Code;

                (2) the provisions of the Eminent Domain Code;

                (3) the limitations imposed by Section 72-1-9 NMSA 1978 regarding water rights obtained or water rights condemned pursuant to a water development plan; and

                (4) the provisions of Chapter 72 NMSA 1978 regarding any change to the point of diversion or the place or purpose of use of any water right to any place selected by the authority in order to make the water available to the authority.

          I. The authority may issue "utility system revenue bonds" and obligations for acquiring real and personal property needed for the regional utility system and for extending, enlarging, renovating, repairing or otherwise improving water facilities and wastewater facilities or for any combination of these purposes. The authority may issue revenue anticipation notes with maturities not exceeding thirteen months upon terms approved by the board of directors. The authority shall irrevocably pledge net revenues from the operation of the regional utility system for payment of the principal, premiums and interest on the revenue bonds or other obligations. It is unlawful to divert, use or expend money received from the issuance of utility system revenue bonds for any purpose other than the purpose for which the utility system revenue bonds were issued. Utility system revenue bonds:

                (1) may have interest, appreciated principal value or any part of interest or appreciated principal value payable at intervals or at maturity as the authority determines;

                (2) may be subject to prior redemption at the authority's option at such time and upon such terms and conditions with or without the payment of a premium as determined by the authority;

                (3) may mature at any time not exceeding fifty years after the date of issuance;

                (4) may be serial in form and maturity or may consist of one bond payable at one time or in installments or may be in another form as determined by the authority;

                (5) shall be sold for cash at, above or below par and at a price that results in a net effective interest rate that does not exceed the maximum permitted by the Public Securities Act; and

                (6) may be sold at a public or negotiated sale.

          J. The bonds authorized by the authority and their income shall be exempt from all taxation by the state or its political subdivisions.

          K. The members of the board of directors of the authority may adopt a resolution declaring the necessity for the issuance of utility system revenue bonds or other obligations and may authorize the issuance of utility system revenue bonds or other obligations by an affirmative vote of a majority of all members of the board of directors of the authority.

          L. Except for the purpose of refunding previous utility system revenue bond issues, the authority shall not sell utility system revenue bonds payable from pledged revenues after the expiration of three years from the date of the resolution authorizing their issuance. Any period of time during which a utility system revenue bond is in litigation shall not count toward the determination of the expiration date of that issue."

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