New Mexico 2023 Regular Session Status: Enacted 3 D cosponsors

HB 228 — IMPROVEMENT SPECIAL ASSESSMENT ACT

Last action — Signed

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 30, 2023. Enacted.

Signed by Governor Michelle Lujan Grisham (Democratic) on April 05, 2023.

Prognosis

Advancing 56% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 3 sponsors

    3 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (3 D).

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

The bill establishes a framework for local governments to charge special assessments for improvements made to properties or areas, allowing them to recover costs associated with those improvements. It outlines the procedures and requirements for implementing these special assessments.

Bill Text

What changed in the latest version

470 added · 559 removed

Plain-language change summary

The revised version of Bill HB 228 establishes the "Improvement Special Assessment Act," which allows counties to impose assessments to fund property improvements, particularly for energy efficiency and renewable energy. Importantly, this bill repeals the previous Solar Energy Improvement Special Assessment Act, streamlining existing legislation. This change is significant because it broadens the scope of improvements counties can support, potentially encouraging more extensive investments in energy efficiency projects within communities.

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HOUSE COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE SUBSTITUTE FOR HOUSE BILL 228 56TH LEGISLATURE -STATEOFNEWMEXICO- FIRST SESSION, 2023 4 6 8 10 AN ACT RELATING TO LOCAL GOVERNMENT;
AN ACT RELATING TO LOCAL GOVERNMENT;
e t 17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
w l n d 18 SECTION 1.
SECTION 1.
[NEW MATERIAL] SHORT TITLE.--This act may be = = 19 a l cited as the "Improvement Special Assessment Act".
SHORT TITLE.--This act may be cited as the "Improvement Special Assessment Act".
i a e r 20 SECTION 2.
SECTION 2.
[NEW MATERIAL] DEFINITIONS.--As used in the a t m m 21 Improvement Special Assessment Act:
DEFINITIONS.--As used in the Improvement Special Assessment Act:
d r e 22 A.
A.
"capital provider" means a private entity or its c e s k 23 designee, successor or assigns that finances or refinances an e a n b 24 eligible improvement pursuant to the Improvement Special u [ Assessment Act;
"capital provider" means a private entity or its designee, successor or assigns that finances or refinances an eligible improvement pursuant to the Improvement Special Assessment Act;
.224973.1 HCEDC/HB 228 B.
B.
"eligible improvement" means a permanently affixed energy efficiency improvement, renewable energy improvement, water conservation improvement or resiliency improvement installed on eligible property as part of the construction or renovation of the property;
"eligible improvement" means a permanently affixed energy efficiency improvement, renewable energy HCEDC/HB 228 Page 1 improvement, water conservation improvement or resiliency improvement installed on eligible property as part of the construction or renovation of the property;
"eligible property" means any privately owned commercial, industrial, agricultural or multifamily residential real property with five or more dwelling units, including real property owned by an entity formally recognized as tax exempt e t 17 pursuant to Internal Revenue Code of 1986, as amended;
"eligible property" means any privately owned commercial, industrial, agricultural or multifamily residential real property with five or more dwelling units, including real property owned by an entity formally recognized as tax exempt pursuant to Internal Revenue Code of 1986, as amended;
w l n d 18 G.
G.
"energy efficiency improvement" means measures, = = 19 equipment or devices that result in a decrease in consumption a l i a e r 20 of or demand for electricity or natural gas;
"energy efficiency improvement" means measures, equipment or devices that result in a decrease in consumption of or demand for electricity or natural gas;
a t m m 21 H.
H.
"local government" means a municipality, county d r e 22 or other general function governmental unit established by c e s k 23 state law;
"local government" means a municipality, county or other general function governmental unit established by state law;
e a n b 24 I.
I.
"municipal" or "municipality" means any u [ incorporated city, town or village, whether incorporated under .224973.1 - 2 - HCEDC/HB 228 general act, special act or special charter, incorporated counties and H class counties;
"municipal" or "municipality" means any incorporated city, town or village, whether incorporated under general act, special act or special charter, incorporated counties and H class counties;
"program administrator" means a person designated by a county to administer a program;
"program administrator" means a person HCEDC/HB 228 Page 2 designated by a county to administer a program;
"program guidebook" means a comprehensive document created by the department pursuant to the Improvement Special Assessment Act, including uniform assessment documents, appropriate guidelines, specifications, approval criteria and other standard forms consistent with the administration of a e t 17 program that are not detailed in the Improvement Special w l n d 18 Assessment Act;
"program guidebook" means a comprehensive document created by the department pursuant to the Improvement Special Assessment Act, including uniform assessment documents, appropriate guidelines, specifications, approval criteria and other standard forms consistent with the administration of a program that are not detailed in the Improvement Special Assessment Act;
= = 19 M.
M.
"project application" means an application a l i a e r 20 submitted to a program administrator to demonstrate that a a t m m 21 proposed project qualifies for special assessment financing d r e 22 pursuant to a program;
"project application" means an application submitted to a program administrator to demonstrate that a proposed project qualifies for special assessment financing pursuant to a program;
c e s k 23 N.
N.
"region" means a geographical area as designated e a n b 24 by a county pursuant to the Improvement Special Assessment Act;
"region" means a geographical area as designated by a county pursuant to the Improvement Special Assessment Act;
u [ O.
O.
"renewable energy improvement" means an energy .224973.1 - 3 - HCEDC/HB 228 system that generates energy by use of low- or zero-emissions generation technology with substantial long-term production, including solar, wind and geothermal resources, fuel cell equipment using an electrochemical process to generate electricity and heat or biomass resources;
"renewable energy improvement" means an energy system that generates energy by use of low- or zero-emissions generation technology with substantial long-term production, including solar, wind and geothermal resources, fuel cell equipment using an electrochemical process to generate electricity and heat or biomass resources;
P.
HCEDC/HB 228 Page 3 P.
"special assessment agreement" means a voluntary e t 17 agreement of a property owner to allow a county to place an w l n d 18 assessment on the owner's property to repay special assessment = = 19 financing pursuant to the Improvement Special Assessment Act;
"special assessment agreement" means a voluntary agreement of a property owner to allow a county to place an assessment on the owner's property to repay special assessment financing pursuant to the Improvement Special Assessment Act;
a l i a e r 20 S.
S.
"special assessment assignable certificate" a t m m 21 means a document assigning a special assessment lien from the d r e 22 county to a capital provider in an amount not to exceed the c e s k 23 amount of the special assessment financing for the term of the e a n b 24 special assessment lien;
"special assessment assignable certificate" means a document assigning a special assessment lien from the county to a capital provider in an amount not to exceed the amount of the special assessment financing for the term of the special assessment lien;
u [ T.
T.
"special assessment financing" means the total .224973.1 - 4 - HCEDC/HB 228 amount of financing provided by a capital provider pursuant to a special assessment financing agreement, including accrual of interest and penalties, charges, fees and costs of enforcement of a special assessment lien;
"special assessment financing" means the total amount of financing provided by a capital provider pursuant to a special assessment financing agreement, including accrual of interest and penalties, charges, fees and costs of HCEDC/HB 228 Page 4 enforcement of a special assessment lien;
"uniform assessment documents" means the forms e t 17 of county ordinance, special assessment agreement, special w l n d 18 assessment lien, special assessment assignable certificate and = = 19 other model documents prepared by the department pursuant to a l i a e r 20 the Improvement Special Assessment Act for use in the program;
"uniform assessment documents" means the forms of county ordinance, special assessment agreement, special assessment lien, special assessment assignable certificate and other model documents prepared by the department pursuant to the Improvement Special Assessment Act for use in the program;
a t m m 21 provided, however, the department shall not mandate a form of d r e 22 special financing agreement that shall be supplied by a capital c e s k 23 provider;
provided, however, the department shall not mandate a form of special financing agreement that shall be supplied by a capital provider;
and e a n b 24 X.
and X.
"water conservation improvement" means measures, u [ equipment or devices that decrease the consumption of or demand .224973.1 - 5 - HCEDC/HB 228 for water, address safe drinking water or eliminate lead from water used for drinking or cooking.
"water conservation improvement" means measures, equipment or devices that decrease the consumption of or demand for water, address safe drinking water or eliminate lead from water used for drinking or cooking.
SECTION 3.
HCEDC/HB 228 Page 5 SECTION 3.
[NEW MATERIAL] ORDINANCE ESTABLISHING THE PROGRAM.--The board of county commissioners of a county may by county ordinance establish a program.
ORDINANCE ESTABLISHING THE PROGRAM.--The board of county commissioners of a county may by county ordinance establish a program.
designate the region in which owners of eligible property may finance eligible improvements pursuant to the e t 17 Improvement Special Assessment Act;
designate the region in which owners of eligible property may finance eligible improvements pursuant to the Improvement Special Assessment Act;
a county may designate more w l n d 18 than one region and if multiple regions are designated, the = = 19 regions may be separate, overlapping or coterminous;
a county may designate more than one region and if multiple regions are designated, the regions may be separate, overlapping or coterminous;
a l i a e r 20 C.
C.
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incorporate by reference the program guidebook, a t m m 21 notwithstanding that a county adopting a program pursuant to d r e 22 the Improvement Special Assessment Act may narrow the c e s k 23 definition of eligible improvements to be consistent with the e a n b 24 county's climate goals;
incorporate by reference the program guidebook, notwithstanding that a county adopting a program pursuant to the Improvement Special Assessment Act may narrow the definition of eligible improvements to be consistent with the county's climate goals;
u [ D.
D.
authorize and direct a county official to enter .224973.1 - 6 - HCEDC/HB 228 into special assessment agreements with property owners and capital providers and issue special assessment assignable certificates on behalf of the county to impose special assessments and assign special assessment liens for assessments approved by the program administrator pursuant to this section;
authorize and direct a county official to enter into special assessment agreements with property owners and HCEDC/HB 228 Page 6 capital providers and issue special assessment assignable certificates on behalf of the county to impose special assessments and assign special assessment liens for assessments approved by the program administrator pursuant to this section;
[NEW MATERIAL] APPROVAL OF SPECIAL ASSESSMENT.-- e t 17 A.
APPROVAL OF SPECIAL ASSESSMENT.-- A.
Prior to entering into a special assessment w l n d 18 agreement, a property owner shall submit a project application = = 19 to the program administrator in a form consistent with the a l i a e r 20 program guidebook.
Prior to entering into a special assessment agreement, a property owner shall submit a project application to the program administrator in a form consistent with the program guidebook.
a t m m 21 (1) for an existing eligible property:
(1) for an existing eligible property:
d r e 22 (a) where energy efficiency c e s k 23 improvements, water conservation improvements or renewable e a n b 24 energy improvements are proposed, certification by a licensed u [ professional engineer or other professional listed in the .224973.1 - 7 - HCEDC/HB 228 program guidebook stating that the proposed eligible improvements will either result in more efficient use or conservation of energy or water, the reduction of greenhouse gas emissions or the addition of renewable sources of energy or water;
(a) where energy efficiency improvements, water conservation improvements or renewable energy improvements are proposed, certification by a licensed professional engineer or other professional listed in the program guidebook stating that the proposed eligible HCEDC/HB 228 Page 7 improvements will either result in more efficient use or conservation of energy or water, the reduction of greenhouse gas emissions or the addition of renewable sources of energy or water;
e t 17 (3) certification that the property owner w l n d 18 requesting the proposed eligible improvements is the owner of = = 19 record of the property on which the special assessment will be a l i a e r 20 imposed and that there are no delinquent taxes or assessments a t m m 21 on the property;
(3) certification that the property owner requesting the proposed eligible improvements is the owner of record of the property on which the special assessment will be imposed and that there are no delinquent taxes or assessments on the property;
d r e 22 (4) the name of the capital provider providing c e s k 23 the special assessment financing and the proposed terms of the e a n b 24 special assessment financing agreement, including:
(4) the name of the capital provider providing the special assessment financing and the proposed terms of the special assessment financing agreement, including:
u [ (a) the special assessment financing .224973.1 - 8 - HCEDC/HB 228 amount;
HCEDC/HB 228 Page 8 (a) the special assessment financing amount;
and (5) written consent from any holder of a lien, mortgage or security interest in the real property that the e t 17 property may participate in the program and that the special w l n d 18 assessment lien shall have priority superior to all liens, = = 19 claims and titles except a lien for general ad valorem property a l i a e r 20 taxes or an improvement district lien that is coequal to a t m m 21 property taxes.
and (5) written consent from any holder of a lien, mortgage or security interest in the real property that the property may participate in the program and that the special assessment lien shall have priority superior to all liens, claims and titles except a lien for general ad valorem property taxes or an improvement district lien that is coequal to property taxes.
d r e 22 B.
B.
Prior to entering into a special assessment c e s k 23 agreement, the county shall receive from the program e a n b 24 administrator certification that the proposed eligible u [ improvements, eligible property and property owner qualify for .224973.1 - 9 - HCEDC/HB 228 financing pursuant to the program.
Prior to entering into a special assessment agreement, the county shall receive from the program administrator certification that the proposed eligible HCEDC/HB 228 Page 9 improvements, eligible property and property owner qualify for financing pursuant to the program.
[NEW MATERIAL] IMPOSITION OF SPECIAL ASSESSMENT--AMOUNT--COLLECTION--SPECIAL ASSESSMENT LIEN CREATED.-- A.
IMPOSITION OF SPECIAL ASSESSMENT--AMOUNT--COLLECTION--SPECIAL ASSESSMENT LIEN CREATED.-- A.
(4) the grantee's name, which shall be the e t 17 county in which the property is located;
(4) the grantee's name, which shall be the county in which the property is located;
w l n d 18 (5) the date on which the special assessment = = 19 lien was created;
(5) the date on which the special assessment lien was created;
a l i a e r 20 (6) the principal amount of the special a t m m 21 assessment lien;
(6) the principal amount of the special assessment lien;
d r e 22 (7) the terms and length of the special c e s k 23 assessment lien;
(7) the terms and length of the special assessment lien;
and e a n b 24 (8) a copy of the special assessment u [ agreement.
and HCEDC/HB 228 Page 10 (8) a copy of the special assessment agreement.
.224973.1 - 10 - HCEDC/HB 228 C.
C.
The special assessment e t 17 assignable certificate shall convey the special assessment lien w l n d 18 including all of the characteristics described in Subsection B = = 19 of this section.
The special assessment assignable certificate shall convey the special assessment lien including all of the characteristics described in Subsection B of this section.
The holder of the special assessment a l i a e r 20 assignable certificate shall be solely responsible for the a t m m 21 billing and collection of the related special assessment and d r e 22 for the enforcement of the special assessment lien.
The holder of the special assessment assignable certificate shall be solely responsible for the billing and collection of the related special assessment and for the enforcement of the special assessment HCEDC/HB 228 Page 11 lien.
c e s k 23 F.
F.
When the underlying special assessment financing e a n b 24 has been satisfied, the special assessment shall be removed u [ from the property and the county shall record a release of the .224973.1 - 11 - HCEDC/HB 228 special assessment lien.
When the underlying special assessment financing has been satisfied, the special assessment shall be removed from the property and the county shall record a release of the special assessment lien.
[NEW MATERIAL] DELINQUENT SPECIAL ASSESSMENT PAYMENTS--ENFORCEMENT OF SPECIAL ASSESSMENT LIENS.-- A.
DELINQUENT SPECIAL ASSESSMENT PAYMENTS-- ENFORCEMENT OF SPECIAL ASSESSMENT LIENS.-- A.
The holder of a special assessment assignable certificate may institute proceedings to foreclose the special assessment lien against the property that is delinquent in the e t 17 payment of the special assessment or installment of a special w l n d 18 assessment for a period of more than one year.
The holder of a special assessment assignable certificate may institute proceedings to foreclose the special assessment lien against the property that is delinquent in the payment of the special assessment or installment of a special assessment for a period of more than one year.
= = 19 E.
E.
The capital provider may sell or assign for a l i a e r 20 consideration any and all special assessment liens received a t m m 21 from the county.
The capital provider may sell or assign for consideration any and all special assessment liens received HCEDC/HB 228 Page 12 from the county.
The capital provider or its assignee shall d r e 22 have and possess the same powers and rights at law or in equity c e s k 23 to enforce the special assessment lien in the same manner as e a n b 24 described in Subsections C and D of this section.
The capital provider or its assignee shall have and possess the same powers and rights at law or in equity to enforce the special assessment lien in the same manner as described in Subsections C and D of this section.
u [ SECTION 7.
SECTION 7.
[NEW MATERIAL] SPECIAL ASSESSMENT FINANCING.-- .224973.1 - 12 - HCEDC/HB 228 A.
SPECIAL ASSESSMENT FINANCING.-- A.
[NEW MATERIAL] ELIGIBLE COSTS--ADDITIONAL CRITERIA PROHIBITED.-- A.
ELIGIBLE COSTS--ADDITIONAL CRITERIA PROHIBITED.-- A.
e t 17 (4) capital provider's fees;
(4) capital provider's fees;
w l n d 18 (5) program administrative fees;
(5) program administrative fees;
= = 19 (6) project development and engineering fees;
(6) project development and engineering HCEDC/HB 228 Page 13 fees;
a l i a e r 20 (7) third-party review fees, including a t m m 21 verification review fees;
(7) third-party review fees, including verification review fees;
d r e 22 (8) capitalized interest;
(8) capitalized interest;
c e s k 23 (9) interest reserves;
(9) interest reserves;
e a n b 24 (10) escrow for prepaid property taxes and u [ insurance;
(10) escrow for prepaid property taxes and insurance;
and .224973.1 - 13 - HCEDC/HB 228 (11) any other fees or costs that may be incurred by the property owner incident or ancillary to the installation, modification or improvement on a specific or pro rata basis.
and (11) any other fees or costs that may be incurred by the property owner incident or ancillary to the installation, modification or improvement on a specific or pro rata basis.
Program administrative fees shall reflect the reasonable costs of the county or program administrator to provide administrative services for the program but shall not e t 17 exceed the lesser of one percent of the principal amount of the w l n d 18 special assessment financing or twenty-five thousand dollars = = 19 ($25,000).
Program administrative fees shall reflect the reasonable costs of the county or program administrator to provide administrative services for the program but shall not exceed the lesser of one percent of the principal amount of the special assessment financing or twenty-five thousand HCEDC/HB 228 Page 14 dollars ($25,000).
a l i a e r 20 SECTION 9.
SECTION 9.
[NEW MATERIAL] PROGRAM GUIDEBOOK--PROGRAM a t m m 21 ADMINISTRATOR.-- d r e 22 A.
PROGRAM GUIDEBOOK--PROGRAM ADMINISTRATOR.-- A.
The department shall develop and make available c e s k 23 on its website within ninety days of the effective date of the e a n b 24 Improvement Special Assessment Act the program guidebook u [ governing the terms and conditions under which financing for .224973.1 - 14 - HCEDC/HB 228 special assessments may be made available through the program.
The department shall develop and make available on its website within ninety days of the effective date of the Improvement Special Assessment Act the program guidebook governing the terms and conditions under which financing for special assessments may be made available through the program.
e t 17 B.
B.
The department may elect to serve as a program w l n d 18 administrator and may contract with a third party to assist = = 19 with administration.
The department may elect to serve as a program administrator and may contract with a third party to assist with administration.
In the event the department or its a l i a e r 20 contracted third party provides administrative services for the a t m m 21 program, counties establishing a program pursuant to the d r e 22 Improvement Special Assessment Act shall designate the c e s k 23 department or its contracted third party as program e a n b 24 administrator in addition to any other program administrator u [ designated by the county.
In the event the department or its HCEDC/HB 228 Page 15 contracted third party provides administrative services for the program, counties establishing a program pursuant to the Improvement Special Assessment Act shall designate the department or its contracted third party as program administrator in addition to any other program administrator designated by the county.
.224973.1 - 15 - HCEDC/HB 228 C.
C.
[NEW MATERIAL] IMMUNITY.--Nothing in the Improvement Special Assessment Act shall be interpreted to pledge, offer or encumber the full faith and credit of a county.
IMMUNITY.--Nothing in the Improvement Special Assessment Act shall be interpreted to pledge, offer or encumber the full faith and credit of a county.
e t 17 SECTION 11.
SECTION 11.
REPEAL.--Sections 4-55C-1 through 4-55C-9 w l n d 18 NMSA 1978 (being Laws 2009, Chapter 270, Sections 1 through 8 = = 19 a l and Laws 2019, Chapter 110, Section 4, as amended) are i a e r 20 repealed.
REPEAL.--Sections 4-55C-1 through 4-55C-9 NMSA 1978 (being Laws 2009, Chapter 270, Sections 1 through 8 and Laws 2019, Chapter 110, Section 4, as amended) are HCEDC/HB 228 Page 16 repealed.
a t m m 21 - 16 - d r e 22 c e s k 23 e a n b 24 u [ .224973.1
HCEDC/HB 228 Page 17 3 5 7 9 25
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Action History

  1. Signed

  2. passed Senate

  3. DO PASS committee report adopted

  4. DO PASS committee report adopted

  5. Sent to Senate Tax, Business and Transportation Committee & Senate Judiciary Committee

  6. passed House

  7. DO PASS committee report adopted

  8. DO NOT PASS, replaced with committee substitute

  9. Sent to House Commerce & Economic Development Committee & House Government, Elections and Indian Affairs Committee

Sponsors

Sponsorship breakdown

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3 sponsors · 0 co-sponsors · 109 not signed on

Sponsors (3)

Co-sponsors (0)

None.

Not signed on (109)

109 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

What does HB 228 do?
The bill establishes a framework for local governments to charge special assessments for improvements made to properties or areas, allowing them to recover costs associated with those improvements. It outlines the procedures and requirements for implementing these special assessments.
Who sponsors HB 228?
HB 228 is sponsored by Linda Serrato (Democrat), Nathan P. Small (Democrat), and Kristina Ortez (Democrat).
What is the current status of HB 228?
This bill has been enacted into law. Introduced January 30, 2023. Enacted.
Where can I track HB 228?
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