SB 143 — CREATE UTILITY OVERSIGHT FUND

In addition to any interest due on a late fee r i = r t e w d m a n o payment, a penalty shall be paid to the state for failure to payd them fee: when it was due.

Theb penaltye imposedd shalls beº twoo t n = .229196.4SAAIC February 25, 2025 (9:01pm) s k m e t- 174 percent- ofe thea amountn ofe d r e l u [ A d pay the fee when it was due.

wThe lpenalty nimposed dshall 18be D.two percent of the amount of the fee due.

TheD. [attorney general, in the name of the state] = = 19 a l commission shall bring suit to collect fees, interest and i a e r 20 penalties that remain unpaid." a t m m 21 SECTION 4.

SectionThe 62-13-2[attorney NMSAgeneral, 1978in (beingthe Lawsname 1957,of dthe rstate e] 22commission Chaptershall 25,bring Sectionsuit 2,to ascollect amended)fees, isinterest amendedand topenalties read:that remain unpaid." SECTION 4.

cSection e62-13-2 sNMSA k1978 23(being "62-13-2.Laws 1957, Chapter 25, Section 2, as amended) is amended to read:

FEES.--The"62-13-2. commission shall collect fees for e a n b 24 the following [fees], which shall be remitted to the state u [ treasurer not later than the day following receipt;

providedFEES.--The .229196.4SA - 4 - that the commission mayshall increasecollect byfees administrativefor rule the feesfollowing set[fees], forthwhich inshall thisbe sectionremitted into amountsthe thatstate dotreasurer not exceedlater than the costday offollowing administrativereceipt; proceedings before the commission:

provided that the commission may increase by administrative rule the fees set forth in this section in amounts that do not exceed the cost of administrative proceedings before the commission:

h B.

for filing each application, petition or g o t hr complaint, twenty-five dollars ($25.00);

g e i k C.

for copies of papers, testimony and records, the h r i s reasonable cost of such copies as the commission may provide h , t, from time to time by rule;

and e u g e b l e e h D.

for certifying any copy of any paper, testimony n d d i = = o h or record, two dollars ($2.00)." l ] b ,d i a º e SECTION 5.

Section 62-14-8 NMSA 1978 (being Laws 1973, r i = r t e w d m a n o Chapter 252, Section 8, as amended) is amended to read:

d m :

b e d s º o t n = .229196.4SAAIC February 25, 2025 (9:01pm) s k m e - 5 - e a n e d r e l u [ A d "62-14-8.

PENALTIES.--In addition to any other liability imposed by law, an excavator, after a formal hearing and upon a finding, who has failed to comply with Subsection C of Section 62-14-3 NMSA 1978 is subject to an administrative penalty of up to five thousand dollars ($5,000) for a first offense as assessed by the commission.

Thereafter, the commission may assess an administrative penalty of up to a maximum of twenty- five thousand dollars ($25,000) for subsequent violations of Subsection C of Section 62-14-3 NMSA 1978.

In addition to any other penalty imposed by law, an operator of underground pipeline facilities or underground utilities, excavator or operator of a one-call notification system, after formal hearing and upon a finding, who has willfully failed to comply with Chapter 62, Article 14 NMSA 1978 shall be subject to an administrative penalty of up to five thousand dollars ($5,000) for a first offense as assessed by the commission.

Thereafter, h upon finding that a violation of Chapter 62, Article 14 NMSA u » r 1978 has occurred, the commission may, upon consideration of t h g e l i the nature, circumstances, gravity of the violation, history of h r i s prior violations, effect on public health, safety or welfare h , e h and good faith on the part of the person in attempting to t u g e b l e e , gh remedy the cause of the violation, assess an administrative n d d i = = o h penalty up to a maximum of twenty-five thousand dollars l ] b ,d i a º r ($25,000) per violation consistent with federal law.

No e r = t e w d m a n o offense occurring more than five years prior to the current d m :

b r e t º o t n = .229196.4SAAIC February 25, 2025 (9:01pm) s k m e - 6 - e a n e d r e l u [ A d offense charged shall be considered for any purpose.

All actions to recover the penalties provided for in this section shall be brought by the commission.

All penalties recovered in any such action shall be [paid into the state general ] deposited in the current school fund." SECTION 6.

Section 63-7-20 NMSA 1978 (being Laws 1951, Chapter 194, Section 1, as amended) is amended to read:

"63-7-20.

UTILITY INSPECTION--FEE.-- A.

Each utility doing business in this state that is subject to the control and jurisdiction of the commission by virtue of the provisions of Article 11 of the constitution of New Mexico with respect to its rates and service shall pay annually to the commission a fee in performance of its duties as now provided by law.

The fee for utilities shall not exceed five hundred [eleven ] ninety thousandths percent of its gross receipts from business transacted in New Mexico for the h preceding calendar year.

This sum shall be payable annually on g o t hr SFCº or before April»SFC SFCºJuly»SFC [1] SFCº30»SFC g e i k SFCº31»SFC in each year.

No similar fee shall be imposed upon h r i s the utility.

In the case of utilities engaged in interstate h , t, e u g business, the fees shall be measured by the gross receipts of e b l e e h the utilities from intrastate business only for the preceding n d d i = = o h calendar year and not in any respect upon receipts derived l ] b ,d i a º e wholly or in part from interstate business.

Prior to July 1, r i = r t e w d m a n o 2031, the fees established pursuant to this section may be d m :

b e d s º o t n = .229196.4SAAIC February 25, 2025 (9:01pm) s k m e - 7 - e a n e d r e l u [ A d adjusted annually by the commission;

provided that any increase shall not be greater than the prior year's increase in the employment cost index for state and local government, as published by the federal bureau of labor statistics.

As used in this section, "utility" includes telephone companies and transmission companies but does not include public utilities subject to the Public Utility Act.

forWhen filinga eachfee application,is petitionnot orpaid complaint,on twenty-fivethe dollarsdate ($25.00);it is due, interest shall be paid to the state on the amount due.

C.The interest on the amount due shall start to accrue on the day following the due date and shall continue to accrue until the total amount due is paid.

for copies of papers, testimony and records, the reasonable cost of such copies as the commission may provide from time to time by rule;

and D.

for certifying any copy of any paper, testimony or record, two dollars ($2.00)." SECTION 5.

Section 62-14-8 NMSA 1978 (being Laws 1973, Chapter 252, Section 8, as amended) is amended to read:

"62-14-8.

PENALTIES.--In addition to any other liability e t 17 imposed by law, an excavator, after a formal hearing and upon a w l n d 18 finding, who has failed to comply with Subsection C of Section = = 19 a l 62-14-3 NMSA 1978 is subject to an administrative penalty of up i a e r 20 to five thousand dollars ($5,000) for a first offense as a t m m 21 assessed by the commission.

Thereafter, the commission may d r e 22 assess an administrative penalty of up to a maximum of twenty- c e s k 23 five thousand dollars ($25,000) for subsequent violations of e a n b 24 Subsection C of Section 62-14-3 NMSA 1978.

In addition to any u [ other penalty imposed by law, an operator of underground .229196.4SA - 5 - pipeline facilities or underground utilities, excavator or operator of a one-call notification system, after formal hearing and upon a finding, who has willfully failed to comply with Chapter 62, Article 14 NMSA 1978 shall be subject to an administrative penalty of up to five thousand dollars ($5,000) for a first offense as assessed by the commission.

Thereafter, upon finding that a violation of Chapter 62, Article 14 NMSA 1978 has occurred, the commission may, upon consideration of the nature, circumstances, gravity of the violation, history of prior violations, effect on public health, safety or welfare and good faith on the part of the person in attempting to remedy the cause of the violation, assess an administrative penalty up to a maximum of twenty-five thousand dollars ($25,000) per violation consistent with federal law.

No offense occurring more than five years prior to the current offense charged shall be considered for any purpose.

All e t 17 actions to recover the penalties provided for in this section w l n d 18 shall be brought by the commission.

All penalties recovered in = = 19 a l any such action shall be [paid into the state general] i a e r 20 deposited in the current school fund." a t m m 21 SECTION 6.

Section 63-7-20 NMSA 1978 (being Laws 1951, d r e 22 Chapter 194, Section 1, as amended) is amended to read:

c e s k 23 "63-7-20.

UTILITY INSPECTION--FEE.-- e a n b 24 A.

Each utility doing business in this state that u [ is subject to the control and jurisdiction of the commission by .229196.4SA - 6 - virtue of the provisions of Article 11 of the constitution of New Mexico with respect to its rates and service shall pay annually to the commission a fee in performance of its duties as now provided by law.

The fee for utilities shall not exceed five hundred [eleven] ninety thousandths percent of its gross receipts from business transacted in New Mexico for the preceding calendar year.

This sum shall be payable annually on or before April [1] 30 in each year.

No similar fee shall be imposed upon the utility.

In the case of utilities engaged in interstate business, the fees shall be measured by the gross receipts of the utilities from intrastate business only for the preceding calendar year and not in any respect upon receipts derived wholly or in part from interstate business.

Prior to July 1, 2031, the fees established pursuant to this section may be adjusted annually by the commission;

provided that any increase shall not be greater than the prior year's increase in e t 17 the employment cost index for state and local government, as w l n d 18 published by the federal bureau of labor statistics.

As used = = 19 a l in this section, "utility" includes telephone companies and i a e r 20 transmission companies but does not include public utilities a t m m 21 subject to the Public Utility Act.

d r e 22 B.

When a fee is not paid on the date it is due, c e s k 23 interest shall be paid to the state on the amount due.

The e a n b 24 interest on the amount due shall start to accrue on the day u [ following the due date and shall continue to accrue until the .229196.4SA - 7 - total amount due is paid.

In addition to any interest due on a late fee payment, a penalty shall be paid to the state for failure to h pay the fee when it is due.

The penalty imposed shall be two g o t hr percent of the amount of the fee due.

g e i k D.

The [attorney general, in the name of the state]state ] h r i s commission shall bring suit to collect fees, interest and h , t, penalties that remain unpaid." SECTIONe u g e b l e e h SFCºSTBTCºSECTION 7.

Section 63-7-21 NMSA 1978 (being n d d i = = o h Laws 1951, Chapter 194, Section 2, as amended) is amended to l ] b ,d i a º e read:

r i = r t e w d m a n o "63-7-21.

DISPOSITION OF FEES.--All [moneys] money d m :

b e d s º o t n = .229196.4SAAIC February 25, 2025 (9:01pm) s k m e - 8 - e a n e d r e l u [ A d collected under the provisions of [Chapter 194, Laws of 1951] Section 63-7-20 NMSA 1978 shall be deposited with the state treasurer [and by him credited] and shall be credited to the [general] utility oversight fund."»STBTC»SFC SFCºSECTION 7.

DISPOSITION OF FEES.--All [moneys] money collected under the provisions of [Chapter 194, Laws of 1951] Section 63-7-20 NMSA 1978 shall be deposited with the state treasurer [and by him credited] and shall be credited to the e t 17 [general] utility oversight fund."fund."»SFC wSECTION lSFCºSTBTCº8.»STBTC nSTBTCº7.»STBTC»SFC dSFCº8.»SFC 18Section SECTION70-3-2 8.NMSA 1978 (being Laws 1953, Chapter 42, Section 3, as amended) is amended to read:

Section"70-3-2. 70-3-2 NMSA 1978 (being Laws 1953, = = 19 a l Chapter 42, Section 3, as amended) is amended to read:

iLICENSE--FEES--DISPOSITION.--[Each] An operator of a pipeline [or pipelines ] operated in the state [of New h g Mexico] for the transportation of crude oil, natural gas or the o t hr products derived [therefrom ] from either shall, during the g e i k month of July, obtain a license for the operation of [such ] the h r 20i "70-3-2.s h pipeline.

LICENSE--FEES--DISPOSITION.--[Each]Application Anfor operator[such] a tlicense mshall mbe 21made ofupon a, pipelinet, [ore pipelines]u operatedg ina theform stateto [ofbe Newprovided dby r e 22 Mexico] for the transportation[corporation of] crudepublic oil,regulation naturale gasb orl thee c e sh kcommission 23and productsshall derivedbe [therefrom]accompanied fromby either shall, during the elicense afee n bd 24d monthi of= July,= obtaino ah licensedetermined foras the[hereinafter operation] ofprovided [such]in thethis usection. [ pipeline.

ApplicationOn forl [such]] b ,d i a licenseº shalle ber madei upon= .229196.4SAr -receipt 8of -[such a] formthe toapplication beand providedlicense byfee, the [corporation]t publice regulationw commissiond andm shalla ben accompaniedo by[corporation the] licensepublic feeregulation determinedcommission asshall [hereinafter]issue provideda ind thism section.:

Onb receipte ofd [such]s theº applicationo andt licensen fee,= the.229196.4SAAIC [corporation]February public25, regulation2025 commission(9:01pm) shalls issuek m e - 9 - e a n e d r e l u [ A d license to the applicant for the current fiscal year.

All license fees [so][so ] collected shall be paid to the state treasurer and [by him]him ] credited to the [general]SFCºSTBTCº[general] utility oversightoversight»STBTC STBTCºgeneral»STBTC»SFC SFCº[general] utility oversight»SFC fund.

[Each] A person, firm, association or corporation transporting natural gas or [the][the ] natural gas products [derived therefrom] by pipeline [or pipelines] in New Mexico and operating a pipeline [or pipelines]pipelines ] and appurtenant facilities within New Mexico shall pay an annual license fee of five hundred dollars ($500) at the time of making the e t 17 application required by this section.

An additional fee shall w l n d 18 be paid, measured by the aggregate installed rated horsepower = = 19 a l of compression facilities located within New Mexico and i a e r 20 operated by the licensee, in accordance with the following ah t m m 21 schedule:

dg ro et 22hr (1) not exceeding [10,000][10,000 ] ten thousand cg e si k 23 horsepower, the minimum fee with no additional fee;

eh ar ni bs 24 (2) more than [10,000][10,000 ] ten thousand horsepower h , t, e u [g and not more than [30,000][30,000 ] thirty thousand horsepower, the .229196.4SAe -b 9l -e e h minimum fee plus [$2,275.00][$2,275.00 ] two thousand two hundred seventy- n d d i = = o h five dollars ($2,275);

l ] b ,d i a º e (3) more than [30,000][30,000 ] thirty thousand horsepowerr andi not= morer thant [50,000]e fiftyw thousandd horsepower,m thea minimumn feeo plushorsepower [$4,000.00]and fournot more than [50,000] fifty thousand dollarsd ($4,000);m :

(4)b moree thand [50,000]s fiftyº thousando horsepowert andn not= more.229196.4SAAIC thanFebruary [75,000]25, seventy-five2025 thousand(9:01pm) s k m e - 10 - e a n e d r e l u [ A d horsepower, the minimum fee plus [$5,000.00][$4,000.00] fivefour thousand dollars ($5,000);($4,000);

(5)(4) more than [75,000][50,000 seventy-five] fifty thousand horsepower and not more than [100,000][75,000] oneseventy-five hundred thousand horsepower, the minimum fee plus [$5,500.00][$5,000.00] five thousand five hundred dollars ($5,500);($5,000);

(5) more than [75,000 ] seventy-five thousand horsepower and (6)not more than [100,000] one hundred thousand horsepower, the minimum fee plus [$5,925.00][$5,500.00] five thousand ninefive e t 17 hundred twenty-five dollars ($5,925)($5,500); and plus [$75.00] seventy- w l n d 18 five dollars ($75.00) additional for each [10,000] ten thousand = = 19 a l horsepower or fraction thereof in excess of [100,000] one i a e r 20 hundred thousand horsepower.

aand t(6) mmore mthan 21[100,000] B.one hundred thousand horsepower, the minimum fee plus [$5,925.00] five thousand nine hundred twenty-five dollars ($5,925) and plus [$75.00] seventy- five dollars ($75.00) additional for each [10,000] ten thousand horsepower or fraction thereof in excess of [100,000] one hundred thousand horsepower.

[Each]h AnB. operator of a pipeline [or pipelines] d r e 22 for the transportation of oil or [the] oil products [derived c e s k 23 therefrom] shall pay [the following fees, based on the number e a n b 24 of miles of such line operated in New Mexico] a basic fee of u [ five hundred dollars ($500) [and in addition] plus fees based .229196.4SA - 10 - on the number of miles of pipeline operated in New Mexico, computed in accordance with the following schedule:

(1)[Each] An operator of a pipeline [or pipelines] g o t hr for allthe linestransportation upof tooil andor including[the eight] inchesoil products [derived g e i k therefrom] shall pay [the following fees, based on the number h r i s of miles of such line operated in diameter:New Mexico] a basic fee of h , t, five hundred dollars ($500) [and in addition ] plus fees based e u g e b l e e h on the number of miles of pipeline operated in New Mexico, n d d i = = o h computed in accordance with the following schedule:

[$13.00]l (a)] thirteenb dollars,d ($13.00)i pera mileº e (1) for theall firstlines [50]up fiftyto miles;and including eight r i = r t e w d m a n o inches in diameter:

[$d 7.00]m (b): seven dollars ($7.00) per mile for the next [25] twenty-five miles;

[$b 4.00]e (c)d fours º o t n = .229196.4SAAIC February 25, 2025 (9:01pm) s k m e - 11 - e a n e d r e l u [ A d [$13.00] (a) thirteen dollars ($4.00)($13.00) per mile for the nextfirst [25][50] twenty-fivefifty miles;

and [$ 1.00]7.00] (d)(b) oneseven dollardollars ($1.00)($7.00) per mile for eachthe milenext in[25 excess] oftwenty-five [100] one hundred miles;

[$ 4.00] (c) four dollars ($4.00) per mile for the next [25 ] twenty-five miles;

and [$ 1.00] (d) one dollar ($1.00) per mile for each mile in excess of [100 ] one hundred miles;

e t 17 [$13.00] (b) thirteen dollars ($13.00) w l n d 18 per mile for the next [25] twenty-five miles;

= = 19 a l [$ 9.00] (c) nine dollars ($9.00) per i a e r 20 mile for the next [25][25 ] twenty-five miles;

ah t m m 21 [$ 6.00] (d) six dollars ($6.00) per dg ro et 22hr mile for the next [25][25 ] twenty-five miles;

and cg e si k 23 [$ 2.00] (e) two dollars ($2.00) per eh ar ni bs 24 mile for each mile in excess of [100][100 ] one hundred miles.

uh [, t, C.

For the purposes of determining the license fees .229196.4SAe -u 11g -e b l e e h payable under the provisions of [this][this ] Subsection B of this n d d i = = o h section, any pipeline owned by two or more persons, firms or l ] b ,d i a º e corporations shall be considered to be a separate pipeline r i = r t e w d m a n o operation to be licensed as such in the name of the operator or ownersd thereof.m :

Theb basice feed tos beº paido int then licensing= of.229196.4SAAIC suchFebruary lines25, under2025 the(9:01pm) [foregoing]s feek schedulem providede in- Subsection12 B- ofe thisa sectionn shalle be:d r e l u [ A d owners thereof.

The basic fee to be paid in the licensing of such lines under the [foregoing ] fee schedule provided in Subsection B of this section shall be:

and (2) eight hundred fifty dollars ($850) on lines twenty inches or more in diameter." -SFCº 12SECTION -9. 14 16 e t 17 w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .229196.4SA

EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2026.»SFC - 13 - h u » r t h g e l i h r i s h , e h t u g e b l e e , gh n d d i = = o h l ] b ,d i a º r e r = t e w d m a n o d m :

b r e t º o t n = .229196.4SAAIC February 25, 2025 (9:01pm) s k m e e a n e d r e l u [ A d