HB 175 — REGIONAL WATER UTILITY AUTHORITY ACT

purchasing, acquiring, establishing or constructing wastewater systems for the treatment and disposal of sewage or for the management of decentralized or on-site e e 17 wastewater disposal systems;

or e e n d 18 D.

developing infrastructure for renewable energy = = l ] 19 projects that are integral to the operation and maintenance of a l r i 20 an authority's facilities.

t e a t SECTION 4.

[NEW MATERIAL ] AUTHORITY--CREATION--ARTICLES m m 21 e d OF INCORPORATION--BYLAWS.-- r e 22 c e r c 23 A.

One or more entities may create an authority as e a n b 24 provided in the Regional Water Utility Authority Act.

u [ B.

Each incorporating entity shall individually .213304.2 - 3 - HAWC/HB 175 adopt a resolution signifying its intention to create an authority.

h C.

g o t hr (1) proposed name and purpose of the g e i k authority;

h r i s (2) perpetual existence of the authority;

h , t, (3) proposed service area, described with such e u g e b l e e h specificity as to enable a property owner to determine whether n d d i = = o h the owner's property is within the service area;

l ] b ,d i a º e (4) composition of the authority ;

and r i = r t e w d m a n o (5) lead joining entity to act as registered ed em 17: agent.

b e d s º o t n = .213304.2 s k m e - 4 - e a n e d 18r D.e l u [ A d agent.

UponD. adoption of a resolution by each = = l ] 19 incorporating entity, the incorporating entities shall draw up a l r i 20 articles of incorporation and bylaws and file them with the t e a t secretary of state.

AmendedUpon bylawsadoption shallof bea filed,resolution recordedby meach mincorporating 21entity, ethe dincorporating andentities certifiedshall bydraw theup secretaryarticles of stateincorporation and shallbylaws beand effectivefile rthem ewith 22the csecretary eof rstate. c 23 upon filing.

Amended bylaws supersedeshall allbe otherfiled, bylawsrecorded uponand ecertified aby nthe bsecretary 24of thestate effectiveand dateshall ofbe theeffective amendedupon bylaws.filing.

uAmended [bylaws E.supersede all other bylaws upon the effective date of the amended bylaws.

UponE. the issuance of a certificate of .213304.2 - 4 - HAWC/HB 175 incorporation by the secretary of state, the corporate existence of an authority shall begin, and the incorporating entity shall be dissolved, except as against the state in a proceeding to cancel or revoke the certificate of incorporation or for involuntary dissolution of an authority.

Upon the issuance of a certificate of incorporation by the secretary of state, the corporate existence of an authority shall begin, and the incorporating entity shall be dissolved, except as against the state in a proceeding to cancel or revoke the certificate of incorporation or for involuntary dissolution of an authority.

h SECTION 5.

[NEW MATERIAL ] ENTITIES MERGING AFTER g o INCORPORATION.--If an entity chooses to merge into an authority t hr g e i k after that authority has been incorporated, the entity shall h r i s adopt a resolution signifying its intention to merge into the h , t, authority and submit the resolution to the board along with a e u g e b l merger plan outlining the process and time line to merge assets e e 17h n d d i = = o h and liabilities.

el e] nb d,d 18i a º e SECTION 6.

[NEW MATERIAL ] AUTHORITY--POWERS AND DUTIES.-- =r i = lr ]t 19e w d A.

An authority is a body politic and corporate and am l r i 20 a politicaln subdivisiono ofd them state,: subject to all statutory t e a t requirements of the state.

Inb additione tod others powersº grantedo mt n = .213304.2 s k m 21e - 5 - e a n e d tor ane authorityl pursuantu to[ theA Regionald WaterHAWC/HB Utility175 ra epolitical 22subdivision cof ethe rstate, csubject 23to Authorityall Act,statutory anrequirements authorityof may:the state.

eIn aaddition nto bother 24powers (1)granted haveto perpetualan existence;authority pursuant to the Regional Water Utility Authority Act, an authority may:

u(1) [have (2)perpetual sueexistence; and be sued and be a party to suits, .213304.2 - 5 - HAWC/HB 175 actions or proceedings;

(2) sue and be sued and be a party to suits, actions or proceedings;

(5) acquire from a willing seller and hold h water rights in an amount necessary to meet its reasonable g o needs not to exceed forty years pursuant to Section 72-1-9 NMSA t hr g e i k 1978;

h r i s (6) shut off, after notice, unauthorized and h , t, illegal connections or delinquent connections;

e u g e b l e e h (7) acquire and dispose of real property, en ed 17d i = = o h personal property or rights of way;

el e] nb d,d 18i a º e (8) condemn property pursuant to the Eminent =r i = lr ]t 19e w d Domain Code as a last resort and only as necessary to acquire am l r i 20 property or rights of way for the construction, maintenance or t e a tn operationo ofd waterm or: sewer lines or related facilities;

mb m 21 e d (9)s placeº ao lient onn property= for.213304.2 unpaids rk m e 22- c6 - e ra cn 23e assessments,d chargesr ore feesl andu enforce[ theA liend inproperty theor mannerrights eof away nfor bthe 24construction, providedmaintenance inor Sectionoperation 16 of thewater Regionalor Watersewer Utilitylines Authorityor urelated [facilities; Act;

.213304.2HJCº -provided 6that -an HAWC/HBauthority 175shall (10)not condemn property owned by a non-joining provider;»HJC (9) place a lien on property for unpaid assessments, charges or fees and enforce the purposelien ofin protectingthe groundmanner waterprovided sources,in promulgateSection anHJCº16 on-site15»HJC wastewaterof managementthe plan;Regional Water Utility Authority Act;

(10) for the purpose of protecting ground water sources, promulgate an on-site wastewater management plan;

HJCº (12) compel the connection of existing or new development within the service area pursuant to the authority's existing line-extension policy;

(13) compel connection to the services of the authority for health and sanitary purposes pursuant to Section 14 of the Regional Water Utility Authority Act;

andand»HJC (14)h haveHJCº (12) for health and exercisesanitary allpurposes, rightsg ando powerst necessaryhr orcompel incidentalthe toconnection orof impliedinhabited fromproperty within the specificservice powersg grantede ini thisk section;area if the authority's services are available within four h r i s hundred feet of the property line;

provided that thean specificauthority powersh shall, nott, bee consideredu asg ais limitationresponsible uponfor anyassuming powerthe necessarycost orof appropriatemaking to carry out the purposesservices ande intentb l e e 17h ofavailable theup Regionalto Waterthe Utilityproperty Authorityline; Act.

and»HJC n d d i = = o h HJCº (14) (13)»HJC have and exercise all l ] b ,d i a º e r i = r rights and powers necessary or incidental to or implied from t e nw d 18m B.a n o the specific powers granted in this section;

Allprovided powers,that privileges and duties vested in or = = l ] 19 imposed upon the authorityd shallm be: exercised and performed by a l r i 20 the board.

b e d s º o t n = .213304.2 s k m e - 7 - e a tn SECTIONe 7.d r e l u [ A d HAWC/HB 175 specific powers shall not be considered as a limitation upon any power necessary or appropriate to carry out the purposes and intent of the Regional Water Utility Authority Act.

[NEWB. MATERIAL ] BOARD--APPOINTMENT--DISTRICTS-- m m 21 e d ELECTION.-- r e 22 c e r c 23 A.

All powers, privileges and duties vested in or imposed upon the authority shall be exercised and performed by the board.

SECTION 7.

[NEW MATERIAL ] BOARD--APPOINTMENT--DISTRICTS-- ELECTION.-- A.

The e a n b 24 directors of the initial board shall consist of at least three u [ directors appointed by the incorporating entities and shall be .213304.2 - 7 - HAWC/HB 175 composed of, at a minimum, a president, secretary and treasurer.

The h terms of the initial directors shall end on December 31 of the g o odd-numbered year in which their successors are elected.

t hr g e i k B.

The succeeding board shall be elected by h r i s districts.

Each director, at the time of election, shall h , t, reside within the electoral district of the authority from e u g e b l e e h which that director is elected.

n d d i = = o h C.

Terms of elected directors shall be staggered l ] b ,d i a º e four-year terms beginning on January 1 of the year following r i = r t e w d m a n o their election;

provided that those chosen at the first electiond shallm immediately: classify themselves by lot, so that at least one director serves a two-year term and at least two e e 17 directors serve a four-year term;

thereafterb thee termsd shalls beº o t n = .213304.2 s k m e - 8 - e a n e d 18r foure years.l u [ A d election shall immediately classify themselves by lot, so that at least one director serves a two-year term and at least two directors serve a four-year term;

=thereafter =the lterms ]shall 19be D.four years.

TheD. boundaries and the number of electoral a l r i 20 districts shall be established by the initial board within two t e a t years of the creation of the authority.

The boardboundaries mayand in the mnumber mof 21electoral edistricts dshall authority'sbe bylawsestablished provideby forthe redistrictinginitial uponboard anywithin changetwo inyears rof ethe 22creation cof e r c 23 the authority'sauthority. service area.

AfterThe each federal decennial e a n b 24 census, the board shallmay determinein if the districts'authority's populationsbylaws uprovide [for remain the same or if redistricting isupon necessaryany tochange ensurein as .213304.2 - 8 - HAWC/HB 175 close as practicable equal representation of the authority's service areaarea. on the board.

After each federal decennial census, the board shall determine if the districts' populations remain the same or if redistricting is necessary to ensure as close as practicable equal representation of the authority's service area on the board.

An h authority shall provide the clerks of the counties within the g o authority's service area with the voting list for the t hr g e i k authority.

h r i s SECTION 8.

[NEW MATERIAL ] BOARD--POWERS--DUTIES-- h , t, DELEGATION.-- e u g e b l A.

The board may delegate its powers by resolution e e h n d d i = = o h to an officer, employee or agent of the authority, with the l ] b ,d i a º e exception of the following:

er i = r t e 17w d (1) adoption of board policies and procedures;

em ea n o d 18m (2): ratification of acquisition of property;

=b e d s º o t n = l.213304.2 ]s 19k (3)m initiatione or- continuation9 of- legale a ln e d r ie 20l action;u [ A d HAWC/HB 175 (2) ratification of acquisition of property;

and(3) tinitiation eor acontinuation t (4) establishment of policieslegal regardingaction; fees, m m 21 e d tolls, rates or charges.

rand e(4) 22establishment cof epolicies rregarding cfees, 23tolls, B.rates or charges.

InB. addition to all other powers conferred by the e a n b 24 Regional Water Utility Authority Act, the board may:

uIn [addition (1)to adopt,all amendother orpowers repealconferred bylawsby and file the .213304.2Regional -Water 9Utility -Authority HAWC/HBAct, 175 bylaws and amendments with the secretaryboard ofmay: state;

(1) adopt, amend or repeal bylaws and file the bylaws and amendments with the secretary of state;

(4) make and pass orders or resolutions necessary for the government and management of the affairs of the authority and the execution of the powers vested in the h authority;

g o (5) maintain offices at a place as the board t hr g e i k may designate;

h r i s (6) appoint, hire and retain employees, h , t, agents, engineers, attorneys, accountants, financial advisers, e u g e b l e e h investment bankers or other consultants;

n d d i = = o h (7) enter into contracts for goods or services l ] b ,d i a º e to further its public purposes and other contracts and er i = r t e 17w d agreements to implement the provisions of the Regional Water em ea n o d 18m Utility: Authority Act;

=b =e ld ]s 19º (8)o entert inton legal= agreements.213304.2 withs otherk m e - 10 - e a ln e d r ie 20l governmentalu entities;[ A d Utility Authority Act;

and(8) tenter einto alegal tagreements (9) regulate, supervise and operate the m m 21 e d authority's facilities in accordance with applicableother stategovernmental andentities; r e 22 c e r c 23 federal regulations.

eand a(9) nregulate, bsupervise 24and C.operate the authority's facilities in accordance with applicable state and federal regulations.

TheC. board shall promulgate and adhere to u [ policies and procedures that govern its conduct in accordance .213304.2 - 10 - HAWC/HB 175 with state law and that provide meaningful opportunities for public input.

The board shall promulgate and adhere to policies and procedures that govern its conduct in accordance with state law and that provide meaningful opportunities for public input.

In addition to all statutory requirements of the state, an authority shall be specifically subject to the h applicable rules of the state engineer;

the department of g o finance and administration;

and the department of environment,environment t hr g e i k HJCº , including rules implementing the federal Safe Drinking h r i s Water Act, the federal Clean Water Act and the Utility Operator h , t, Certification Act.Act»HJC.

e u g e 17b l e e h B.

e e n d 18d i = = o h (1) the Open Meetings Act;

= = l ] 19b ,d i a º e (2) the Inspection of Public Records Act;

ar li = r it 20e w d (3) the Audit Act;

tm e a tn (4)o thed Procurementm Code;:

mb e d s º o t n = .213304.2 s k m 21e - 11 - e a n e d (5)r thee Governmentall Conductu Act;[ A d HAWC/HB 175 (4) the Procurement Code;

and(5) rthe eGovernmental 22Conduct cAct; e r c 23 (6) other applicable state laws.

eand a(6) nother bapplicable 24state SECTIONlaws. 11.

[NEWSECTION MATERIAL11. ] SERVICE AREA--EXCLUSIVE RIGHT u [ TO PROVIDE SERVICE--EXCEPTIONS.-- .213304.2 - 11 - HAWC/HB 175 A.

An[NEW authorityMATERIAL has] theSERVICE exclusiveAREA--EXCLUSIVE rightRIGHT toTO providePROVIDE waterSERVICE--EXCEPTIONS.-- andA. wastewater services within its service area and may extend services to entities outside of its service area by contract;

An authority has the exclusive right to provide water and wastewater services within its service area and may HJCº extend provide»HJC services HJCº, by contract»HJC to entities outside of its service area HJCº by contract»HJC;

andHJCº and»HJC HJCº (2) an extension of water or wastewater services by a public or non-public entity described in h Paragraph (1) of this subsection that is planned and fully g o t hr funded as of the date an authority is incorporated and is g e i k completed within eighteen months of that date shall be excluded h r i s from the authority's service area.area.»HJC h , t, e u g HJCº (2) the service area of an authority e b l e e h shall not extend more than five miles beyond the authority's n d d i = = o h water service distribution or wastewater facilities, excluding l ] b ,d i a º e r i = r extensions from time to time into areas contiguous to the t e w d m a n o service area or encroachments into areas within five miles of d m :

B.b e d s º o t n = .213304.2 s k m e - 12 - e a n e d r e l u [ A d the water service distribution or wastewater facilities operated by a non-joining provider;

and (3) an authority's exclusive right to provide water or wastewater services within the service area shall not prevent an entity entitled to a forty-year planning protection under Section 72-1-9 NMSA 1978 from providing water and wastewater services within the entity's place of use that is on file with the state engineer.»HJC B.

e e 17 (1) file a plat designating the authority's e e n d 18 initial service area with the county clerk of each of the = = l ] 19 counties in which the service area is located;

and a l r i 20 (2) file a change of ownership form with the t e a t state engineer pursuant to Section 72-1-2.1 NMSA 1978 m m 21 e d reflecting the change in ownership of the water rights of the r e 22 c e r c 23 incorporating entities.

Upon the recording of the change of e a n b 24 ownership form with the clerk of the county in which the water u [ rights are located, the place of use of the incorporating .213304.2h - 12 - HAWC/HB 175 entities' water rights shall be deemed to be the authority's g o t hr water rights place of use.

If the HJCº service areas places of g e i k use»HJC of the incorporating entities will be combined, the h r i s authority and the incorporating entities shall file an h , t, application with the state engineer to combine and commingle e u g e b l e e h the water rights of the incorporating entities.

n d d i = = o h C.

Additions or subtractions to the authority's l ] b ,d i a º e initial service area shall be designated in an amended plat r i = r t e w d m a n o filed with the county clerk of each of the counties in which thed authority'sm service: area is located.

b e d s º o t n = .213304.2 s k m e - 13 - e a n e d r e l u [ A d HAWC/HB 175 the authority's service area is located.

[NEW MATERIAL ] ACCEPTANCE OF ASSETS AND LIABILITIES.--An authority shall accept a transfer of services, assets and liabilities of a joining entity following the legal dissolution of that entity and subject to any and all statutory requirements for dissolution, transfer and assumption of all assets and liabilities in accordance with an approved merger e e 17 plan.

e e n d 18 SECTION 13.

[NEW MATERIAL ] WATER CONSERVATION PLAN.--To = = l ] 19 protect and preserve its water resources, prevent waste and a l r i 20 guarantee the supply to its customers, an authority may by t e a t resolution adopt a water conservation plan.

mHJCºSECTION m 21 e d SECTION 14.

[NEW MATERIAL] HEALTH AND SAFETY--ON-SITE r e 22 c e r c 23 WASTEWATER TREATMENT SYSTEMS.--For health and sanitary e a n b 24 purposes, the board may, by resolution, exercise the power to u [ compel owners of inhabited property within four h hundred feet of .213304.2 - 13 - HAWC/HB 175 the authority's service area to connect to the g o t hr services of the authority.authority.»HJC g e i k SECTION HJCº 15.

SECTION14.»HJC 15.[NEW MATERIAL] FILING OF ANNUAL h r i s REPORT-- INITIAL REPORT--SUPPLEMENTAL REPORT.-- h , t, e u g A.

[NEWAn MATERIAL]authority FILINGshall OFfile ANNUALwith REPORT--the INITIALsecretary REPORT--SUPPLEMENTALof REPORT.--e A.b l e e h state an annual report setting forth:

Ann authorityd shalld filei with= = o h (1) the secretaryname of statethe anauthority annualand reportthe settinglaws forth:l ] b ,d i a º e under which it is incorporated;

(1)r thei name= ofr thet authoritye andw d m a n o (2) the lawsaddress underof whichthe itauthority's isregistered incorporated;d m :

(2)b thee addressd ofs theº authority'so registeredt n = .213304.2 s k m e - 14 - e a n e d r e l u [ A d office and the name and address of its registered agent;

If an e e 17 authority is in the hands of a receiver or trustee, the report e e n d 18 shall be executed on behalf of the authority by the receiver or = = l ] 19 trustee.

A copy of the report shall be maintained at an a l r i 20 authority's principal place of business as contained in the t e a t report and shall be made available to the general public for m m 21 e d inspection during regular business hours.

r e 22 c e r c 23 C.

The annual report shall be delivered to the e a n b 24 secretary of state on or before the fifteenth day of the fifth u [ month following the end of an authority's taxable year, except .213304.2 - 14 - HAWC/HB 175 that an authority's first annual report shall be filed within thirty days of the date on which its certificate of incorporation or its certificate of authority was issued by the h secretary of state.

g o D.

If the information required to be reported t hr g e i k pursuant to Subsection A of this section materially changes h r i s after the filing of an annual report, an authority shall file a h , t, supplemental report with the secretary of state.

e u g e b l SECTION HJCº 16.

15.»HJC [NEW MATERIALMATERIAL] ] LIENS AND e e h n d d i = = o h FORECLOSURE.-- l ] b ,d i a º e A.

If an authority places a lien on property for nonpaymentr ofi money= owed,r thet authoritye shallw filed innonpayment the office of themoney countyowed, clerk of the countyauthority orshall countiesfile in which the propertym is located a noticen ofo lien,d whichm shall: include:

b e d s º o t n = .213304.2 s k m e - 15 - e a n e d r e l u [ A d HAWC/HB 175 office of the county clerk of the county or counties in which the property is located a notice of lien, which shall include:

e e 17 (3) the general purpose of the lien;

e e n d 18 (4) the name of the owner of the property = = l ] 19 against which the lien is established as determined from the a l r i 20 records of the county assessor;

t e a t (5) a description of the property against m m 21 e d which the lien is established;

r e 22 c e r c 23 (6) the amount of the lien;

and e a n b 24 (7) if the lien is for more than one period of u [ time, the date for which the lien is established.

.213304.2 - 15 - HAWC/HB 175 B.

A lien for multiple charges or assessments on a property owner may be included in the same notice of lien, and h it shall not be necessary to file separate liens against the g o separate properties owned by the same property owner.

The lien t hr g e i k shall be attested in the name of the authority.

The principal h r i s amount of any lien imposed for a charge or assessment shall h , t, bear interest at the rate of twelve percent per year from the e u g e b l e e h date of filing the notice of lien, unless otherwise provided by n d d i = = o h law.

l ] b ,d i a º e C.

After the filing of the notice of lien in the r i = r t e w d office of the county clerk, an authority shall have a lien upon them propertya describedn ino thed noticem of: lien.

b e d s º o t n = .213304.2 s k m e - 16 - e a n e d r e l u [ A d the property described in the notice of lien.

A lien shall not affect the title or rights to or in any real estate, of any purchaser, mortgagee in good faith or e e 17 judgment lien creditor, without knowledge of the existence of e e n d 18 the lien, unless the notice of lien is filed in accordance with = = l ] 19 this section in the office of the county clerk of the county in a l r i 20 which the property is situated.

All authority liens shall be t e a t first and prior liens on the property subject only to a lien of m m 21 e d federal, state or county taxes.

An authority may release a r e 22 c e r c 23 lien against any specific property by:

e a n b 24 (1) entering and signing a receipt of payment u [ upon the notice of lien filed in the office of the county .213304.2 - 16 - HAWC/HB 175 clerk;

An authority may, in a single suit, foreclose h the liens against all persons named in a notice of liens or g o against the property if the owners are unknown.

The complaint t hr g e i k filed shall:

h r i s (1) expressly name each defendant, if known;

h , t, (2) describe the property against which the e u g e b l lien is established;

and e e h n d d i = = o h (3) set forth the amount of the lien.

l ] b ,d i a º e E.

A judgment or decree rendered in a suit to r i = r t e w d foreclose liens shall be several against the named defendants andm againsta then severalo propertiesd form the: amounts decreed to be due by each.

Ab liene againstd reals estateº mayo bet foreclosedn e= e.213304.2 17s ink them samee manner- that17 mortgages- ore othera liensn againste reald er e nl u [ A d 18HAWC/HB estate175 areand foreclosedagainst withthe likeseveral rightsproperties offor redemption.the amounts decreed to be due by each.

InA the = = l ] 19 foreclosure of any lien createdagainst byreal anestate authority, reasonable a l r i 20 attorney fees may be orderedforeclosed byin the courtsame asmanner partthat ofmortgages theor costsother tliens eagainst areal testate inare favorforeclosed ofwith thelike prevailingrights party.of redemption.

mIn mthe 21foreclosure eof dany F.lien created by an authority, reasonable attorney fees may be ordered by the court as part of the costs in favor of the prevailing party.

AnF. authority shall prepare and sign a notice of r e 22 c e r c 23 foreclosure, which shall also bear the signature and mailing e a n b 24 address of an attorney representing the authority.

TheAn uauthority [shall proceedsprepare ofand thesign salea notice of theforeclosure, propertywhich byshall analso authoritybear pursuantthe .213304.2signature -and 17mailing -address HAWC/HBof 175an toattorney arepresenting foreclosurethe saleauthority. on a lien shall be applied as follows:

The proceeds of the sale of the property by an authority pursuant to a foreclosure sale on a lien shall be applied as follows:

(2) second, to the indebtedness claimed under a lien on the property for federal, state, county, municipal or h ad valorem taxes;

g o (3) third, to the indebtedness claimed under t hr g e i k the lien of the authority;

h r i s (4) fourth, to all other special assessments h , t, having a lien on the property;

and e u g e b l e e h (5) fifth, after all costs, liens, assessments n d d i = = o h and taxes are paid, to the former owner, mortgage holder or l ] b ,d i a º e parties having an interest in the tract or parcel upon such r i = r t e w d persons providing satisfactory proof to the court of such interestm anda uponn approvalo ofd them court.:

SECTIONb 17.e d s º o t n = .213304.2 s k m e - 18 - e a n e d r e l u [ A d interest and upon approval of the court.

[NEWSECTION MATERIAL]HJCº17. PUBLIC REGULATION COMMISSION e e 17 JURISDICTION.-- e e n d 18 A.

An16.»HJC authority[NEW organizedMATERIAL] underPUBLIC theREGULATION provisionsCOMMISSION ofJURISDICTION.-- =A. = l ] 19 the Regional Water Utility Authority Act is not subject to the a l r i 20 jurisdiction of the public regulation commission or the terms t e a t and provisions of the Public Utility Act except as provided in m m 21 e d this section.

rAn eauthority 22organized cunder ethe rprovisions cof 23the B.Regional Water Utility Authority Act is not subject to the jurisdiction of the public regulation commission or the terms and provisions of the Public Utility Act except as provided in this section.

AnB. authority may elect by resolution adopted by e a n b 24 the board to become subject to the jurisdiction of the public u [ regulation commission and to the terms and provisions of the .213304.2 - 18 - HAWC/HB 175 Public Utility Act;

An authority may elect by resolution adopted by the board to become subject to the jurisdiction of the public regulation commission and to the terms and provisions of the Public Utility Act;

SECTIONHJCº 18.C.

SectionIf 72-1-9an NMSAauthority 1978or (beinga Lawsnon-joining 1985,provider Chapterfiles 198,a Sectioncomplaint 1,with asthe amended)public isregulation amendedcommission, the public regulation commission shall have jurisdiction to read:hear and resolve a dispute concerning the authorized service area of an authority but only to the extent the service area encroaches h into an area served by an existing public-regulation- g o commission-regulated utility.»HJC t hr g e i k SECTION HJCº 18.

"72-1-9.17.»HJC Section 72-1-9 NMSA 1978 (being h r i s Laws 1985, Chapter 198, Section 1, as amended) is amended to h , t, read:

MUNICIPAL,e COUNTY,u MEMBER-OWNEDg COMMUNITYe WATERb SYSTEMS,l REGIONALe WATERe UTILITYh AUTHORITY"72-1-9. , SCHOOL DISTRICT AND STATE UNIVERSITY WATER DEVELOPMENT PLANS--PRESERVATION OF MUNICIPAL, COUNTY AND STATE UNIVERSITY WATER SUPPLIES.-- A.

ItMUNICIPAL, isCOUNTY, recognizedMEMBER-OWNED byCOMMUNITY theWATER staten thatd itd promotesi the= public= welfareo andh theSYSTEMS, conservationREGIONAL ofWATER waterUTILITY withinAUTHORITY the, stateSCHOOL forDISTRICT municipalities,AND counties,l school] districts,b state,d universities,i member-owneda communityº watere systems,STATE specialUNIVERSITY waterWATER users'DEVELOPMENT associations,PLANS--PRESERVATION regionalOF waterr utilityi authorities= andr publict utilitiese supplyingw waterd tom municipalitiesa orn countieso toMUNICIPAL, planCOUNTY forAND theSTATE reasonableUNIVERSITY developmentWATER andSUPPLIES.-- used ofm e: e 17 water resources.

Theb state further recognizes the state e e n d 18s engineer'sº administrativeo policyt ofn not allowing = =.213304.2 ls ]k 19m municipalities,e member-owned- community19 water- systems,e counties a ln re id 20r and state universities to acquire and hold unused water rights t e al tu in[ anA amountd greaterHAWC/HB than175 theirA. reasonable needs within forty m m 21 e d years.

rIt eis 22recognized cby ethe rstate cthat 23it B.promotes the public welfare and the conservation of water within the state for municipalities, counties, school districts, state universities, member-owned community water systems, special water users' associations, regional water utility authorities and public utilities supplying water to municipalities or counties to plan for the reasonable development and use of water resources.

Municipalities,The counties,state schoolfurther districts,recognizes ethe a n b 24 state universities,engineer's member-ownedadministrative communitypolicy waterof systems, u [ special water users' associations, regional water utility .213304.2 - 19 - HAWC/HB 175 authorities and public utilities supplying water to municipalities or counties shall be allowed a water use planning period not toallowing exceed forty years, and water rights for municipalities, counties, school districts, state universities, member-owned community water systems, specialcounties water users' associations, regional water utility authorities and publicstate utilitiesuniversities supplying water to suchacquire municipalitiesand orhold countiesunused shall be based upon a water developmentrights planin the implementation of which shall not exceed a forty-year period from the date of the application for an appropriationamount orgreater athan changetheir ofreasonable place or purpose of use pursuant to a water development plan or for preservation of a municipal, county, school district, member-owned community water system, regional water utility authority or state university water supply for reasonably projected additional needs within forty years."years. e e 17 SECTION 19.

EFFECTIVEB. DATE.--The effective date of the e e n d 18 provisions of this act is July 1, 2019.

=Municipalities, =counties, lschool ]districts, 19state -universities, 20member-owned -community water systems, special water users' associations, regional water utility h authorities and public utilities supplying water to u » r municipalities or counties shall be allowed a water use t h g e planning period not to exceed forty years, and water rights l i h r i 20s tfor municipalities, counties, school districts, state h , e ah universities, member-owned community water systems, special t mu mg 21e b l water users' associations, regional water utility authorities e e , gh n d d i = = o h and public utilities supplying water to such municipalities l ] b ,d i a º r eor 22counties cshall be based upon a water development plan the e r c= 23t e w d implementation of which shall not exceed a nforty-year bperiod 24m ua [n .213304.2o d m :

b r e t º o t n = .213304.2 s k m e - 20 - e a n e d r e l u [ A d from the date of the application for an appropriation or a change of place or purpose of use pursuant to a water development plan or for preservation of a municipal, county, school district, member-owned community water system, regional water utility authority or state university water supply for reasonably projected additional needs within forty years." SECTION HJCº 19.

18.»HJC EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2019.

- 21 - » g o » r h t i k l i g t h s , e h t l i w l b l e e , gh n d l h = = b , a l º d i a r e r = , a t e d m a n o d m :

b r e t º o t n = .213304.2 s k m e e a n e d r e l u [ A d