HB 413: LOWER RIO GRANDE WATER WORKS RIGHTS & LIENS

An Act Relating To Special Districts; Amending A Section Of The Nmsa 1978; Providing That Water Rights May Be Combined Or Commingled Among Merging Components Of The Lower Rio Grande Public Water Works Authority; Providing For Utility Charges Of The Lower Rio Grande Public Water Works Authority As A Lien Against Property Served.

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MILD HB 413
LOWER RIO GRANDE WATER WORKS RIGHTS & LIENS

Legislative URL:

HB 413 on nmlegis.gov

Emergency Clause:

No

Germane:

N/A

Location:

HJC

Action:

[9] HAWC/HJC-HAWC [25] DNP-CS/DP-HJC API.

Issue(s):

Water Quality & Supply

Related Legislators

Bill Sponsor:

Doreen Gallegos

Related Documents

Downloads:

Introduced
HAWC Committee Report
HAWC Committee Substitute
Fiscal Impact Report

Summary

This bill specifies certain information that the Lower Rio Grande Public Water Works Authority must include in any notice of lien on property for payment of money owed; and it provides that a lien for multiple charges or assessments on a property owner may be included in the same notice of lien.

The principal amount of any lien imposed for a charge or assessment must bear interest at the rate of 12 percent per year from the date of filing the notice of lien.

The authority may also, in a single suit, foreclose the liens against all persons named in the notice of liens or against the property if the owners are unknown. The proceeds of the sale of property pursuant to a foreclosure sale on a lien shall be applied first to the payment of costs in giving notice of and conducting the sale; second to the indebtedness claimed under the lien and to taxes and other special assessments having an equal lien on the property; and third to the former owner, mortgage holder or other parties having an interest in the tract or parcel.

A potential benefit of this bill might be a fairer and more consistent process for filing of liens and property foreclosures by the Lower Rio Grande Public Water Works Authority. Possible concerns might include an increase in power of the authority over its customers and an interest rate applicable to the principal amount of a lien that is fixed and may be excessive based on current economic conditions.

The House Agriculture, Water and Wildlife Committee Substitute for HB 413 varies from the original only in providing that, in the event that another entity elects to merge into the authority, the merger shall (instead of may) include the combining and commingling of water rights with the authority if the service area of the merging entity is contiguous with the service area of the authority.