A. A new association shall not be formed under the Sanitary Projects Act by original incorporation after January 1, 2000, and a new association shall not be formed by reorganization after January 1, 2000, unless the preceding entity was in existence on January 1, 2000, if the service area of either association includes property contiguous to an incorporated municipality or an unincorporated area currently served by a municipality or by a water and sanitation district. The restrictions on forming an association set forth in this subsection shall not apply if the contiguous incorporated municipality or water and sanitation district does not provide the services or cannot provide the services to be provided by the association at or below the cost proposed by the association.

B. An association shall not construct with state funds a project required in order to allow creation of a subdivision under the provisions of the Land Subdivision Act [47-5-1 to 47-5-8 NMSA 1978], the New Mexico Subdivision Act [Chapter 47, Article 6 NMSA 1978] or Section 47-5-9 NMSA 1978; however, an association may construct a project serving a previously approved subdivision in the service area of the association.

C. After July 1, 2006, a new association shall not be formed as a capital stock corporation.

D. A new association shall not be formed under the Sanitary Projects Act after July 1, 2017 unless the association will service at least fifteen connections or a population of at least twenty-five people for at least six months of the year.

History: 1953 Comp., § 14-28-5, enacted by Laws 1965, ch. 300; 1969, ch. 192, § 2; 1983, ch. 296, § 27; 2000, ch. 56, § 2; 2006, ch. 60, § 4; 2017, ch. 127, § 1.

The 2017 amendment, effective June 16, 2017, provided new restrictions on the formation of new associations under the Sanitary Projects Act; and added Subsection D.

The 2006 amendment, effective March 6, 2006, deleted former Subsection A, which required proposals as a prerequisite for initiating a project and the content of proposals; provided in Subsection A (former Subsection B) that a new association shall not be formed unless it existed on January 1, 2000 if the association includes property contiguous to an unincorporated area served by a municipality or a water and sanitation district; provided in Subsection B that an association shall not construct with state funds a project required to allow creation of a subdivision; deleted former Subsection D, which required an estimation of the costs of a project and contributions by the association; deleted former Subsection E, which provided for eligibility for grant-in-aid upon approval of the prerequisites; deleted former Subsection F, which required approval of plans and specifications by the local government division of the department of finance and administration; and added a new Subsection C to provide that after July 1, 2006, a new association shall not be formed as a capital stock corporation.

The 2000 amendment, effective March 6, 2000, deleted former Subsection B, concerning the requisite age of a community in order to apply for benefits under the Sanitary Projects Act, added new Subsections B and C and redesignated the remaining subsections accordingly.