A. A municipality may invoke the authority contained in the Municipal Transit Law on finding all of the following state of facts to exist:

(1) general transportation of persons is necessary and convenient;

(2) privately owned public transportation facilities in operation are inadequate;

(3) it is impossible for existing franchise operators to render necessary service with adequate resulting return on the investment of capital; and

(4) assignment of the existing franchise by the holder or release of the existing franchise and granting of a new franchise by the city will not afford adequate service. Such finding, if made, shall be by resolution adopted by the governing body on the affirmative recorded vote of at least two-thirds of the elected members of the governing body. The resolution shall be published in full in a daily newspaper of general circulation in the municipality. It shall not take effect until thirty days after the publication. If within the thirty days of the publication a petition signed by qualified voters in number equal to twenty percent of the number of voters at the preceding city election on which members of the governing body were elected asks that the resolution in question be submitted to a vote of the people for adoption or rejection, the measure shall not take effect until an election is held as petitioned. The governing body may then rescind the resolution or, in its discretion, call an election within ninety days, at which time the proposition shall be submitted to the voters; provided that the date is not in conflict with the provisions of Section 1-24-1 NMSA 1978. The governing body shall provide for the election pursuant to the provisions of the Local Election Act [Chapter 1, Article 22 NMSA 1978]. If a majority of the votes cast at such election are against the measure, it shall be void. If a majority of the votes cast favor the measure, the governing body may proceed to acquire and operate a transit system as provided in the Municipal Transit Law. If a majority of those voting on the proposition disapprove the proposition, the matter may not again be submitted by the governing body until the next election at which city commissioners are chosen.

B. Any transit department so established is declared to be a public utility.

History: 1953 Comp., § 14-53-3, enacted by Laws 1965, ch. 300; 1971, ch. 11, § 1; 2019, ch. 212, § 187.

The 2019 amendment, effective April 3, 2019, provided that an election for the purpose of authorizing the municipality to invoke the authority of the Municipal Transit Law shall be conducted pursuant to the Local Election Act; in Subsection A, Paragraph A(4), added "provided that the date is not in conflict with the provisions of Section 1-24-1 NMSA 1978", and after "shall provide for the election", deleted "in the same manner as for an election at which members of the governing body are chosen" and added "pursuant to the provisions of the Local Election Act".

City cannot operate a statewide charter service. 1964 Op. Att'y Gen. No. 64-150.

Finding of inadequacy of statewide charter service not warranted. — The governing body of municipality would not be warranted in making a finding that privately owned transportation facilities are inadequate insofar as statewide charter service is involved, as it is in no position to so determine, and further, such determinations are for the state corporation commission (now public regulation commission) to make. 1964 Op. Att'y Gen. No. 64-150.