Summary:

 Senate Bill 357 (SB 357) creates the Essential Services Development Act to allow state support for infrastructure projects that allow access to internet, energy, water and wastewater services primarily for residential purposes.  

Legislation Overview:

 Senate Bill 357 (SB 357) creates the Essential Services Development Act, to allow state support for infrastructure projects that allow access to internet, energy, water and wastewater services primarily for residential purposes.

The following definitions are provided:

A.	"broadband telecommunications network facilities" means the electronics, equipment, transmission facilities, fiber-optic cables and any other item directly related to a system capable of transmission of internet protocol or other formatted data;
B.	"division" means the local government division of the Department of Finance and Administration (Division); 
C.	"essential services project" or "project" means an infrastructure project that allows access to internet, energy, water and wastewater services primarily for residential purposes; 
D.	"governing body" means the city council, city commission or board of trustees of a municipality or the board of county commissioners of a county; 
E.	"local government" means a municipality or county; 
F.	"municipality" means an incorporated city, town or village; 
G.	"person" means an individual, corporation, association, partnership or other legal entity; 
H.	"public support" means the provision of assistance by the state to provide direct or indirect assistance to support an essential services project, including for the provision of: 

a.	land, buildings or other infrastructure by purchase, lease, grant, construction, reconstruction, improvement or other acquisition or conveyance; 
b.	the placement of new broadband telecommunications network facilities; 
c.	rights-of-way infrastructure, including trenching and conduit, for the placement of new broadband telecommunications network facilities; 
d.	public works improvements essential to the location or expansion of a qualifying entity; 
e.	payments for professional services contracts necessary to implement an essential services plan or provide public support for an essential services project; 
f.	direct loans or grants for land, buildings or infrastructure; 
g.	loan guarantees securing the cost of land, buildings or infrastructure; and
h.	grants for public works infrastructure improvements. 

Public support for an essential services project is to be specifically authorized by law. The law must include provisions to safeguard public money and other resources, including allowing the Division to recover money and other resources from a local or regional government if the essential services project is not appropriately completed.

A local government is not authorized to provide public support for essential services projects according to Subsection H of Section 14 of Article 9 of the constitution of New Mexico. 

At the request of a local or regional government, the Division is to provide technical assistance in the development of an essential services plan or project. 
Prior to receiving public support, a local or regional government seeking to pursue an essential services project must adopt a development plan. The plan or the ordinance adopting the plan must: 

(1) describe the local or regional government's essential services development goals or strategies; 
(2) describe the types of essential services projects that will qualify for public support under the plan; 
(3) describe the criteria to be used to determine eligibility for public support for an essential services project; 
(4) describe the manner in which a person or entity may submit an application for public support according to Section 7 of the Essential Services Development Act;
(5) describe the process the local or regional government will use to verify the information submitted on an application for public support; 
(6) detail the need for the essential services projects contemplated in the plan and the benefit that the projects will bring to the local or regional government; 
(7) describe the safeguards of public resources that will be ensured; and 
(8) if a regional government, describe the joint powers agreement, including whether it can be terminated and, if so, how the contractual or other obligations, risks and any property will be assigned or divided among the local governments that are party to the agreement. 

The plan must be made available to the residents within the local or regional government area. 

Two or more municipalities, two or more counties or one or more municipalities and counties may enter into a joint powers agreement to develop a regional Essential Services Development Plan, which may consist of existing local plans. The parties to the agreement are to be deemed a regional government for the purposes of the Essential Services Development Act. 

After the adoption of an Essential Services Development Plan by a local or regional government, the local or regional government may begin accepting applications for public support of the local or regional government's essential services project. Requirements for development and review of the plan are provided.

A regional or local government that receives money from public support for an essential services project must create a special fund into which the money will be deposited, and must be expended only for essential services project purposes. 

At any time after approval of an essential services development plan, the governing body may enact an ordinance terminating the plan and dissolving or terminating any public support for essential services projects. 

Any unexpended and unencumbered balance remaining in a local or regional government's special fund or account upon repeal of an essential services plan and termination of public support for or dissolution of a project must be returned to the State Treasurer, who must deposit the returned amount in the General Fund. 

If public support is provided for an essential services project, the Division is to enter into a project participation agreement with the local or regional government. A project participation agreement must set out, at a minimum: (1) a description of the public support to be provided for the essential services project; (2) a schedule for project development and completion, including measurable goals and time limits for those goals; (3) provisions for performance review and actions to be taken upon a determination that project performance is unsatisfactory; and (4) a description of how the local or regional government will safeguard public money or other resources provided as public support for the essential services project.





 

Current Law:

 Current law does not provide state support for infrastructure projects that allow access to internet, energy, water and wastewater services primarily for residential purposes.  

Amendments:

 Amended February 27, 2025 in STBTC

STBTCa/SB 357: The Senate Tax, Business and Transportation Committee amendment to Senate Bill 357 makes the following changes:

1. On page 4, lines 1 and 2, strike "--ONLY THE STATE MAY PROVIDE PUBLIC SUPPORT". 
2. On page 4, line 3, strike the subsection designation "A.". 
3. On page 4, strike lines 11 through 14.