A. A county that forms a district shall create an authority to govern the district that consists of five members. The governing body of the county shall appoint authority members.

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B. The terms of the authority members shall be staggered. Of the members initially appointed, that number of members closest to, but not more than, one-half of the membership shall serve for two years. The term of all other members shall be four years. If additional counties become part of the authority pursuant to Subsection E of this section, the additional authority members shall be appointed in a similar manner so that they shall serve staggered four-year terms.

C. An authority member shall not serve more than two consecutive four-year terms on the authority. A member who has served two consecutive four-year terms on the authority shall not serve another term until after four years following the second term have elapsed.

D. The authority shall include a non-voting member appointed by the governor who shall serve at the pleasure of the governor for a two-year term.

E. The authority shall, for the period ending December 31, 2020, authorize a county that borders the county that created the district within twenty miles of a qualifying electric generating facility to become part of the authority. Any additional county that becomes part of the district shall appoint four additional members to the authority.

F. An elected official shall not serve as an authority member nor influence or attempt to influence any action of an authority member. Authority members shall receive per diem and mileage as provided in the Per Diem and Mileage Act N.M. Stat. Ann. § 10-8-1 to 10-8-8 and shall receive no other compensation, perquisite or allowance. An authority member shall post a surety bond for the faithful performance of the member’s duties pursuant to the Surety Bond Act N.M. Stat. Ann. § 10-2-13 to 10-2-16.

G. Before appointing a person as an authority member, the governing body of a county shall first determine that the person has:

(1)     experience in energy development business, economic development, finance, commercial real estate investment or accounting or possesses other qualifications that the governing body determines are necessary or appropriate for carrying out the duties of the authority but does not have at the time of appointment and will not have during service as an authority member employment or a contract with an energy development business; and

(2)     no direct substantial conflict of interest in the business or operation of the authority.

H. An authority member shall resign from the authority if a matter to be voted on poses a conflict of interest for the member. Authority members and employees of the authority shall be governed by the provisions of the Governmental Conduct Act [N.M. Stat. Ann. Chapter 10, Article 16]. An authority member or employee of the authority shall not:

(1)     acquire a financial interest in a new or existing business venture or business property if the member or employee believes or has reason to believe that the financial interest will be directly affected by an official act conducted in that membership or employment capacity;

(2)     use confidential information acquired by virtue of membership on or employment by the authority for the member’s or employee’s or another person’s private gain; or

(3)     as a person with a financial or other interest in a business that is party to a contract, enter into a contract with the authority without there being public notice of the contract, a competitive bidding process for entry into the contract and full disclosure of that financial or other interest.

I. The governing body that appoints an authority member may remove the member if the governing body determines that the member has:

(1)     neglected or refused to perform an official duty;

(2)     violated the policies or procedures adopted by the authority; or

(3)     developed a direct, substantial conflict of interest in the business of the authority.