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 N.M. Stat. Ann. § 47-5-1 to 47-5-8, the New Mexico Subdivision Act [N.M. Stat. Ann. Chapter 47, Article 6] or Section 47-5-9 N.M. Stat. Ann.; 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.