FRY, Judge. {1} This case presents us with procedural and substantive issues almost identical to those recently addressed by this Court in Smith v. City of Santa Fe, 2006-NMCA-048, 139 N.M. 410, 133 P.3d 866, cert. granted, 2006-NMCERT-004, 139 N.M. 429, 134 P.3d 120. For the reasons set forth in Smith, we affirm the district court's determination that as a matter of law the City of Santa Fe (City) had the authority to prohibit Plaintiff from drilling a well that was previously approved by the Office of the State Engineer (OSE).
{46} We determine if a statute is a general law which expressly denies the municipality authority to act by using a two-step process. Smith v. City of Santa Fe, 2006-NMCA-048, ¶ 9, 139 N.M. 410, 133 P.3d 866, aff'd, 2007-NMSC-055, 142 N.M. 786, 171 P.3d 300. "In the first step, a court asks whether a state law is a general law, that is, a law that applies generally throughout the state, relates to a matter of statewide concern, and impacts inhabitants across the entire state."
FACTUAL AND PROCEDURAL BACKGROUND {2} As noted in the Court of Appeals' opinion in this case, see Smith v. City of Santa Fe, 2006-NMCA-048, 139 N.M. 410, 133 P.3d 866, the material facts of this case are undisputed. In 1999, the City of Santa Fe passed an ordinance that required any person wishing to drill a well within the City's municipal water service area to apply for a domestic well permit.
Id. 128 (citing Smith v. City of Santa Fe, 2006-NMCA-048, ¶¶ 6-25, 139 N.M. 410, 133 P.3d 866). The instant case differs because, prior to Stennis's application for an SE permit, the Legislature explicitly gave municipalities the authority to regulate domestic wells, provided that municipalities adhere to certain procedures.
A general law "applies generally throughout the state, relates to a matter of statewide concern, and impacts inhabitants across the entire state." Smith v. City of Santa Fe , 2006-NMCA-048, ¶ 9, 139 N.M. 410, 133 P.3d 866 ; see Apodaca v. Wilson , 1974-NMSC-071, ¶ 16, 86 N.M. 516, 525 P.2d 876 (emphasizing that in order "to control or limit municipal enactments, the general law must be of general concern to the people of the state"). {16} An example of a general law is a statute governing utility rate-making, which is a matter of statewide rather than local concern "because a proposed service rate for one municipality can affect rates to other municipalities in the state."
The New Mexico Constitution provides home rule municipalities with the right to exercise all legislative powers not expressly denied by general law or charter. Smith v. City of Santa Fe, 2006-NMCA-048, ¶ 8, 139 N.M. 410, 133 P.3d 866 (citing N.M. Const. art. X, § 6(D)). "A municipality, including a home rule municipality that has adopted a charter pursuant to Article 10, Section 6 of the [C]onstitution of New Mexico, may by ordinance . . . define a nuisance, abate a nuisance and impose penalties upon a person who creates or allows a nuisance to exist[.]" NMSA 1978, § 3-18-17(A) (2009).