underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
HOUSE BILL 330
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Miguel P. García and Leo Jaramillo and Javier Martínez
AN ACT
RELATING TO INFRASTRUCTURE; ENACTING THE LAND GRANT-MERCED AND
ACEQUIA INFRASTRUCTURE ACT; CREATING THE LAND GRANT-MERCED AND
ACEQUIA INFRASTRUCTURE TRUST FUND; CREATING THE LAND GRANT-
MERCED INFRASTRUCTURE PROJECT FUND AND THE ACEQUIA
INFRASTRUCTURE PROJECT FUND; MAKING APPROPRIATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1
through 8 of this act may be cited as the "Land Grant-Merced
and Acequia Infrastructure Act".
SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the
Land Grant-Merced and Acequia Infrastructure Act:
A. "acequia" means an acequia or community ditch
organized as a political subdivision pursuant to Chapter 73,
Article 2 or 3 NMSA 1978;
.229942.2 underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
B. "commission" means the interstate stream
commission;
C. "council" means the land grant council;
D. "department" means the department of finance and
administration;
E. "infrastructure assistance" means the provision
of grants to land grants-mercedes on terms and conditions
approved by the council or to acequias on terms and conditions
approved by the commission;
F. "land grant-merced" means a land grant that is
designated as a political subdivision pursuant to Section
49-1-2 NMSA 1978;
G. "qualified project" means an infrastructure
assistance project selected pursuant to the Land Grant-Merced
and Acequia Infrastructure Act by the:
(1) council for a land grant-merced
infrastructure project; or
(2) commission for an acequia infrastructure
project; and
H. "trust fund" means the land grant-merced and
acequia infrastructure trust fund.
SECTION 3. [NEW MATERIAL] COUNCIL--POWERS--DUTIES.--The
council shall:
A. in consultation with the department, adopt rules
governing terms, conditions and priorities for providing
.229942.2
- 2 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
infrastructure assistance to land grants-mercedes, including
developing application and evaluation procedures and forms and
qualifications for applicants and for projects;
B. provide infrastructure assistance to land
grants-mercedes for qualified projects on terms and conditions
established by the council; and
C. authorize funding for qualified projects,
including:
(1) planning, designing, constructing,
improving, expanding or equipping water and wastewater
facilities, major water systems, electrical power lines,
communications infrastructure, roads, health infrastructure,
emergency response facilities and infrastructure needed to
encourage economic development;
(2) developing engineering feasibility reports
for infrastructure projects;
(3) providing special engineering services;
(4) completing environmental assessments or
archaeological clearances and other surveys for infrastructure
projects;
(5) acquiring land, easements or rights of
way; and
(6) purchasing durable equipment.
SECTION 4. [NEW MATERIAL] COMMISSION--POWERS--DUTIES.--
The commission shall:
.229942.2
- 3 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
A. in consultation with the department, promulgate
rules governing terms, conditions and priorities for providing
infrastructure assistance to acequias, including application
and evaluation procedures and forms and qualifications for
applicants and for projects;
B. provide infrastructure assistance to acequias
for qualified projects on terms and conditions established by
the commission; and
C. authorize funding for qualified projects,
including for planning, engineering design or construction of
irrigation works and infrastructure projects, including dams,
reservoirs, diversions, ditches, flumes or other appurtenances
for the purposes of restoration, repair, improvement of
irrigation efficiency and protection from floods.
SECTION 5. [NEW MATERIAL] LAND GRANT-MERCED AND ACEQUIA
INFRASTRUCTURE TRUST FUND--CREATED--INVESTMENT--DISTRIBUTION.--
A. The "land grant-merced and acequia
infrastructure trust fund" is created as a nonreverting fund in
the state treasury. The trust fund consists of money that is
appropriated, donated or otherwise accrues to the trust fund.
Money in the trust fund shall be invested by the state
investment officer in the manner that land grant permanent
funds are invested pursuant to Chapter 6, Article 8 NMSA 1978.
Income from investment of the trust fund shall be credited to
the trust fund. Money in the trust fund shall not be expended
.229942.2
- 4 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
for any purpose, but annual distributions from the trust fund
shall be made to the land grant-merced infrastructure project
fund and the acequia infrastructure project fund pursuant to
this section.
B. Except as provided in Subsection C of this
section, on July 1 of each year in which the balance in the
trust fund is over five million dollars ($5,000,000), three
percent of the balance in the fund shall be divided into equal
distributions to the land grant-merced infrastructure project
fund and the acequia infrastructure project fund.
C. When on July 1 four and seven-tenths percent of
the average of the year-end market value of the balance in the
trust fund for the immediately preceding five calendar years
exceeds five million dollars ($5,000,000), four and seven-
tenths percent of the balance in the trust fund shall be
divided into equal distributions to the land grant-merced
infrastructure project fund and the acequia infrastructure
project fund.
SECTION 6. [NEW MATERIAL] LAND GRANT-MERCED
INFRASTRUCTURE PROJECT FUND--CREATED--PURPOSE--
APPROPRIATIONS.--
A. The "land grant-merced infrastructure project
fund" is created in the state treasury and shall be
administered by the department in consultation with the
council.
.229942.2
- 5 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
B. The land grant-merced infrastructure project
fund consists of:
(1) distributions from the trust fund;
(2) payments of principal and interest on
loans for qualified projects;
(3) other money appropriated by the
legislature or distributed or otherwise allocated to the land
grant-merced infrastructure project fund for the purpose of
supporting qualified projects; and
(4) the proceeds of severance tax bonds
appropriated to the land grant-merced infrastructure project
fund for qualified projects.
C. Except for severance tax bond proceeds required
to revert to the severance tax bonding fund, balances in the
land grant-merced infrastructure project fund at the end of a
fiscal year shall revert to the trust fund.
D. The land grant-merced infrastructure project
fund may consist of subaccounts as determined to be necessary
by the department.
E. The department, in consultation with the
council, may establish procedures and rules as required to:
(1) administer the land grant-merced
infrastructure project fund;
(2) originate grants or loans for qualified
projects recommended by the council; and
.229942.2
- 6 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
(3) govern the process through which qualified
entities may apply for financial assistance from the land
grant-merced infrastructure project fund.
F. Disbursements from the land grant-merced
infrastructure project fund shall be made by warrant of the
secretary of finance and administration pursuant to vouchers
signed by the chair of the council.
SECTION 7. [NEW MATERIAL] ACEQUIA INFRASTRUCTURE PROJECT
FUND--CREATED--PURPOSE--APPROPRIATIONS.--
A. The "acequia infrastructure project fund" is
created in the state treasury and shall be administered by the
department in consultation with the commission.
B. The acequia infrastructure project fund consists
of:
(1) distributions from the trust fund;
(2) payments of principal and interest on
loans for qualified projects;
(3) other money appropriated by the
legislature or distributed or otherwise allocated to the
acequia infrastructure project fund for the purpose of
supporting qualified projects; and
(4) the proceeds of severance tax bonds
appropriated to the fund for qualified projects.
C. Except for severance tax bond proceeds required
to revert to the severance tax bonding fund, balances in the
.229942.2
- 7 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
acequia infrastructure project fund at the end of a fiscal year
shall revert to the trust fund.
D. The acequia infrastructure project fund may
consist of subaccounts as determined to be necessary by the
authority.
E. The department, in consultation with the
commission, may establish procedures and adopt rules as
required to:
(1) administer the acequia infrastructure
project fund;
(2) originate grants or loans for qualified
projects recommended by the commission; and
(3) govern the process through which qualified
entities may apply for financial assistance from the acequia
infrastructure project fund.
F. Disbursements from the acequia infrastructure
project fund shall be made by warrant of the secretary of
finance and administration pursuant to vouchers signed by the
chair of the commission.
SECTION 8. [NEW MATERIAL] REPORTS.--
A. The council shall provide a report to the
appropriate legislative interim committee tasked with examining
land grant-merced issues no later than November 1 of each year
regarding the total expenditures from the land grant-merced
infrastructure project fund for the previous fiscal year, the
.229942.2
- 8 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
purposes for which expenditures were made, an analysis of the
progress of the projects funded and recommendations for
improvement of the Land Grant-Merced and Acequia Infrastructure
Act.
B. The commission shall provide a report to the
appropriate legislative interim committee tasked with examining
acequia issues no later than October 1 of each year regarding
the total expenditures from the acequia infrastructure project
fund for the previous fiscal year, the purposes for which
expenditures were made, an analysis of the progress of the
projects funded and proposals for improvement of the Land
Grant-Merced and Acequia Infrastructure Act.
SECTION 9. Section 7-27-10.1 NMSA 1978 (being Laws 2003,
Chapter 134, Section 1, as amended) is amended to read:
"7-27-10.1. TRANSFER TO SEVERANCE TAX PERMANENT FUND
BEFORE DETERMINING BONDING CAPACITY--AUTHORIZATION FOR
SEVERANCE TAX BONDS--PRIORITY FOR WATER [PROJECTS ] AND TRIBAL
INFRASTRUCTURE AND LAND GRANT-MERCED AND ACEQUIA INFRASTRUCTURE
PROJECTS.--
A. On December 31 of each year from 2019 through
2028, the division shall transfer twenty-three million six
hundred ninety thousand dollars ($23,690,000) from the
severance tax bonding fund to the severance tax permanent fund,
unless the state board of finance determines that a lesser
transfer amount is necessary pursuant to Section 7-27-8 NMSA
.229942.2
- 9 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
1978 to avoid a potential shortfall in debt service
obligations.
B. By January 15 of each year, the division shall
estimate the amount of bonding capacity available for severance
tax bonds to be authorized by the legislature based on the
lesser of the following estimates:
(1) an estimate that provides for equal annual
issuances over the expected term of bonds with terms greater
than one year anticipated to be issued by the state board of
finance in the fiscal year in compliance with the requirements
of Section 7-27-14 NMSA 1978; and
(2) an estimate that provides that issuances
for each year of that term shall be projected to result in
stable levels of state tax supported debt relative to the
median state debt ratios published by the national municipal
bond rating agencies.
C. The division shall allocate nine percent of the
estimated bonding capacity each year for water projects, and
the legislature authorizes the state board of finance to issue
severance tax bonds in the annually allocated amount for use by
the water trust board to fund water projects statewide. The
water trust board shall certify to the state board of finance
the need for issuance of bonds for water projects. The state
board of finance may issue and sell the bonds in the same
manner as other severance tax bonds in an amount not to exceed
.229942.2
- 10 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
the authorized amount provided for in this subsection. If
necessary, the state board of finance shall take the
appropriate steps to comply with the federal Internal Revenue
Code of 1986, as amended. Proceeds from the sale of the bonds
are appropriated to the water project fund in the New Mexico
finance authority for the purposes certified by the water trust
board to the state board of finance.
D. The division shall allocate four and one-half
percent of the estimated bonding capacity for tribal
infrastructure projects.
E. The division shall allocate one and one-tenth
percent of the estimated bonding capacity for land grant-merced
infrastructure projects.
F. The division shall allocate one and one-tenth
percent of the estimated bonding capacity for acequia
infrastructure projects.
[E.] G. The legislature authorizes the state board
of finance to issue severance tax bonds in the amount provided
for in this section for use by the tribal infrastructure board
to fund tribal infrastructure projects. The tribal
infrastructure board shall certify to the state board of
finance the need for issuance of bonds for tribal
infrastructure projects. The state board of finance may issue
and sell the bonds in the same manner as other severance tax
bonds in an amount not to exceed the authorized amount provided
.229942.2
- 11 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
for in this section. If necessary, the state board of finance
shall take the appropriate steps to comply with the [federal ]
Internal Revenue Code [of 1986, as amended ]. Proceeds from the
sale of the bonds are appropriated to the tribal infrastructure
project fund for the purposes certified by the tribal
infrastructure board to the state board of finance.
H. The legislature authorizes the state board of
finance to issue severance tax bonds in the amount provided for
in this section for use by the land grant council to fund land
grant-merced infrastructure projects. The land grant council
shall certify to the state board of finance the need for
issuance of bonds for land grant-merced infrastructure
projects. The state board of finance may issue and sell the
bonds in the same manner as other severance tax bonds in an
amount not to exceed the authorized amount provided for in this
section. If necessary, the state board of finance shall take
the appropriate steps to comply with the Internal Revenue Code.
Proceeds from the sale of the bonds are appropriated to the
land grant-merced infrastructure project fund for the purposes
certified by the land grant council for land grant-merced
infrastructure projects to the state board of finance.
I. The legislature authorizes the state board of
finance to issue severance tax bonds in the amount provided for
in this section for use by the interstate stream commission to
fund acequia infrastructure projects. The interstate stream
.229942.2
- 12 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
commission shall certify to the state board of finance the need
for issuance of bonds for acequia infrastructure projects. The
state board of finance may issue and sell the bonds in the same
manner as other severance tax bonds in an amount not to exceed
the authorized amount provided for in this section. If
necessary, the state board of finance shall take the
appropriate steps to comply with the Internal Revenue Code.
Proceeds from the sale of the bonds are appropriated to the
acequia infrastructure project fund for the purposes certified
by the interstate stream commission for acequia infrastructure
projects to the state board of finance.
[F.] J. Money from the severance tax bonds provided
for in this section shall not be used to pay indirect project
costs. Any unexpended balance from proceeds of severance tax
bonds issued for a water, [project or a ] tribal infrastructure,
acequia infrastructure or land grant-merced infrastructure
project shall revert to the severance tax bonding fund within
six months of completion of the project. The New Mexico
finance authority shall monitor and ensure proper reversions of
the bond proceeds appropriated for water projects, and the
department of finance and administration shall monitor and
ensure proper reversions of the bond proceeds appropriated for
tribal and land grant-merced infrastructure projects.
[G.] K. As used in this section:
(1) "acequia infrastructure project" means a
.229942.2
- 13 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
qualified project approved by the interstate stream commission
pursuant to the Land Grant-Merced and Acequia Infrastructure
Act;
[(1)] (2) "division" means the board of
finance division of the department of finance and
administration;
(3) "land grant-merced infrastructure project"
means a qualified project approved by the land grant council
pursuant to the Land Grant-Merced and Acequia Infrastructure
Act;
[(2)] (4) "tribal infrastructure project"
means a qualified project under the Tribal Infrastructure Act;
and
[(3)] (5) "water project" means a capital
outlay project for:
(a) the storage, conveyance or delivery
of water to end users;
(b) the implementation of federal
Endangered Species Act of 1973 collaborative programs;
(c) the restoration and management of
watersheds;
(d) flood prevention; or
(e) conservation, recycling, treatment
or reuse of water."
- 14 -
.229942.2