New Mexico 2025 Regular Session

New Mexico House Bill HB330 Compare Versions

Only one version of the bill is available at this time.

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28	28	HOUSE BILL 330
29	29	57
30	30	TH LEGISLATURE
31	31	-
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33	33	STATE
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35	35	OF
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37	37	NEW
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39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Miguel P. García and Leo Jaramillo and Javier Martínez
48	48	AN ACT
49	49	RELATING TO INFRASTRUCTURE; ENACTING THE LAND GRANT-MERCED AND
50	50	ACEQUIA INFRASTRUCTURE ACT; CREATING THE LAND GRANT-MERCED AND
51	51	ACEQUIA INFRASTRUCTURE TRUST FUND; CREATING THE LAND GRANT-
52	52	MERCED INFRASTRUCTURE PROJECT FUND AND THE ACEQUIA
53	53	INFRASTRUCTURE PROJECT FUND; MAKING APPROPRIATIONS.
54	54	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
55	55	SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1
56	56	through 8 of this act may be cited as the "Land Grant-Merced
57	57	and Acequia Infrastructure Act".
58	58	SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the
59	59	Land Grant-Merced and Acequia Infrastructure Act:
60	60	A. "acequia" means an acequia or community ditch
61	61	organized as a political subdivision pursuant to Chapter 73,
62	62	Article 2 or 3 NMSA 1978;
63	63	.229942.2 underscored material = new
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90	90	B. "commission" means the interstate stream
91	91	commission;
92	92	C. "council" means the land grant council;
93	93	D. "department" means the department of finance and
94	94	administration;
95	95	E. "infrastructure assistance" means the provision
96	96	of grants to land grants-mercedes on terms and conditions
97	97	approved by the council or to acequias on terms and conditions
98	98	approved by the commission;
99	99	F. "land grant-merced" means a land grant that is
100	100	designated as a political subdivision pursuant to Section
101	101	49-1-2 NMSA 1978;
102	102	G. "qualified project" means an infrastructure
103	103	assistance project selected pursuant to the Land Grant-Merced
104	104	and Acequia Infrastructure Act by the:
105	105	(1) council for a land grant-merced
106	106	infrastructure project; or
107	107	(2) commission for an acequia infrastructure
108	108	project; and
109	109	H. "trust fund" means the land grant-merced and
110	110	acequia infrastructure trust fund.
111	111	SECTION 3. [NEW MATERIAL] COUNCIL--POWERS--DUTIES.--The
112	112	council shall:
113	113	A. in consultation with the department, adopt rules
114	114	governing terms, conditions and priorities for providing
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143	143	infrastructure assistance to land grants-mercedes, including
144	144	developing application and evaluation procedures and forms and
145	145	qualifications for applicants and for projects;
146	146	B. provide infrastructure assistance to land
147	147	grants-mercedes for qualified projects on terms and conditions
148	148	established by the council; and
149	149	C. authorize funding for qualified projects,
150	150	including:
151	151	(1) planning, designing, constructing,
152	152	improving, expanding or equipping water and wastewater
153	153	facilities, major water systems, electrical power lines,
154	154	communications infrastructure, roads, health infrastructure,
155	155	emergency response facilities and infrastructure needed to
156	156	encourage economic development;
157	157	(2) developing engineering feasibility reports
158	158	for infrastructure projects;
159	159	(3) providing special engineering services;
160	160	(4) completing environmental assessments or
161	161	archaeological clearances and other surveys for infrastructure
162	162	projects;
163	163	(5) acquiring land, easements or rights of
164	164	way; and
165	165	(6) purchasing durable equipment.
166	166	SECTION 4. [NEW MATERIAL] COMMISSION--POWERS--DUTIES.--
167	167	The commission shall:
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196	196	A. in consultation with the department, promulgate
197	197	rules governing terms, conditions and priorities for providing
198	198	infrastructure assistance to acequias, including application
199	199	and evaluation procedures and forms and qualifications for
200	200	applicants and for projects;
201	201	B. provide infrastructure assistance to acequias
202	202	for qualified projects on terms and conditions established by
203	203	the commission; and
204	204	C. authorize funding for qualified projects,
205	205	including for planning, engineering design or construction of
206	206	irrigation works and infrastructure projects, including dams,
207	207	reservoirs, diversions, ditches, flumes or other appurtenances
208	208	for the purposes of restoration, repair, improvement of
209	209	irrigation efficiency and protection from floods.
210	210	SECTION 5. [NEW MATERIAL] LAND GRANT-MERCED AND ACEQUIA
211	211	INFRASTRUCTURE TRUST FUND--CREATED--INVESTMENT--DISTRIBUTION.--
212	212	A. The "land grant-merced and acequia
213	213	infrastructure trust fund" is created as a nonreverting fund in
214	214	the state treasury. The trust fund consists of money that is
215	215	appropriated, donated or otherwise accrues to the trust fund.
216	216	Money in the trust fund shall be invested by the state
217	217	investment officer in the manner that land grant permanent
218	218	funds are invested pursuant to Chapter 6, Article 8 NMSA 1978.
219	219	Income from investment of the trust fund shall be credited to
220	220	the trust fund. Money in the trust fund shall not be expended
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249	249	for any purpose, but annual distributions from the trust fund
250	250	shall be made to the land grant-merced infrastructure project
251	251	fund and the acequia infrastructure project fund pursuant to
252	252	this section.
253	253	B. Except as provided in Subsection C of this
254	254	section, on July 1 of each year in which the balance in the
255	255	trust fund is over five million dollars ($5,000,000), three
256	256	percent of the balance in the fund shall be divided into equal
257	257	distributions to the land grant-merced infrastructure project
258	258	fund and the acequia infrastructure project fund.
259	259	C. When on July 1 four and seven-tenths percent of
260	260	the average of the year-end market value of the balance in the
261	261	trust fund for the immediately preceding five calendar years
262	262	exceeds five million dollars ($5,000,000), four and seven-
263	263	tenths percent of the balance in the trust fund shall be
264	264	divided into equal distributions to the land grant-merced
265	265	infrastructure project fund and the acequia infrastructure
266	266	project fund.
267	267	SECTION 6. [NEW MATERIAL] LAND GRANT-MERCED
268	268	INFRASTRUCTURE PROJECT FUND--CREATED--PURPOSE--
269	269	APPROPRIATIONS.--
270	270	A. The "land grant-merced infrastructure project
271	271	fund" is created in the state treasury and shall be
272	272	administered by the department in consultation with the
273	273	council.
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302	302	B. The land grant-merced infrastructure project
303	303	fund consists of:
304	304	(1) distributions from the trust fund;
305	305	(2) payments of principal and interest on
306	306	loans for qualified projects;
307	307	(3) other money appropriated by the
308	308	legislature or distributed or otherwise allocated to the land
309	309	grant-merced infrastructure project fund for the purpose of
310	310	supporting qualified projects; and
311	311	(4) the proceeds of severance tax bonds
312	312	appropriated to the land grant-merced infrastructure project
313	313	fund for qualified projects.
314	314	C. Except for severance tax bond proceeds required
315	315	to revert to the severance tax bonding fund, balances in the
316	316	land grant-merced infrastructure project fund at the end of a
317	317	fiscal year shall revert to the trust fund.
318	318	D. The land grant-merced infrastructure project
319	319	fund may consist of subaccounts as determined to be necessary
320	320	by the department.
321	321	E. The department, in consultation with the
322	322	council, may establish procedures and rules as required to:
323	323	(1) administer the land grant-merced
324	324	infrastructure project fund;
325	325	(2) originate grants or loans for qualified
326	326	projects recommended by the council; and
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355	355	(3) govern the process through which qualified
356	356	entities may apply for financial assistance from the land
357	357	grant-merced infrastructure project fund.
358	358	F. Disbursements from the land grant-merced
359	359	infrastructure project fund shall be made by warrant of the
360	360	secretary of finance and administration pursuant to vouchers
361	361	signed by the chair of the council.
362	362	SECTION 7. [NEW MATERIAL] ACEQUIA INFRASTRUCTURE PROJECT
363	363	FUND--CREATED--PURPOSE--APPROPRIATIONS.--
364	364	A. The "acequia infrastructure project fund" is
365	365	created in the state treasury and shall be administered by the
366	366	department in consultation with the commission.
367	367	B. The acequia infrastructure project fund consists
368	368	of:
369	369	(1) distributions from the trust fund;
370	370	(2) payments of principal and interest on
371	371	loans for qualified projects;
372	372	(3) other money appropriated by the
373	373	legislature or distributed or otherwise allocated to the
374	374	acequia infrastructure project fund for the purpose of
375	375	supporting qualified projects; and
376	376	(4) the proceeds of severance tax bonds
377	377	appropriated to the fund for qualified projects.
378	378	C. Except for severance tax bond proceeds required
379	379	to revert to the severance tax bonding fund, balances in the
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408	408	acequia infrastructure project fund at the end of a fiscal year
409	409	shall revert to the trust fund.
410	410	D. The acequia infrastructure project fund may
411	411	consist of subaccounts as determined to be necessary by the
412	412	authority.
413	413	E. The department, in consultation with the
414	414	commission, may establish procedures and adopt rules as
415	415	required to:
416	416	(1) administer the acequia infrastructure
417	417	project fund;
418	418	(2) originate grants or loans for qualified
419	419	projects recommended by the commission; and
420	420	(3) govern the process through which qualified
421	421	entities may apply for financial assistance from the acequia
422	422	infrastructure project fund.
423	423	F. Disbursements from the acequia infrastructure
424	424	project fund shall be made by warrant of the secretary of
425	425	finance and administration pursuant to vouchers signed by the
426	426	chair of the commission.
427	427	SECTION 8. [NEW MATERIAL] REPORTS.--
428	428	A. The council shall provide a report to the
429	429	appropriate legislative interim committee tasked with examining
430	430	land grant-merced issues no later than November 1 of each year
431	431	regarding the total expenditures from the land grant-merced
432	432	infrastructure project fund for the previous fiscal year, the
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461	461	purposes for which expenditures were made, an analysis of the
462	462	progress of the projects funded and recommendations for
463	463	improvement of the Land Grant-Merced and Acequia Infrastructure
464	464	Act.
465	465	B. The commission shall provide a report to the
466	466	appropriate legislative interim committee tasked with examining
467	467	acequia issues no later than October 1 of each year regarding
468	468	the total expenditures from the acequia infrastructure project
469	469	fund for the previous fiscal year, the purposes for which
470	470	expenditures were made, an analysis of the progress of the
471	471	projects funded and proposals for improvement of the Land
472	472	Grant-Merced and Acequia Infrastructure Act.
473	473	SECTION 9. Section 7-27-10.1 NMSA 1978 (being Laws 2003,
474	474	Chapter 134, Section 1, as amended) is amended to read:
475	475	"7-27-10.1. TRANSFER TO SEVERANCE TAX PERMANENT FUND
476	476	BEFORE DETERMINING BONDING CAPACITY--AUTHORIZATION FOR
477	477	SEVERANCE TAX BONDS--PRIORITY FOR WATER [PROJECTS ] AND TRIBAL
478	478	INFRASTRUCTURE AND LAND GRANT-MERCED AND ACEQUIA INFRASTRUCTURE
479	479	PROJECTS.--
480	480	A. On December 31 of each year from 2019 through
481	481	2028, the division shall transfer twenty-three million six
482	482	hundred ninety thousand dollars ($23,690,000) from the
483	483	severance tax bonding fund to the severance tax permanent fund,
484	484	unless the state board of finance determines that a lesser
485	485	transfer amount is necessary pursuant to Section 7-27-8 NMSA
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514	514	1978 to avoid a potential shortfall in debt service
515	515	obligations.
516	516	B. By January 15 of each year, the division shall
517	517	estimate the amount of bonding capacity available for severance
518	518	tax bonds to be authorized by the legislature based on the
519	519	lesser of the following estimates:
520	520	(1) an estimate that provides for equal annual
521	521	issuances over the expected term of bonds with terms greater
522	522	than one year anticipated to be issued by the state board of
523	523	finance in the fiscal year in compliance with the requirements
524	524	of Section 7-27-14 NMSA 1978; and
525	525	(2) an estimate that provides that issuances
526	526	for each year of that term shall be projected to result in
527	527	stable levels of state tax supported debt relative to the
528	528	median state debt ratios published by the national municipal
529	529	bond rating agencies.
530	530	C. The division shall allocate nine percent of the
531	531	estimated bonding capacity each year for water projects, and
532	532	the legislature authorizes the state board of finance to issue
533	533	severance tax bonds in the annually allocated amount for use by
534	534	the water trust board to fund water projects statewide. The
535	535	water trust board shall certify to the state board of finance
536	536	the need for issuance of bonds for water projects. The state
537	537	board of finance may issue and sell the bonds in the same
538	538	manner as other severance tax bonds in an amount not to exceed
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567	567	the authorized amount provided for in this subsection. If
568	568	necessary, the state board of finance shall take the
569	569	appropriate steps to comply with the federal Internal Revenue
570	570	Code of 1986, as amended. Proceeds from the sale of the bonds
571	571	are appropriated to the water project fund in the New Mexico
572	572	finance authority for the purposes certified by the water trust
573	573	board to the state board of finance.
574	574	D. The division shall allocate four and one-half
575	575	percent of the estimated bonding capacity for tribal
576	576	infrastructure projects.
577	577	E. The division shall allocate one and one-tenth
578	578	percent of the estimated bonding capacity for land grant-merced
579	579	infrastructure projects.
580	580	F. The division shall allocate one and one-tenth
581	581	percent of the estimated bonding capacity for acequia
582	582	infrastructure projects.
583	583	[E.] G. The legislature authorizes the state board
584	584	of finance to issue severance tax bonds in the amount provided
585	585	for in this section for use by the tribal infrastructure board
586	586	to fund tribal infrastructure projects. The tribal
587	587	infrastructure board shall certify to the state board of
588	588	finance the need for issuance of bonds for tribal
589	589	infrastructure projects. The state board of finance may issue
590	590	and sell the bonds in the same manner as other severance tax
591	591	bonds in an amount not to exceed the authorized amount provided
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620	620	for in this section. If necessary, the state board of finance
621	621	shall take the appropriate steps to comply with the [federal ]
622	622	Internal Revenue Code [of 1986, as amended ]. Proceeds from the
623	623	sale of the bonds are appropriated to the tribal infrastructure
624	624	project fund for the purposes certified by the tribal
625	625	infrastructure board to the state board of finance.
626	626	H. The legislature authorizes the state board of
627	627	finance to issue severance tax bonds in the amount provided for
628	628	in this section for use by the land grant council to fund land
629	629	grant-merced infrastructure projects. The land grant council
630	630	shall certify to the state board of finance the need for
631	631	issuance of bonds for land grant-merced infrastructure
632	632	projects. The state board of finance may issue and sell the
633	633	bonds in the same manner as other severance tax bonds in an
634	634	amount not to exceed the authorized amount provided for in this
635	635	section. If necessary, the state board of finance shall take
636	636	the appropriate steps to comply with the Internal Revenue Code.
637	637	Proceeds from the sale of the bonds are appropriated to the
638	638	land grant-merced infrastructure project fund for the purposes
639	639	certified by the land grant council for land grant-merced
640	640	infrastructure projects to the state board of finance.
641	641	I. The legislature authorizes the state board of
642	642	finance to issue severance tax bonds in the amount provided for
643	643	in this section for use by the interstate stream commission to
644	644	fund acequia infrastructure projects. The interstate stream
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673	673	commission shall certify to the state board of finance the need
674	674	for issuance of bonds for acequia infrastructure projects. The
675	675	state board of finance may issue and sell the bonds in the same
676	676	manner as other severance tax bonds in an amount not to exceed
677	677	the authorized amount provided for in this section. If
678	678	necessary, the state board of finance shall take the
679	679	appropriate steps to comply with the Internal Revenue Code.
680	680	Proceeds from the sale of the bonds are appropriated to the
681	681	acequia infrastructure project fund for the purposes certified
682	682	by the interstate stream commission for acequia infrastructure
683	683	projects to the state board of finance.
684	684	[F.] J. Money from the severance tax bonds provided
685	685	for in this section shall not be used to pay indirect project
686	686	costs. Any unexpended balance from proceeds of severance tax
687	687	bonds issued for a water, [project or a ] tribal infrastructure,
688	688	acequia infrastructure or land grant-merced infrastructure
689	689	project shall revert to the severance tax bonding fund within
690	690	six months of completion of the project. The New Mexico
691	691	finance authority shall monitor and ensure proper reversions of
692	692	the bond proceeds appropriated for water projects, and the
693	693	department of finance and administration shall monitor and
694	694	ensure proper reversions of the bond proceeds appropriated for
695	695	tribal and land grant-merced infrastructure projects.
696	696	[G.] K. As used in this section:
697	697	(1) "acequia infrastructure project" means a
698	698	.229942.2
699	699	- 13 - underscored material = new
700	700	[bracketed material] = delete
701	701	1
702	702	2
703	703	3
704	704	4
705	705	5
706	706	6
707	707	7
708	708	8
709	709	9
710	710	10
711	711	11
712	712	12
713	713	13
714	714	14
715	715	15
716	716	16
717	717	17
718	718	18
719	719	19
720	720	20
721	721	21
722	722	22
723	723	23
724	724	24
725	725	25
726	726	qualified project approved by the interstate stream commission
727	727	pursuant to the Land Grant-Merced and Acequia Infrastructure
728	728	Act;
729	729	[(1)] (2) "division" means the board of
730	730	finance division of the department of finance and
731	731	administration;
732	732	(3) "land grant-merced infrastructure project"
733	733	means a qualified project approved by the land grant council
734	734	pursuant to the Land Grant-Merced and Acequia Infrastructure
735	735	Act;
736	736	[(2)] (4) "tribal infrastructure project"
737	737	means a qualified project under the Tribal Infrastructure Act;
738	738	and
739	739	[(3)] (5) "water project" means a capital
740	740	outlay project for:
741	741	(a) the storage, conveyance or delivery
742	742	of water to end users;
743	743	(b) the implementation of federal
744	744	Endangered Species Act of 1973 collaborative programs;
745	745	(c) the restoration and management of
746	746	watersheds;
747	747	(d) flood prevention; or
748	748	(e) conservation, recycling, treatment
749	749	or reuse of water."
750	750	- 14 -
751	751	.229942.2