HB 371 — PUBLIC PEACE, HEALTH, SAFETY & WELFARE

A land grant-merced shall apply to the council e e 17 for funding from the land grant-merced infrastructure project e e n d 18 fund for a qualified project prior to submitting a request for = = l ] 19 a legislative capital outlay appropriation for that project.

a l r i 20 When requesting legislative appropriations for a qualified t e a t project, a land grant-merced shall provide evidence of a m m 21 e d funding need, including proof that an application for funding r e 22 c e r c 23 for the qualified project was submitted to the council.

e at n17 b 24 SECTION 7.

[NEW MATERIALMATERIAL] ] ACEQUIA INFRASTRUCTURE PROJECT uw [l FUND--CREATED--PURPOSE--APPROPRIATIONS.--n .233879.3d -18 7FUND--CREATED--PURPOSE--APPROPRIATIONS.-- -= HAFC/HB= 37119 A.

The "acequia infrastructure project fund" is a l i a e r 20 created in the state treasury and shall be administered by the a t m m 21 department in consultation with the commission.

d r e 22 B.

The acequia infrastructure project fund consists c e s k 23 of:

e a n b 24 (1) distributions from the trust fund;

u [ (2) payments of principal and interest on .233879.4 - 7 - HAFC/HB 371 loans for qualified projects;

e e 17 D.

The department, in consultation with the e e n d 18 commission, may establish procedures and promulgate rules as = = l ] 19 required to:

a l r i 20 (1) administer the acequia infrastructure t e a t project fund;

m m 21 e d (2) originate grants or loans for qualified r e 22 c e r c 23 projects recommended by the commission;

and e at n17 b 24 (3) govern the process through which uw [l n d 18 applicants may apply for financial assistance from the acequia .233879.3= -= 819 - HAFC/HB 371 infrastructure project fund.

a l i a e r 20 E.

Disbursements from the acequia infrastructure a t m m 21 project fund shall be made by warrant of the secretary of d r e 22 finance and administration pursuant to vouchers signed by the c e s k 23 chair of the commission.

e a n b 24 F.

An acequia shall apply to the commission for u [ funding from the acequia infrastructure project fund for a .233879.4 - 8 - HAFC/HB 371 qualified project prior to submitting a request for a legislative capital outlay appropriation for that project.

[NEW MATERIALMATERIAL] ] REPORTS.-- A.

The council shall provide a report to the appropriate legislative interim committee tasked with examining e e 17 land grant-merced issues no later than November 1 of each year e e n d 18 regarding the total expenditures from the land grant-merced = = l ] 19 infrastructure project fund for the previous fiscal year, the a l r i 20 purposes for which expenditures were made, an analysis of the t e a t progress of the projects funded and recommendations for m m 21 e d improvement of the Land Grant-Merced and Acequia Infrastructure r e 22 c e r c 23 Act.

e at n17 b 24 B.

The commission shall provide a report to the uw [l n d 18 appropriate legislative interim committee tasked with examining .233879.3= -= 919 - HAFC/HB 371 acequia issues no later than October 1 of each year regarding a l i a e r 20 the total expenditures from the acequia infrastructure project a t m m 21 fund for the previous fiscal year, the purposes for which d r e 22 expenditures were made, an analysis of the progress of the c e s k 23 projects funded and proposals for improvement of the Land e a n b 24 Grant-Merced and Acequia Infrastructure Act.

u [ SECTION 9.

Section 7-27-10.1 NMSA 1978 (being Laws 2003, .233879.4 - 9 - HAFC/HB 371 Chapter 134, Section 1, as amended) is amended to read:

TRANSFER TO SEVERANCE TAX PERMANENT FUND BEFORE DETERMINING BONDING CAPACITY--AUTHORIZATION FOR SEVERANCE TAX BONDS--PRIORITY FOR WATER [PROJECTS[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 e e 17 severance tax bonding fund to the severance tax permanent fund, e e n d 18 unless the state board of finance determines that a lesser = = l ] 19 transfer amount is necessary pursuant to Section 7-27-8 NMSA a l r i 20 1978 to avoid a potential shortfall in debt service t e a t obligations.

m m 21 e d B.

By January 15 of each year, the division shall r e 22 c e r c 23 estimate the amount of bonding capacity available for severance e at n17 b 24 tax bonds to be authorized by the legislature based on the uw [l n d 18 lesser of the following estimates:

.233879.3= -= 1019 - HAFC/HB 371 (1) an estimate that provides for equal annual a l i a e r 20 issuances over the expected term of bonds with terms greater a t m m 21 than one year anticipated to be issued by the state board of d r e 22 finance in the fiscal year in compliance with the requirements c e s k 23 of Section 7-27-14 NMSA 1978;

and e a n b 24 (2) an estimate that provides that issuances u [ for each year of that term shall be projected to result in .233879.4 - 10 - HAFC/HB 371 stable levels of state tax supported debt relative to the median state debt ratios published by the national municipal bond rating agencies.

The water trust board shall certify to the state board of finance e e 17 the need for issuance of bonds for water projects.

The state e e n d 18 board of finance may issue and sell the bonds in the same = = l ] 19 manner as other severance tax bonds in an amount not to exceed a l r i 20 the authorized amount provided for in this subsection.

If t e a t necessary, the state board of finance shall take the m m 21 e d appropriate steps to comply with the federal Internal Revenue r e 22 c e r c 23 Code of 1986, as amended.

Proceeds from the sale of the bonds e at n17 b 24 are appropriated to the water project fund in the New Mexico uw [l n d 18 finance authority for the purposes certified by the water trust .233879.3= -= 1119 - HAFC/HB 371 board to the state board of finance.

a l i a e r 20 D.

The division shall allocate four and one-half a t m m 21 percent of the estimated bonding capacity for tribal d r e 22 infrastructure projects.

c e s k 23 E.

The legislature authorizes the state board of e a n b 24 finance to issue severance tax bonds in the amount provided for u [ in this section for use by the tribal infrastructure board to .233879.4 - 11 - HAFC/HB 371 fund tribal infrastructure projects.

Proceeds from the sale of the bonds e e 17 are appropriated to the tribal infrastructure project fund for e e n d 18 the purposes certified by the tribal infrastructure board to = = l ] 19 the state board of finance.

a l r i 20 F.

Beginning July 1, 2026 and prior to July 1, t e a t 2031, after the allocation of severance tax bonds pursuant to m m 21 e d the Severance Tax Bonding Act, if a remainder of capacity for r e 22 c e r c 23 senior severance tax bonds with a duration shorter than one e at n17 b 24 year exists, the division shall allocate the remainder of the uw [l n d 18 estimated bonding capacity to the land grant-merced and acequia .233879.3= -= 1219 - HAFC/HB 371 infrastructure trust fund;

provided that the balance of the a l i a e r 20 land grant-merced and acequia infrastructure trust fund is less a t m m 21 than one hundred seventy-five million dollars ($175,000,000).

d r e 22 G.

The legislature authorizes the state board of c e s k 23 finance to issue severance tax bonds in the amount provided for e a n b 24 in this section for the land grant-merced and acequia u [ infrastructure trust fund.

The land grant council shall .233879.4 - 12 - HAFC/HB 371 certify to the state board of finance the need for issuance of bonds for the land grant-merced and acequia infrastructure trust fund.

Proceeds from the sale of the bonds e e 17 are appropriated to the land grant-merced and acequia e e n d 18 infrastructure trust fund for distributions for the purposes = = l ] 19 certified by the land grant council for land grant-merced a l r i 20 infrastructure projects to the state board of finance.

t e a t H.

The legislature authorizes the state board of m m 21 e d finance to issue severance tax bonds in the amount provided for r e 22 c e r c 23 in this section for the land grant-merced and acequia e at n17 b 24 infrastructure trust fund.

The interstate stream commission uw [l n d 18 shall certify to the state board of finance the need for .233879.3= -= 1319 - HAFC/HB 371 issuance of bonds for the land grant-merced and acequia a l i a e r 20 infrastructure trust fund.

The state board of finance may a t m m 21 issue and sell the bonds in the same manner as other severance d r e 22 tax bonds in an amount not to exceed the authorized amount c e s k 23 provided for in this section.

If necessary, the state board of e a n b 24 finance shall take the appropriate steps to comply with the u [ federal Internal Revenue Code of 1986, as amended.

Proceeds .233879.4 - 13 - HAFC/HB 371 from the sale of the bonds are appropriated to the land grant-merced and acequia infrastructure trust fund for distributions for the purposes certified by the interstate stream commission for acequia infrastructure projects to the state board of finance.

Any unexpended balance from proceeds of severance tax bonds issued for a water, [project or aa] ] tribal infrastructure, e e 17 acequia infrastructure or land grant-merced infrastructure e e n d 18 project shall revert to the severance tax bonding fund within = = l ] 19 six months of completion of the project.

The New Mexico a l r i 20 finance authority shall monitor and ensure proper reversions of t e a t the bond proceeds appropriated for water projects, and the m m 21 e d department of finance and administration shall monitor and r e 22 c e r c 23 ensure proper reversions of the bond proceeds appropriated for e at n17 b 24 acequia infrastructureinfrastructure, , tribal infrastructure and land grant- uw [l n d 18 merced infrastructure projects.

.233879.3= -= 1419 - HAFC/HB 371 [G.] J.

a l i a e r 20 (1) "acequia infrastructure project" means a a t m m 21 qualified project approved by the interstate stream commission d r e 22 pursuant to the Land Grant-Merced and Acequia Infrastructure c e s k 23 Act;

e a n b 24 [(1)] (2) "division" means the board of u [ finance division of the department of finance and .233879.4 - 14 - HAFC/HB 371 administration;

and [(3)] (5) "water project" means a capital e e 17 outlay project for:

e e n d 18 (a) the storage, conveyance or delivery = = l ] 19 of water to end users;

a l r i 20 (b) the implementation of federal t e a t Endangered Species Act of 1973 collaborative programs;

m m 21 e d (c) the restoration and management of r e 22 c e r c 23 watersheds;

e at n17 b 24 (d) flood prevention;

or uw [l n d 18 (e) conservation, recycling, treatment .233879.3= -= 1519 - HAFC/HB 371 or reuse of water." a l i a e r 20 SECTION 10.

EFFECTIVE DATE.--The effective date of the a t m m 21 provisions of this act is July 1, 2026.

- 16 - 6 8 10 12 14 16 e e 17 e e n d 18 = = l ] 19 a l r i 20 t e a22 t- m15 m- 21 e d r e 22 c e rs ck 23 e a n b 24 u [ .233879.3.233879.4