AN ACT
RELATING TO WATER PROJECTS; REQUIRING
A PERCENTAGE OF ANNUAL SEVERANCE TAX BONDING CAPACITY TO BE USED TO FUND WATER
PROJECTS STATEWIDE; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF
THE STATE OF NEW MEXICO:
Section 1. A new section of the Severance Tax Bonding
Act is enacted to read:
"BONDING
CAPACITY--AUTHORIZATION FOR SEVERANCE TAX BONDS--WATER PROJECTS PRIORITY.--
A. By January 15 of each year, the board of
finance division of the department of finance and administration shall estimate
the amount of bonding capacity available for severance tax bonds to be
authorized by the legislature. The
division shall authorize ten percent of the estimated bonding capacity each
year, and the legislature authorizes the state board of finance to issue
severance tax bonds in the annually deducted amount for use by the water trust
board to fund water projects statewide.
B. 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 the authorized amount provided for in Subsection A of 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 water project fund in the New
Mexico finance authority for the purposes certified by the water trust board to
the state board of finance.
C. 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 shall revert to the severance
tax bonding fund within six months of completion of the water project. The New Mexico finance authority shall
monitor and ensure proper reversions.
D. As used in this section, "water
project" means a capital outlay project for:
(1) the storage, conveyance or delivery of water
to end users;
(2) the implementation of federal Endangered
Species Act of 1973 collaborative programs;
(3) the restoration and management of watersheds;
(4) flood prevention; or
(5) conservation, recycling, treatment or reuse
of water.”
HB 882
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