SENATE BILL 360
46th legislature - STATE OF NEW MEXICO - second session, 2004
INTRODUCED BY
Carlos R. Cisneros
AN ACT
RELATING TO WATER; PROVIDING FOR A STRATEGIC WATER RESERVE; PROVIDING FOR ADDITIONAL POWERS AND DUTIES OF THE INTERSTATE STREAM COMMISSION; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS FOR THE ACQUISITION OF WATER RIGHTS FOR THE STRATEGIC WATER RESERVE; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of Chapter 72, Article 14 NMSA 1978 is enacted to read:
"[NEW MATERIAL] INTERSTATE STREAM COMMISSION--ADDITIONAL POWERS--STRATEGIC WATER RESERVE.--
A. The interstate stream commission shall establish a strategic water reserve and may purchase from willing sellers or lease or receive through donation surface water rights to comprise the reserve. The commission may also purchase or lease from willing sellers or lessors or receive by donation underground water rights for the strategic water reserve if no net depletions in the basin occur as a result. The commission shall purchase or lease water rights and may acquire storage rights at no more than the appraised market value of those water rights for the strategic water reserve. The commission may accept money or grants from federal or other governmental entities to purchase or lease water rights for the strategic water reserve. The commission shall not acquire water rights that are served by or owned by an acequia or community ditch for inclusion in the strategic water reserve. The commission shall acquire only water rights recognized by the state engineer to have sufficient seniority and consistent, historic beneficial use to effectively contribute to the purpose of the strategic water reserve. The commission shall not acquire water rights for the strategic water reserve by condemnation. Water rights in the strategic water reserve shall not be subject to forfeiture pursuant to Chapter 72 NMSA 1978.
B. Water rights in the strategic water reserve shall be used to:
(1) assist the state in complying with interstate stream compacts and court decrees; or
(2) assist water users in complying with the federal Endangered Species Act of 1973 or other federal or state law as part of a collaboratively developed compliance program involving state and federal agencies and water users.
C. The interstate stream commission may sell or lease water rights from the strategic water reserve at no less than the appraised market value only if the rights are no longer necessary for the purposes for which they were acquired for the reserve.
D. Water rights for the strategic water reserve or water rights sold or leased from the reserve shall remain in their river reach or ground water basin of origin.
E. Transactions with members of an irrigation or conservancy district established pursuant to Chapter 73 NMSA 1978 shall provide for equal income to the district that would accrue to the district in the absence of the transaction."
Section 2. A new section of the Severance Tax Bonding Act is enacted to read:
"[NEW MATERIAL] BONDING CAPACITY--AUTHORIZING ISSUANCE OF SEVERANCE TAX BONDS FOR THE STRATEGIC WATER RESERVE.--
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 beginning in fiscal year 2005 and ending in fiscal year 2025, and the legislature authorizes the state board of finance to issue severance tax bonds in the annually deducted amount for use by the interstate stream commission for the acquisition and leasing of water rights and storage rights for the strategic water reserve.
B. The interstate stream commission shall certify to the state board of finance the need for issuance of bonds for acquisition of water rights for the strategic water reserve. 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 federal Internal Revenue Code of 1986. Proceeds from the sale of the bonds are appropriated to the interstate stream commission to acquire and lease water and storage rights for the strategic water reserve.
C. Any unexpended balance from proceeds of severance tax bonds issued for the strategic water reserve shall revert to the severance tax bonding fund as of the first day after the end of the tenth fiscal year following the fiscal year in which the severance tax bonds were issued, after reserving for unpaid costs and expenses covered by binding written obligations to third parties."
Section 3. Section 72-4A-5 NMSA 1978 (being Laws 2001, Chapter 164, Section 5, as amended by Laws 2003, Chapter 139, Section 3 and by Laws 2003, Chapter 365, Section 1) is amended to read:
"72-4A-5. BOARD--DUTIES.--The board shall:
A. adopt rules governing terms and conditions of grants or loans recommended by the board for appropriation by the legislature from the water project fund, giving priority to projects [that have urgent needs]:
(1) that have been identified [for implementation of] as being urgent to meet the needs of a regional water planning area that has had a completed regional water plan [that is] accepted by the interstate stream commission; [and]
(2) that have matching contributions from federal or local funding sources; and
(3) that have obtained all requisite state and federal permits and authorizations necessary to initiate a project;
B. authorize qualifying water projects to the authority that are for:
(1) storage, conveyance or delivery of water to end users;
(2) implementation of the federal Endangered Species Act of 1973 collaborative programs;
(3) restoration and management of watersheds;
(4) flood prevention; or
(5) [water] conservation, [and] recycling, treatment or reuse of water as provided by law;
C. prioritize the purpose and place of use of the water rights needed for the strategic water reserve and transmit its priority recommendations to the interstate stream commission. The recommendations shall consider:
(1) the advice of the office of the state engineer, the interstate stream commission, the department of game and fish, the state land office and the attorney general's office;
(2) geographic balance; and
(3) availability of storage capacity; and
[C.] D. create a drought strike team to coordinate responses to emergency water shortages caused by drought conditions."
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