SENATE BILL 376
50th legislature - STATE OF NEW MEXICO - first session, 2011
INTRODUCED BY
Carlos R. Cisneros
AN ACT
RELATING TO INDIAN WATER RIGHTS; TEMPORARILY ALLOCATING A PORTION OF THE SEVERANCE TAX BONDING CAPACITY TO IMPLEMENT THE STATE'S SHARE OF THE AAMODT, TAOS AND NAVAJO NATION WATER RIGHTS SETTLEMENTS; TEMPORARILY REDUCING THE ALLOCATION OF SEVERANCE TAX BONDING CAPACITY FOR TRIBAL INFRASTRUCTURE PROJECTS; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-27-10.1 NMSA 1978 (being Laws 2003, Chapter 134, Section 1, as amended) is amended to read:
"7-27-10.1. BONDING CAPACITY--AUTHORIZATION FOR SEVERANCE TAX BONDS--PRIORITY FOR WATER PROJECTS AND TRIBAL INFRASTRUCTURE PROJECTS.--
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.
B. The division shall allocate ten 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, except for projects authorized in Subsection [E] F of this section. 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 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.
C. The board of finance division shall allocate [five percent] a percentage of the estimated bonding capacity each year for tribal infrastructure projects, and the legislature authorizes the state board of finance to issue severance tax bonds in the annually allocated amount 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 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 tribal infrastructure project fund for the purposes certified by the tribal infrastructure board to the state board of finance. The percentage of the estimated severance tax bonding capacity allocated each year pursuant to this subsection shall be:
(1) two percent of the estimated severance tax bonding capacity in fiscal years 2012 through 2021; and
(2) five percent of the estimated severance tax bonding capacity in fiscal year 2022 and each subsequent fiscal year.
D. For each year from fiscal year 2012 through fiscal year 2021, the board of finance division shall allocate three percent of the estimated bonding capacity for water projects required to implement the Aamodt, Taos and Navajo Nation Indian water rights settlements, and the legislature authorizes the state board of finance to issue severance tax bonds in the annually allocated amount for use by the interstate stream commission to fund the construction of water projects authorized by federal law. The interstate stream commission shall certify to the state board of finance the need for issuance of bonds for Indian water rights 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 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 Indian water rights settlement fund to implement the Aamodt, Taos and Navajo Nation Indian water rights settlements enacted by congress pursuant to the Claims Resolution Act of 2010, Public Law 111-29.1 (Title V, Taos Pueblo Indian Water Rights Settlement; Title VI, Aamodt Litigation Settlement Act) and the Omnibus Public Law Management Act of 2009, Public Law 111-11 (Title X, Water Settlements, Subtitle B, Northwestern New Mexico Rural Water Projects Act Native Americans). The authorization for the bonds and the appropriation of the proceeds from the sale of the bonds constitute the authorization of the legislature to expend the proceeds for the referenced settlements, in lieu of the requirement of Section 72-1-11 NMSA 1978 for a joint resolution.
[D.] E. 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 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 funded through the water project fund, and the department of finance and administration shall monitor and ensure proper reversions of the bond proceeds appropriated for tribal infrastructure projects and water projects funded through the Indian water rights settlement fund.
[E.] F. The board of finance division of the department of finance and administration shall:
(1) void the authorization to the water project fund held at the New Mexico finance authority to make grants or loans of severance tax bond proceeds for projects pursuant to Subsection U of Section 1 of Chapter 41 of Laws 2006 for the northwest New Mexico council of governments in McKinley county for a water distribution project and Subsection 25 of Section 1 of Chapter 139 of Laws 2007 for the Navajo Nation division of natural resources department of water resources water management branch for a regional water project in Rio Arriba, Sandoval, McKinley, San Juan and Cibola counties; and
(2) authorize the department of environment to make a grant of the unexpended proceeds of severance tax bonds issued in fiscal years 2006 and 2007 for the purposes of the water project fund to be used for the authorizations identified in Paragraph (1) of this subsection and appropriate to the department of environment five million three hundred seventy-five thousand two hundred forty-four dollars ($5,375,244) for the Navajo Nation division of natural resources department of water resources water management branch for a regional water distribution project in Rio Arriba, Sandoval, McKinley, San Juan and Cibola counties. Any unexpended balance of the funds authorized for expenditure in this [section] subsection shall revert to the severance tax bonding fund at the end of fiscal year 2013 or upon completion of the project, whichever is earlier.
[F.] G. As used in this section:
(1) "tribal infrastructure project" means a qualified project under the Tribal Infrastructure Act; and
(2) "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."
SECTION 2. Section 72-1-12 NMSA 1978 (being Laws 2005, Chapter 172, Section 2) is amended to read:
"72-1-12. INDIAN WATER RIGHTS SETTLEMENT FUND.--The "Indian water rights settlement fund" is created in the state treasury to facilitate the implementation of the state's portion of Indian water rights settlements. The fund consists of appropriations, gifts, grants, donations, proceeds from the issuance of severance tax bonds, income from investment of the fund and money otherwise accruing to the fund. Except for severance tax bond proceeds that are required to revert to the severance tax bonding fund, money in the fund shall not revert to any other fund at the end of a fiscal year. Money in the Indian water rights settlement fund shall be used to pay the state's portion of the costs necessary to implement Indian water rights settlements approved by [the legislature and] the United States congress; provided that any expenditure of severance tax bond proceeds or other legislative appropriations shall be consistent with the purpose of the appropriation. The interstate stream commission shall administer the fund, and money in the fund is appropriated to the commission to carry out the purposes of the fund. Money in the fund shall be disbursed on warrants of the secretary of finance and administration pursuant to vouchers signed by an authorized representative of the interstate stream commission."
SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.
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