SENATE INDIAN AND CULTURAL AFFAIRS COMMITTEE SUBSTITUTE FOR

SENATE BILL 376

50th legislature - STATE OF NEW MEXICO - first session, 2011

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; 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:

     "[NEW MATERIAL] AUTHORIZATION FOR SEVERANCE TAX BONDS--IMPLEMENTATION OF INDIAN WATER RIGHTS SETTLEMENTS.--

          A. After the annual estimate of severance tax bonding capacity pursuant to Subsection A of Section 7-27-10.1 NMSA 1978, for each year from fiscal year 2012 through fiscal year 2021, the board of finance division of the department of finance and administration shall allocate six percent of the estimated bonding capacity to pay the state's portion of the costs necessary 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 for that purpose. The interstate stream commission shall annually certify to the state board of finance the need for issuance of bonds to pay the state's portion of the costs necessary to implement the Aamodt, Taos and Navajo Nation Indian water rights settlements. 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 pay the state's portion of the costs necessary to implement the Aamodt, Taos and Navajo Nation Indian water rights settlements.

          B. Any unexpended balance from proceeds of severance tax bonds issued pursuant to this section shall revert to the severance tax bonding fund within six months of the final disbursement from the Indian water rights settlement fund of all money necessary to fully satisfy the state's obligations to pay the state's portion of the costs necessary to implement the Aamodt, Taos and Navajo Nation Indian water rights settlements. The department of finance and administration shall monitor and ensure proper reversions of the bond proceeds.

          C. The authorization for the bonds and the appropriation of the proceeds from the sale of the bonds pursuant to this section 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. As used in this section, "Aamodt, Taos and Navajo Nation Indian water rights settlements" means the Aamodt, Taos and Navajo Nation Indian water rights settlements enacted by congress pursuant to the federal Claims Resolution Act of 2010, Public Law 111-291 (Title V, Taos Pueblo Indian Water Rights Settlement; Title VI, Aamodt Litigation Settlement Act) and the federal Omnibus Public Land Management Act of 2009, Public Law 111-11 (Title X, Water Settlements, Subtitle B, Northwestern New Mexico Rural Water Projects Act Native Americans)."

     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.

- 4 -