HOUSE BILL 123

53rd legislature - STATE OF NEW MEXICO - second session, 2018

INTRODUCED BY

Cathrynn N. Brown

AN ACT

RELATING TO PUBLIC SAFETY; ESTABLISHING AN ANNUAL DISTRIBUTION FROM THE WATER PROJECT FUND TO THE CARLSBAD BRINE WELL REMEDIATION FUND FOR REMEDIATION OF THE CARLSBAD BRINE WELL; PROVIDING A TIME LIMIT ON THE DISTRIBUTION OF FUNDS; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 72-4A-9 NMSA 1978 (being Laws 2001, Chapter 164, Section 9, as amended) is amended to read:

     "72-4A-9. WATER PROJECT FUND--CREATED--PURPOSE.--

          A. The "water project fund" is created in the New Mexico finance authority and shall consist of distributions made to the fund from the water trust fund and payments of principal of and interest on loans for approved water projects. The fund shall also consist of any other money appropriated, distributed or otherwise allocated to the fund for the purpose of supporting water projects pursuant to provisions of the Water Project Finance Act. The fund shall be administered by the authority. Income from investment of the water project fund shall be credited to the fund. Balances in the fund at the end of any fiscal year shall not revert to the general fund. The water project fund may consist of such subaccounts as the authority deems necessary to carry out the purposes of the fund. The authority may establish procedures and adopt rules as required to administer the fund and to recover from the fund costs of administering the fund and originating grants and loans. Ten percent of all water project funds shall be dedicated to the state engineer for water rights adjudications, and twenty percent of the money dedicated for water rights adjudications shall be allocated to the administrative office of the courts for the courts' costs associated with those adjudications.

          B. Money in the water project fund may be used to make loans or grants to qualified entities for any project approved by the legislature and for water rights adjudications.

          C. The authority is authorized to issue revenue bonds payable from the proceeds of loan repayments made into the water project fund upon a determination by the authority that issuance of the bonds is necessary to replenish the principal balance of the fund. The net proceeds from the sale of the bonds shall be deposited in the water project fund. The bonds shall be authorized and issued by the authority in accordance with the provisions of the New Mexico Finance Authority Act.

          D. On July 1 of fiscal years 2019, 2020 and 2021, a distribution shall be made from the water project fund to the Carlsbad brine well remediation fund in the amount of one million five hundred thousand dollars ($1,500,000) for remediation of the Carlsbad brine well to prevent brine infiltration into the fresh water aquifer. The distribution shall be made after ten percent of all water project funds have been dedicated to the state engineer for water rights adjudications and prior to the use of water project funds for loans or grants. In any year that the balance in the water project fund after dedicating funds to the state engineer is less than one million five hundred thousand dollars ($1,500,000), the balance remaining in the fund shall be distributed to the Carlsbad brine well remediation fund."

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