RELATING TO IRRIGATION WORKS; GIVING THE INTERSTATE STREAM COMMISSION AUTHORITY TO CONVERT CERTAIN ACEQUIA LOANS TO GRANTS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: Section 1. IRRIGATION WORKS CONSTRUCTION LOANS--CONVERSION TO GRANTS.--A community acequia that has entered into an irrigation works construction loan agreement with the interstate stream commission and that is in default of the loan agreement on January 1, 1998 may apply to the interstate stream commission for conversion of the balance of the loan to a grant; provided:

A. the interstate stream commission inspects the works and finds that because the works were constructed in a defective manner, they cannot be reasonably used for the purposes intended; and

B. the community acequia can demonstrate that there is no legal remedy for damages or specific performance against the contractor that built the defective works.