0001| AN ACT | 0002| RELATING TO WATER; AUTHORIZING THE ISSUANCE OF REVENUE BONDS FOR | 0003| HYDROGRAPHIC SURVEYS USED FOR DETERMINATION OF WATER RIGHTS; AMENDING | 0004| SECTIONS OF THE NMSA 1978; MAKING APPROPRIATIONS. | 0005| | 0006| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0007| Section 1. Section 72-14-4 NMSA 1978 (being Laws 1935, Chapter | 0008| 24, Section 1, as amended) is amended to read: | 0009| "72-14-4. BUDGET AND PLAN SUBMITTED TO GOVERNOR ANNUALLY.--The | 0010| interstate stream commission shall annually prepare and submit a | 0011| budget together with a complete and detailed plan looking toward the | 0012| improvement of the Rio Grande in this state, and increasing the | 0013| surface flow of water in the river, during the ensuing fiscal year. | 0014| The plan and budget shall be submitted annually in accordance with the | 0015| provisions of Sections 6-3-1 through 6-3-22 NMSA 1978." | 0016| Section 2. Section 72-14-5 NMSA 1978 (being Laws 1935, Chapter | 0017| 24, Section 2, as amended) is amended to read: | 0018| "72-14-5. ANNUAL EXPENDITURES MADE UNDER BUDGET AND PLAN.--The | 0019| interstate stream commission shall annually expend from the money | 0020| appropriated, within the money actually available and within the | 0021| budget submitted and approved, in accordance with the provisions of | 0022| Sections 6-3-1 through 6-3-22 NMSA 1978, such sum as may be necessary | 0023| for the improvement of the Rio Grande in this state, and increasing | 0024| the surface flow of water in the river, and in accordance with the | 0025| plan submitted by the commission." | 0001| Section 3. Section 72-14-6 NMSA 1978 (being Laws 1935, Chapter | 0002| 24, Section 3, as amended) is amended to read: | 0003| "72-14-6. APPROPRIATION--HOW DISBURSEMENTS ARE TO BE MADE.-- | 0004| There is appropriated annually all money in the improvement of the Rio | 0005| Grande income fund or as much thereof as may be necessary for the | 0006| purpose of complying with Sections 72-14-4 through 72-14-6 and | 0007| Sections 72-14-9 through 72-14-28 NMSA 1978 and to fulfill and carry | 0008| out their purposes and intentions. The appropriations authorized | 0009| shall be paid, from time to time as may be necessary, upon vouchers | 0010| approved by the interstate stream commission." | 0011| Section 4. Section 72-14-9 NMSA 1978 (being Laws 1955, Chapter | 0012| 266, Section 1) is amended to read: | 0013| "72-14-9. DEFINITIONS.--As used in Sections 72-14-9 through | 0014| 72-14-28 NMSA 1978: | 0015| A. "engineer" or "state engineer" means the state engineer | 0016| of New Mexico; | 0017| B. "commission" means the New Mexico interstate stream | 0018| commission or other department or agency which may be created and | 0019| charged with the duties and functions of the commission; | 0020| C. "works" includes all property, rights, easements and | 0021| franchises relating thereto and deemed necessary or convenient for | 0022| their operation, and all water rights acquired or exercised by the | 0023| commission in connection with such works, and shall embrace all means | 0024| of conserving and distributing water, including, without limiting the | 0025| generality of the foregoing, reservoirs, dams, diversion canals, | 0001| distributing canals, lateral ditches, pumping units, wells, mains, | 0002| pipelines and waterworks systems and shall include all such works for | 0003| the conservation, development, storage, distribution and utilization | 0004| of water, including, without limiting the generality of the foregoing, | 0005| works for the purpose of irrigation, development of power, watering of | 0006| stock, supplying of water for public, domestic, industrial and other | 0007| uses, for fire protection and for the purpose of obtaining | 0008| hydrographic surveys used by the state engineer for determining water | 0009| rights; | 0010| D. "cost of works" includes the cost of construction; the | 0011| cost of all lands, property, rights, easements and franchises acquired | 0012| which are deemed necessary for such construction; the cost of all | 0013| water rights acquired or exercised by the commission in connection | 0014| with a project; the cost of all machinery and equipment, financing | 0015| charges, interest prior to and during construction and for a period | 0016| not exceeding three years after the completion of construction; the | 0017| cost of engineering and legal expenses, plans, specifications, | 0018| surveys, estimates of cost and other expenses necessary or incident to | 0019| determining the feasibility or practicability of any project; and | 0020| administrative expense and such other expenses as may be necessary or | 0021| incident to the financing and the completion of a project and the | 0022| placing of the project in operation; | 0023| E. "owner" includes all individuals, irrigation districts, | 0024| incorporated companies, societies or associations having any title or | 0025| interest in any properties, rights, easements or franchises to be | 0001| acquired; and | 0002| F. "project" means any one of the works defined in this | 0003| section or any combination of such works which are jointly managed and | 0004| operated as a single unit." | 0005| Section 5. Section 72-14-11 NMSA 1978 (being Laws 1955, Chapter | 0006| 266, Section 3) is amended to read: | 0007| "72-14-11. PROJECTS USING REVENUE BOND PROCEEDS AUTHORIZED.-- | 0008| A. The commission is authorized to conduct, whenever it | 0009| deems such project expedient, any project, the cost of which is to be | 0010| paid wholly by means of or with the proceeds of revenue bonds | 0011| authorized, or in connection with a grant to aid in financing such | 0012| project from the United States or any instrumentality or agency | 0013| thereof, or with other funds provided under the authority of Sections | 0014| 72-14-9 through 72-14-28 NMSA 1978. If revenues from the project are | 0015| intended to pay the cost of maintaining, repairing and operating the | 0016| project and to pay the principal and interest of revenue bonds that | 0017| may be issued for the cost of the project, before conducting any | 0018| project, the commission shall make estimates of the cost of the | 0019| project, of the cost of maintaining, repairing and operating the | 0020| project and of the revenues to be derived from the project, and no | 0021| such project shall be conducted unless, according to the estimates, | 0022| the revenues to be derived will be sufficient to pay the cost of | 0023| maintaining, repairing and operating the project and, if no other | 0024| revenues are to be pledged to repayment of bonds that may be issued | 0025| for the cost of the project, to pay the principal and interest of | 0001| revenue bonds which may be issued for the cost of such project; | 0002| provided, however, that in connection with the issuance of any of the | 0003| bonds, the failure of the commission to make the estimates required by | 0004| this section or to make the estimates in proper form shall in no way | 0005| affect the validity or enforceability of any such bonds or of the | 0006| trust indenture, resolution or other security for the bonds. | 0007| B. The purpose of Sections 72-14-9 through 72-14-28 NMSA | 0008| 1978 is to meet a statewide need for the conservation and use of water | 0009| through projects designed or intended for such purposes. The | 0010| commission is empowered to make such investigations as may be | 0011| necessary to plan and carry out a comprehensive statewide program of | 0012| water conservation; provided, however, that those sections shall not | 0013| be construed to repeal or amend by implication or otherwise the | 0014| provisions of law enacted with respect to permits for the acquisition | 0015| of water rights, permits for the change in place or method of use of | 0016| water or permits for the construction of works. The projects to be | 0017| finally conducted shall qualify as parts of such statewide program | 0018| and, if applicable shall be approved by the commission upon the | 0019| showing of their prospective ability to meet, through the sale of | 0020| water or other services, the cost of operation, maintenance and repair | 0021| and the amortization of the cost of the project; provided, however, | 0022| that the failure of the commission to determine such prospective | 0023| ability of a project shall in no way affect the validity or | 0024| enforceability of any such bonds." | 0025| Section 6. Section 72-14-13 NMSA 1978 (being Laws 1955, Chapter | 0001| 266, Section 5, as amended) is amended to read: | 0002| "72-14-13. WATER CONSERVATION REVENUE BONDS AUTHORIZED--EXTENT | 0003| OF STATE OBLIGATION.-- | 0004| A. The commission, with the approval of the state board of | 0005| finance and in accordance with the state board of finance's adopted | 0006| policies and procedures on financing approvals, is authorized to | 0007| provide by resolution for the issuance of water conservation revenue | 0008| bonds of the state for the purpose of paying the cost, as defined in | 0009| Section 72-14-9 NMSA 1978, of any one or more projects, subject to the | 0010| conditions provided for in Subsection F of this section. The | 0011| principal of and interest on revenue bonds shall be payable solely | 0012| from the special fund to be provided for such payment. Revenue bonds | 0013| shall mature at such time, not more than fifty years from their date, | 0014| as may be fixed by the resolution, but may be made redeemable before | 0015| maturity at the option of the state, to be exercised by the | 0016| commission, at such price and under such terms and conditions as may | 0017| be fixed by the commission prior to the issuance of the bonds. The | 0018| commission shall determine the rate of interest not in excess of the | 0019| maximum net effective interest rate permitted by the Public Securities | 0020| Act or the Public Securities Short-Term Interest Rate Act on such | 0021| bonds, the time of payment of such interest, the form of the bonds and | 0022| the manner of executing the bonds, and shall fix the denomination of | 0023| the bonds and the place of payment of principal and interest thereof. | 0024| B. All bonds issued under Sections 72-14-9 through 72-14-28 | 0025| NMSA 1978 shall contain a statement on their faces that the state | 0001| shall not be obligated to pay the bonds or the interest on the bonds | 0002| except from the "debt service fund" hereinafter set forth. In case | 0003| any of the officers whose signatures appear on the bonds cease to be | 0004| officers before the delivery of the bonds, the signatures shall | 0005| nevertheless be valid and sufficient for all purposes, as if the | 0006| officers had remained in office until delivery. All the bonds are | 0007| declared to have all the qualities and incidents of negotiable | 0008| instruments. The bonds shall not constitute or be a debt, liability | 0009| or obligation of the state, and shall be secured only by the revenues | 0010| of such works and the funds received from the sale or disposal of | 0011| water and from the operation, lease, sale or other disposition of the | 0012| works, property and facilities to be acquired out of the proceeds of | 0013| such bonds and, if so pledged by the commission, from income credited | 0014| to the permanent reservoirs for irrigation purposes income fund and | 0015| the improvement of Rio Grande income fund. | 0016| C. Provisions may be made for the registration of any of | 0017| the bonds in the resolution authorizing the bonds. The bonds | 0018| authorized under the provisions of Sections 72-14-9 through 72-14-28 | 0019| NMSA 1978 may be issued and sold from time to time at a public or | 0020| private sale to any purchaser, including the New Mexico finance | 0021| authority, and in such amounts as may be determined by the commission, | 0022| and the commission may sell the bonds in such manner and for such | 0023| price as it may determine to be for the best interests of the state. | 0024| The state investment officer is authorized to invest the permanent | 0025| funds of the state in the bonds. The proceeds of such bonds shall be | 0001| used solely for the payment of the cost of a project and shall be used | 0002| in such manner and under such restrictions, if any, as the commission | 0003| may provide. | 0004| D. If the proceeds of the bonds, by error of calculation or | 0005| otherwise, are less than the cost of the project, additional bonds may | 0006| in like manner be issued to provide the amount of such deficit and, | 0007| unless otherwise provided in the resolution authorizing the bonds, | 0008| shall be deemed to be of the same issue and shall be entitled to | 0009| payment from the same fund without preference or priority of the bonds | 0010| first issued for the same project. If the proceeds of bonds issued | 0011| for any such project exceed the cost of the project, the surplus shall | 0012| be paid into the debt service fund provided for the payment of | 0013| principal and interest of such bonds. Prior to the preparation of | 0014| definitive bonds, the commission may issue temporary bonds | 0015| exchangeable for definitive bonds when such bonds have been executed | 0016| and are available for delivery. Such bonds may be issued without any | 0017| other proceedings or the happening of any other conditions or things | 0018| than those proceedings, conditions and things which are specified and | 0019| required by Sections 72-14-9 through 72-14-28 NMSA 1978 or by the | 0020| constitution of New Mexico. | 0021| E. Each resolution providing for the issuance of bonds | 0022| shall set forth a project for which the bonds are to be issued, and | 0023| the bonds authorized by each such resolution shall constitute a | 0024| separate series. The bonds of each series shall be identified by a | 0025| series number or letter and may be sold and delivered at one time or | 0001| from time to time. | 0002| F. Revenue bonds issued by the commission for obtaining | 0003| hydrographic surveys used by the state engineer shall mature not later | 0004| than ten years from their date of issuance. The commission shall | 0005| issue bonds for hydrographic surveys in a total amount not exceeding | 0006| four million dollars ($4,000,000) and amounts not to exceed two | 0007| million dollars ($2,000,000) in any fiscal year commencing July 1, | 0008| 1998." | 0009| Section 7. Section 72-14-14 NMSA 1978 (being Laws 1955, Chapter | 0010| 266, Section 6) is amended to read: | 0011| "72-14-14. REVENUES FROM BONDS TO BE APPLIED TO COST OF PROJECTS | 0012| AND ASSOCIATED EXPENSES.--All money received from any bonds issued | 0013| pursuant to Sections 72-14-9 through 72-14-28 NMSA 1978 shall be | 0014| applied solely to the payment of the cost of the project or to the | 0015| appurtenant debt service fund, and there is created and granted a lien | 0016| upon such money until so applied in favor of the holders of the bonds | 0017| or the trustee provided for in respect of such bonds." | 0018| Section 8. Section 72-14-15 NMSA 1978 (being Laws 1955, Chapter | 0019| 266, Section 7) is amended to read: | 0020| "72-14-15. FUNDS ESTABLISHED.--The commission shall create three | 0021| separate funds in respect of the bonds of each series: one fund to be | 0022| known as the "project fund, series . . . . . . . . . ."; another fund | 0023| to be known as the "income fund, series . . . . . . . . "; and another | 0024| fund to be known as the "debt service fund, series . . . . . "; each | 0025| fund to be identified by the same series number or letter as the bonds | 0001| of such series. The money in each fund shall be deposited in such | 0002| depository and secured in such manner as may be determined by the | 0003| commission. It is lawful for any bank or trust company incorporated | 0004| under the laws of this state or of the United States to act as such | 0005| depository and to furnish such indemnifying bonds or to pledge such | 0006| securities as may be required by the commission. A separate account | 0007| shall be kept in each project fund and in each income fund for each | 0008| project. All expenditures not properly chargeable to the project fund | 0009| account or to the income fund account of any one project shall be | 0010| charged by the commission in such proportions as it determines to the | 0011| project fund accounts or to the income fund accounts, as the case may | 0012| be, of the projects in respect of which such expenditures were | 0013| incurred." | 0014| Section 9. Section 72-14-16 NMSA 1978 (being Laws 1955, Chapter | 0015| 266, Section 8) is amended to read: | 0016| "72-14-16. BOND PROCEEDS TO BE APPROPRIATELY CREDITED.--The | 0017| proceeds of the bonds of each series issued under the provisions of | 0018| Sections 72-14-9 through 72-14-28 NMSA 1978 shall be placed to the | 0019| credit of the appropriate project fund, which fund shall be kept | 0020| segregated and set apart from all other funds. There shall be | 0021| credited to the appropriate debt service fund all accrued interest | 0022| received upon sale of the bonds and there shall also be credited to | 0023| the appropriate project fund the interest received upon the deposits | 0024| of money in the project fund and money received by way of grant from | 0025| the United States or from any other source for the project. The money | 0001| in each project fund shall be paid out or disbursed in such manner as | 0002| may be determined by the commission, subject to the provisions of | 0003| those sections, to pay the cost of the project and there is hereby | 0004| appropriated annually the money in each project fund for the purposes | 0005| intended by the commission." | 0006| Section 10. Section 72-14-17 NMSA 1978 (being Laws 1955, Chapter | 0007| 266, Section 9) is amended to read: | 0008| "72-14-17. COMMISSION TO SET PRICES, RATES OR CHARGES-- | 0009| CONTRACTS--DISPOSITION OF PROPERTY.-- | 0010| A. The commission is authorized, subject to the provisions | 0011| of Sections 72-14-9 through 72-14-28 NMSA 1978, to fix and establish | 0012| the prices, rates and charges at which the resources and facilities | 0013| made available under the provisions of those sections shall be sold | 0014| and disposed of; to enter into contracts and agreements, and to do | 0015| things which in its judgment are necessary, convenient or expedient | 0016| for the accomplishment of the purposes and objects of those sections, | 0017| under such general regulations and upon such terms, limitations and | 0018| conditions as it shall prescribe. If no other revenues are pledged to | 0019| repay the bonds, it is the duty of the commission to enter into such | 0020| contracts and fix and establish such prices, rates and charges so as | 0021| to provide funds that will be sufficient to pay costs of operation and | 0022| maintenance of the works authorized by those sections, together with | 0023| necessary repairs thereto, and that will provide sufficient funds to | 0024| meet and pay the principal and interest of all bonds as they severally | 0025| become due and payable; provided that nothing contained in Sections | 0001| 72-14-9 through 72-14-28 NMSA 1978 shall authorize any change, | 0002| alteration or revision of any such rates, prices or charges as | 0003| established by any contract entered into under authority of those | 0004| sections except as provided by any such contract. | 0005| B. Every contract made by the commission for the sale of | 0006| water, use of water, water storage or other service or for the sale of | 0007| any property or facilities shall provide that in the event of failure | 0008| or default in the payment of money specified in the contract to be | 0009| paid to the commission, the commission may, upon such notice as shall | 0010| be prescribed in the contract, terminate the contract and all | 0011| obligations under it. The act of the commission in ceasing on any | 0012| default to furnish or deliver water, use of water, water storage or | 0013| other service under the contract shall not deprive the commission of | 0014| or limit any remedy provided by such contract or by law for the | 0015| recovery of money due or which may become due under the contract. | 0016| C. The commission is empowered to sell or otherwise dispose | 0017| of any rights of way, easements or property when it determines that | 0018| the same is no longer needed for the purposes of Sections 72-14-9 | 0019| through 72-14-28 NMSA 1978, or to lease or rent the same or to | 0020| otherwise take and receive the income or profit and revenue therefrom. | 0021| All income or profit and revenue of the works and all money received | 0022| from the sale or disposal of water, use of water, water storage or | 0023| other service and from the operation, lease, sale or other disposition | 0024| of the works, property and facilities acquired under the provisions of | 0025| those sections shall be paid to the credit of the appropriate income | 0001| fund." | 0002| Section 11. Section 72-14-18 NMSA 1978 (being Laws 1955, Chapter | 0003| 266, Section 10) is amended to read: | 0004| "72-14-18. DEBT SERVICE FUND--PAYMENTS INTO FUND--FUND PLEDGED | 0005| FOR PAYMENT OF INTEREST, FISCAL CHARGES AND REPAYMENT OF PRINCIPAL.-- | 0006| The commission shall provide, in the proceedings authorizing the | 0007| issuance of each series of bonds, for the paying into the appropriate | 0008| debt service funds at stated intervals money from other revenues | 0009| pledged to repay the bonds or all money then remaining in the income | 0010| fund, after paying all cost of operation, maintenance and repairs of | 0011| the works. All money in each debt service fund shall be pledged for | 0012| the payment of and used only for the purpose of paying: | 0013| A. interest upon the bonds as such interest falls due; | 0014| B. the necessary fiscal agency charges for paying bonds and | 0015| interest; | 0016| C. the principal of the bonds as they fall due; and | 0017| D. any premiums upon bonds retired by call or purchase as | 0018| herein provided. | 0019| Prior to the issuance of the bonds of each series, the commission | 0020| may provide by resolution for using the debt service fund or any part | 0021| thereof in the purchase of any of the outstanding bonds payable | 0022| therefrom at the market price thereof. The money in each debt service | 0023| fund, less such reserve as may be provided for in the resolution | 0024| authorizing the bonds for the payment of interest, principal, or both, | 0025| if not used within a reasonable time for the purchase of bonds as | 0001| provided in this section, shall be applied to the redemption of bonds | 0002| then subject to redemption at the redemption price then applicable." | 0003| Section 12. Section 72-14-19 NMSA 1978 (being Laws 1955, Chapter | 0004| 266, Section 11) is amended to read: | 0005| "72-14-19. PERMANENT RESERVOIRS FOR IRRIGATION PURPOSES INCOME | 0006| FUND--RIO GRANDE INCOME FUND--APPROPRIATION.--Each year's income | 0007| credited to the permanent reservoirs for irrigation purposes income | 0008| fund and the improvement of Rio Grande income fund may be pledged | 0009| irrevocably to the payment of the principal of and interest on revenue | 0010| bonds by the commission with the approval of the state board of | 0011| finance, and there are irrevocably appropriated to the commission | 0012| amounts from the funds for such purposes. The commission shall | 0013| provide in the proceedings authorizing the issuance of each series of | 0014| bonds for the paying into the appropriate income and debt service | 0015| funds all money received pursuant to this section." | 0016| Section 13. Section 72-14-22 NMSA 1978 (being Laws 1955, Chapter | 0017| 266, Section 14) is amended to read: | 0018| "72-14-22. RIGHTS OF BONDHOLDERS--ENFORCEMENT.--Any holder of | 0019| any bonds issued under the provisions of Sections 72-14-9 through | 0020| 72-14-28 NMSA 1978 except to the extent the rights herein given may be | 0021| restricted by resolution passed before the issuance of the bonds, may, | 0022| either at law or in equity, by suit, action, mandamus or other | 0023| proceeding, protect and enforce any rights granted hereunder or under | 0024| such resolution and may enforce and compel performance of all duties | 0025| required by those sections or by such resolution to be performed by | 0001| the commission. The state pledges and agrees that while any bonds | 0002| issued by the commission remain outstanding, the powers, duties or | 0003| existence of the commission or any official or agency of the state and | 0004| the distribution of revenues pledged to payment of the bonds to the | 0005| commission shall not be diminished or impaired in any manner that will | 0006| affect adversely the interests and rights of the holders of such | 0007| bonds. The commission is authorized to include this pledge and | 0008| agreement of the state in any agreement with the holders of the | 0009| bonds." | 0010| Section 14. Section 72-14-26 NMSA 1978 (being Laws 1955, Chapter | 0011| 266, Section 17) is amended to read: | 0012| "72-14-26. DISPOSITION OF WATER FOR PUBLIC, DOMESTIC, INDUSTRIAL | 0013| AND OTHER USES--RECONVEYANCE TO GRANTORS.--In addition to the powers | 0014| conferred upon the commission to sell, lease and otherwise dispose of | 0015| waters for the purpose of irrigation, development of power, watering | 0016| of stock or other purposes, the commission shall have power to sell, | 0017| lease and otherwise dispose of waters from its waterworks systems for | 0018| public, domestic, industrial and other uses and for fire protection. | 0019| The commission, after the discharge of all of the bonds issued by the | 0020| commission to finance the construction or acquisition of any works, | 0021| except for hydrographic surveys used by the state engineer for | 0022| determining water rights, and of all interest thereon and costs and | 0023| expenses incurred in connection with any action or proceeding by or on | 0024| behalf of the holders of such bonds, shall reconvey the same to the | 0025| grantors thereof." | 0001| Section 15. APPROPRIATIONS.-- | 0002| A. One million dollars ($1,000,000) is appropriated from | 0003| the irrigation works construction fund to the interstate stream | 0004| commission for expenditure in fiscal years 1998 and 1999 for the | 0005| purpose of conducting hydrographic surveys. Any unexpended or | 0006| unencumbered balance remaining at the end of fiscal year 1999 shall | 0007| revert to the irrigation works construction fund. | 0008| B. Five hundred thousand dollars ($500,000) is | 0009| appropriated from the improvement of the Rio Grande income fund to | 0010| the interstate stream commission for expenditure in fiscal years | 0011| 1998 and 1999 for the purpose of conducting hydrographic surveys. | 0012| Any unexpended or unencumbered balance remaining at the end of | 0013| fiscal year 1999 shall revert to the improvement of the Rio Grande | 0014| income fund. |