State of New Mexico
                    House of Representatives
  
                    FORTY-SECOND LEGISLATURE
                      SECOND SESSION, 1996
  
  
                                               February 8, 1996
  
  
  Mr. Speaker:
  
     Your AGRICULTURE AND WATER RESOURCES COMMITTEE, to
  whom has been referred
  
                         HOUSE BILL 727
                                 
  has had it under consideration and reports same with
  recommendation that it DO PASS, amended as follows:
  
     1.  On page 1, line 13, strike "REPEALING" and insert in lieu
  thereof "AMENDING".
  
     2.  On page 1, line 14, strike "SECTIONS 2 AND 3" and insert in
  lieu thereof "SECTION 2".
  
     3.  On page 14, between lines 21 and 22, insert the following
  to read:
  
     "Section 8.  Laws 1991, Chapter 99, Section 2 is amended to
  read:
  
     "Section 2.  APPROPRIATIONS--CONDITIONS.--
  
          [A.  Subject to the conditions set forth in Subsection B
  of this section] The following amounts are appropriated to the
  interstate stream commission as follows:
  
               (1)  one million dollars ($1,000,000) is
  appropriated from the New Mexico irrigation works construction fund
  for expenditure in the eighty-first fiscal year for the purpose of
  purchasing water rights along the Pecos River basin that would
  effectively aid the state in complying with the Pecos River Compact
  and the United States supreme court's amended decree in Texas v. New
  Mexico, No. 65 original;
  
               (2)  two million dollars ($2,000,000) or fifty
  percent of the New Mexico irrigation works construction fund,
  whichever is more, is appropriated each of the eighty-second through
  the eighty-sixth fiscal years from the New Mexico irrigation works
  construction fund for expenditure in each of the eighty-second
  through the eighty-sixth fiscal years for the purpose of retiring
  water rights along the Pecos River basin that would effectively aid
  New Mexico in compliance with the United States supreme court's
  amended decree in Texas v. New Mexico, No. 65 original [and
  
          B.  The appropriations set forth in Subsection A of this
  section are subject to the following conditions:
  
               (1)  the interstate stream commission shall review
  the expenditures of the appropriation made in Subsection A of this
  section, at each of the interstate stream commission's regularly
  scheduled meetings or as it deems necessary throughout the seventy-ninth through eighty-sixth fiscal years.  This review shall be based
  on, at a minimum, the conditions set forth in this section;
  
               (2)  the interstate stream commission shall only
  expend the money appropriated in Subsection A of this section,
  subject to the following schedule of priorities in the following
  order of importance:
  
                    (a)  to purchase water rights, without
  purchasing the appurtenant land, from willing and able sellers,
  within the Pecos River basin;
  
                    (b)  to purchase water rights with the
  appurtenant land within the Pecos River basin; and
  
                    (c)  to purchase water, either surface or
  subsurface, within the Pecos River basin; and
  
               (3)  the interstate stream commission shall before
  any purchases are made using the money appropriated in Subsection A
  of this section have market evaluations or appraisals made that take
  into consideration recent and comparable sales, including but not
  limited to, sales that included surface acreage with and without
  improvements.  The market evaluation or appraisal along with other
  relevant considerations shall be the basis for any purchases]."".
  
     4.  On page 14, strike lines 22 and 23 in their entirety.,
  
  and thence referred to the TAXATION AND REVENUE
  COMMITTEE.
  
                              Respectfully submitted,
  
  
  
                                                               
                              G. X. McSherry, Chairman
  
  
  Adopted                          Not Adopted                       
          (Chief Clerk)                       (Chief Clerk)
  
                       Date             
  
  The roll call vote was 5  For 0  Against
  Yes:         5
  Excused:     Casey, Porter, Stell, Townsend
  Absent: None
  
  
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  H0727AG1