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HB 146 : SEVERANCE TAX FUND BONDING & PROJECT LIMITS

An Act Relating To Public Finance; Sustaining The Severance Tax Permanent Fund By Limiting The Overall Bonding Capacity For Severance Tax Bonds And Supplemental Severance Tax Bonds; Limiting The Percentage Of The Estimated Severance Tax Bonding Capacity Allocated For Water Projects, Colonias Infrastructure Projects And Tribal Infrastructure Projects; Limiting The Percentage Of Water Project Adjudication Funds Allocated To The State Engineer And The Administrative Office Of The Courts; Annually Transferring Money From The Severance Tax Bonding Fund To The Severance Tax Permanent Fund Based On Previous Severance Tax Revenues; Adding A Definition.

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MOD HB 146
SEVERANCE TAX FUND BONDING & PROJECT LIMITS

Legislative URL:
HB 146 on nmlegis.gov
Emergency Clause:
No
Germane:
N/A
Location:
H Flr
Action:
HPREF [5] HHGIC/HTRC/HAFC-HHGIC [13] DP-HTRC- DP-HAFC- DNP-CS/DP API.
Issue(s):
,

Related Legislators

Bill Sponsor:

Related Documents

Downloads:
Introduced
HHGIC Committee Report
HTRC Committee Report
HAFC Committee Report
HAFC Committee Substitute
Fiscal Impact Report
Summary

This piece of legislation makes several changes to the Severance Tax Bonding Act and the Water Project Finance Act. It limits the bonding capacity for Severance Tax Bonds and Supplemental Severance Tax Bonds and the portions of the bonding capacity allocated for water projects, colonias and tribal infrastructure projects. It also reduces certain allocations from the Water Project Fund.

 

The reductions in capacity allocations include:

  • The allocation for water projects is reduced from 10% to 8.5%
  • The allocation for tribal infrastructure projects is reduced from 5% to 4%
  • The allocation for colonias infrastructure projects is reduced from 5% to 4%

 

The bill reduces from 10% to 7% the percentage of Water Project funds dedicated to the State Engineer for water rights adjudications. It reduces from 20% to 15% the percentage allocated to the Administrative Office of the Courts for the courts’ costs associated with water rights adjudications.

 

One benefit of this bill might be that it could help to ensure that the State sustains its Severance Tax Permanent Fund for the long run. One drawback might be that less funding will be available for projects that the State currently needs.

 

Date of Summary:  1/23/2014

Outcome:

HB 146 died on the House Floor Calendar.

Updated 7/31/14