WATERSHED DISTRICT TAXES AND DIRECTORS

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AN ACT
RELATING TO SPECIAL DISTRICTS; REQUIRING A SOIL AND WATER
CONSERVATION DISTRICT TO LEVY TAXES UPON REQUEST OF A
WATERSHED DISTRICT WITHIN THE SOIL AND WATER CONSERVATION
DISTRICT'S BOUNDARIES; CLARIFYING DEFINITIONS; CLARIFYING THE
PROCEDURE FOR APPOINTING DIRECTORS OF A WATERSHED DISTRICT'S
BOARD OF DIRECTORS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 73-20-2 NMSA 1978 (being Laws 1957,
Chapter 210, Section 2, as amended) is amended to read:
"73-20-2. DEFINITIONS.--As used in the Watershed
District Act:
A. "directors" or "board of directors" means the
directors of a watershed district; and
B. "supervisors" or "board of supervisors" means
the supervisors of a soil and water conservation district in
which the watershed district is located."
SECTION 2. Section 73-20-12 NMSA 1978 (being Laws 1957,
Chapter 210, Section 12, as amended) is amended to read:
"73-20-12. DIRECTORS--APPOINTMENT.--
A. A watershed district shall be governed by a
board of directors appointed by the board of supervisors for
the soil and water conservation district in which the
watershed district is located. Except as provided in
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Subsection C of this section, a board of directors shall
consist of five directors.
B. When appointing the initial directors for a
watershed district, the board of supervisors shall appoint
two members to serve terms of two years and three members to
serve terms of four years. Thereafter, new members appointed
to the watershed district board shall be for terms of four
years. Vacancies occurring before the expiration of a term
shall be filled by appointment for the unexpired remainder of
a term.
C. If the territory embraced within a watershed
district lies within more than one soil and water
conservation district, each soil and water conservation
district having a minority of the land in the watershed
district shall be entitled to appoint three additional
directors. When appointing the additional directors, the
board of supervisors shall appoint one director to serve a
term of two years and two directors to serve terms of four
years. Thereafter, each director shall be appointed for a
term of four years. Vacancies shall be filled by appointment
by the original appointing entity for the remainder of an
unexpired term.
D. The board of directors shall annually elect
from its membership a chair, secretary and treasurer. The
treasurer shall execute an official bond for the faithful
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performance of the duties of office to be approved by the
board of directors. The bond shall be executed with at least
three solvent personal sureties whose solvency shall exceed
the amount of the bond, or by a surety company authorized to
do business in this state, and shall be in an amount
determined by the board of directors. If the treasurer is
required to execute a surety company bond, the premium of the
bond shall be paid by the board of directors.
E. The board of directors shall prepare and submit
to the department of finance and administration such reports
as it may require from among those required to be submitted
by other political subdivisions."
SECTION 3. Section 73-20-13 NMSA 1978 (being Laws 1957,
Chapter 210, Section 13, as amended) is amended to read:
"73-20-13. AUTHORITY.--Subject to the approval of the
board of supervisors, the board of directors of a watershed
district shall have power to:
A. request the board of supervisors to levy an
annual assessment on the real property within the watershed
district, subject to the requirements provided in Subsection
A of Section 73-20-17 NMSA 1978, for administration,
construction, operation and maintenance of works of
improvement within and without the district as are required
by the district in the performance of its functions;
B. acquire by purchase, gift, grant, bequest,
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devise or through condemnation proceedings in the manner
provided in the Eminent Domain Code property or rights of way
necessary for the exercise of any authorized function of the
district; provided that no property or water rights shall be
condemned for the purposes of recreation;
C. construct, improve, operate, contract for and
maintain such structures as may be necessary for the
performance of any function authorized by the Watershed
District Act;
D. borrow money necessary for the purpose of
acquiring rights of way and establishing, constructing,
reconstructing, repairing, enlarging and maintaining the
structures and improvements required by the district in the
performance of its functions and repay these loans with the
proceeds of the annual assessment provided for in Subsection
A of this section or by the issuance, negotiation and sale of
its bonds as provided in Section 73-20-14 NMSA 1978; and
E. receive and grant assistance and cooperate with
counties, municipalities and state and federal agencies in
carrying out the provisions of the Watershed District Act."
SECTION 4. Section 73-20-15 NMSA 1978 (being Laws 1961,
Chapter 233, Section 3, as amended) is amended to read:
"73-20-15. LOANS--REPAYMENTS.--
A. In addition to the borrowing of money by the
issuance of bonds for the purposes set out in Section
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73-20-13 NMSA 1978, the district may borrow money from the
United States department of agriculture or any other federal
agency if the loan can be repaid according to its terms by
use of the levy authorized by Subsection A of Section
73-20-17 NMSA 1978 and the board of supervisors has so
determined.
B. The district may also borrow money from the
United States department of agriculture or any other federal
agency if the loan can be repaid according to its terms by
use of the levy authorized by Subsection B of Section
73-20-17 NMSA 1978."
SECTION 5. Section 73-20-17 NMSA 1978 (being Laws 1957,
Chapter 210, Section 16, as amended) is amended to read:
"73-20-17. BUDGETS--TAX LEVY--LIMITATION.--
A. Within the first quarter of each calendar year,
the board of directors shall prepare an itemized budget of
the funds needed for administration, construction, operation
and maintenance of works of improvement and submit the budget
to the board of supervisors for approval. After approval of
the budget, the board of supervisors shall, by order or
resolution, levy an assessment sufficient to meet the budget,
not to exceed five dollars ($5.00), or any lower maximum
amount required by operation of the rate limitation
provisions of Section 7-37-7.1 NMSA 1978 upon the assessment
authorized by this section, on each one thousand dollars
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($1,000) of net taxable value, as that term is defined in the
Property Tax Code, of all real property subject to taxation
within the district, except that the limit on assessments
does not apply to any levy necessary to provide a sinking
fund for retirement of bonds authorized by Section 73-20-13
NMSA 1978. If a watershed district lies within more than one
soil and water conservation district, the board of
supervisors in each soil and water conservation district
shall approve of the budget submitted by the watershed
district before an assessment may be levied pursuant to this
subsection. A copy of the budget and order or resolution
shall be certified to the county assessor of the county or
counties involved and to the department of finance and
administration by July 15 of each year.
B. Upon receipt of a resolution adopted and
submitted by the board of directors, the board of supervisors
shall levy an assessment not to exceed five dollars ($5.00)
on each one thousand dollars ($1,000) of net taxable value,
as that term is defined in the Property Tax Code, of property
subject to taxation by the board of supervisors, in addition
to the levy authorized by Subsection A of this section, to
repay the loan if the board of supervisors approves of the
levy and:
(1) a referendum on the acceptance of the
loan for specified purposes is held by the board of
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supervisors;
(2) two-thirds of the landowners vote in
favor of the proposal; and
(3) the procedures of the Local Election Act
or the Special Election Act as well as local government
ballot question election provisions in the Election Code are
followed as to notice, qualifications of voters and manner of
holding a tax authorization election are followed in the
referendum held pursuant to this subsection."
SECTION 6. Section 73-20-18 NMSA 1978 (being Laws 1957,
Chapter 210, Section 17, as amended) is amended to read:
"73-20-18. ASSESSMENT LISTS.--
A. The board of directors shall prepare a list of
the landowners within the defined boundaries of the watershed
district in each county involved showing the number of acres
subject to assessment and deliver it to the county assessor
of the county involved. The assessor shall indicate the
information on the tax rolls.
B. The county assessor shall compute the
assessment due the district from each landowner in accordance
with the rate fixed by the board of supervisors and the value
of the real property indicated on the tax roll. The
computation shall be made on the regular tax bills in the
manner as may be directed by regulation of the property tax
division of the taxation and revenue department."
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SECTION 7. Section 73-20-20 NMSA 1978 (being Laws 1957,
Chapter 210, Section 19, as amended) is amended to read:
"73-20-20. EXPENDITURES.--Assessment funds collected
shall be transferred to and held by the treasurer of the
watershed district for the specific purpose for which they
have been collected. All expenditures of such funds shall be
made by the board of directors upon order and approval of the
board of supervisors of the soil and water conservation
district involved."
SECTION 8. Section 73-20-45 NMSA 1978 (being Laws 1965,
Chapter 137, Section 19, as amended) is amended to read:
"73-20-45. SPECIFIC POWERS OF DISTRICTS.--A district,
by and through its supervisors, is authorized to:
A. sue and be sued in the name of the district;
B. adopt an official seal;
C. contract, convey and make and execute other
instruments and documents necessary or convenient to the
exercise of district powers;
D. borrow money and otherwise contract
indebtedness for the purposes of the district and, without
limitation of the generality of the foregoing, borrow money
and accept grants from the United States or from a
corporation or agency created or designated by the United
States and, in connection with any such loan or grant, enter
into agreements as the United States or the corporation or
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agency may require; and issue its notes or obligations
therefor and secure the payment thereof by mortgage, pledge
or deed of trust of all or any of its property, assets,
rights, privileges, licenses, rights of way, easements,
revenues or income;
E. option, as optionee and optioner, and acquire,
in any manner, real and personal property or any right or
interest in it;
F. improve, rent, lease and sell district property
or any interest in it;
G. receive, invest and reinvest rents and income
from district property and expend rents and income for
district purposes;
H. accept contributions, gifts and donations and
expend and utilize them to further district purposes; and
I. levy a tax upon request of a watershed district
pursuant to the provisions of Section 73-20-17 NMSA 1978."