WATERSHED DISTRICT TAXES AND DIRECTORS, the official text

HOUSE BILL 108

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Rebecca Dow and Susan K. Herrera

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 [the] a watershed [districts] district; and

[B. "minority jurisdiction district" means a soil
and water conservation district that has within its
jurisdiction a minority of the land in a watershed district;
and

C.] B. "supervisors" or "board of supervisors"
means the supervisors of a soil and water conservation
[districts] 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 Subsection C of
this section, a board of directors shall consist of five
directors [provided that, when available, one director shall be
a current or former elected director of the watershed
district].

B. When appointing the initial directors for a
watershed district, [a] 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 [appointments]
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 [minority jurisdiction district shall be
entitled to appoint three additional directors] 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, [a] 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, [new directors] each
director shall be appointed for [terms] a term of four years.
[All] Vacancies shall be filled by appointment by the [minority
jurisdiction districts] 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 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, [within the limitations] 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,
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 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 [and 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 district, in addition to
others authorized by the Watershed District Act, to repay the
loan if the board of directors determines the rate of the levy
required and:

(1) secures the approval of the board of
supervisors;

(2) a referendum on the acceptance of the loan
for specified purposes is held;

(3) two-thirds of the landowners voting favor
the proposal; and

(4) the procedures of Sections 73-20-8 through
73-20-11 NMSA 1978 as to notice, qualifications of voters and
manner of holding referendum election are followed in the
referendum held under this section] 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 [by the board of supervisors], the board of [directors]
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 ($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 supervisors;

(2) two-thirds of the landowners vote in favor
of the proposal; and

(3) the procedures of Sections 73-20-8 through
73-20-11 NMSA 1978 as to notice, qualifications of voters and
manner of holding a referendum 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 [directors] 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."

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
approved by the] board of supervisors of the soil and water
conservation district [or districts] 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 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; [and]

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."

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