A. There is created a fund to be known as the "New Mexico irrigation works construction fund", which shall consist of the income creditable to the permanent reservoirs for irrigation purposes income fund not otherwise pledged under Section 72-14-19 NMSA 1978 and all other money that may be appropriated by the legislature to the construction fund. The fund shall be a continuing fund and shall not revert to the general fund or to any other fund.

B. Annually, one million dollars ($1,000,000) shall be distributed from the New Mexico irrigation works construction fund to the forest land protection revolving fund.

C. The cost of investigations and construction as authorized in Section 72-14-11 NMSA 1978 shall be paid from the New Mexico irrigation works construction fund and also the cost of all preliminary work on any project, and all expenses directly chargeable to such project, prior to the receipt of the proceeds of bonds, shall be paid from the construction fund. The amount of all such expenses on account of any project and such part of the general administrative expenses of the commission and the cost of investigation as shall be properly chargeable, in the opinion of the commission, to such project shall be reimbursed to the construction fund upon the receipt of the proceeds of bonds issued for such project. No liability or obligation shall be incurred under the provisions of Sections 72-14-9 through 72-14-28 NMSA 1978 beyond the extent to which the money has been provided under the authority of those sections. All public and private property damaged or destroyed in carrying out the powers granted under those sections shall be restored or repaired and placed in its original condition, as nearly as practicable, or adequate compensation made therefor out of funds provided by those sections.

D. The commission shall also have authority to pay the cost of such investigations and construction on any project from the New Mexico irrigation works construction fund when contracts in form satisfactory to it have been entered into whereby title to works have been mortgaged, deeded, assigned or transferred by the owner to the commission, and a program for reimbursement of all amounts expended, together with operation and maintenance charges, have been agreed upon; provided that no construction contract shall be entered into without the prior approval of the state board of finance. The commission shall also have authority to receive and accept appropriations and contributions from any source of either money or property or other things of value to be held, used and applied for the purposes provided in Sections 72-14-9 through 72-14-28 NMSA 1978.

History: 1953 Comp., § 75-34-23, enacted by Laws 1955, ch. 266, § 15; 1957, ch. 63, § 2; 1959, ch. 276, § 1; 2019, ch. 62, § 9; 2019, ch. 169, § 2.

2019 Multiple Amendments. — Laws 2019, ch. 62, § 9, effective June 14, 2019, and Laws 2019, ch. 169, § 2, effective July 1, 2020, enacted different amendments to this section. Laws 2019, ch. 62, § 9, effective June 14, 2019, is set out above. The provisions of Laws 2019, ch. 169, § 2, as reconciled with Laws 2019, ch. 62, § 9, become effective July 1, 2020. See section that follows.

Laws 2019, ch. 62, § 9 [set out above], effective June 14, 2019, made a distribution from the New Mexico irrigation works construction fund to the forest land protection revolving fund, and revised certain statutory citations; added Subsection B and new subsection designations "C" and "D"; and in Subsection D, after "project from", added "the New Mexico irrigation works", and after "for the purposes provided", added "in Sections 72-14-9 through 72-14-28 NMSA 1978".

Construction of "reservoir," "establishment". — Irrigating lands of New Mexico is the prime objective. To this end, establishment of artificial reservoirs and utilization of water stored naturally is necessary. The grant was not intended to restrict word "establish" to construction of reservoirs or to qualify word "reservoirs" by adjective "artificial" as opposed to the utilization of waters stored naturally. There is no reason for distinguishing between waters stored naturally and waters taken directly from their natural source. A reasonable meaning of the restriction in the grant is that it is to provide funds for establishment of permanent sources of water for irrigation purposes. The term "establishment" as used in the Ferguson Act of June 21, 1898, 30 Stat. 434, includes permanent regulation of use of water stored naturally or coming directly from natural sources, as well as establishment of other permanent reservoirs. State ex rel. Interstate Stream Comm'n v. Reynolds, 1963-NMSC-023, 71 N.M. 389, 378 P.2d 622.

Irrigation funds. — Under Sections 19-1-17 and 19-1-18 NMSA 1978, there were established permanent reservoirs for irrigation purposes, permanent fund, and permanent reservoirs for irrigation purposes, income fund. Subsequently, this section establishes the New Mexico irrigation works construction fund, to consist of the income creditable to the income fund above noted and such other moneys as may be appropriated thereto by the state legislature. State ex rel. Interstate Stream Comm'n v. Reynolds, 1963-NMSC-023, 71 N.M. 389, 378 P.2d 622.

Appropriations out of trust lands income fund. — Appropriations made to state engineer from irrigation works construction fund which consisted solely of moneys from the permanent reservoirs for irrigation purposes income fund accruing from the trust lands set aside by congress under the Ferguson Act of June 21, 1898, 30 Stat. 434, are within fundamental purpose and reasonable meaning of the trust grant "for the establishment of permanent water reservoirs for irrigation purposes." State ex rel. Interstate Stream Comm'n v. Reynolds, 1963-NMSC-023, 71 N.M. 389, 378 P.2d 622.

Use of underground water for irrigation. — Congress has expressed no preference for surface reservoir as against one underground. If underground water can, by pumping or by utilizing artesian pressure, be made to serve the ends of irrigation, such water comes within the language of the trust as the waters of surface streams. If it were proposed to construct a huge surface reservoir, to be supplied wholly by pumping from underground sources, the practicability of the scheme might be doubted; but it would be difficult to show its illegality - the only respect in which it may be questioned. To discover and make available an underground basin serves the same purpose, is practicable and is well within the broad meaning of establishment. The same practical methods of making available waters of the Pecos river to serve the ends of irrigation apply as well to the utilization of surface waters from their sources and come within the broad meaning of establishment. State ex rel. Interstate Stream Comm'n v. Reynolds, 1963-NMSC-023, 71 N.M. 389, 378 P.2d 622.

Loan to an artesian conservancy district of funds which would in turn be loaned to landowners for water conservation work within district is authorized under this act. 1958 Op. Att'y Gen. No. 58-169.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 78 Am. Jur. 2d Waterworks and Water Companies §§ 2 to 4.

94 C.J.S. Waters §§ 22, 59.