Proposal would fund infrastructure for land grants and acequias

The Land Grant Council and Interstate Stream Commission would set rules and provide infrastructure assistance. Eligible applicants would be land grants-mercedes and acequias organized as political subdivisions. The council would handle land grant-merced projects; the commission would handle acequia projects. Projects must qualify under rules set by the responsible body. Funding would depend on available money. The council and commission would have to adopt application and project-selection rules by July 1, 2027.

The state would direct certain short-term severance tax bond capacity to a shared trust fund for land grant-merced and acequia projects. The trust fund would support approved land grant-merced and acequia infrastructure projects. The allocation would apply only if short-term bond capacity remained after other allocations and the trust fund balance was below $175 million. Bond issuance would require the responsible body to certify a need for the projects it oversees. The allocation would apply from July 1, 2026, through June 30, 2031.

Land grants and acequias would have to apply to their assigned body for project funding before seeking a legislative capital outlay appropriation. This would apply to land grants-mercedes and acequias seeking legislative capital outlay money for a qualifying project. When asking lawmakers for money, the applicant would have to show a funding need, including proof of its application to the council or commission. The application to the council or commission would have to come before the request for a legislative capital outlay appropriation.