Proposal would direct infrastructure aid to land grants and acequias

The land grant council and interstate stream commission would set application rules and provide grants; the project funds could also make loans. Eligible applicants are land grants designated as political subdivisions and acequias organized as political subdivisions. The council would handle land grant-merced projects, and the commission would handle acequia projects. Each agency would set project terms and priorities. A land grant or acequia would have to apply to the relevant agency before asking the legislature for capital outlay money for that project. If it became law, the bill's provisions would take effect July 1, 2026.

The state would create a trust fund and divide its annual distributions between separate land grant and acequia project funds. The project funds would support qualifying infrastructure projects for land grant-mercedes and acequias. The trust fund could not be spent directly; money would go to the two project funds. Usually, a distribution would be made if the trust fund balance at fiscal year-end exceeded $5 million. A different formula would apply if, on July 1, 4.7 percent of the average year-end balance for the prior five calendar years exceeded $5 million. If it became law, the fund provisions would take effect July 1, 2026. The bill sets distribution calculations at fiscal year-end and on July 1.

The state would allocate part of its estimated severance tax bond capacity to land grant-merced and acequia infrastructure projects. The allocations would support land grant-merced projects approved by the council and acequia projects approved by the interstate stream commission. The division would allocate 1.1 percent of estimated bond capacity to each project category. The state board of finance could issue bonds up to the authorized amounts after the relevant agency certifies a need. Bond proceeds would go to the respective project funds. The allocations would apply before July 1, 2032. If it became law, the provisions would take effect July 1, 2026.