SEVERANCE TAX BONDING CAPACITY ALLOCATIONS

SB 514 formalizes how New Mexico allocates severance tax bonding capacity (funds from oil/gas extraction taxes) for capital projects. It requires equal division of remaining bonding capacity among the House, Senate, and Governor after statutory requirements are met. The Governor’s share must fund state assets or projects of statewide or regional significance, restricting its use to major initiatives. This directly affects the Legislature and Governor in distributing funds for infrastructure and public projects.