This bill aims to codify the existing practice of allocating severance tax bonding capacity equally among the House of Representatives, the Senate, and the Governor. It establishes a new section in the Severance Tax Bonding Act that mandates the state board of finance to determine the estimated bonding capacity for the year. Once this capacity is established, it will be divided equally among the legislative bodies and their members, ensuring that each entity has an equal share of the bonding capacity.

Additionally, the bill limits the Governor's use of the allocated bonding capacity to state projects or those of statewide or regional significance. This provision is intended to ensure that the funds are directed towards projects that benefit a larger portion of the state, rather than being used for local or less significant initiatives. Overall, the bill seeks to create a more structured and equitable process for the allocation of severance tax bonds in New Mexico.