N.M. Stat. § 72-20-35
Dissolution of authority.
If a petition is received pursuant to Section 7 [72-20-7 NMSA 1978] of the Eastern
Sandoval County Arroyo Flood Control Act denying the board the power to acquire a
flood control system or if the first proposal for the issuance of bonds fails to receive a
favorable vote by a majority of the qualified electors voting on the proposal, the board
shall proceed to dissolve the authority.