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F I S C A L I M P A C T R E P O R T





SPONSOR: Madalena DATE TYPED: 02/04/00 HB 446/aHENRC
SHORT TITLE: Placitas Geohydrological Study SB
ANALYST: Pickering


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY00 FY01 FY00 FY01
$ 200.0 Non-Rec General

(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates/Conflicts with/Companion to/Relates to



SOURCES OF INFORMATION



LFC Files

Office of the State Engineer/Interstate Stream Commission (OSE/ISC)



SUMMARY



Synopsis of HENRC Amendment



The House Energy and Natural Resources Committee amended HB446 by deleting language that appropriates the money to the state engineer and included language for the Local Government Division of the Department of Finance and Administration to receive the $200.0 appropriation.



Synopsis of Bill



HB446 appropriates $200.0 from the general fund to Office of the State Engineer (OSE) for expenditure in FY2001 to complete the second phase of a geohydrological study of the Placitas area in Sandoval county. Any unexpended or unencumbered balance remaining at the end of FY2001 shall revert to the general fund.



Significant Issues



OSE reported that it has not received funding in the past to conduct a Phase One geohydrological study of the Placitas area. Accordingly, the agency may not be the appropriate agency to administer the project. OSE reports that the New Mexico Bureau of Mines and Mineral Resources is presently finalizing a geohydrologic study of the Placitas area and may be the appropriate agency to oversee this work if they are conducting Phase One. For OSE to administer the appropriation, information on Phase One would be required including a clear definition of objectives to be achieved.



FISCAL IMPLICATIONS



The bill would appropriate $200.0 from the general fund. OSE contends that monitoring activities may result in recurring costs. HB 446 would increase agency costs, but these could be absorbed. These costs would be minimized by directing funds to the agency conducting Phase One.



ADMINISTRATIVE IMPLICATIONS



OSE will be required to administer the appropriation. No additional FTE would be required.



OTHER SUBSTANTIVE ISSUES



The agency stated that it should receive Phase One funding in order to ensure a good transition into Phase Two.



OSE suggested that HB446 be revised to appropriate funds to the New Mexico Bureau of Mines and Mineral Resources if this agency conducted Phase One.



RWP/njw:gm