NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

State Engineer Office/Interstate Stream Commission

LFC Files

SUMMARY

Synopsis of Bill

House Bill 199 appropriates $25.0 from the general fund to the New Mexico Office of Indian Affairs to fund a facilitator for water rights negotiations between the state and the Navajo Nation regarding water in the San Juan river basin.

Significant Issues

For over the past two years, negotiations have been ongoing between that state and the Navajo Nation regarding claims of the Navajo Nation on certain water rights. The negotiations have occurred in order to avoid expensive and lengthy litigation. According to the State Engineer, both parties agree that a facilitator is necessary to help guide and support the negotiations to a conclusion that does not involve litigation. The costs associated with a facilitator are minor when compared to costs of lengthy litigation.

FISCAL IMPLICATIONS

The bill appropriates $25.0 for fiscal years 2001 and 2002 from the general fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2002 shall revert to the general fund.

ADMINISTRATIVE IMPLICATIONS

The administrative implications on the agency are minimal. The Office of Indian Affairs would need to contract with a facilitator in order to fulfill the requirements of the appropriation.

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