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

 

 

 

SPONSOR:

Lundstrom

 

DATE TYPED:

01/30/03

 

HB

204

 

SHORT TITLE:

Water Rights Adjudications

 

SB

 

 

 

ANALYST:

Chabot

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

 

 

$.01

(See Narrative)

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

Office of the State Engineer (OSE)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 204 amends Section 72-4-15 NMSA 1978 to add B that would allow for alternative dispute resolution (ADR) for water rights determinations.  This would be pursuant to the Governmental Alternative Dispute Resolution Act.  Technical experts and witnesses would be allowed to participate.

 

     Significant Issues

 

OSE states that this bill would mandate alternative dispute resolution in water rights adjudications.  The language does not appear to be mandatory, but opens up alternative dispute resolution as an option to the water rights claimant.

 

OSE also states that this bill could impose a considerable additional burden to mediate or facilitate a large number of subfiles within the adjudications.  OSE does feel that adjudication is appropriate in the larger adjudication involving Native American claims and acequias.

 

OSE reports that to initiate an adjudication, the case must be filed with the district court and the judge will have jurisdiction and decide how the case will be handled.  The courts already have the authority to determine whether alternative dispute resolution is important.

 

FISCAL IMPLICATIONS

 

If all individuals involved in a water rights adjudication elect to pursue alternative dispute resolution, there could be a significant savings.  However, since a legal decision is required to finalize an adjudication, if any individuals elects not to participate, the ADR efforts may not be recognized by the district court judge.  In addition, the bill does not specify who or what agency is responsible for funding the ADR effort.

 

OSE states there will be significant costs (not quantified) in using alternative dispute resolution.

 

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

 

OSE reports the bill conflicts with the provisions of the Governmental Dispute Resolution Act, Section 128A-3(A) that states “An agency may use an alternative dispute resolution procedure to resolve and dispute, issue or controversy….Alternative dispute resolution procedures are voluntary and may be used at the discretion of the agency.”

 

TECHNICAL ISSUES

 

OSE recommends amending page 2, line 16-17 by striking “the attorney general or the office of the state engineer” and inserting “the attorneys for the State of New Mexico”.

 

POSSIBLE QUESTIONS

 

  1. How will ADR speed up the water rights adjudication process?
  2. What is the impact on a basin-wide adjudication if one applicant does not what to participate in the ADR process?

 

GAC/njw:sb