NOTE: As provided in LFC policy, this report is
intended only 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 for
other purposes.
The most recent FIR
version (in HTML & Adobe PDF formats) is available on the Legislative
Website. The Adobe PDF version includes
all attachments, whereas the HTML version does not. Previously issued FIRs and attachments may be
obtained from the LFC in
|
SPONSOR: |
Nunez |
DATE TYPED: |
|
HB |
403/aHJC |
||
|
SHORT TITLE: |
Create Special Water Users’ Associations |
SB |
|
||||
|
|
ANALYST: |
|
|||||
APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
|
FY03 |
FY04 |
FY03 |
FY04 |
|
|
|
|
NFI |
|
|
|
|
Duplicates SB 373
SOURCES OF INFORMATION
Responses
Received From
Office
of the State Engineer (OSE)
Department
of Agriculture (DA)
Public
Regulation Commission (PRC)
Environment
Department (ED)
SUMMARY
Synopsis
of HJC Amendment
Synopsis
of Original Bill
House Bill 403 establishes a process for the
leasing of water from irrigation projects to municipalities and other public
and semi-public entities, in a manner which provides for less oversight by the
Office of the State Engineer than applies to other changes in the use of water
rights, and which requires approval by the project board of directors.
HB 403 amends the State water code, Section
73-10-48, and sets forth in detail the procedures for addressing changes in
water use that are associated with a lease of water rights by a municipality or
other public or semi-public entity from an irrigation district. Special users associations may be established
by the interstate stream commission with the approval of the irrigation district,
and the association may lease the use of an annual allotment of project water
directly from a member of the district or through the district. The association will be responsible for assessments
and other obligations of a water-rights owner.
The district may take actions appropriate to its responsibilities in the
leasing program. Leases are identified
as having the particular purposes of supplying water to a water treatment plant
that serves municipal and industrial uses, or of meeting interstate delivery
requirements of project water to
The OSE must adopt rules that establish criteria governing water rights changes associated with these leases. Specific changes will be processed in conformance with these rules, and the OSE's determination will be set forth by public notice. A procedure is established for persons who own rights within the irrigation district and who object to the OSE's determination. Once the OSE's decision is final, the irrigation district may then proceed through its approval process, which also involves a notice and protest procedure for members of the district. This Section also provides for required filings with the state engineer by the organizers of a special water users' association, and sets forth provisions relating to the organization of such associations.
Additional components of HB 403 include: the special water users associations among
the public and semi-public water supply entities whose water rights are
afforded 40-year protection afforded by Section 72-1-9; exempt leases to
special water users associations from the provision by which a person aggrieved
by an action of the OSE (or refusal to act) may request a hearing to review
said action, and cannot undertake a de novo appeal to the District Court
without having requested a hearing; and establishes a new Section B in 72-6-5
which gives the Board of Directors of an irrigation project authority to
approve a lease of water from the project if the lease is determined by the State
Engineer to conform to rules established under HB 403.
Significant
Issues
The intent of this legislation is to provide a
means by which water rights in an irrigation project, especially the Elephant
Butte Irrigation District, can be made available to
municipal-type uses, such as the City of
To accomplish these objectives, the conventional
jurisdiction of the OSE has been restricted.
Rather than review each lease on its specific terms, as would be done in
other circumstances, the OSE is to establish criteria for such reviews through
a rule-making procedure, and to then apply these criteria to specific
transactions such that a transaction that meets the criteria will be approved. While any member of the public may
participate in the rule making, only irrigation district members will have
standing to object to the OSE 's interpretation of the
rules with respect to a particular change in water rights, and then only with
specified limits as to the grounds for an objection. In effect, then, once the OSE 's rules are
set forth, all transactions that fit the template of the approved criteria will
be subject to the authority of the irrigation project board of directors. The concept of using predetermined criteria
for approval or disapproval of a water rights change is not new, but has not
been done in the context of an irrigation project.
FISCAL IMPLICATIONS
There will be costs associated with the
Engineer's rule-making procedures, but once the rules are in place, the SEO's
responsibilities will be substantially less extensive than would otherwise be
the case.
ADMINISTRATIVE IMPLICATIONS
The SEO can comply with the requirements of HB
403 with existing staff resources.
DUPLICATION
HB 403 is a duplicate of SB 373
TECHNICAL ISSUES
The PRC notes that the definition of a “public utility” found on page 8 of HB 403 can be confused with the “public utility” that is regulated by the PRC. If the “public utility” referred to in SB 373 is not intended to be regulated by the PRC, this should be clarified.
DW/ls/njw