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 Suite 101 of the State Capitol Building North.

 

 

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

 

 

 

SPONSOR:

Tsosie

 

DATE TYPED:

2/25/03

 

HB

 

 

SHORT TITLE:

Navajo Nation Highway Grant Easements

 

SB

798

 

 

ANALYST:

Reynolds-Forte

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

 

 

Indeterminate See Fiscal Implications

Recurring

State Road Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

Responses Received From

State Highway and Transportation Department

 

SUMMARY

 

     Synopsis of Bill

 

SB 798 requires the State Highway and Transportation Department to grant easements for extending water or utility lines, or other beneficial uses that do not conflict with use of land as a highway, upon request by the Navajo Nation.

 

Significant Issues

 

SB 798 requires, rather than simply authorizes, the State Highway and Transportation Department to grant the easement rather than a use permit.

 

Use of the wording “shall grant an easement” may be construed as imposing a mandatory duty to issue such permits, exempting only the Navajo Nation from the current permitting process.  This reduces the Department’s ability to impose limitations on such permits to further the safety of utility uses on Department right-of-way.

 

 

FISCAL IMPLICATIONS

 

SB 798 could result in an increase in costs for the re-construction of highways.  Current practice is for the Department to issue permits for utility uses.  SB 798 requires the granting of an easement.  On occasion, highway re-construction can require the Department to require utility users to re-locate their utility lines.  If the Department were to issue an easement, as SB 798 requires, extinguishments of an easement would require compensation since an easement is a compensible interest in real property.  The permits issued by the Department for utility use are not compensible.  Consequently, issuing easements rather the permits would result in increased costs for the re-construction of highways having such easements.

 

ADMINISTRATIVE IMPLICATIONS

 

SB 798 would remove current discretion of the State Highway and Transportation Department grant entities permission to use right-of-way for utility purposes.

 

OTHER SUBSTANTIVE ISSUES

 

Current law includes statutory language setting forth the policy of the State Highway and Transportation Department (Department) toward granting utilities permission to use Department right-of-way, expressing broadly framed support for such use, providing, “Public highways are intended principally for public travel and transportation; but they are also intended for proper utility uses in serving the public, as authorized pursuant to the laws of this state, and such utility uses are for the benefit of the public served.  Without making use of public ways utility lines could not reach or economically service the adjacent public, particularly in urban areas.”  NMSA 1978 sec.67-8-15B (1959). 

 

Pursuant to this policy, the Department has established a system to grant permits to entities which choose to use Department right-of-way for utility purposes.  Current regulations provide a system for application for such permits.  The Department has issued such permits to entities of the Navajo Nation government such as the Navajo Tribal Utility Authority and the Navajo Housing Authority.  Therefore, the need for statutory authority to allow use of Department right-of-way by tribal entities for utility purposes is not apparent.

 

SB 798 does not depart from current practice except in its use of the word “shall” to describe the Department’s obligation to grant a utility use permit.  Current practice allows the issuance of a permit to be at the discretion of the Department to accommodate safety and compatibility concerns.

 

PRF/njw