Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may also 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

Cisneros

DATE TYPED

2/2/04

HB

 

 

SHORT TITLE

Critical Management Area Administration

SB

366

 

 

ANALYST

Maloy

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

$300.0

 

See Narrative

Recurring

General Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Relates to SB 89 and HB 196.

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

Office of the State Engineer

Environment Department

 

SUMMARY

 

Synopsis of Bill

 

Senate Bill 366 appropriates $300 thousand from the General Fund to the Office of the State Engineer for expenditure in FY05 to administer critical management areas.  Any unexpended or unencumbered balance remaining at the end of FY05 shall revert to the General Fund.

 

            Significant Issues

 

  • This appropriation is intended to support recurring costs within the Office of the State Engineer.  More than 133 FTE, nearly one-third of the Office, perform core recurring functions are supported through special, “non-recurring” appropriations.  The Legislative Finance Committee has recommended finding recurring revenues to support these recurring costs.

 

 

  • Other legislation under consideration (SB 89 and HB 196) attempt to define “critical management area” and give meaning to the “administration” of such areas.  This additional guidance should accompany the appropriation proposed in SB 366.

 

ADMINISTRATIVE IMPLICATIONS

 

The Office of the State Engineer notes:

 

·        The bill does not provide for the recurring funding and continued administration of these Critical Management Areas.  The administration will not cease after one year.

 

·        The absence of the appropriation will only exacerbate the administrative burden and stress of the limited staff within the office of the state engineer.

 

RELATIONSHIP

 

The Environment Department notes:

·        Senate Bill 366 is related to Senate Bill 89 (SB 89) and House Bill 196 (HB 196), both of which refer to Active Resource Water Management.  SB 89 and HB 196 both grant the State Engineer the authority to deny domestic well permits in critical management and contaminated areas.  Senate Bill 366 does not grant the same authority.

 

TECHNICAL ISSUES

 

The Environment Department notes:

·        Senate Bill 366 does not define a “critical management area” or what “administering” these areas means.  Since the appropriation is for a single fiscal year and no goal/outcome is stated (i.e. deny domestic well permits, etc), it can be assumed that “administer” means to merely identify these areas.

OTHER SUBSTANTIVE ISSUES

Other related bills incorporate water quality into the management of critical areas.  Senate Bill 366 does not tie in water quality.  Water quality is equally important in managing water resources.  Approximately 90% of New Mexicans rely on ground water for their drinking water needs.  Once the resource is contaminated it is no longer usable, and extremely expensive, time consuming and often difficult to clean up.

 

SJM/lg