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	Rawson		DATE TYPED	2/17/2004		HB
SHORT TITLE		Investigate Water System Service Areas				SB	SJM 75
					ANALYST		Garcia

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY04	FY05	FY04	FY05
			Minimal	Non-Recurring	General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Regulation Commission

SUMMARY

Synopsis of Bill

The Joint Memorial asks the Public Regulation Commission and the Department of Environment, with cooperation from the State Engineer, to investigate the service areas of municipal, member-owned, investor-owned, and special district water systems. The Joint Memorial also requests the agencies to produce a report by December 1, 2004 to the appropriate interim committee that describes how service areas are developed, identifies potential conflicts and proposes ways to avoid or settle future disputes.

Significant Issues

1) Numerous bills pertaining to creating Water Authorities were considered in the 2004 Legislative session.

2) Utility jurisdiction and powers, as well as Water Authorities have an impact on the state’s overall water policy.

3) The Joint Memorial notes no current statutes exist that strictly identify the separate service areas of various water systems.

4) As water availability continues to be a growing problem and the state’s population continues to grow, jurisdictional disputes over service areas will escalate.

FISCAL IMPLICATIONS

The Joint Memorial may result in minimal fiscal impact to the referenced agencies. The report will require additional research, work, and time to complete from staff of the agencies. As a result, the agencies may need to move a minimal amount of funds to conduct the study or request a Budget Adjustment A uthority for costs of the study. The cost will be minimal and likely can be absorbed by the agencies without any disturbance or BARs.

DG/yr