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committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

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

SPONSOR HENRC

DATE TYPED 3/11/05

HB 293/HENRCS/HFL#1

SHORT TITLE Domestic Well Fees & Impact Fund

SB

ANALYST Aguilar

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$1,300.0

$1,300.0 Recurring Domestic Well

Impact fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HB285, HB 500, SB451

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

$1,300.0

$1,300.0 Recurring Domestic Well Impact

Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Office of the State Engineer (OSE)

SUMMARY

Synopsis of HFL#1

House Floor Amendment #1 to House Energy and Natural Resources substitute for HB 293

Makes technical correction to language and provides that applications to change the place or

purpose of diversion of a valid water right for a domestic well shall not be considered a well

permit application shall be exempt from application and impact fees.

House Bill 293/HENRCS/HFl#1 -- Page 2

Synopsis of Original Bill

House Energy and Natural Resources Committee substitute for House Bill 293 provides for

graduated fees for different types of domestic wells. The committee substitute also creates the

Domestic Well Impact Fund.

HB 293/HENRCS declares an emergency.

Significant Issues

The committee substitute establishes two separate fees; a “well application fee” and a “domestic

well impact fee.” The well application fee would be $200 dollars for a domestic well permitted

for a single household, and $400 dollars for a domestic well permitted to be shared by multiple

households. The separate domestic well impact fee would be $200 dollars for each connection

on a shared well that will serve a subdivision of three or more lots. The domestic well impact fee

would be refunded in the event that the well drilled was not a producing well.

HB 293/HENRCS permits a person who owns a consumptive use right within the same basin as

the proposed well to transfer up to three acre-feet per year of consumptive use and provides that

upon certification by the State Engineer the water is from the same basin the transfer shall be ap-

proved. The committee limits the application fee to be charged for such a transfer to the amount

charged to file an application for a change in place or purpose of use.

The committee substitute establishes the domestic well impact fund into which the fees collected

would be deposited. Money deposited in the fund will be used to purchase water rights to offset

the effects of domestic well pumping in stream corridor areas and for expenses associated with

metering, measuring and administering water using. Money remaining in the fund at the end of a

fiscal year reverts to the general fund.

PERFORMANCE IMPLICATIONS

Existing staffing levels would be able to accommodate implementation.

FISCAL IMPLICATIONS

The appropriation of approximately $1.3 million dollars contained in this bill is a recurring ex-

pense to the Domestic Well Impact Fund. Any unexpended or unencumbered balance remaining

at the end of a fiscal year shall revert to the general fund.

Continuing Appropriations

This bill creates a new fund and provides for continuing appropriations. The LFC objects to in-

cluding continuing appropriation language in the statutory provisions for newly created funds.

Earmarking reduces the ability of the legislature to establish spending priorities.

PA/lg