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

SPONSOR Lujan, B

DATE TYPED 02/24/05 HB HJM 44

SHORT TITLE Water Conservation and Infrastructure Financing

SB

ANALYST Ford

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

Minimal – see

narrative

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

New Mexico Department of Agriculture

Energy, Minerals and Natural Resources Department (EMNRD)

Office of the State Engineer (OSE)

New Mexico Environment Department (NMED)

New Mexico Finance Authority (NMFA)

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

House Joint Memorial 44 creates the water conservation and infrastructure task force which

shall, in consultation with the technical advisory team, gather and distill information, develop

strategic options and adopt recommendations for a strategic water conservation and infrastruc-

ture financing and administration plan that will promote the state’s economy, natural resources

and quality of life. The resolution specifies certain areas and questions for the task force to ad-

dress.

The task force shall be comprised of 18 members and assisted by a technical advisory team

whose staff will be drawn from several state bodies. The task force shall consist of 4 members

appointed by the governor, one of which the governor shall designate as chair, six members of

House Joint Memorial 44 -- Page 2

the legislature (3 appointed by the speaker of the house of representatives and 3 by the president

pro tempore of the senate), and 8 members of the public appointed by the New Mexico legisla-

tive council representing specified various interests.

The task force shall submit a report of its findings and recommendations to the governor and leg-

islature no later than December 1, 2006.

Significant Issues

The NMED writes, “Currently there is no coordination between funding agencies or the legisla-

ture regarding water conservation and infrastructure programs. The current situation allows for

inefficient use of resources, duplication of efforts, and fails to promote coordination between wa-

ter agencies in the same region. The proposed task force would investigate ways to correct this

situation. A state water plan has been developed by the OSE and water conservation recommen-

dations have been developed by the drought task force. New efforts should capitalize on past

work.”

FISCAL IMPLICATIONS

The resolution will result in increased workload to the various agencies designated for the tech-

nical advisory team. NMED, EMNRD and TRD indicate that increased requirements are mini-

mal and can be absorbed. In its revised analysis, OSE writes that the memorial will have no fis-

cal impact.

ADMINISTRATIVE IMPLICATIONS

The resolution will result in increased administrative efforts for the agencies participating on the

technical advisory team.

TECHNICAL ISSUES

Department of Agriculture writes that the Economic Development Department should be consid-

ered for representation on the technical advisory team and the Soil and water Conservation Dis-

tricts should be considered for representation the task force.

NMED writes, “Review of existing water statutes should be conducted, to enable the task force

to make recommendations for further planning and study of any needed modification/updating of

existing laws or the recommendation for enactment of needed legislation. Specifically, the re-

view should identify all existing organizational structures for water entities so their strengths and

weakness and ability to accept funding can be evaluated.”

EF/sb