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

SPONSOR Cervantes

DATE TYPED 03/04/05 HB HJM 86

SHORT TITLE Develop Water System Planning Criteria

SB

ANALYST Ford

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

Minimal

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 9, SB 365

SOURCES OF INFORMATION

LFC Files

Responses Received From

Environment Department (NMED)

Office of the State Engineer (OSE)

SUMMARY

Synopsis of Bill

House Joint Memorial 86 requests the OSE to collaborate with NMED and other agencies to de-

velop criteria for water system planning, performance, and conservation as a condition of state

financing. The resolution calls on the state engineer to report to the appropriate interim legisla-

tive committee by December 1, 2005.

Significant Issues

OSE and NMED both note that funding for water system projects should be based on criteria that

require water systems to meet requirements of the Safe Drinking Water Act, be hydrologically

and fiscally sound, obtain and exercise water rights and implement the best engineering and

managerial solution to the water needs for the system and region. Currently, there is no planning

or strategic focus at the state level that encourages or supports these practices.

House Joint Memorial 86 -- Page 2

OSE and NMED both raise the concern that the December, 2005 deadline may not provide ade-

quate time to finalize the recommendations requested by the resolution. Both agencies note that

the Department of Finance and Administration and the New Mexico Finance Authority should be

involved in developing the recommendations. Both agencies also note that significant coordina-

tion with existing state efforts will be necessary to avoid duplication of effort.

FISCAL IMPLICATIONS

The resolution will require the OSE, NMED and other participating agencies to dedicate staff

resources. Given the short timeframe, the total impact is likely to be minimal.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Senate Bill 9 and Senate Bill 365 both relate to providing better coordination for the funding of

capital projects.

EF/lg