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

SPONSOR Papen

DATE TYPED 3/3/05

HB

SHORT TITLE State Engineer Payment of Water Masters

SB 832

ANALYST Aguilar

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$630.0 Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates HB 962

SOURCES OF INFORMATION

LFC Files

Responses Received From

Office of the State Engineer (OSE)

SUMMARY

Synopsis of Bill

Senate Bill 832 provides for the payment of water masters appointed by the State Engineer with-

out a request of the majority of members of a water district.

Significant Issues

SB 832 provides the State Engineer may request that counties affected by water rights admini-

stration pay for the compensation and expenses of a water master only if a majority of the mem-

bers of a district have requested the appointment of such a water master.

Current statute allows the state engineer to charge the salary and expenses of the water master to

the counties affected by water right administration whether he has appointed a water master by

request of a majority of water right owners in the district or pursuant to his own professional

judgment that the public safety or the interests of water users in the district require water right

administration.

Senate Bill 832 -- Page 2

Implementation of water rights administration in a number of critical basins affected by interstate

compacts and state-line delivery obligations, implementation of large-scale, crucial settlements

and other important issues affecting the public welfare of the State will require hiring a number

of water masters.

The State Engineer notes it is unlikely that many districts would vote in the majority to have the

State Engineer employ a water master if the water users are expected to pay for the water mas-

ter’s salary and expenses. The water masters appointed, or to be appointed, in critical basins des-

ignated under the Engineer’s Active Water Resource Management initiative are the officials

conducting the day-to-day work of administering water rights on the ground, curtailing over-

diversions and illegal diversions, and preventing waste.

PERFORMANCE IMPLICATIONS

The primary measure for the Office of the State Engineer is the percent readiness to conduct ac-

tive water resource management in seven critical basins. Provisions of this bill may make it dif-

ficult for the agency to accomplish this objective.

FISCAL IMPLICATIONS

This bill provides for continuing appropriations. The LFC objects to including continuing ap-

propriation language in statutory provisions. Earmarking reduces the ability of the legislature to

establish spending priorities.

At present, the State Engineer employs a number of water masters funded within the current op-

erational budget, however, approximately seven additional water masters are assigned or con-

templated to be assigned to both critical basins and sub-basins. It is estimated the cost of each

water master to include $60 thousand each in salary and benefits and $30 thousand in other costs

for an estimated annual impact of about $630 thousand to the agency. The agency cannot absorb

this cost at present funding levels.

TECHNICAL ISSUES

It appears SB 832 would require the State Engineer to be personally liable for payment to ap-

pointed water masters affected by the legislation. The following amendment is suggested for

consideration by the legislature:

Page 4, line 18 after the insert “office of the”

The Office of the State Engineer suggests the following language for consideration by the legis-

lature:

Page 4, line 16 after “district” strike the remainder of the line.

Page 4, line 17 strike “district” and insert “for the purpose of administering interstate compact

deliveries”

PA/lg