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

SPONSOR HAGC

ORIGINAL DATE

LAST UPDATED

2-10-06 HB 163/HAGCS

SHORT TITLE Allow Certain Water Rights Transfers

SB

ANALYST Woods

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

NFI

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

The House Agriculture & Water Resources Committee substitute to House bill 163, relating to

water, seeks to enact a new section of Chapter 72, Article 12, NMSA 1978 and a new section of

Chapter 73, Article 1 NMSA 1978 to provide conditions for water rights transfers out of an arte-

sian conservancy district.

The legislation carries no appropriation language.

SIGNIFICANT ISSUES

In Section 1, the legislation seeks to enact a new section of Chapter 72, Article 12 NMSA 1978

as follows:

"[NEW MATERIAL] ARTESIAN CONSERVANCY DISTRICTS--CHANGES IN POINT

OF DIVERSION OR PLACE OF USE.--

A. The state engineer shall not approve an application for a change, including an emer-

gency change, in point of diversion or place of use of a ground water right from within an

artesian conservancy district organized pursuant to Chapter 73, Article 1 NMSA 1978 to a

point of diversion or place of use outside the boundaries of the district if the applicant has

not complied with the applicable requirement adopted by the district pursuant to law.

House Bill 163/HAGCS – Page

2

B. The applicant for a change described in Subsection A of this section shall submit with

the application to the state engineer documentary evidence provided by the artesian con-

servancy district of the applicant's compliance with any applicable requirement for the

change adopted by the district pursuant to law.

C. If an artesian conservancy district has not adopted an applicable requirement, the appli-

cant shall submit to the state engineer along with the application an affidavit provided by

the district stating this fact.

D. If the artesian conservancy district fails to make a decision within one hundred twenty

days in response to an applicant's request for approval pursuant to an applicable require-

ment, the district shall be deemed to have approved the applicant's request for approval and

the state engineer shall proceed on the application as if the applicant had complied with

any applicable artesian conservancy district requirement.

E. Water rights purchased and transferred by the interstate stream commission are not sub-

ject to the requirements of this section."

In Section 2, the legislation additionally seeks to enact a new section of Chapter 73, Article 1

NMSA 1978 as follows:

"[NEW MATERIAL] BOARD OF DIRECTORS--ADDITIONAL DUTIES-- APPROVAL

OF CHANGES IN POINT OF DIVERSION OR PLACE OF USE OF GROUND WATER

RIGHTS.--

A. Pursuant to bylaws duly adopted by the district, a district may require that a change in

point of diversion or place of use of a ground water right from within an artesian conser-

vancy district to a point of diversion or place of use outside the boundaries of the district

shall be subject to approval by the directors of the district. The request for director ap-

proval shall be in writing and delivered by certified mail to the district. The directors may

deny the change only if they determine that the proposed change would be detrimental to

the district or its members. The directors may require as a condition of approval that the

owner of the transferred water right be assessed as though the water right remained appur-

tenant to the land as previously assessed for levy and collection of fees due to the district.

The directors shall render a written decision setting forth the reasons for their decision. The

person proposing the change or a member of the district may appeal the decision of the di-

rectors to the district court of the county within which the district is located within thirty

days of receipt of notice of the decision by the person proposing the change. The district

court may set aside, reverse or remand the decision of the directors if it determines that the

directors acted fraudulently, capriciously, arbitrarily or contrary to law.

B. Nothing in this section shall be construed as authorizing changes in the point of diver-

sion or place of use of ground water rights not otherwise permitted by law.

C. Water rights purchased and transferred by the interstate stream commission are not sub-

ject to the requirements of this section."

BW/yr