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

SPONSOR Griego

ORIGINAL DATE

LAST UPDATED

1-30-06

HB

SHORT TITLE ACEQUIA TECHNICAL ASSISTANCE

SB 191

ANALYST Hadwiger

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$250.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Office of the State Engineer (OSE)

New Mexico Department of Environment (NMED)

SUMMARY

Synopsis of Bill

Senate Bill 191 appropriates $250 thousand from the general fund to the Local Government Di-

vision (LGD) of the Department of Finance and Administration (DFA) in FY07 for acequia

technical assistance.

FISCAL IMPLICATIONS

The appropriation of $250 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY07 would revert to

the general fund.

SIGNIFICANT ISSUES

DFA reported that the lack of administrative capacity by local acequias has undermined their

ability to withstand pressures to the centuries old system of water allocation among the parci-

antes, or members, of acequias, the oldest form of democracy in European America. In 2005, the

Senate Bill 191 – Page 2

legislature appropriated $200 thousand to DFA for this purpose (Chapter 34, Laws 2005). DFA

subsequently contracted with the New Mexico Acequia Association to provide technical assis-

tance to local acequias to increase their administrative capabilities, such as establishment or up-

dates of acequia by-laws, board management, and compliance with state rules and regulations.

SB191 would continue these activities among acequias yet to receive the needed technical assis-

tance.

PERFORMANCE IMPLICATIONS

DFA indicated that, by increasing the administrative capacity building of acequias, the bill fur-

thers DFA's mission to assist local governments "to provide the best public services at the lowest

cost."

OTHER SUBSTANTIVE ISSUES

OSE/ISC indicated that OSE staff provide a similar small level of assistance to acequias and

community ditches when requested regarding the adoption and implementation of bylaws, rules,

regulations and technical issues. Additional funding for technical assistance to acequias would

be helpful for acequias and perhaps more appropriately handled through the NM Acequia Com-

mission.

ALTERNATIVES

NMED noted that the appropriation is to LGD/DFA. The Office of the State Engineer, Interstate

Stream Commission regulates acequia associations and would appear to be better suited to ad-

minister the technical assistance anticipated in this bill. NMED recommended the appropriation

be made to the Office of the State Engineer, rather than DFA.

OSE suggested the bill could be amended to provide the funds through the New Mexico Acequia

Commission to assist acequias and community ditches and make clear that the appropriation to

the Local Government Division of the Department of Finance and Administration is for the pur-

pose of funding the NM Acequia Commission.

AMENDMENTS

NMED recommended that in Section 1, Line16: delete “local government division of the de-

partment of finance and administration” and replace with “office of the state engineer”.

OSE suggested that, on page. 1, line 18, after “assistance” insert “as directed by majority deci-

sion of the NM Acequia Commission”

DH/nt