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





SPONSOR: Blanton DATE TYPED: 02/08/99 HB HJM-23
SHORT TITLE: Domestic Water Users Grants SB
ANALYST: Pickering


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
NFI NFI NFI NFI NFI N/A



(Parenthesis ( ) Indicate Expenditure Decreases)





Relates to HJM24



SOURCES OF INFORMATION



New Mexico Commission on Higher Education (NMCHE)

New Mexico Environment Department (NMED)

New Mexico Public Regulations Commission (NMPRC)

Office of the State Engineer (OSE)

State Land Office (SLO)



SUMMARY



Synopsis of Bill



HJM23 requests the legislative council to direct the appropriate interim committee to study the feasibility of providing direct grants for upgrading water system facilities managed by local domestic water users associations.



Significant Issues



Several rural communities are served by aging domestic water systems which should be upgraded in order to supply an adequate and safe water supply to these communities. Additionally, the water associations have limited revenue which affects their ability to repay loans made to them to upgrade the water systems. HJM23 directs the interim committee to study the local water associations, their needs, funding mechanisms, and to make recommendations for legislation by November 1, 1999.



FISCAL IMPLICATIONS



HJM23 is a memorial. Any fiscal impact based upon the recommendation of the interim committee would occur after this legislative session.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



HJM23 is related to HJM24, which requests that members of acequia be appointed to any task forces or study groups established to examine water issues.



CONSEQUENCES OF NOT ENACTING THIS BILL



According to the OSE, residents of rural communities would continue to use aging, deteriorated domestic water systems with potential adverse consequences for health and safety. Eventually, some of the systems will deteriorate to the point of inoperability.



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