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





SPONSOR: Pinto DATE TYPED: 02/01/99 HB
SHORT TITLE: Water Rights Negotiations SB 204
ANALYST: Kehoe


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
$ 25.0 $ 0.0 $ 0.0 Recurring GF



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates/Conflicts with/Companion to/Relates to



SOURCES OF INFORMATION



Office of the State Engineer and Office of Indian Affairs



SUMMARY



Synopsis of Bill



Senate Bill 204 appropriates $25,000 from the General Fund to the Office of Indian Affairs for the facilitating of water rights negotiations between the Navajo Nation and the State of New Mexico.



Significant Issues



According to the Office of the State Engineer, negotiations between the State Engineer and the Navajo Nation are currently taking place regarding the use of water within the Navajo Nation Reservation (New Mexico portion) and the San Juan River. Funds are being provided by a grant from a private foundation to support an independent facilitator to assist both parties in the negotiation process. If negotiations are successful, there would be no need to litigate the rights to the use of water which could cost the state upwards of $300 million over a 25-year period.



FISCAL IMPLICATIONS



The Office of Indian Affairs would act as the fiscal agent for the funds, but the facilitator would be contracted or retained by a Joint Powers Agreement.

ADMINISTRATIVE IMPLICATIONS



The administrative impact to the Office of Indian Affairs would be minimal.





POSSIBLE QUESTIONS



· What is the current status of the negotiations and when are they expected to be completed?



LMK/gm