NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

(Parenthesis ( ) Indicate Revenue Decreases)

Conflicts with/Relates to SB 638 and SB 639

SOURCES OF INFORMATION

Energy, Minerals and Natural Resources Department (EMNRD)

State Land Office (SLO)

SUMMARY

Synopsis of Bill

SB 704 authorizes the Commissioner of Public Lands ("Commissioner") to negotiate for the acquisition of Eagle Nest Lake, the associated dam and surrounding land. The bill directs that the Commissioner may agree to exchange state trust land in the area for properties. If negotiations are successful, the bill stipulates that the Commissioner shall lease the properties to the State Parks Division of the EMNRD.

FISCAL IMPLICATIONS

According to the SLO, the agency would incur significant expenses in appraising, conducting negotiations and executing transactions as proposed by the bill. Ultimately, costs would be dependent upon the current owner's negotiating requirements. Direct expenses to the SLO are estimated from $10.0 to $50.0.

The EMNRD reported no fiscal impact would result from the passage of SB 704 unless the land trade was successful. If the trade were successful, then the cost of leasing, developing and managing Eagle Nest Lake as a state park would impact the agency. The lease cost is unknown, however in 1997, the development cost was estimated at $2,250.0 and the annual cost of operation was estimated at $365.0 per year.

Recently, the EMNRD submitted to projection of self-generated revenue from state parks. The agency estimated $27.5 in first year revenues from user fees without camping facilities. Additionally, EMNRD estimated $100.0 in second year revenues from user fees after the completion of some camping facilities.

ADMINISTRATIVE IMPLICATIONS

The EMNRD reported no administrative impact would result from the passage of SB 704 unless the land trade was successful. If the trade were successful, the agency estimates an additional nine FTE would be required to operate the Eagle Nest Lake area as a state park. As for the SLO, the agency asserts that staff time and agency resources would be necessary to appraise, negotiate and execute transactions.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

According to the SLO, SB 704 conflicts with SB 638 and SB 639, both of which direct the State Game Commission (SGC) to negotiate acquisition of the lake, dam and surrounding properties.

However, the EMNRD sees SB 704 as relating to both bills. SB 638 directs the SGC to negotiate acquisition of the lake without making an appropriation, while SB 639 authorizes SGC to negotiate the acquisition with an $11,000.0 appropriation along with the exchange of SGC property.

OTHER SUBSTANTIVE ISSUES

According to both the EMNRD and the SLO, it may not be constitutionally permissible to legislatively authorize the Commissioner of Public Lands to exchange or lease state trust lands. Additionally, Article XIII of the Constitution stipulates that "the Commissioner shall...have the direction, control, care and disposition of all public lands." Also, the Constitution states that "said land shall not be sold or leased...except to the highest and best bidder at public auction."

RP/njw