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





SPONSOR: Cisneros DATE TYPED: 02/09/00 HB
SHORT TITLE: Repayment of Acequia Rehabilitation Loans SB SJM63
ANALYST: Pickering


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY00 FY01 FY00 FY01
See Narrative



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates HJM68.



SOURCES OF INFORMATION



Office of the State Engineer / Interstate Stream Commission (OSE/ISC)



SUMMARY



Synopsis of Bill



SJM63 requests ISC to ensure that loans continue to be available to acequias. The memorial also

looks to ISC to provide guidelines for obtaining loans and assurances for the repayments of loans in order to preserve the capacity of acequia commissions to incur debt on behalf of the acequias.



Significant Issues



According to ISC, SJM63 addresses two significant issues for the commission: (1.) the ability to continue making financial assistance available to acequias through federal and state programs and, (2.) the ability to see that acequias repay loans and that adequate guarantees for repayment are in place pursuant to law.



FISCAL/ADMINISTRATIVE IMPLICATIONS



ISC reported no impact fiscally or administratively regarding the functions if its ongoing loan program.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



SJM63 duplicates HJM68.



SUBSTANTIVE ISSUES



In its bill analysis, ISC cited a 1964 Attorney General's opinion which stated that the commission "... must exercise banker's judgement in evaluating necessity of specific loans and repayment ability of applicants." Exercise of banker's judgement can include some of the following:



Additionally, ISC reported that if SJM63 is not passed, its loan program will continue as long as legislative appropriations allow.



RP/njw