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)

Relates to HB249 & SB57

SOURCES OF INFORMATION

Office of the State Engineer

SUMMARY

Synopsis of Bill

SB 243 appropriates $60,000 from the general fund to the Local Goverment Division (LED) of the Department of Finance and Administration for the purpose of negotiation expenses of errors and omission claims in Mutual Domestic Water Consumers' Associations' (MDWCA) water rights adjudications in Taos county.

Significant Issues

According to the State Engineer, it is unclear whether this appropriation is available to each MDWCA individually or collectively. The attorney handling the litigation involving the adjudication of MDWCA water rights represents all of the MDWCAs. As written, the bill makes each MDWCA eligible for funding without any direction to LGD as to how it should allocate the appropriation.

FISCAL IMPLICATIONS

The appropriation of $60.0 contained in this bill is a non-recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

According to the State Engineer, this bill appears to duplicate some of the funding sought for this process in HB 249 and perhaps all of the funding sought in SB 57.

GC/prr/njw