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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: 2/17/99 HB
SHORT TITLE: Fruitland Economic Development Study SB 556
ANALYST: L. Kehoe


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
$ 50.0 Non-Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates House Bill 561



SOURCES OF INFORMATION



New Mexico Office of Indian Affairs



SUMMARY



Synopsis of Bill



Senate Bill 556 appropriates $50,000 from the general fund to the New Mexico Office of Indian Affairs to contract for an economic development study and plan for the area around Morgan Lake in Fruitland for the surrounding Navajo Nation chapters in San Juan County.



Significant Issues



Fruitland is located in the northwest corner of New Mexico. Morgan Lake is man-made and was built for the Arizona Public Service Company electric generating station. The area is surrounded by seven Navajo Nation chapter houses.



According to the Office of Indian Affairs and the Navajo Nation, a study has never been done for the possible development of the area, and no businesses are presently located in the area except the electrical generating station and a nearby coal mine. The study and plan would determine the development possibilities for the area.





FISCAL IMPLICATIONS



The appropriation is for a study and should be a one-time impact to the general fund.



ADMINISTRATIVE IMPLICATIONS



The Office of Indian Affairs would negotiate a Joint Powers Agreement with a governmental entity such as the Navajo Nation to provide the services contained in Senate Bill 556.



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