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F I S C A L I M P A C T R E P O R T
SPONSOR Rodella
ORIGINAL DATE
LAST UPDATED
2-4-06
HB 627
SHORT TITLE
RIO ARRIBA COUNTY WATER RIGHTS
PURCHASE
SB
ANALYST Hadwiger
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$250.0 Non-Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates SC823
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Finance and Administration (DFA)
Office of the State Engineer (OSE)
SUMMARY
Synopsis of Bill
House Bill 627 appropriates $250 thousand from the general fund to the Local Government Divi-
sion (LGD) of the Department of Finance and Administration (DFA) in FY07 to purchase water
rights for Rio Arriba County.
FISCAL IMPLICATIONS
The appropriation of $250 thousand contained in this bill is a non-recurring expense to the gen-
eral fund. Any unexpended or unencumbered balance remaining at the end of FY07 would revert
to the general fund.
SIGNIFICANT ISSUES
Both DFA and OSE indicated the bill does not specify the purpose of the additional water rights.
pg_0002
House Bill 627 Page 2
ADMINISTRATIVE IMPLICATIONS
DFA indicated HB627 appropriates funding to LGD/DFA to purchase water rights. This is not a
typical function for the local government division. Water rights are more typically purchased by
the Interstate Stream Commission in the OSE. Demands on Office of the State Engineer and the
Interstate Stream Commission staff would increase some due to transfer applications and to
check for possible impacts to compact compliance.
TECHNICAL ISSUES
OSE suggested the Rio Grande Compact prohibits any new net depletions (i.e., additional water
uses that permanently remove water from the river/groundwater systems) beyond the 1929 Con-
dition between the Colorado-New Mexico state line and Ottowi gage. It is suggested Rio Arriba
County can seek an opinion from the Interstate Stream Commission to ensure their purchases
will not impact Rio Grande Compact compliance.
DH/nt