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

SPONSOR Lundstrom

ORIGINAL DATE

LAST UPDATED

1-30-06

HB HM3

SHORT TITLE Native American Water Rights Settlement Funds

SB

ANALYST Woods

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

NFI

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Office of the Attorney General (OAG)

SUMMARY

Synopsis of Bill

House Memorial 3 requests the Governor of New Mexico and the United States Congress to

Provide Adequate Funding for Proposed Native American Water Rights Settlements.

Specifically the memorial notes that:

•

the Indian water rights settlement fund was created by the legislature in 2005 to

facilitate the implementation of the state's portion of Indian water rights settle-

ments; and

•

no state funding was provided in 2005 for the Indian water rights settlement fund;

and

•

on April 19, 2005, the Navajo Nation and the state of New Mexico executed a set-

tlement agreement resolving the claims of the Navajo Nation for the use of waters

in the San Juan river basin; and

House Memorial 3 – Page

2

•

the implementation of the Navajo Nation settlement in the San Juan river basin

will provide water for the Navajo Indian, Hogback-Cudei and Fruitland-

Cambridge irrigation projects and will result in the completion of the Navajo-

Gallup water supply project, including the Farmington-Shiprock municipal pipe-

line, thereby making potable water available to remote areas where drinking water

is not currently available; and

•

negotiations are continuing regarding the settlement of water rights in the Aamodt

case involving the pueblos of San Ildefonso, Nambe, Pojoaque and Tesuque; and

•

the implementation of a settlement in the Aamodt case would secure water rights

for the involved pueblos and non-Indians alike, provide a regional water system

and drought reserve water supply and permit additional economic development in

that region; and

•

negotiations are continuing regarding the settlement of water rights in the Rio

Pueblo de Taos stream system; and

•

the implementation of a settlement of water rights in the Rio Pueblo de Taos

stream system would secure water rights for the Pueblo of Taos and for non-

Indians within the stream system; and

•

the office of the state engineer has estimated the state's share of the cost of the

proposed Indian water rights settlements will be seventy-five million dollars

($75,000,000) and has recommended that this funding be appropriated in full in

fiscal year 2007; and

•

full funding of the Indian water rights settlement fund will demonstrate the state of

New Mexico's commitment to implement the settlement of disputes regarding In-

dian water rights for the benefit of all of the state's citizens, Indian and non-Indian

alike.

The memorial resolves that that the governor of New Mexico be requested to include in the gov-

ernor's capital outlay appropriations for fiscal year 2007 significant funding for the Indian water

rights settlement fund as a matter of statewide importance; and that New Mexico's congressional

delegation be requested to urge the involved federal agencies to cooperate in the negotiation of

Indian water rights settlements in New Mexico and to support full federal funding for these set-

tlements once they have been entered into by all parties.

The memorial further resolves that copies of this memorial be transmitted to members of the

state's congressional delegation, the governor of New Mexico, the office of the state engineer,

the president of the Navajo Nation, the speaker of the Navajo Nation council and the governors

of the pueblos of Nambe, Pojoaque, Taos, Tesuque and San Ildefonso.

There is no appropriation attached to this legislation.

SIGNIFICANT ISSUES

Both the Department of Finance and Administration (DFA) and the Office of the Attorney Gen-

House Memorial 3 – Page

3

eral (OAG) recognize that the Legislature created the Indian water rights settlement fund to fa-

cilitate the implementation of the State’s obligation under Indian water rights settlements; how-

ever, both agencies also recognize that no state funding was provided in 2005 for the fund.

This memorial requests that the governor and the state’s congressional delegation address this

issue in light of present and anticipated settlement agreements.

BW/mt