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.



The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.



Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.





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





SPONSOR: Gubbels DATE TYPED: 02/22/99 HB 405
SHORT TITLE: State Engineer Enforcement SB
ANALYST: Pickering


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
NFI NFI NFI NFI N/A N/A

(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION



Administrative Office of the Courts (AOC)

Office of the State Engineer (OSE)



SUMMARY



Synopsis of Bill



HB 405 would provide authority to the State Engineer to enforce regulations, permits, licenses and orders of adjudication courts. The State Engineer can issue compliance orders and other enforcement powers including providing a penalty. Compliance orders may include suspension or revocation of a permit or license, repayment of water in amounts up to double of over diversion or illegal diversion and, installation of measuring devices and payment of civil penalties for failure to comply with a final compliance order.



Significant Issues



The State Engineer may impose the following civil penalties for violating compliance: 1) for the first violation, up to one hundred dollars per day; 2) for the second violation, up to two hundred dollars per day; and 3) for two or more violations, up to five hundred dollars per day.



FISCAL IMPLICATIONS



According to the OSE, HB 405 does not have a fiscal impact on the agency since civil penalties would go to the general fund unless otherwise provided.



ADMINISTRATIVE IMPLICATIONS



The OSE reported that enactment of this bill would require a minor amount of additional staff time to administer. In addition, repayment of over-diverted or illegally diverted water may entail the filing of an application with the OSE. The agency believes HB 405 would provide a necessary tool in the administration of water rights in the state. Currently, the State Engineer must go to court to enforce his orders which has proved to be a cumbersome and inefficient administrative tool according to the OSE.



RWP/gm