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: Begaye DATE TYPED: 2/14/99 HB 561
SHORT TITLE: Fruitland Area Development Study SB
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/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION



Office of Indian Affairs



SUMMARY



Synopsis of Bill



House Bill 561 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



The area identified in House Bill 561 is located in the northwest corner of New Mexico. Morgan Lake is man-made built for the Arizona Public Service Company electric generating station. The area is surrounded by seven Navajo Nation chapters.



According to the Navajo Nation, a study has never been done for the development and the area, and no businesses are presently located in the area for the exception of 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 not cause an impact to the general fund in future years.





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 House Bill 561.



LMK/gm