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.

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HB 29, HAGC/S 29

SOURCES OF INFORMATION

New Mexico Commission on Higher Education (NMCHE)

New Mexico Public Regulations Commission (NMPRC)

Office of the State Engineer/Interstate Stream Commission (OSE/ISC)

SUMMARY

Synopsis of SCONC Amendment

The Senate Conservation Committee amendment inserts language "declaring an emergency" and also inserts Member-Owned Community Water Systems as a substitute for Mutual Domestic Water Consumer Associations.

Synopsis of Bill

SB 602 would amend Section 72-1-9 to include Mutual Domestic Water Consumer Associations ("Consumer Associations") as entities entitled to a forty-year water use planning period. Additionally, consumer associations would be added to municipalities, counties, state universities, and public utilities as entities entitled to water planning procedures.

Significant Issues

The bill gives consumer associations the ability to acquire water rights and hold them unused, exempt from forfeiture, for a forty-year planning period. This give communities the ability to plan their own future in terms of growth. Consumer Associations are defined as water systems that serve at least fifteen taps or twenty-five or more persons.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

SB 602 relates to HB 29/CS/A where the latter bill amends Section 72-1-9 to include nonprofit community water systems to the list of entities entitled to water planning procedure and extends the length of granted leases from no more than ten year to no more than forty years.

TECHNICAL ISSUES

According to OSE and NMPRC, the term, Mutual Domestic Water Consumer Association is already defined in other statutes and can cause confusion as interpreted in SB 602. The OSE reported that the definition as used in the bill would encompass well over 800 water systems.

For this reason, both agencies recommend changing the term with OSE going as far as using Member-Owned Community Water Systems as a substitute.

RP/jsp