NOTE:  As provided in LFC policy, this report is intended only 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 for other purposes.

 

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

 

 

 

SPONSOR:

SFC

 

DATE TYPED:

3/7/03

 

HB

 

 

SHORT TITLE:

Attorney General Litigation Costs

 

SB

815/SFCS

 

 

ANALYST:

Wilson

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

 

 

Significant

     See Narrative

 

 

 (Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

LFC files

 

SUMMARY

 

     Synopsis of Bill

 

The Senate Finance Committee Substitute for Senate Bill 815 directs the Attorney General’s Office (AGO) to sue the state of Texas for the return of 603,485 acres of land taken from New Mexico due to an error in drawing the north-south boundary between New Mexico and Texas.

 

The bill also directs the AGO to seek compensation for subsurface mineral rights, oil and gas royalties and income, property taxes and grazing privileges that New Mexico has not realized due to the boundary error.

 

SB 815/SFCS declares an emergency.

 

     Significant Issues

 

The AGO believes the litigation is not likely to be successful. This matter was studied extensively during Attorney General Udall’s administration.  Reportedly, Congress made New Mexico accept the surveying errors complained of as a condition of being granted statehood.  The Congressional joint resolution of August 21, 1911, No. 8, 37 Stat. At Large 39, to admit New Mexico into the Union contains a clause that subjects New Mexico’s admission to the terms and conditions of the February 16, 1911 join resolution that reaffirmed the existing north-south boundary line between Texas and New Mexico.

 

FISCAL IMPLICATION

 

SB 815/SFCS appropriates no funding and the litigation required by this bill will be extremely costly.

 

ADMINISTRATIVE IMPLICATIONS

 

Such litigation would constitute a major undertaking for the Attorney General’s Office, absorbing a great deal of FTE and fiscal resources. 

 

DW/yr