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

SPONSOR Anderson

ORIGINAL DATE

LAST UPDATED

2/8/2006

HJR 11

SHORT TITLE Limit Public Taking of Private Land, CA

SJR

ANALYST McOlash

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

None

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to: SB 370, SM3, SJR1, HJR2, HB27, SB231, HJM52, HB746, HM6, and HJR7

Duplicates SJR 4

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Transportation (DOT)

Administrative Office of the Courts (AOC)

Attorney General’s Office (AGO)

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of House Joint Resolution 11

House Joint Resolution 11 proposes an amendment to Article 2, Section 20 [Eminent domain] of

the Constitution of New Mexico The amendment limits the public uses in the following ways:

•

By defining “public use” as “the possession, occupation or enjoyment of property, as

authorized by law, by the public at large, public agencies, public utilities, pipeline

common carriers and those seeking to put water to beneficial use and in cases where

the property to be taken presents a threat to the personal health or safety of members

of the public from structures or activities on or in the property.”

•

By providing that private property shall not be taken from one owner and transferred

to another private owner because the public will benefit from a more profitable use of

the property.

House Joint Resolution 11 - Page

2

•

By providing that “private property shall not be taken from one owner and transferred

to another private owner or the grounds that the public benefits from a more profitable

use of the property.”

SIGNIFICANT ISSUES

New Mexico has a history of the use of eminent domain for economic development purposes go-

ing back to the 19th century. Each railroad town in New Mexico – including Raton, Las Vegas,

Albuquerque, Belen, Grants, Gallup, Encino, Vaughn, Socorro, Deming, Lordsburg, Mountain-

air, Alamogordo, Santa Rosa, Tucumcari, Fort Sumner, Artesia, Bernalillo, Clovis, and Portales

– owes its existence to the outright gift of public lands to private railroads to spur economic de-

velopment. Ironically, rail yard redevelopment efforts are at the heart of many of these commu-

nities, by using existing authority such as under the Metropolitan Redevelopment Act (MRA).

The legislature has previously granted the power of eminent domain to certain private entities

other than common carriers public uses, including water and natural gas lines. Those powers

may be called into question if this amendment becomes law. Such redevelopment efforts, as well

as those under the MRA, could be classified as prohibited public purpose economic development

activities.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

SJR 4 is a companion to HJR 11.

SJR 1 also proposes to amend Article 2, Section 20 of the N.M. Constitution.

HJR 2 also proposes to amend Article 2, Section 20 of the N.M. Constitution.

SB 231/SB370/HB 27 would amend the Eminent Domain Code.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

New Mexico municipalities will continue to pursue economic development activities as a tradi-

tional public purpose. The Urban Development, Community Development, and Metropolitan

Redevelopment Acts will continue to define economic development for public use, as long as the

municipality: 1) adopts a resolution determining that a condition of slum or blight exists in the

defined area, 2) redevelopment of the area is in the public interest, and 3) the public is informed

and involved in the decision.

BMC/nt