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

SPONSOR Bernadette Sanchez

ORIGINAL DATE

LAST UPDATED

2-5-06

HB

SHORT TITLE Land Grant Corporation Reorganization

SB 236

ANALYST Woods

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

NFI

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Response Received From

Secretary of State (SOS)

No Response Received From

Office of the Attorney General (OAG)

SUMMARY

Synopsis of Bill

Senate Bill 236, relating to land grants, allowing land grant corporations organized under Laws

1891, Chapter 86, to reorganize under Chapter 49, Article 1 NMSA 1988.

Specifically, the legislation seeks to enact a new section of Chapter 49, Article 2 NMSA 1978 as

follows:

Section 1. A new section of Chapter 49, Article 2 NMSA 1978 is enacted to read:

"[NEW MATERIAL] CONVERSION OF LAND GRANT CORPORATIONS

ORGANIZED UNDER LAWS 1891, CHAPTER 86 INTO LAND GRANTS-

MERCEDES GOVERNED IN ACCORDANCE WITH THE PROVISIONS OF

CHAPTER 49, ARTICLE 1 NMSA 1978.--Twenty or more owners and proprietors of re-

cord of a land grant corporation organized under Laws 1891, Chapter 86 may prepare pro-

posed bylaws and a plan of conversion for the purpose of converting the existing land grant

Senate Bill 236 – Page

2

corporation into a land grant-merced organized and governed under the general provisions

of Chapter 49, Article 1 NMSA 1978. Upon notice, the proposers shall call a meeting of all

owners and proprietors of record entitled to vote in the affairs of the existing corporation.

The notice shall be published in English in a newspaper of general circulation in a county

in which the existing corporation is located, once a week for three consecutive weeks, the

last publication to be not more than thirty days prior to the date set for the meeting. Similar

publication shall also be made in Spanish if there is a Spanish language newspaper of gen-

eral circulation in the county. The proposed bylaws and the plan of conversion shall be

presented at the meeting and, if approved by a vote of the majority of the owners and pro-

prietors of record present at the meeting, upon the filing of the bylaws with the secretary of

state, the corporation organized under Laws 1891, Chapter 86 is converted into a land

grant-merced and shall be governed by the general provisions of Chapter 49, Article 1

NMSA 1978."

This legislation carries no appropriation language.

SIGNIFICANT ISSUES

The Office of the Secretary of State (SOS) notes that that this legislation proposes new material

to Chapter 49, Article 2 NMSA 1978 Conversion of Land Grant Corporations that gives the abil-

ity for corporations to return to the status of a land grant. Also upon notice, the proposers shall

call a meeting by publication in English and if available Spanish newspaper of the general circu-

lation through out the county in which corporation resides. Publication must run once a week for

three consecutive weeks. SOS suggests no additional fiscal issues or other matters of signifi-

cance.

BW/yr