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

SPONSOR Carraro

ORIGINAL DATE

LAST UPDATED

2/1/06

HB

SHORT TITLE Define & Limit Private Property Takings,

SB SJR 4

ANALYST Quezada

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SJR1, and HB27 SB 231 Identical bills

SOURCES OF INFORMATION

LFC Files

Secretary of State’s Office (SOS)

Responses Received From

There were no responses from agencies

SUMMARY

Senate Joint Resolution 4 proposes to amend article 2, Section 20 of the New Mexican Constitu-

tion to stipulate that private property may be taken only for public use, for the good of the public

and only of just payment of compensation. Senate Joint Resolution proposes to define and limit

the public use for which private property may be taken or damaged by excluding development,

or commerce except in certain situations. In addition, Senate Joint Resolution proposes private

property shall not be taken from owner and transferred to another private owner on the grounds

that the public will benefit from a more profitable use of property.

FISCAL IMPLICATIONS

There is no fiscal impact if the amendment is included in the general election. However, there

would be an estimated cost of $ 1.8 million if the constitutional amendment were proposed for a

special election, according to the Secretary of State’s staff.

SIGNIFICANT ISSUES

In kelo v London, Connecticut the U.S. Supreme Court held that local governments have the au-

thority to use eminent domain to take private property for economic development. Existing New

Senate Joint Resolution 4 – Page

2

Mexico statutes allow the use of eminent domain. The proposed amendment would prohibit the

taking of private use in economic development.

Relates To

SJR 4 relates to SJR 1 HB 27 and SB 231, identical bills both titled Eminent Domain for Eco-

nomic Development. The bills stipulate that:

“The state or a local public body shall not condemn private property if the taking is to

promote private or commercial development and title to the property is transferred to another

private entity.”

JQ/mt