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

SPONSOR M. Sanchez

ORIGINAL DATE

LAST UPDATED

2/10/07

3/15/07 HB

SHORT TITLE Municipality Condemnations and Annexations

SB 659/aHHGAC

ANALYST Propst/Wilson

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 469

SOURCES OF INFORMATION

LFC Files

Responses Received From

Attorney General’s Office (AGO)

Department of Finance and Administration (DFA)

NM Municipal League

SUMMARY

Synopsis of HHGAC Amendment

The House Health & Government Affairs Committee amendment returns the bill to the existing

Condemnation statutes, except the amendment language does not allow a municipality to

exercise the power of eminent domain for reservoirs, streams, water or water rights outside the

boundary of the municipality.

Synopsis of Original Bill

Senate Bill 659 would require that annexation petitions be signed by the majority of the owners

of land in the contiguous territory sought to be annexed. It would also prohibit a municipality

from exercising its power of eminent domain outside of its municipal boundaries to condemn

property for sewage collection, treatment or disposal, water facilities or potable water.

Senate Bill 659/aHHGAC – Page

2

SIGNIFICANT ISSUES

The Attorney General reports that current law requires that a petition to annex contiguous

property by a city be signed by the owners of a majority of the number of acres in the contiguous

territory. SB 659 would add a requirement that the petition also be signed by the majority of the

owners of land in the contiguous territory sought to be annexed.

The bill would also amend current state law to specifically eliminate the right of a municipality

to use its power of eminent domain to acquire property for sewage collection, treatment or

disposal beyond its boundaries. That power currently extends to the territory occupied by the

sewer facilities, which may be outside municipal boundaries.

Finally, the AG notes that SB 659 would also prohibit the exercise of the power of eminent

domain by a municipality beyond its boundaries for the purpose of acquiring water facilities or

potable water. Current law expressly allows the exercise of that power beyond municipal

boundaries.

The NM Municipal League noted its concern that SB 659 may significantly limit the ability of

municipalities to annex territory by adding the additional requirement that a majority of the

owners of the land contiguous to the municipality also sign a petition for annexation. The bill

will also limit the ability of municipalities to condemn land necessary for the construction,

operation and maintenance of water and waste water facilities by limiting annexation authority to

within the municipal boundaries. Thus, if a municipality has or needs to install a facility (such as

a well or reservoir) outside the municipal boundaries, it must purchase the necessary property or

right of way on the open market.

WEP/sb:csd