NOTE: As provided in LFC policy, this report is intended 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 in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Energy, Minerals and Natural Resources Dept. (EMNRD)

State Land Office (SLO)

SUMMARY

Synopsis of HGUAC Amendment

The House Government and Urban Affairs Committee amendment adds language to include the trade or exchange of "state trust lands by the SLO" as subject to legislative approval.

Synopsis of Bill

HB 686 would prohibit the SLO from trading or exchanging state land except by ratification and approval of the Legislature.

Significant Issues

In its review, the EMNRD reported that HB 686 may result in delays in the processing of land transfers and exchanges of state trust lands. Additionally, the EMNRD was unclear as to whether HB 686 actually restricts the SLO's ability to sell property without approval from the Legislature. The SLO, however, feels that the bill impedes its function and is unconstitutional.

FISCAL IMPLICATIONS

According to the SLO, the bill would add a tremendous financial burden to the agency in that all sales and exchanges ("trades") would have to be prepared and lobbied at the Legislature. Also, the additional staff time for this would require additional staff and budget.

ADMINISTRATIVE IMPLICATIONS

In the view of the SLO, HB 686 curtails the ability of the Commissioner of Public Lands ("Commissioner") to properly administer the trust lands committed to his care. In essence, the agency believes the bill will allow the Legislature to usurp the Commissioner's authority as to the sale and management of trust lands.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

The SLO maintains that the bill conflicts with the Enabling Act of 1910, the New Mexico Constitution, and Chapter 19, NMSA 1978, and the intentions of the federal government in establishing the trust administered by the Commissioner.

The EMNRD believes HB 686 may conflict with Section 16-2-16 NMSA 1978, which establishes the procedure for transfer of park lands to state agencies and public bodies.

TECHNICAL ISSUES

According to the EMNRD, the aforementioned statute refers to "state lands" not to "state trust lands"

which are administered by the SLO. As such, the EMNRD states that the Commissioner is involved in other land transactions, which makes it unclear whether HB 686 is directed at these transactions.

SUBSTANTIVE ISSUES

The SLO concludes that HB 686 requires the disposition of trust lands in a manner that is at odds with the language stated in the New Mexico Constitution, since legislative approval is expressly and historically, not a part of the procedure for the disposition of trust lands mandated by the 1910 Enabling Act.

RP/njw:prr:gm