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

 

 

 

SPONSOR:

Herrera

 

DATE TYPED:

02/11/02

 

HB

HM-8/aHFL #1

 

SHORT TITLE:

Regulatory-Caused Loss of Production Hearings

 

SB

 

 

 

ANALYST:

Woodlee

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

 

NFI

 

 

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

Economic Development Department (EDD)

Energy, Minerals and Natural Resources Department (EMNRD)

 

SUMMARY

 

     Synopsis of HFL Amendment

 

House Floor Amendment #1 to House Memorial 8 clarifies that the requested hearings will also cover the benefits, not just losses, due to enacted federal and state regulations.

 

     Synopsis of Original Bill

 

House Memorial 8 requests the appropriate interim committee of the Legislative Council Service to conduct hearings regarding enacted federal and state regulations that have caused a loss in production capacity for New Mexico businesses.

 

     Significant Issues

 

The memorial indicates that the U.S. Supreme Court has declared investment-backed expectations as property due compensation under the fifth and fourteenth amendments of the U.S. Constitution.  Because productive capacity is classified as an investment-backed expectation, it is therefore also considered private property.  Both the United States and New Mexico Constitutions require compensation for property taken for public purposes.

 

The Energy, Minerals and Natural Resources Departments indicates concern that the activities of their department could be impacted if governmental regulation of activities that benefit the public health, safety and welfare were considered “takings” of property.  However, the memorial merely requests interim legislative committees to hold hearings on the subject.

 

FISCAL IMPLICATIONS

 

The memorial does not contain an appropriation or significant fiscal implication.

 

MW/njw

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