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

SPONSOR Larranaga

ORIGINAL DATE

LAST UPDATED

1/25/06

HB HJR 7

SHORT TITLE Prohibit Certain Eminent Domain Takings

SJR

ANALYST Quezada/Baca

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates HJR 1,Relates to HB27 and SB231, Identical bill

SOURCES OF INFORMATION

LFC Files

Secretary of State’s Office (S0S)

SUMMARY

Synopsis of Bill

House Joint Resolution 7 proposes to amend Article 2, Section 20 of the New Mexico State Con-

stitution stipulates that private property may be taken only for public use, for the good of the

public and only upon just payment of compensation. The joint resolution further stipulates that

the right of eminent domain shall not be used to seize private property for use by private com-

mercial enterprise, economic development or for any private use, except with consent of the

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

that the public will benefit from a more profitable private use. The constitutional amendment is

proposed for submission to the voters of New Mexico at the 2006 General Election.

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.

House Joint Resolution 7 – page 2

SIGNIFICANT ISSUES

In Kelo v New London, Connecticut the U.S. Supreme Court held that local governments have

the authority to use eminent domain to take private property for economic development. Exist-

ing New Mexico statutes allow the use eminent domain The proposed amendment would pro-

hibit the taking of private property for private use in economic development.

RELATES TO

HJR 7 duplicates SJR 1, and relates to HB 27 and SB 231, identical bills both titled Eminent

Domain for Economic 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 an-

other private entity."

JQ/mt