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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SOURCES OF INFORMATION

New Mexico Labor Department

General Services Department, Property Control Division

SUMMARY

Synopsis of Senate Floor Amendment

The Senate Floor amendment to SJR 29 resolves that proceeds from the proposed sale, trade or lease of the property can be used only for acquisition of real property by the state on behalf of the labor department's employment and security division.

Synopsis of Senate Rules Committee Amendment

The Senate Rules Committee amended Senate Joint Resolution 29 to clarify ownership and disposition of sales proceeds, adopting the language suggested by the General Services Department. (See Technical Issues Section).

Synopsis of Senate Joint Resolution

Senate Joint Resolution 29 resolves that the Legislature ratifies and approves the proposed sale, trade or lease for more than twenty-five years of real property in Dona Ana County that is owned by the state on behalf of the Labor Department, Employment Security Division.

Significant Issues

The property in question is the Las Cruces Workforce Development Center. The General Services Department, Property Control Division holds legal title to the property.

FISCAL IMPLICATIONS

The Labor Department analysis notes that this property was purchased with federal funds. According to federal regulations, if the property is sold, the net proceeds from the sale would have to be used to purchase a replacement property and thereby maintain federal equity or be returned to the federal government.

ADMINISTRATIVE IMPLICATIONS

The Labor Department analysis suggests that the money will be used to purchase a larger building, enabling all required Workforce development one-stop partners to be located in a single location.

TECHNICAL ISSUES

The General Services Department, Property Control Division suggests that to clarify ownership and disposition of sale proceeds the bill be amended as follows.

On page 3, line 6, after the semicolon, insert "and". On page 3, between lines 6 and 7, insert:

"WHEREAS, pursuant to Section 15-3-2 B NMSA 1978 and applicable federal laws, the property is not under control of the Property Control Division and, therefore, proceeds from the sale of this property are exempt from provisions of Section 15-3-24.2 NMSA;"

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