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

SPONSOR Griego

ORIGINAL DATE

LAST UPDATED

2-4-06

2/06/06 HB

SHORT TITLE

SANTA FE LABOR DEPT. BUILDING

APPRAISAL

SB 563

ANALYST Hadwiger

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$25.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

General Services Department (GSD)

Department of Labor (DOL)

SUMMARY

Synopsis of Bill

Senate Bill 563 appropriates $25 thousand from the general fund to the Property Control Divi-

sion (PCD) of the General Services Department (GSD) in FY07 to conduct a fair market ap-

praisal of the Labor Department Employment Security Office Building on De Vargas street in

Santa Fe.

FISCAL IMPLICATIONS

The appropriation of $25 thousand contained in this bill is a non-recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY07 would revert to

the general fund.

SIGNIFICANT ISSUES

GSD offered the following background:

•

PCD/GSD was authorized to sell the property at 301 W. De Vargas by Laws 2004, House

Joint Resolution 12, and Laws 2004, Chapter 63 appropriated the sale proceeds to acquire a

new facility to house DOL programs in Santa Fe.

Senate Bill 563 – Page 2

•

The property was appraised late summer of 2005 at approximately $2.6 million.

•

The determination of whether to relocate the DOL office and sell the property has not yet

been finalized. If the property is sold in FY 2007, the money would be used to update the

2005 appraisal.

ADMINISTRATIVE IMPLICATIONS

DOL noted that their agency must seek approval from the U.S. Department of Labor to sell this

building. More importantly, there are laws and regulations set for by the U.S. Department of La-

bor in the use of funds acquired as a result of such sale. Such funds must be used for the pur-

chase of property to house Department of Labor staff who are providing Department of Labor

services. These funds cannot be used to pay for rent.

ALTERNATIVES

DOL suggested that the language in this bill should be expanded to allow for an appraisal to be

conducted for other DOL buildings, which DOL would identify and work with PCD/GSD.

DH/mt