HB 1022

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AN ACT

RELATING TO STATE GOVERNMENT; REQUIRING THE APPROVAL OF THE

LEGISLATURE FOR STATE AGENCIES TO ENTER INTO CERTAIN LEASE-

PURCHASE AGREEMENTS; REQUIRING, IN CERTAIN CASES, TITLES TO BE

ISSUED IN THE NAME OF THE PROPERTY CONTROL DIVISION OF THE

GENERAL SERVICES DEPARTMENT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. LEASE-PURCHASE AGREEMENTS--APPROVAL OF

LEGISLATURE.--

A. A financing agreement under which a state

agency is to occupy a building or other real property and that

contains an option to purchase for a price that is reduced

according to the lease payments made is subject to the

following criteria:

(1) the agreement shall not become effective

until it has been ratified and approved by the legislature;

and

(2) if the state agency is subject to the

jurisdiction of the property control division of the general

services department pursuant to the Property Control Act, the

agreement shall provide that, if the real property is

purchased, title to the real property shall be issued in the

name of the property control division.

B. Legislative ratification and approval of an

agreement pursuant to Subsection A of this section shall not

create a legal obligation for the state agency to continue the

lease from year to year or to purchase the real property.

C. As used in this section, "state agency" means

the state or any of its branches, agencies, departments,

boards, instrumentalities or institutions, but "state agency"

does not include state educational institutions or state-

chartered charter schools.

HB 1022

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