SENATE BILL 509
48th legislature - STATE OF NEW MEXICO - second session, 2008
INTRODUCED BY
Stuart Ingle
AN ACT
RELATING TO THE FINANCING OF STATE FACILITIES; PROVIDING ADDITIONAL DUTIES FOR THE CAPITOL BUILDINGS PLANNING COMMISSION RELATING TO PLANNING FOR STATE FACILITIES AND THE APPROVAL OF LEASE-PURCHASE AGREEMENTS ENTERED INTO BY THE STATE OR ITS AGENCIES; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 15-10-1 NMSA 1978 (being Laws 1997, Chapter 178, Section 5, as amended) is amended to read:
"15-10-1. CAPITOL BUILDINGS PLANNING COMMISSION CREATED.--
A. The "capitol buildings planning commission" is created. [to study and plan for the long-range facilities needs of state government in the greater metropolitan areas of Las Cruces, Santa Fe and Albuquerque. The commission shall review prior long-range facilities needs assessments and develop an initial master plan for the state facilities in the greater metropolitan areas of Las Cruces, Santa Fe and Albuquerque. After development of the initial master plan, the commission shall conduct a review of state properties throughout the state for the development of an overall master plan. B.] The commission shall be composed of four members of the legislature, two from each house, appointed by the New Mexico legislative council, the secretary of general services, the state treasurer, the secretary of transportation or the secretary's designee, the secretary of cultural affairs or the secretary's designee, the secretary of finance and administration or the secretary's designee, the commissioner of public lands or the commissioner's designee and the chair of the supreme court building commission or the chair's designee.
B. The commission shall:
(1) study and plan for the long-range facilities needs of state government in the greater metropolitan areas of Las Cruces, Santa Fe and Albuquerque
and, after developing an initial master plan for the state facilities in those areas, the commission shall conduct a review of state properties throughout the state for the development of an overall master plan;
(2) review proposed lease-purchase agreements pursuant to Section 15-10-2 NMSA 1978;
(3) after considering agency mission requirements; the costs of ownership and operation; any evaluations of the adequacy and condition of current state facilities; and other factors, develop a long-term statewide strategic facility management plan. The commission may adopt guiding principles and coordinate with the general services department, the New Mexico finance authority and other agencies in obtaining data or analyses to support development of the management plan;
(4) determine the amount of deferred maintenance required on existing facilities to maintain their usefulness;
(5) after utilizing life cycle costing, recommend whether the state should lease, lease-purchase or purchase needed additional facilities; and
(6) formulate disposal strategies for aging facilities no longer able to serve their mission.
C. The legislative council service shall provide staff for the commission in coordination with the staff architect and other staff of the property control division of the general services department.
D. The commission shall meet regularly and shall report annually to the legislature on an annual update of:
(1) the master plan for the long-range facilities needs of state government in the greater metropolitan areas of Las Cruces, Santa Fe and Albuquerque and throughout the state; and
(2) the long-term statewide strategic facility management plan."
Section 2. A new Section 15-10-2 NMSA 1978 is enacted to read:
"15-10-2. [NEW MATERIAL] CAPITOL BUILDINGS PLANNING COMMISSION--APPROVAL OF LEASE-PURCHASE AGREEMENTS.--
A. Before entering into a lease-purchase agreement in which the state or a state agency is the lessee, the proposed lessee shall notify the commission. The commission shall review a proposed lease-purchase agreement if:
(1) the total lease revenues to be generated during the term of the lease-purchase agreement, including any possible extensions or renewals, exceed five million dollars ($5,000,000); or
(2) pursuant to criteria adopted by the commission, the commission selects the lease-purchase agreement for review.
B. No lease-purchase agreement reviewed pursuant to Subsection A of this section shall be submitted to the legislature for ratification and approval pursuant to Section 15-3-35 NMSA 1978 unless the commission determines that:
(1) the leasehold property and the term of the lease-purchase agreement are sufficient to meet the identified needs of the state agency that will occupy the leasehold property;
(2) the payment of all lease revenues due pursuant to a lease-purchase agreement will be sufficient, at the end of the term of the lease-purchase agreement, to acquire ownership of the leasehold property;
(3) the lease-purchase agreement provides that there is no legal obligation for the state or state agency to continue the lease-purchase agreement from year to year or to purchase the leasehold property, and that the lease-purchase agreement shall be terminated if sufficient appropriations are not available to meet the current lease payments; and
(4) the lease-purchase agreement is the most cost-effective alternative for acquiring the leasehold property, taking into account currently available alternative lease arrangements, lease-purchase agreements or other financing arrangements permitted by law.
C. As used in this section:
(1) "commission" means the capitol buildings planning commission;
(2) "facilities" means buildings and the appurtenances and improvements associated therewith, including the real estate upon which a building is constructed; suitable parking for use of the building; utilities, access roads and other infrastructure; and related real estate. "Facilities" can also mean undeveloped or developed real estate that is transferred or leased with the intent that a new building or improvement be constructed thereon;
(3) "lease-purchase agreement" means a financing agreement for the leasing of facilities by the state or a state agency from a public or private entity with an option to purchase the leasehold property for a price that is reduced according to the payments made pursuant to the financing agreement;
(4) "leasehold property" means facilities that are subject to a lease-purchase agreement;
(5) "lease revenues" means the amounts payable pursuant to a lease-purchase agreement; and
(6) "state agency" means any department, branch, institution, board, officer, bureau, instrumentality, commission, district or committee of government of the state of New Mexico except:
(a) the state armory board;
(b) the commissioner of public lands;
(c) state institutions under the jurisdiction of the higher education department;
(d) the economic development department when the department is acquiring property pursuant to the Statewide Economic Development Finance Act;
(e) the public school facilities authority when the authority is acquiring property pursuant to the Public School Capital Outlay Act; and
(f) a state-chartered charter school."
Section 3. APPROPRIATION.--Two hundred fifty thousand dollars ($250,000) is appropriated from the general fund to the legislative council service for expenditure in fiscal year 2009 for the purpose of providing funding for the capitol buildings planning commission to develop the long-term statewide strategic facility management plan and related duties pursuant to Sections 15-10-1 and 15-10-2 NMSA 1978. Any unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall revert to the general fund.
Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2008.
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