pg_0001

SB 509

Page 1

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.

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. 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

pg_0002

SB 509

Page 2

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.

pg_0003

SB 509

Page 3

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. 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

pg_0004

SB 509

Page 4

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

pg_0005

SB 509

Page 5

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

pg_0006

SB 509

Page 6

of New Mexico except:

(a) the state armory board;

(b) the commissioner of public lands;

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. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2008.