HOUSE BILL 607

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Nathan P. Cote

AN ACT

RELATING TO STATE LANDS; ESTABLISHING REQUIREMENTS FOR THE COMPENSATION OF CERTAIN LESSEES FOR IMPROVEMENTS.

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

     Section 1. Section 19-7-14 NMSA 1978 (being Laws 1963, Chapter 237, Section 1) is amended to read:

     "19-7-14. OWNER OF IMPROVEMENTS COMPENSATED BY PURCHASER OR BY SUBSEQUENT LESSEE.--

          A. Whenever any state lands are sold or leased to a person other than the holder of an existing surface lease and upon which lands there are improvements belonging to such lessee or to another person, the purchaser or subsequent lessee, as the case may be, shall pay to the commissioner of public lands for the benefit of the owner of the improvements the value [thereof] of the improvements as determined by an appraisal made by the commissioner [of public lands]. In lieu of such payment, a subsequent purchaser or lessee may file with the commissioner a bill of sale or waiver of payment signed by the owner of the improvements.

          B. The provisions of Subsection A of this section are mandatory and the commissioner shall not:

                (1) define improvements in any manner other than as tangible additions to real property;

                (2) waive the requirements of Subsection A of this section or otherwise interpret the provisions of that subsection in a manner that allows payments to a lessee for services rendered rather than payments for improvements, even though the services may increase the value of the land;

                (3) enter into any lease or other agreement that provides for the value of improvements to be determined by any other method except an appraisal to be paid for by a subsequent lessee or purchaser; or

                (4) otherwise enter into any lease with provisions that are inconsistent with those of Subsection A of this section."

- 2 -