New Mexico § 15-3B-21 - Health and human services office building

§ 15-3B-21. Health and human services office building

A. Subject to the provisions of this section, the facilities management division of

the general services department, after consulting with the human services department

and the children, youth and families department and on behalf of those departments,

shall: (1) enter into agreements necessary for the land acquisition, if necessary, and the

planning, designing, constructing, equipping and furnishing of a new health and human

services office building in the county or municipality of Santa Fe that will serve

as the first phase of the health and human services office complex and be occupied

by the human services department [health care authority department] and the children,

youth and families department, provided that, in entering into the agreements, the

division shall consider state and private land acquisition options, including potential

trades of land; and (2) enter into a lease purchase agreement with the owner of the building for the leasing

of the building by the facilities management division with an option to purchase for

a price that is reduced according to the payments made pursuant to the agreement;

provided that the lease purchase agreement shall: (a) specify the principal, interest and maintenance component of each payment made,

provided further that: 1) the initial principal shall not exceed eighty million dollars

($80,000,000); and 2) the net effective interest rate shall not exceed the maximum

permitted by the Public Securities Act; (b) provide that there is no legal obligation for the facilities management division

to continue the lease from year to year or to purchase the building; (c) provide that the lease shall be terminated if sufficient appropriations are not

available to meet the current lease payments; (d) provide that the lease payments include a maintenance component that shall escalate

annually and, over the length of the agreement, approximate the amount that will be

needed for the maintenance and repair of the building; and (e) provide that if the building is purchased, title to the building shall be issued

in the name of the facilities management division. B. The facilities management division shall enter into such financing arrangements

as are necessary to construct, occupy and acquire the building by the most cost-effective

method and, if the division determines that the issuance of lease purchase revenue

bonds by the New Mexico finance authority pursuant to Section 6-21-6.14 NMSA 1978 is the most cost-effective financing arrangement, the New Mexico finance authority

is authorized to: (1) issue bonds, in an amount not to exceed eighty million dollars ($80,000,000),

pursuant to that section; (2) include a maintenance component as part of the lease payments received; and (3) use a portion of the net proceeds from the sale of the bonds for debt service

payments that are due before sufficient lease payments have been deposited into the

debt service fund. C. No contract or financing arrangement entered into pursuant to Subsection A or B

of this section shall be effective until approved by the attorney general for legal

sufficiency. D. Neither a request for proposals shall be issued pursuant to Subsection A or B of

this section nor a contract entered into pursuant to those subsections without prior

review by the capitol buildings planning commission to ensure that: (1) the request for proposals or the contract is the most cost-effective method for

acquiring the building; and (2) the building and its proposed use are within the scope of the commission's master

plan. E. The facilities management division shall enter into subleases with the human services

department [health care authority department] and the children, youth and families

department for the lease of office space within the building, provided that the payments

made under the subleases shall equal the payments due by the facilities management

division under the lease purchase agreement. The facilities management division may also sublease available space within the

building to any state agency if: (1) the space subject to an existing sublease has been reduced by agreement between

the facilities management division and the existing sublessee; (2) the previous sublease for the available space has been terminated due to the failure

of the sublessee to obtain appropriations or otherwise receive the money necessary

for making the lease payments; or (3) the previous sublessee of the available space has been relocated by an act of

the legislature. F. Notwithstanding any provision restricting budget adjustments, upon the certification

by the director of the facilities management division that the building is completed

and suitable for occupancy, the secretary of finance and administration may transfer

between and among the categories and programs of the current operating budget of each

agency that will occupy the building any unexpended or unencumbered appropriation

for lease payments or building maintenance. The transferred appropriations shall be expended by the facilities management division

for lease payments due pursuant to the lease purchase agreement. G. During the term of the lease purchase agreement, each sublessee shall include,

in its annual budget request, the amount due under its sublease during the next fiscal

year, and the sublessee and the facilities management division shall use their best

efforts to secure the appropriation.