New Mexico Register / Volume XXXV,
Issue 18 / September 24, 2024
NOTICE OF RULEMAKING
The State Board of Finance (the Board) has
extended the comment period and rescheduled the public hearing for the proposed
repeal and replacement of New Mexico Administrative Code
(NMAC) rule 2.70.4 NMAC, Policy on Capital Expenditures by State Educational
Institutions. The proposed replacement seeks to: align capital expenditure
thresholds to be more in line with modern costs of projects; add more detailed
definitions to clarify project approvals required; and align Board requirements
with construction requirements set out in 14.7.9 NMAC.
Section
21-1-21, NMSA 1978, as amended, requires State Board of Finance approval by any
state educational institution confirmed by Article 12, Section 11 of the state
constitution for the purchase of real property or construction of buildings or
other major structures or major remodeling projects.
Notice
Date: September 24, 2024
Hearing
Date: November 1, 2024
Adoption
Date: Proposed as November 19, 2024
Technical
Citations: 14.7.9 NMAC
The
Department is proposing to amend the rule as follows:
Throughout the rule:
1.
Language
is updated to change the dollar amounts for projects.
2.
Language
is added to define the term “Remodel”.
3.
Language
is added to define the term “Renovation”.
4.
Language
is added to define the term “Repair”.
5.
Language has
been simplified or updated to allow the rules to be more coherent.
6.
Language
is added to reflect required certification by the Higher Education Department
and the Energy, Minerals, and Natural Resources Department that buildings meet
current energy compliance standards as outlined in 14.7.9 NMAC.
7.
Several
sections have been renumbered due to new sections being added into the NMAC.
Section 7
This section is renumbered due to new definitions
and subsections added to the NMAC.
This section is updated to add new definitions.
Subsection
A - is added to define the term “Appraisal Report”
Subsection
B - is added to define the term “Board”
Subsection
C - is added to define the term “Current”
Subsection
D - is added to define the term “Equipment Costs”
Subsection
E - parts 1, 2, 3, and 4, have been updated with new dollar amounts.
Subsection
G - is updated to
add the new definition for the term “Remodel”.
Subsection
H - is updated to
add the new definition for the term “Renovation”.
Subsection
I - is updated to
add the new definition for the term “Repair”.
Section 8
Subsection
A - part 4 - is updated to remove to non emergency repair
Section 9
Subsection
A - part 2 is updated to clarify the language about property appraisals and the
documents required for review.
Subsection
A - part 6 is updated to clarify the language title binders the documents required
for review.
Subsection
A - part 7 is updated to clarify the language about distinguishing that when an
education institution procures real property, a general warranty deed shall be
required. However, when a seller is another governmental entity, a quitclaim
deed shall be delivered to procurer.
Subsection
A - part 9 is updated to replace the language acquisition with purchase and other
grammatical corrections.
Subsection
A - part 10 is updated to replace the language acquisition with purchase and clarify
the language about educational institution’s governing body.
Subsection
B - is updated to correct language and separate out bond approvals language
to Subsection C.
Subsection
C - is added and language from subsection B about requirements of bond
approvals.
Section 10
Title
- is updated to remove the term REPAIRS
Subsection
A - is updated to clarify language and correct grammatical errors.
Subsection
A - part 1 is updated to replace the term repaired for remodeled.
Subsection
A - part 3 is updated to replace the term repair for remodel.
Subsection
A - part 4 is updated to add the term equipment costs.
Subsection
A - part 8 is updated to add the approval of the Energy, Minerals, and Natural
Resources Department.
Subsection
A - part 8a is updated to add the certification and demonstration of compliance with
14.7.9 NMAC commercial conservation requirements.
Subsection
A - part 8b is added and adjusted with the addition of part 8a as Subsection A part
8b, formerly part 8a.
Subsection
A - part 8c is added and adjusted with the addition of part 8a as Subsection A part
8c, formerly part 8b.
Subsection
A - part 8d is added and adjusted with the addition of part 8a as Subsection A part
8d, formerly part 8c.
Subsection
B - is updated to correct language and separate out bond approvals language
to Subsection C.
Subsection
C - is added and language from subsection B about requirements of bond
approvals.
These proposed rule changes will be
contained in 2.70.4 NMAC. The register
and the proposed rule are available on the SBOF website at:
https://www.nmdfa.state.nm.us/board-of-finance/rules-and-policies/. If you do not have internet access, a copy of
the proposed register and rule may be requested by contacting SBOF at
bof.administrator@dfa.nm.gov and (505) 827-3985.
The SBOF plans to adopt this rule November
19, 2024.
A public hearing to receive testimony on
this proposed rule will be held on November 1, 2024, at 9:30 a.m. The hearing will be held at the New Mexico
Public Education Department, Marbry Hall Auditorium, 300 Don Gaspar Avenue,
Santa Fe, New Mexico, 87501, and via Microsoft Teams.
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Microsoft Teams Meeting
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Interested
persons may address written comments to:
State
Board of Finance
ATTN: SBOF 2.70.4 NMAC Public Comments
407
Galisteo St.
Bataan
Memorial Building, Room 181
Santa
Fe, NM 87501
Recorded
comments may be left at (505) 827-3985. Interested persons may also address comments
via electronic mail to: bof.administrator@dfa.nm.gov. Written mail, electronic mail and recorded
comments must be received no later than 5:00 p.m. MT on October 28, 2024. Written and recorded comments will be given
the same consideration as oral testimony made at the public hearing. All written comments received will be posted
as they are received on the SBOF website at https://www.nmdfa.state.nm.us/board-of-finance/rules-and-policies/ along with the applicable register
and rule. The public posting will
include the name and any contact information provided
by the commenter.