New Mexico Register / Volume XXXV,
Issue 14 / July 30, 2024
NOTICE OF RULEMAKING
The
State Board of Finance (SBOF) is proposing to repeal and replace the New Mexico
Administrative Code (NMAC) rule 1.5.23 NMAC, Real Property Acquisitions,
Sales, Trades, or Leases, to update and add definitions, clarify the
meaning of definitions, update requirements for title in acquisition of
property, add clarification and requirements to materials needed for review and
approval by the Board, and clarify and simplify the existing language with
grammatical and syntax edits.
Section
13-6-2.1 NMSA 1978 provides generally, with certain exceptions, that any state
agency, local public body, or school district that sells, trades or leases real
property belonging to that public entity requires state board of finance
approval prior to the effective date of such sale, trade or lease. Section
16-6-15, NMSA 1978, makes Section 13-6-2.1, NMSA 1978 expressly applicable to
the state fair.
Sections
15-3B-8 NMSA 1978 provide that the property control division is authorized to
acquire land by purchase, gift or donation subject to prior approval by the
state board of finance.
Subsection
B of Section 15-3B-7, NMSA 1978, provides that the property control division,
subject to the approval of the state board of finance and after following the
bidding procedures required by the Procurement Code for the purchase of
personal tangible property, is authorized to enter into long-term leases not
exceeding ten years of vacant lands when the lessor contracts with the state to
construct and complete buildings, subject to approval of the state architect,
as a condition precedent to the start of the rental term.
Section
17-1-22.1 NMSA 1978 provides that the state game commission, upon approval from
the state board of finance, may transfer money from the game and fish bond
retirement fund to the game and fish capital outlay fund. Money in the game and
fish capital outlay fund may be expended for fish hatcheries and rearing
facilities, habitat acquisition, development and improvements and other similar
capital projects. All projects funded by
the game and fish capital outlay fund shall be approved by the state board of
finance.
Section
3-46-34(B) NMSA 1978 provides that a municipality may dispose of real property
in an urban renewal or land development area to private persons only under
reasonably competitive bidding procedures as it shall prescribe or as provided
in this subsection. The municipality may
accept any proposal it deems to be in the best interest and in furtherance of
the purposes of the urban renewal law; provided, that a notification of
intention to accept the proposal shall be filed with the governing body not less
than thirty days prior to any acceptance.
Thereafter, the municipality may execute a contract in accordance with
the provisions of the urban renewal law, and deliver deeds, leases and other
instruments and take all steps necessary to effectuate the contract; provided
that if the municipality accepts other than the highest bid, the acceptance
must be approved by the state board of finance before the municipality may
proceed.
Subsection
J of Section 16-2-11, NMSA 1978, provides that any acquisition of lands
adjacent or contiguous to existing state parks or recreational areas or
necessary for successful park or recreational area protection and development
and will become part of the park or recreational area may be acquired by the
state following consultation with local government entities on the acquisition
and approval of the acquisition by the state board of finance, and funds for
acquisition is available to state parks division or land is being donated to
the division.
Notice Date: July 30, 2024
Hearing Date: September 4, 2024
Adoption Date: Proposed as September 17, 2024
Technical
Citations: 13.14.5.10 NMAC and 13-6-5
NMSA 1978
The
Department is proposing to amend the rule as follows:
Throughout the rule:
1.
Language is
updated to reflect the addition of the definitional term “Appraisal Report” to
mean a report of an opinion of value conducted by a general certified appraiser
and that meets all requirements under the Uniform Standards of Professional
Appraisal Practice (USPAP).
2.
Language
is updated to reflect the addition of the definitional term “School District”
to mean those
political subdivisions of the state established for the administration of
public schools.
3.
Language
is updated to change the term “Public Body” and replace with “Public Entity”
4.
Language
is updated to reflect requirements when real property disposition falls within
the boundaries of a community land grant.
5.
Language
is updated to provide greater guidance and clarity on the requirements for
submission to the Board for consideration.
6.
Several
sections have been renumbered due to new sections being added into the NMAC.
Section 7
This section is updated to add new definitions.
This section is renumbered due to new definitions
and subsections added to the NMAC.
Subsection B - is added to define the term “Appraisal
Report”.
Subsequent Subsections - are adjusted by one letter, such that B
becomes C, C becomes D, etc., until Subsection M addition, because of the
addition of Subsection B.
Subsection D - part 1 - is updated by adding to
define the term “Appraisal Report” to the language.
Subsection E - removes language and citation to specific
requirements.
Subsection H - is updated to change the term “Public Body” and replace with “Public
Entity”.
Subsection K - removes language and citation to donations
by one governmental entity to another governmental entity.
Subsection M - is added to define the term “School
District”.
Subsequent Subsections - are adjusted by one letter, such that L
becomes N, M becomes O, N becomes P, O becomes Q, because of the addition of
Subsection M.
Section 8
This section is updated to clarify the requirements
and rules regarding title binder requirements.
Subsection B - is added to define the term “Appraisal
Report”.
Subsection B - part 6a - is updated by adding to
subparts a and b to explain and simplify the language need for title binders.
The language added requires the inclusion of exceptions listed in 13.14.5.10
NMAC.
Subsection B - part 6b - is updated by adding to
subparts a and b to explain and simplify the language need for title binders.
The language added requires explanation of any special exceptions listed in
Schedule B.
Subsection B - part 7 - is updated by adding
requirements that purchase agreements include language that the agreement and
any amendments be subject to Board approval.
Section 9
This section is updated to clarify and simplify the
requirements for Board submissions for the approval of sale or trade of real
property.
This section is renumbered due to new definitions
and subsections added to the NMAC.
Subsection B - part 1 - is changed to require
summary information, forms, checklists as required by Board staff.
Subsection B - part 2 - is added to require a cover
letter providing details of the request.
Subsection B - part 3 - is added with the original
language of part 1.
Subsequent Subsection B parts - are adjusted by number, such that 2 becomes
4, 3 becomes 5, 4 becomes 6, 5 becomes 7, 6 becomes 8, 7 becomes 9, 8 becomes
10, 9 becomes 11, because of the addition of Subsection B part 2 and 3.
Subsection B - part 4 - is updated by adding the
term “Appraisal Report” to the language.
Subsection B - part 7- is updated by removing the
citation.
Subsection B - part 8 - is updated by adding
requirements that sale or trade agreements include language that the agreement
and any amendments be subject to Board approval.
Subsection B - part 10 - is updated by removing the
word “and” at the end.
Subsection B - part 11 - is updated by adding the
word “and” at the end.
Subsection B - part 12 - is added and requires that
when a state agency is requesting approval of the disposition of real property
where the boundaries are within the community land grant, that the submission
shall require a resolution or meeting minutes showing that the board of
trustees of the community land grant intent is not to purchase the real
property in accordance with NMSA 13-6-5. If there is no action, the state
agency shall document the lack of action to the Board.
Section 10
This section is updated to clarify and simplify the
requirements for Board submissions for the approval of lease of real property.
This section is renumbered due to new definitions
and subsections added to the NMAC.
Subsection C - part 1 - is added to require summary
information, forms, checklists as required by Board staff.
Subsection B - part 2 - is added to require a cover
letter providing details of the request.
Subsection B - part 3 - part 3 is renumbered from
part 1 and is updated by adding the term “Appraisal Report” to the language and
other grammatical changes.
Subsequent Subsection B parts - are adjusted by number, such that 1 becomes
3, 2 becomes 4, 3 becomes 5, 4 becomes 6, 5 becomes 7, 6 becomes 8, 7 becomes
9, because of the addition of Subsection C part 1 and 2.
Subsection B - part 4 - is updated by adding
requirements that lease agreements include language that the agreement and any
amendments be subject to Board approval.
Subsection B - part 8 - is updated by removing the
word “and” at the end.
Subsection B - part 9 - is updated by adding the
word “and” at the end.
Subsection D - is updated by removing the citation.
Section 11
This section is updated to clarify the requirements
and rules regarding title binder requirements.
Subsection A - is simplified by changing the language of
policy to rule and requiring electronic submissions in the form of PDF packets
instead of hard copies.
Subsection B - strikes language in reference to the hard
copy submissions.
Subsection C - is updated with clarification language,
syntax, and clarification language.
These proposed rule changes will be
contained in 1.5.23 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 September 17, 2024.
A public hearing to receive testimony on
this proposed rule will be held on September 4, 2024, at 2:00 p.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.
Join
Microsoft Teams Meeting
Click here to join the meeting
Meeting ID: 264
112 737 961
Passcode: uiARHU
Dial in by phone
+1 505-312-4308,
964999186#
Phone conference
ID: 964 999 186#
If you are a
person with a disability and you require this information in an alternative
format or require a special accommodation to participate in the public hearing,
please contact our staff to discuss your accessibility needs at least one week
prior, or as soon as possible, by emailing the State Board of Finance
administrator at: bof.administrator@dfa.nm.gov
or calling 505-827-3985.
Interested
persons may address written comments to:
State
Board of Finance
ATTN: SBOF 1.5.23 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 12:00 p.m. MT on September 3,
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.