HOUSE BILL 154
52nd legislature - STATE OF NEW MEXICO - first session, 2015
INTRODUCED BY
Jeff Steinborn
AN ACT
RELATING TO PUBLIC LANDS; PROVIDING THAT BUSINESS LEASES FOR REAL ESTATE PLANNING OR DEVELOPMENT PURPOSES SHALL NOT BE EFFECTIVE UNTIL REVIEWED BY THE APPROPRIATE MUNICIPAL AND COUNTY GOVERNING BODY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 19-7-9 NMSA 1978 (being Laws 1971, Chapter 93, Section 1, as amended) is amended to read:
"19-7-9. SALE AND LEASE OF STATE LANDS--CONVEYANCE FOR TERM OF YEARS--TERMS AND CONDITIONS.--Any state lands offered for sale by the commissioner of public lands may be sold at the commissioner's discretion for cash or upon payment of not less than one-tenth of the purchase price in cash and payment of the balance in amortized installments for any period up to thirty years with interest on the principal balance at a rate to be set by the commissioner in the notice of auction pertaining to the particular sale in advance. Additional payments on the principal may be made at any time, but such payments shall not be effective for credit until the date the next installment is due. The purchase contract shall be upon a form prescribed by the commissioner prior to publication of the notice of auction and shall contain the terms and conditions the commissioner may deem to be in the best interest of the state and consistent with law. Should a purchaser die before completing the contract, the due date of the next installment payment shall, upon written application, be deferred by the commissioner for one year. In addition, the commissioner is authorized to convey for any period of time state lands under the commissioner's jurisdiction having value for commercial development or public use purposes, provided that:
A. all of the requirements for the disposition of lands set forth in the constitution of New Mexico and the [New Mexico] Enabling Act for New Mexico are complied with, including but not limited to those pertaining to appraisal at true value, advertising and public auction;
B. the term and nature of the estate to be conveyed is set forth in the public notice of auction pertaining to the particular conveyance; and
C. if the conveyance is a business lease for real estate planning or development purposes, then, notwithstanding the term of the lease, it shall only be issued after notice and competitive bid and after review and decisions by the appropriate governing body of a municipality or a board of county commissioners pursuant to provisions within Chapter 19, Article 7 NMSA 1978."
SECTION 2. A new section of Chapter 19, Article 7 NMSA 1978 is enacted to read:
"[NEW MATERIAL] LEASES FOR REAL ESTATE PLANNING OR DEVELOPMENT PURPOSES--PRIOR REVIEW BY MUNICIPALITY AND COUNTY.--
A. Except as provided in Subsection F of this section, no business lease for real estate planning or development purposes shall be effective until it has been reviewed and decisions issued pursuant to this section.
B. Before entering into the lease, the commissioner of public lands shall post the proposed lease on the web site for the state land office with a clearly identified link on the homepage to proposed real estate planning or development leases. The commissioner shall also submit a copy of the proposed lease to:
(1) the governing body of each municipality whose planning and platting jurisdiction boundary is within twenty miles of any of the land to be included in the proposed lease; and
(2) the board of county commissioners of each county in which any land in the proposed lease, outside the planning and platting jurisdiction of a municipality, is situated.
C. Upon receipt of a proposed lease, the governing body of a municipality or the board of county commissioners shall hold a public hearing, pursuant to the following requirements, to determine whether the proposed lease is in the best interests of the municipality or county:
(1) notice of the hearing shall be given at least twenty-one days prior to the hearing date and shall state:
(a) the subject of the hearing;
(b) the time and place of the hearing; (c) a brief description of the proposed lease, including the amount of acreage subject to the lease, and the location of the acreage, including a map and the proposed activity to be conducted pursuant to the lease;
(d) the manner for interested persons to present their views; and
(e) the place and manner for interested persons to secure copies of the proposed lease, including the internet address of the state land office web site on which the lease is posted;
(2) the notice shall be published in a newspaper of general circulation in the county;
(3) reasonable effort shall be made to give notice to all persons who have made a written request to the governing body or the board of county commissioners for advance notice of the hearings;
(4) at the hearing, the governing body or board of county commissioners shall allow all interested persons, including the commissioner and the proposed lessee, a reasonable opportunity to submit data, views or arguments, orally or in writing, and to examine witnesses testifying at the hearing; and
(5) the governing body or the board of county commissioners shall, within thirty days of the public hearing, issue a decision at a public meeting of the governing body or board of county commissioners as to whether or not the proposed lease is in the best interests of the municipality or county. The decision shall be in writing and shall include specific findings by the governing body or board of county commissioners. The decision may also include recommendations to the commissioner and the proposed lessee on specific revisions to the lease that would make it more advantageous to the municipality or county.
D. The hearing and decision-making process required by this section may, at the option of the governing body of the municipality or the board of county commissioners, be delegated to a planning commission of that municipality or county.
E. After the public hearing, except for lease provisions intended to effectuate recommendations of the governing body or board of county commissioners, no material modification to the lease shall be effective until reviewed pursuant to the provisions of this section. As used in this subsection, "material modification" includes any change to the acreage to be included in the lease, the projected uses of the land under the lease and the financial terms of the lease.
F. If within ninety days after receiving a proposed lease pursuant to this section, a governing body of a municipality or a board of county commissioners does not hold a public hearing as required by this section, the commissioner may enter into the lease without the review otherwise required by that municipality or county."
SECTION 3. APPLICABILITY.--The provisions of this act apply to all business leases for real estate planning or development purposes entered into by the commissioner of public lands on or after July 1, 2015.
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