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F I S C A L I M P A C T R E P O R T
SPONSOR Griego
ORIGINAL DATE
LAST UPDATED
2-10-06
HB
SHORT TITLE Labor Department Land Sales
SJR 14
ANALYST Hadwiger
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)
FY06
FY07
FY08 3 Year
Total Cost
Recurring
or Non-Rec
Fund
Affected
Total
Indeterminate
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
No agency comments had been received at the time this FIR was prepared.
SUMMARY
Synopsis of Bill
Senate Joint Resolution 14 authorizes the Property Control Division of the General Services De-
partment (GSD) to sell state-owned land at 3235 South Halagueno in Carlsbad, 600 West Arring-
ton in Farmington, 301 West De Vargas Street in Santa Fe and at South Alameda in Las Cruces
for amount no less than the appraised value established by the Taxation and Revenue Depart-
ment. The County of Santa Fe would have the right of first refusal to purchase the Santa Fe
property. GSD would consult with the U.S. Department of Labor as to the disposition of sale
proceeds.
FISCAL IMPLICATIONS
The proposed transactions would result in additional revenues from the sale of the properties. It
is not clear what restrictions would be placed on the revenues due to the source of funding to
purchase and construct these buildings. Under the Reed Act, the federal government may retain
equity in the buildings and may constrain use of these revenues. The resolution includes a re-
quirement to consult with U.S. DOL prior to using sale proceeds.
To the extent that a land sale facilitates consolidation of the operations from DOL, HSD or other
agencies into one-stop centers, the resolution may result in lower cost for state agencies for utili-
ties and maintenance of other buildings and would improve access to state services.
pg_0002
Senate Joint Resolution 14 Page 2
SIGNIFICANT ISSUES
Section 13-6-3 NMSA 1978 requires that sale or trade of state property valued in excess of $100
thousand requires legislative approval.
This resolution may be premature. GSD indicates that no plan has been developed to relocate
the Department of Labor offices in these locations or to consolidate operations from other state
agencies. The resolution only authorizes the sale of the property, so it leaves flexibility that
transactions would not proceed until a plan is in place.
OTHER SUBSTANTIVE ISSUES
Proponents of this bill should assure that an integrated strategy for creating and locating the one-
stop centers will be developed prior to initiating efforts to sell the present buildings.
DH/yr