A. All counties shall have the power to authorize the leasing or operating of county hospitals to persons, firms, organizations, corporations or a state educational institution named in Article 12, § 11 of the constitution of New Mexico upon such terms and conditions as the county commissioners may determine. If the lease is to a state educational institution named in Article 12, § 11 of the constitution of New Mexico, the payment for the lease shall not exceed one dollar ($1.00) per year. The lease may be for any length of time deemed appropriate by the parties involved, provided that the lease shall contain a cancellation clause.

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B. In the event of a lease to or an agreement to operate with a state educational institution named in Article 12, § 11 of the constitution of New Mexico, the county may delegate its authority to operate and maintain the hospital to that institution.

C. In the event of a lease to or an agreement to operate with a state educational institution named in Article 12, § 11 of the constitution of New Mexico, the public character of the hospital shall continue, and county funds for the hospital shall be paid by the county to that institution for the operation and maintenance of the hospital. Any county hospital, or outpatient clinics thereof, leased to or operated under an agreement with a state educational institution named in Article 12, § 11 of the constitution of New Mexico shall continue, during the state educational institution’s operation and maintenance of the hospital, to be a local public body for purposes of the Unemployment Compensation Law [N.M. Stat. Ann. Chapter 51].