A. Before submitting a proposed lease-purchase agreement to the legislature for ratification and approval pursuant to Section 15-3-35 N.M. Stat. Ann., the proposed lessee shall notify the commission. The commission shall review a proposed lease-purchase agreement if:

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(1)     the total lease revenues to be generated during the term of the lease- purchase agreement, including any possible extensions or renewals, exceed five million dollars ($5,000,000); or

(2)     pursuant to criteria adopted by the commission, the commission selects the lease-purchase agreement for review.

B. A review conducted pursuant to this section shall include findings by the commission as to whether:

(1)     the leasehold property and the term of the lease-purchase agreement are sufficient to meet the identified needs of the state agency that will occupy the leasehold property;

(2)     the payment of all lease revenues due pursuant to a lease-purchase agreement will be sufficient, at the end of the term of the lease-purchase agreement, to acquire ownership of the leasehold property;

(3)     the lease-purchase agreement provides that there is no legal obligation for the state or state agency to continue the lease-purchase agreement from year to year or to purchase the leasehold property, and that the lease-purchase agreement shall be terminated if sufficient appropriations are not available to meet the current lease payments; and

(4)     the lease-purchase agreement is the most cost-effective alternative for acquiring the leasehold property, taking into account currently available alternative lease arrangements, lease-purchase agreements or other financing arrangements permitted by law.

C. After a review pursuant to this section, the commission shall submit its findings and recommendations to the legislature.

D. As used in this section:

(1)     “commission” means the capitol buildings planning commission;

(2)     “facilities” means buildings and the appurtenances and improvements associated therewith, including the real estate upon which a building is constructed; suitable parking for use of the building; utilities, access roads and other infrastructure; and related real estate. “Facilities” can also mean undeveloped or developed real estate that is transferred or leased with the intent that a new building or improvement be constructed thereon;

(3)     “lease-purchase agreement” means a financing agreement for the leasing of facilities by the state or a state agency from a public or private entity with an option to purchase the leasehold property for a price that is reduced according to the payments made pursuant to the financing agreement;

(4)     “leasehold property” means facilities that are subject to a lease-purchase agreement;

(5)     “lease revenues” means the amounts payable pursuant to a lease- purchase agreement; and

(6)     “state agency” means any department, branch, institution, board, officer, bureau, instrumentality, commission, district or committee of government of the state of New Mexico except:

(a) the state armory board;

(b) the commissioner of public lands;

(c) state institutions under the jurisdiction of the higher education department; (d) the economic development department when the department is acquiring property pursuant to the Statewide Economic Development Finance Act [N.M. Stat. Ann. Chapter 6, Article 25];

(e) the public school facilities authority when the authority is acquiring property pursuant to the Public School Capital Outlay Act [N.M. Stat. Ann. Chapter 22, Article 24]; and

(f) a state-chartered charter school.