Insurance contracts not exceeding five years, joint projects between two or more local public bodies not exceeding five years, lease-purchase agreements, lease agreements, contracts providing for the operation or provision and operation of a jail by or with another local public body or by an independent contractor entered into by a local public body set out in Section 6-6-11 NMSA 1978 and guaranteed energy savings contracts and installment payment contracts or lease-purchase agreements pursuant to guaranteed energy savings contracts are exempt from the provisions of Section 6-6-11 NMSA 1978, and such contracts, lease-purchase agreements, lease agreements and jail contracts are declared not to constitute the creation of debt.
History: 1953 Comp., § 11-6-6.1, enacted by Laws 1968, ch. 72, § 8; 1984, ch. 22, § 2; 1993, ch. 231, § 11; 1999, ch. 198, § 1.
ANNOTATIONSThe 1999 amendment, effective June 18, 1999, inserted "joint projects between two or more local public bodies not exceeding five years" following "five years" and inserted "by or with another local public body or" following "jail".
Lease-sale. — If an option price required to be paid by a county is nominal or nonexistent, a purported lease may be treated as a sale, creating the type of future economic commitment that requires the arrangement be approved by the voters, pursuant to N.M. Const., art. IX, § 10. Montano v. Gabaldon, 1989-NMSC-001, 108 N.M. 94, 766 P.2d 1328.
Municipalities may enter into long-term lease agreements and lease purchase agreements without violating the provisions of the Bateman Act (6-6-11 and 6-6-13 to 6-6-18 NMSA 1978). 1969 Op. Att'y Gen. No. 69-39.
Lease purchase agreements. — In spite of the language of this section, certain lease purchase agreements may constitute the creation of debt within N.M. Const., art. IX, §§ 10, 11 and 12. 1969 Op. Att'y Gen. No. 69-39.
The purchase of school yearbooks does not fall within any of the exceptions provided in this section. 1969 Op. Att'y Gen. No. 69-17.
Lease purchase agreements binding on future councils. — Although a municipality may not earmark receipts of the future so that these receipts will go to the payment of the amount due each year under a lease purchase agreement, nevertheless, such agreements are binding on future councils and mayors of municipalities. 1969 Op. Att'y Gen. No. 69-39.