0001| HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR | 0002| SENATE FINANCE COMMITTEE SUBSTITUTE FOR | 0003| | 0004| SENATE BILL 1054 | 0005| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| | 0012| | 0013| AN ACT | 0014| RELATING TO REVENUES; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX | 0015| BONDS AND NEW MEXICO FINANCE AUTHORITY REVENUE BONDS FOR | 0016| ACQUISITION OF CORRECTIONAL FACILITIES; AUTHORIZING THE | 0017| CORRECTIONS DEPARTMENT TO ENTER INTO CONTRACTS TO HOUSE | 0018| INMATES; CREATING A FUND; MAKING DISTRIBUTIONS; EXPANDING THE | 0019| GOVERNMENTAL GROSS RECEIPTS TAX; AMENDING, REPEALING AND | 0020| ENACTING SECTIONS OF THE NMSA 1978; REPEALING A SECTION OF LAWS | 0021| 1995; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY. | 0022| | 0023| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0024| Section 1. A new section of the New Mexico Finance | 0025| Authority Act is enacted to read: | 0001| "[NEW MATERIAL] CORRECTIONAL FACILITIES DEBT SERVICE FUND | 0002| CREATED.-- | 0003| A. The "correctional facilities debt service fund" | 0004| is created within the authority. The fund shall be | 0005| administered by the authority as a separate account. The | 0006| authority may create such subaccounts as the authority deems | 0007| necessary to carry out the purposes of the fund. The authority | 0008| is authorized to establish procedures as required to administer | 0009| the fund in accordance with the New Mexico Finance Authority | 0010| Act. | 0011| B. The correctional facilities debt service fund | 0012| shall consist of money distributed to the fund for the purpose | 0013| of acquiring correctional facilities. | 0014| C. Money appropriated to pay administrative costs | 0015| and money available for administrative costs from other sources | 0016| shall not be deposited in the correctional facilities debt | 0017| service fund but shall be deposited in a separate account of | 0018| the authority and may be used by the authority to meet | 0019| administrative costs of the authority. The authority is | 0020| authorized to deduct administrative costs annually from the | 0021| fund prior to making the transfer required by Subsection F of | 0022| this section. | 0023| D. Money in the correctional facilities debt | 0024| service fund not needed for immediate disbursement, including | 0025| any money held in reserve, may be deposited with the state | 0001| treasurer for short-term investment pursuant to Section 6-10- | 0002| 10.1 NMSA 1978 or may be invested in direct and general | 0003| obligations of or obligations fully and unconditionally | 0004| guaranteed by the United States, obligations issued by agencies | 0005| of the United States, obligations of this state or any political | 0006| subdivision of the state, interest-bearing time deposits, | 0007| commercial paper issued by corporations organized and operating in | 0008| the United States and rated "prime" quality by a national rating | 0009| service or as otherwise provided by the trust indenture or bond | 0010| resolution, if money in the fund is pledged for or to secure | 0011| payment of bonds issued by the authority. | 0012| E. The authority shall establish fiscal controls and | 0013| accounting procedures that are sufficient to assure proper | 0014| accounting for correctional facilities debt service fund payments, | 0015| disbursements and balances. | 0016| F. At the end of any fiscal year, after all debt | 0017| service charges, replenishment of reserves and administrative | 0018| costs on all outstanding revenue bonds, notes or other obligations | 0019| payable from the correctional facilities debt service fund are | 0020| satisfied, the balance remaining in the correctional facilities | 0021| debt service fund shall be transferred by the authority to the | 0022| public project revolving fund for public projects as authorized by | 0023| the legislature." | 0024| Section 2. Section 6-24-24 NMSA 1978 (being Laws 1995, | 0025| Chapter 155, Section 24) is amended to read: | 0001| "6-24-24. DISPOSITION OF REVENUE.-- | 0002| A. As nearly as practical, an amount equal to at least | 0003| fifty percent of the gross annual revenues from the sale of | 0004| lottery tickets shall be returned to the public in the form of | 0005| lottery prizes. | 0006| B. The authority shall transmit all net revenues to | 0007| the state treasurer, who shall deposit sixty percent of the | 0008| revenues in the public school capital outlay fund for expenditure | 0009| pursuant to the provisions of the Public School Capital Outlay Act | 0010| and forty percent in the lottery tuition fund. Estimated net | 0011| revenues shall be transmitted monthly to the state treasurer for | 0012| deposit in the funds, provided the total amount of annual net | 0013| revenues for the fiscal year shall be transmitted no later than | 0014| August 1 each year. | 0015| C. In determining net revenues, operating expenses of | 0016| the lottery include all costs incurred in the operation and | 0017| administration of the lottery and all costs resulting from any | 0018| contracts entered into for the purchase or lease of goods or | 0019| services required by the lottery, including but not limited to, | 0020| the costs of supplies, materials, tickets, independent audit | 0021| services, independent studies, data transmission, advertising, | 0022| promotion, incentives, public relations, communications, | 0023| commissions paid to lottery retailers, printing, distribution of | 0024| tickets, purchases of annuities or investments to be used to pay | 0025| future installments of winning lottery tickets, debt service and | 0001| payment of any revenue bonds issued, contingency reserves, | 0002| transfers to the reserve fund and any other necessary costs | 0003| incurred in carrying out the provisions of the New Mexico Lottery | 0004| Act. | 0005| D. An amount up to two percent of the gross annual | 0006| revenues shall be set aside as a reserve fund to cover bonuses and | 0007| incentive plans for lottery retailers, special promotions for | 0008| retailers, purchasing special promotional giveaways, sponsoring | 0009| special promotional events, compulsive gambling rehabilitation and | 0010| such other purposes as the board deems necessary to maintain the | 0011| integrity and meet the revenue goals of the lottery. The board | 0012| shall report annually to the governor and each regular session of | 0013| the legislature on the use of the money in the reserve fund. Any | 0014| balance in excess of fifty thousand dollars ($50,000) at the end | 0015| of any fiscal year shall be transferred to the lottery tuition | 0016| fund. | 0017| E. As used in this section, "gross annual revenues" | 0018| does not include governmental gross receipts tax collected or | 0019| paid." | 0020| Section 3. Section 7-1-6.38 NMSA 1978 (being Laws 1994, | 0021| Chapter 145, Section 1, as amended) is amended to read: | 0022| "7-1-6.38. DISTRIBUTION--GOVERNMENTAL GROSS RECEIPTS TAX.-- | 0023| A. A distribution pursuant to Section 7-1-6.1 NMSA | 0024| 1978 shall be made to the correctional facilities debt service | 0025| fund administered by the New Mexico finance authority in an amount | 0001| equal to the net receipts attributable to the governmental gross | 0002| receipts tax imposed on the receipts from operation of the New | 0003| Mexico state lottery. | 0004| B. From the balance remaining after the distribution | 0005| in Subsection A of this section of the net receipts attributable | 0006| to the governmental gross receipts tax: | 0007| [A.] (1) a distribution pursuant to Section | 0008| 7-1-6.1 NMSA 1978 shall be made to the public project revolving | 0009| fund administered by the New Mexico finance authority in an amount | 0010| equal to seventy-five percent of that balance of the net receipts | 0011| attributable to the governmental gross receipts tax; and | 0012| [B.] (2) a distribution pursuant to Section | 0013| 7-1-6.1 NMSA 1978 shall be made to the energy, minerals and | 0014| natural resources department in an amount equal to twenty-five | 0015| percent of that balance of the net receipts attributable to the | 0016| governmental gross receipts tax. Forty percent of the | 0017| distribution is appropriated to the energy, minerals and natural | 0018| resources department to implement the provisions of the New Mexico | 0019| Youth Conservation Corps Act, and sixty percent of the | 0020| distribution is appropriated to the energy, minerals and natural | 0021| resources department for state park and recreation area capital | 0022| improvements, including the costs of planning, engineering, | 0023| design, construction, renovation, repair, equipment and | 0024| furnishings. | 0025| C. The state pledges to and agrees with the holders of | 0001| any bonds or notes issued by the New Mexico finance authority or | 0002| by the energy, minerals and natural resources department and | 0003| payable from the net receipts attributable to the governmental | 0004| gross receipts tax distributed to the New Mexico finance authority | 0005| or the energy, minerals and natural resources department pursuant | 0006| to this section that the state will not limit, reduce or alter the | 0007| distribution of the net receipts attributable to the governmental | 0008| gross receipts tax to the New Mexico finance authority or the | 0009| energy, minerals and natural resources department; limit, reduce, | 0010| alter or exempt any of the receipts of governmental entities | 0011| subject to the governmental gross receipts tax; or limit, reduce | 0012| or alter the rate of imposition of the governmental gross receipts | 0013| tax until the bonds or notes together with the interest thereon | 0014| are fully met and discharged or provision has been made for their | 0015| full payment and discharge. The New Mexico finance authority and | 0016| the energy, minerals and natural resources department are | 0017| authorized to include this pledge and agreement of the state in | 0018| any agreement with the holders of the bonds or notes." | 0019| Section 4. Section 7-9-3.2 NMSA 1978 (being Laws 1991, | 0020| Chapter 8, Section 1, as amended) is amended to read: | 0021| "7-9-3.2. ADDITIONAL DEFINITION.--As used in the Gross | 0022| Receipts and Compensating Tax Act, "governmental gross receipts" | 0023| means all receipts of the state [of New Mexico] or any agency, | 0024| institution, instrumentality or political subdivision thereof | 0025| from: | 0001| A. the sale of tangible personal property other than | 0002| water from facilities open to the general public; | 0003| B. the performance of or admissions to recreational, | 0004| athletic or entertainment services or events in facilities open to | 0005| the general public; | 0006| C. refuse collection, refuse disposal or both; | 0007| D. sewage services; [and] | 0008| E. the sale of water by a utility owned or operated by | 0009| a county, municipality or other political subdivision of the | 0010| state; and | 0011| F. the operation of a lottery. | 0012| "Governmental gross receipts" includes receipts from the | 0013| sale of tangible personal property handled on consignment when | 0014| sold from facilities open to the general public but excludes cash | 0015| discounts taken and allowed, governmental gross receipts tax | 0016| payable on transactions reportable for the period and any type of | 0017| time-price differential." | 0018| Section 5. [NEW MATERIAL] CONTRACT TO HOUSE ADULT FEMALE | 0019| INMATES IN A REINTEGRATION FACILITY.-- | 0020| A. The corrections department shall solicit proposals | 0021| for the purpose of entering into a contract with a private | 0022| detention facility pursuant to Subsection G of Section 31-20-2 | 0023| NMSA 1978 to operate an adult female reintegration facility. | 0024| B. The facility contracting with the corrections | 0025| department pursuant to Subsection A of this section shall: | 0001| (1) be privately financed, designed, constructed | 0002| and operated by the contractor; provided that a facility financed | 0003| by bonds issued pursuant to the Industrial Revenue Bond Act or the | 0004| County Industrial Revenue Bond Act and sold to the contractor | 0005| shall be privately financed by the contractor for the purposes of | 0006| this paragraph; | 0007| (2) consist of a two-hundred-fifty-bed adult | 0008| female reintegration facility that is adjacent to a four-hundred- | 0009| bed medium-security correctional facility that is located in the | 0010| middle Rio Grande corridor; and | 0011| (3) certify that the facility was built by a | 0012| primary contractor and subcontractors that: | 0013| (a) maintain their primary places of | 0014| business in New Mexico; | 0015| (b) hired laborers for construction of the | 0016| facility as employees, rather than as independent contractors, and | 0017| who are New Mexico residents; | 0018| (c) provided health care benefits, | 0019| retirement benefits and unemployment insurance to their employees | 0020| working on construction of the facility; and | 0021| (d) maintain apprenticeship programs for | 0022| their employees. | 0023| C. The corrections department shall solicit proposals | 0024| and award any contract under this section in accordance with the | 0025| provisions of the Procurement Code. The contract shall include | 0001| such terms and conditions as the department may require after | 0002| consultation with the general services department; provided that | 0003| the terms and conditions shall include provisions that: | 0004| (1) set forth comprehensive standards for | 0005| conditions of incarceration; | 0006| (2) require the facility to meet or exceed | 0007| corrections department standards and meet appropriate | 0008| certification requirements within one year after beginning | 0009| operation and remain accredited through the life of the contract; | 0010| (3) require the contractor to assume all | 0011| liability caused by or arising out of all aspects of the provision | 0012| or operation of the facility; | 0013| (4) require liability insurance or other proof | 0014| of financial responsibility acceptable to the general services | 0015| department that covers the contractor and its officers, employees | 0016| and agents in an amount sufficient to cover all liability caused | 0017| by or arising out of all aspects of the provision or operation of | 0018| the facility; | 0019| (5) require termination for cause upon ninety | 0020| days' notice to the contractor for failure to meet contract | 0021| provisions when such failure seriously affects the availability or | 0022| operation of the facility; | 0023| (6) provide that venue for enforcement of the | 0024| contract shall be in the district court for Santa Fe county; | 0025| (7) require continuation of the contract to be | 0001| subject to the availability of funds; | 0002| (8) provide that compliance with the contract | 0003| shall be monitored by the corrections department and the contract | 0004| may be terminated for noncompliance; and | 0005| (9) payments under the contract shall be made | 0006| only on a per diem per inmate basis without any additional or | 0007| separate charge for capital costs. | 0008| Section 6. [NEW MATERIAL] CONTRACT TO HOUSE ADJUDICATED | 0009| DELINQUENTS IN A CARE, REHABILITATION AND TREATMENT FACILITY.-- | 0010| A. The children, youth and families department shall | 0011| solicit proposals for the purpose of entering into a contract with | 0012| a private care, rehabilitation and treatment facility to house | 0013| male adjudicated delinquents committed to the children, youth and | 0014| families department. | 0015| B. The facility contracting with the children, youth | 0016| and families department pursuant to Subsection A of this section | 0017| shall: | 0018| (1) be privately financed, designed, constructed | 0019| and operated by the contractor; provided that a facility financed | 0020| by bonds issued pursuant to the Industrial Revenue Bond Act or the | 0021| County Industrial Revenue Bond Act and sold to the contractor | 0022| shall be privately financed by the contractor for the purposes of | 0023| this paragraph; | 0024| (2) consist of one hundred fifty beds and | 0025| provide care, rehabilitation and treatment for male adjudicated | 0001| delinquents; | 0002| (3) be located in the middle Rio Grande | 0003| corridor; and | 0004| (4) certify that the facility was built by a | 0005| primary contractor and subcontractors that: | 0006| (a) maintain their primary places of | 0007| business in New Mexico; | 0008| (b) hired laborers for construction of the | 0009| facility as employees, rather than as independent contractors, and | 0010| who are New Mexico residents; | 0011| (c) provided health care benefits, | 0012| retirement benefits and unemployment insurance to their employees | 0013| working on construction of the facility; and | 0014| (d) maintain apprenticeship programs for | 0015| their employees. | 0016| C. The children, youth and families department shall | 0017| solicit proposals and award any contract under this section in | 0018| accordance with the provisions of the Procurement Code. The | 0019| contract shall include such terms and conditions as the department | 0020| may require after consultation with the general services | 0021| department; provided that the terms and conditions shall include | 0022| provisions that: | 0023| (1) set forth comprehensive standards for | 0024| conditions of incarceration; | 0025| (2) require the facility to meet or exceed | 0001| applicable juvenile detention facility standards and meet | 0002| appropriate certification requirements within one year after | 0003| beginning operation and remain accredited through the life of the | 0004| contract; | 0005| (3) require the contractor to assume all | 0006| liability caused by or arising out of all aspects of the provision | 0007| or operation of the facility; | 0008| (4) require liability insurance or other proof | 0009| of financial responsibility acceptable to the general services | 0010| department that covers the contractor and its officers, employees | 0011| and agents in an amount sufficient to cover all liability caused | 0012| by or arising out of all aspects of the provision or operation of | 0013| the facility; | 0014| (5) require termination for cause upon ninety | 0015| days' notice to the contractor for failure to meet contract | 0016| provisions when such failure seriously affects the availability or | 0017| operation of the facility; | 0018| (6) provide that venue for enforcement of the | 0019| contract shall be in the district court for Santa Fe county; | 0020| (7) require continuation of the contract to be | 0021| subject to the availability of funds; | 0022| (8) provide that compliance with the contract | 0023| shall be monitored by the children, youth and families department | 0024| and the contract may be terminated for noncompliance; and | 0025| (9) payments under the contract shall be made | 0001| only on a per diem per inmate basis without any additional or | 0002| separate charge for capital costs. | 0003| Section 7. NEW MEXICO FINANCE AUTHORITY--PUBLIC PROJECT | 0004| APPROVAL.--Pursuant to the provisions of Section 6-21-6 NMSA 1978, | 0005| the legislature authorizes the New Mexico finance authority to | 0006| issue and sell revenue bonds in installments or at one time in an | 0007| amount not to exceed twenty million dollars ($20,000,000) payable | 0008| solely from the public project revolving fund for the acquisition | 0009| of correctional facilities on terms and conditions established by | 0010| the authority when the corrections department certifies the need | 0011| for the issuance of the bonds. The net proceeds from the sale of | 0012| the bonds shall be appropriated by the legislature for the | 0013| acquisition of correctional facilities, subject to the provisions | 0014| and requirements in Section 13 of this act for those facilities. | 0015| Section 8. NEW MEXICO FINANCE AUTHORITY--GOVERNMENTAL GROSS | 0016| RECEIPTS TAX REVENUE BONDS--PURPOSE.--The New Mexico finance | 0017| authority may issue and sell revenue bonds, payable solely from | 0018| governmental gross receipts tax revenues distribution to the | 0019| correctional facilities debt service fund, in compliance with the | 0020| provisions of the New Mexico Finance Authority Act in installments | 0021| or at one time in an amount necessary to provide net proceeds of | 0022| twenty-one million dollars ($21,000,000) for the acquisition of | 0023| correctional facilities and for payment of the costs of issuance | 0024| of the bonds and establishing necessary reserves for the bonds, | 0025| when the corrections department certifies the need for the | 0001| issuance of the bonds. The net proceeds from the bonds shall be | 0002| appropriated by the legislature for acquisition of correctional | 0003| facilities, subject to the provisions and requirements in Section | 0004| 13 of this act for those facilities. Any unexpended or | 0005| unencumbered balance remaining six months after completion of a | 0006| project shall revert to the public project revolving fund for | 0007| appropriation by the legislature for public projects pursuant to | 0008| the provisions of the New Mexico Finance Authority Act. If the | 0009| corrections department has not certified the need for the issuance | 0010| of the bonds by the end of fiscal year 1999, the authorization | 0011| provided in this section shall be void. | 0012| Section 9. SEVERANCE TAX BONDS--PURPOSE.--The state board | 0013| of finance shall issue and sell severance tax bonds in compliance | 0014| with the Severance Tax Bonding Act in an amount not to exceed | 0015| forty-four million dollars ($44,000,000) when the corrections | 0016| department certifies the need for the issuance of the bonds. The | 0017| state board of finance shall schedule the issuance and sale of the | 0018| bonds in the most expeditious and economical manner possible upon | 0019| a finding by the board that the project has been developed | 0020| sufficiently to justify the issuance and that the project can | 0021| proceed to contract within a reasonable time. The state board of | 0022| finance shall further take the appropriate steps necessary to | 0023| comply with the Internal Revenue Code of 1986, as amended. The | 0024| proceeds from the sale of the bonds shall be appropriated by the | 0025| legislature for acquisition of correctional facilities subject to | 0001| the provisions and requirements in Section 13 of this act for | 0002| those facilities. Any unexpended or unencumbered balance | 0003| remaining six months after completion of a project shall revert to | 0004| the severance tax bonding fund. If the corrections department has | 0005| not certified the need for the issuance of the bonds by the end of | 0006| fiscal year 1999, the authorization provided in this section shall | 0007| be void. | 0008| Section 10. APPROPRIATIONS--HOUSING INMATES OUT OF STATE.-- | 0009| A. One million one hundred thousand dollars | 0010| ($1,100,000) is appropriated from the general fund to the | 0011| corrections department for expenditure in fiscal year 1997 for the | 0012| purpose of paying for adult male inmates transferred to out-of- | 0013| state correctional facilities for a period not to exceed twelve | 0014| months to relieve overcrowding in state correctional facilities | 0015| and paying for accompanying costs, including medical costs and | 0016| transportation costs. Any unexpended or unencumbered balance | 0017| remaining at the end of fiscal year 1997 shall revert to the | 0018| general fund. | 0019| B. One million eight hundred thousand dollars | 0020| ($1,800,000) is appropriated from the general fund to the | 0021| corrections department for expenditure in fiscal year 1998 for the | 0022| purpose of paying for adult male inmates transferred to out-of- | 0023| state correctional facilities for a period not to exceed twelve | 0024| months and paying for accompanying costs, including medical costs | 0025| and transportation costs. Any unexpended or unencumbered balance | 0001| remaining at the end of fiscal year 1998 shall revert to the | 0002| general fund. | 0003| Section 11. APPROPRIATION--HOUSING INMATES IN CIBOLA | 0004| COUNTY--CONTRACT PROVISIONS.-- | 0005| A. Two million dollars ($2,000,000) is appropriated | 0006| from the general fund to the corrections department for | 0007| expenditure in fiscal year 1998 to contract with Cibola county to | 0008| house additional inmates at the Cibola county corrections center. | 0009| Any unexpended or unencumbered balance remaining at the end of | 0010| fiscal year 1998 shall revert to the general fund. | 0011| B. The contract entered into pursuant to Subsection A | 0012| of this section shall provide: | 0013| (1) that the total number of state inmates | 0014| housed at the Cibola county corrections center shall equal five | 0015| hundred fifty-two medium-security inmates and one hundred seventy- | 0016| six minimum restrict inmates; and | 0017| (2) that the corrections department shall not | 0018| reduce the number of inmates housed at the Cibola county | 0019| corrections center below the numbers specified in Paragraph (1) of | 0020| this subsection unless it has first removed all similarly | 0021| classified state inmates from all other private or county operated | 0022| correctional facilities. | 0023| Section 12. APPROPRIATION--PREFABRICATED JUVENILE DETENTION | 0024| FACILITIES.--Five million dollars ($5,000,000) of the proceeds of | 0025| the general obligation bonds for juvenile correctional and | 0001| rehabilitative facilities approved by the voters in the 1996 | 0002| general election is appropriated to the children, youth and | 0003| families department for expenditure in fiscal years 1997 and 1998 | 0004| to acquire a fifty-bed prefabricated juvenile detention facility | 0005| at the youth development and diagnostic center in Albuquerque and | 0006| a fifty-bed prefabricated facility at the New Mexico boys' school | 0007| at Springer. | 0008| Section 13. ACQUISITION OF CORRECTIONAL FACILITIES-- | 0009| CONDITIONS--APPROPRIATIONS.-- | 0010| A. The corrections department shall solicit proposals | 0011| for the purpose of acquiring correctional facilities in Guadalupe | 0012| county, Lea county and the middle Rio Grande corridor as provided | 0013| in this section. The department shall solicit proposals | 0014| separately for each correctional facility. | 0015| B. The appropriations in this section for correctional | 0016| facilities are contingent upon the enactment into law of House | 0017| Taxation and Revenue Committee Substitute for Senate Finance | 0018| Committee Substitute for Senate Bill 1273 of the first session of | 0019| the forty-third legislature. | 0020| C. The following amounts from the following sources | 0021| are appropriated to the corrections department for expenditure in | 0022| fiscal years 1997 through 1999 for the acquisition of a six- | 0023| hundred-bed correctional facility in Guadalupe county: | 0024| (1) three million dollars ($3,000,000) of the | 0025| proceeds from the issuance of governmental gross receipts tax | 0001| revenue bonds by the New Mexico finance authority pursuant to | 0002| Section 8 of this act; | 0003| (2) twenty million dollars ($20,000,000) of the | 0004| proceeds from public project revenue bonds issued by the New | 0005| Mexico finance authority pursuant to Section 7 of this act; and | 0006| (3) eight million dollars ($8,000,000) of the | 0007| proceeds from the severance tax bonds issued pursuant to Section 9 | 0008| of this act. | 0009| D. The following amounts from the following sources | 0010| are appropriated to the corrections department for expenditure in | 0011| fiscal years 1997 through 1999 for the acquisition of an eight- | 0012| hundred-bed correctional facility in Lea county: | 0013| (1) thirteen million dollars ($13,000,000) from | 0014| the general fund; and | 0015| (2) eighteen million dollars ($18,000,000) of | 0016| the proceeds from the governmental gross receipts tax revenue | 0017| bonds issued by the New Mexico finance authority pursuant to | 0018| Section 8 of this act. | 0019| E. Thirty-six million dollars ($36,000,000) of the | 0020| proceeds from the severance tax bonds issued pursuant to Section 9 | 0021| of this act is appropriated to the corrections department for | 0022| expenditure in fiscal years 1997 through 1999 in the following | 0023| amounts for the acquisition of the following facilities to be | 0024| located adjacent to each other in the middle Rio Grande corridor: | 0025| | 0001| (1) twenty-one million dollars ($21,000,000) for | 0002| a correctional facility with four hundred medium-security beds for | 0003| adult male inmates; and | 0004| (2) fifteen million dollars ($15,000,000) for a | 0005| four-hundred-bed adult male in-prison substance abuse treatment | 0006| facility. | 0007| F. Each county or political subdivisions in the county | 0008| in which a correctional facility is to be located pursuant to | 0009| Subsections C and D of this section shall provide land for the | 0010| facility site and arrange for utilities, roads and related | 0011| infrastructure needs to the property line of the facility site in | 0012| the form of in-kind contributions. In addition, the city of Hobbs | 0013| and Lea county shall contribute jointly ten million dollars | 0014| ($10,000,000) in local matching funds for the correctional | 0015| facility project authorized in Lea county pursuant to Subsection D | 0016| of this section. | 0017| G. Any unexpended or unencumbered balance from the | 0018| general fund appropriation in Paragraph (1) of Subsection D of | 0019| this section remaining at the end of fiscal year 1999 shall revert | 0020| to the general fund. | 0021| H. No contract for the acquisition of a facility shall | 0022| be entered into pursuant to Subsections C through E of this | 0023| section unless the secretary of corrections certifies that the | 0024| facility will be built by a primary contractor and subcontractors | 0025| that: | 0001| (1) maintain their primary places of business in | 0002| New Mexico; | 0003| (2) hire laborers for construction of the | 0004| facility as employees, rather than as independent contractors, and | 0005| who are New Mexico residents; | 0006| (3) provide health care benefits, retirement | 0007| benefits and unemployment insurance to their employees working on | 0008| construction of the facility; and | 0009| (4) maintain apprenticeship programs for their | 0010| employees. | 0011| Section 14. REPEAL.-- | 0012| A. Section 7-27-5.22 NMSA 1978 (being Laws 1995, | 0013| Chapter 215, Section 2, as amended) is repealed. | 0014| B. Laws 1995, Chapter 214, Section 2 is repealed. | 0015| Section 15. EFFECTIVE DATE.-- | 0016| A. The effective date of the provisions of Sections 2, | 0017| 4 and 11 of this act is July 1, 1997. | 0018| B. The effective date of the provisions of Section 3 | 0019| of this act is August 1, 1997. | 0020| Section 16. EMERGENCY.--It is necessary for the public | 0021| peace, health and safety that this act take effect immediately. | 0022|  |