AN ACT

RELATING TO CORRECTIONS; CHANGING THE NAME AND COMPOSITION OF THE CORRECTIONS COMMISSION; LIMITING THE ADVISORY AUTHORITY OF THE CORRECTIONS INDUSTRIES COMMISSION TO THE CORRECTIONS INDUSTRIES DIVISION; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of the Corrections Industries Act is enacted to read:

     "CORRECTIONS INDUSTRIES COMMISSION.--The "corrections industries commission" is created. The commission consists of seven members appointed by the governor with the advice and consent of the senate for staggered terms of four years or less in a manner that the terms of one or two members expire as the case may be on June 30 each year. Four members of the commission constitute a quorum for the transaction of business. Not more than four members shall be of the same political party. Any member who fails to attend three consecutive meetings of the commission without being excused by the commission shall be automatically removed. Vacancies shall be filled by appointment by the governor for the remainder of the unexpired term. Members of the commission shall be reimbursed as provided in the Per Diem and Mileage Act and shall receive no other compensation, perquisite or allowance."

     Section 2. Section 13-1-98 NMSA 1978 (being Laws 1984, Chapter 65, Section 71, as amended) is amended to read:

     "13-1-98. EXEMPTIONS FROM THE PROCUREMENT CODE.--The provisions of the Procurement Code shall not apply to:

          A. procurement of items of tangible personal property or services by a state agency or a local public body from a state agency, a local public body or external procurement unit except as otherwise provided in Sections 13-1-135 through 13-1-137 NMSA 1978;

          B. procurement of tangible personal property or services for the governor's mansion and grounds;

          C. printing and duplicating contracts involving materials that are required to be filed in connection with proceedings before administrative agencies or state or federal courts;

          D. purchases of publicly provided or publicly regulated gas, electricity, water, sewer and refuse collection services;

          E. purchases of books and periodicals from the publishers or copyright holders thereof;

          F. travel or shipping by common carrier or by private conveyance or to meals and lodging;

          G. purchase of livestock at auction rings or to the procurement of animals to be used for research and experimentation or exhibit;

          H. contracts with businesses for public school transportation services;

          I. procurement of tangible personal property or services, as defined by Sections 13-1-87 and 13-1-93 NMSA 1978, by the corrections industries division of the corrections department pursuant to regulations adopted by the corrections industries commission, which shall be reviewed by the purchasing division of the general services department prior to adoption;

          J. minor purchases not exceeding five thousand dollars ($5,000) consisting of magazine subscriptions, conference registration fees and other similar purchases where prepayments are required;

          K. municipalities having adopted home rule charters and having enacted their own purchasing ordinances;

          L. the issuance, sale and delivery of public securities pursuant to the applicable authorizing statute, with the exception of bond attorneys and general financial consultants;

          M. contracts entered into by a local public body with a private independent contractor for the operation, or provision and operation, of a jail pursuant to Sections 33-3-26 and 33-3-27 NMSA 1978;

          N. contracts for maintenance of grounds and facilities at highway rest stops and other employment opportunities, excluding those intended for the direct care and support of persons with handicaps, entered into by state agencies with private, nonprofit, independent contractors who provide services to persons with handicaps;

          O. contracts and expenditures for services or items of tangible personal property to be paid or compensated by money or other property transferred to New Mexico law enforcement agencies by the United States department of justice drug enforcement administration;

          P. contracts for retirement and other benefits pursuant to Sections 22-11-47 through 22-11-52 NMSA 1978;

          Q. contracts with professional entertainers;

          R. contracts and expenditures for litigation expenses in connection with proceedings before administrative agencies or state or federal courts, including experts, mediators, court reporters, process servers and witness fees, but not including attorney contracts;

          S. contracts for service relating to the design, engineering, financing, construction and acquisition of public improvements undertaken in improvement districts pursuant to Subsection L of Section 3-33-14.1 NMSA 1978 and in county improvement districts pursuant to Subsection L of Section 4-55A-12.1 NMSA 1978;

          T. works of art for museums or for display in public buildings or places;

          U. contracts entered into by a local public body with a person, firm, organization, corporation or association or a state educational institution named in Article 12, Section 11 of the constitution of New Mexico for the operation and maintenance of a hospital pursuant to Chapter 3, Article 44 NMSA 1978, lease or operation of a county hospital pursuant to the Hospital Funding Act or operation and maintenance of a hospital pursuant to the Special Hospital District Act;

          V. purchases of advertising in all media, including radio, television, print and electronic;

          W. purchases of promotional goods intended for resale by the tourism department; and

          X. procurement by or through the public education department from the federal department of education relating to parent training and information centers designed to increase parent participation, projects and initiatives designed to improve outcomes for students with disabilities and other projects and initiatives relating to the administration of improvement strategy programs pursuant to the federal Individuals with Disabilities Education Act; provided that the exemption applies only to procurement of services not to exceed two hundred thousand dollars ($200,000)."

     Section 3. Section 33-1-2 NMSA 1978 (being Laws 1978, Chapter 4, Section 1, as amended) is amended to read:

     "33-1-2. DEFINITIONS.--As used in the Corrections Act:

          A. "division" or "department" means the corrections department;

          B. "director" or "secretary" means the secretary of corrections;

          C. "corrections facility" means any facility or program controlled or operated by the state or any of its agencies or departments and supported wholly or in part by state funds for the correctional care of persons, including but not limited to:

                (1) the "penitentiary of New Mexico", which consists of the penitentiary at Santa Fe and other places in the state designated by the secretary; and

                (2) the parole board to the extent delegated by the Parole Board Act;

          D. "commission" means the corrections industries commission; and

          E. "warden" or "superintendent" means the administrative director of a correctional facility."

     Section 4. Section 33-8-2 NMSA 1978 (being Laws 1981, Chapter 127, Section 2, as amended) is amended to read:

     "33-8-2. DEFINITIONS.--As used in the Corrections Industries Act:

          A. "commission" means the corrections industries commission;

          B. "department" means the corrections department;

          C. "enterprise" means a manufacturing, agricultural or service operation or group of closely related operations within the bounds of a facility but does not include standard facility maintenance activities and services;

          D. "facility" means a place under the jurisdiction of the department at which individuals are confined pursuant to court order;

          E. "fund" means the corrections industries revolving fund;

          F. "local public body" means all political subdivisions of the state and their agencies, instrumentalities and institutions supported wholly or in part by funds derived from public taxation; and

          G. "state agency" means the state or any of its branches, agencies, departments, boards, instrumentalities or institutions supported wholly or in part by funds derived from public taxation."

     Section 5. Section 33-8-6 NMSA 1978 (being Laws 1981, Chapter 127, Section 6, as amended) is amended to read:

     "33-8-6. COMMISSION--POWERS AND DUTIES.--The commission has the following powers and duties to:

          A. determine those enterprises to be conducted in facilities in such volume, kind and place as to eliminate unnecessary inmate idleness at all facilities and to provide diversified work activities that will serve as a means of enhancing vocational skills;

          B. determine whether any enterprise should be established, expanded, diminished or discontinued;

          C. establish policy with respect to the conduct of all enterprises;

          D. approve the prices at which all services and products provided, manufactured, produced or harvested by enterprises shall be furnished; provided that the prices shall be as near the prevailing market price as possible. As used in this subsection, "prevailing market price" means the prevailing price that an equivalent product or service would have if purchased by a state agency or local public body from community sources. The commission shall include data provided by the purchasing division of the general services department in the price determination process. Compensation paid to inmates shall be included as an item of the cost in fixing prices;

          E. consult regularly and continuously with state agencies and local public bodies in order to develop new enterprise products, adapt existing enterprise products and establish new service functions to meet their needs;

          F. act as liaison with private industry, organized labor, the legislature and the general public;

          G. obtain and provide technical assistance for enterprise programs;

          H. hold meetings at such times and for such periods as it deems essential, but not less than quarterly;

          I. recommend to the department the adoption of rules necessary to carry out the provisions of the Corrections Industries Act;

          J. notwithstanding any other provision of law, adopt policies and procedures that permit an enterprise to make a single purchase of raw materials involving the expenditure of twelve thousand dollars ($12,000) or less without bids and at the best obtainable price whether or not the provider is the holder of a preexisting state contract for the particular product. Records of such purchases shall be maintained for auditor's inspection and reported at the next scheduled commission meeting. Separate purchases of the same or similar materials from the same or different suppliers at the same time or about the same time where each purchase does not exceed twelve thousand dollars ($12,000), but the aggregate of such purchases exceeds twelve thousand dollars ($12,000), shall be considered a single purchase involving more than twelve thousand dollars ($12,000);

          K. notwithstanding any other provision of law, adopt policies and procedures that permit an enterprise to make a single purchase of a product or service other than raw materials involving the expenditure of two thousand dollars ($2,000) or less without bids and at the best obtainable price whether or not the provider is the holder of a preexisting state contract for the particular product or service. Records of such purchases shall be maintained for auditor's inspection and reported at the next scheduled commission meeting. Separate purchases of the same or similar materials or services from the same or different suppliers at the same time or about the same time where each purchase does not exceed two thousand dollars ($2,000), but the aggregate of such purchases exceeds two thousand dollars ($2,000), shall be considered a single purchase involving more than two thousand dollars ($2,000);

          L. review, approve, adopt and monitor an annual budget for all enterprises. The budget process shall include a projected profit analysis, sales forecast and anticipated year-end financial forecast;

          M. submit and recommend the names of one or more qualified individuals to the secretary of corrections for appointment as director of the corrections industries division;

          N. advise the director of the corrections industries division in the management and control of the corrections industries division;

          O. assist in the process of inmate occupational placement upon release from confinement by coordination with the parole board and the field services division; and

          P. prepare an annual report to the governor and the legislature that contains:

                (1) a detailed financial statement for each enterprise in each facility;

                (2) a detailed financial statement of the fund;

                (3) reasons for establishing or terminating enterprises;

                (4) a summary of plans to develop additional enterprises;

                (5) the number of inmates employed in each enterprise;

                (6) the number of idle inmates available for work at each facility; and

                (7) any further information requested by the governor or the legislature."

     Section 6. TEMPORARY PROVISION--CONTINUATION OF APPOINTMENT TERMS.--Corrections commission members serving on the effective date of this act shall continue to serve as corrections industries commission members until their terms expire and their replacements are appointed and qualified.

     Section 7. REPEAL.--Section 33-1-4 NMSA 1978 (being Laws 1969, Chapter 226, Section 4, as amended) is repealed.

     Section 8. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2005.