0001| HOUSE BILL 1185
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| JERRY W. SANDEL
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO CORRECTIONAL FACILITIES FINANCING; AUTHORIZING THE
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0012| ISSUANCE OF SEVERANCE TAX BONDS AND NEW MEXICO FINANCE
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0013| AUTHORITY REVENUE BONDS FOR STATE CORRECTIONAL FACILITIES;
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0014| CREATING A FUND; PROVIDING FOR DISTRIBUTION OF CERTAIN COUNTY
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0015| GROSS RECEIPTS TAX REVENUES AND GOVERNMENTAL GROSS RECEIPTS TAX
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0016| REVENUES; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978;
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0017| REPEALING A SECTION OF LAWS 1995; MAKING APPROPRIATIONS;
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0018| DECLARING AN EMERGENCY.
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0019|
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0020| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0021| Section 1. LEGISLATIVE FINDINGS--PURPOSE.--
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0022| A. The legislature recognizes that New Mexico's
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0023| correctional facilities are seriously overcrowded and cannot
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0024| accommodate the anticipated growth in correctional facility
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0025| populations. This critical shortage of correctional
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0001| facilities, primarily for adult male offenders, poses a serious
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0002| threat to the public welfare and safety of New Mexicans. To
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0003| address this emergency, the state must immediately construct
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0004| the additional correctional facilities necessary to meet this
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0005| urgent need.
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0006| B. It is the purpose of this act to provide the
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0007| financing necessary for the corrections department to construct
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0008| as soon as possible two additional state correctional
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0009| facilities for adult male offenders.
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0010| Section 2. A new section of the New Mexico Finance
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0011| Authority Act is enacted to read:
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0012| "[NEW MATERIAL] CORRECTIONAL FACILITIES FINANCING FUND
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0013| CREATED.--
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0014| A. The "correctional facilities financing fund" is
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0015| created within the authority. The fund shall be administered
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0016| by the authority as a separate account. The authority may
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0017| create such subaccounts as the authority deems necessary to
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0018| carry out the purposes of the fund. The authority is
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0019| authorized to establish procedures as required to administer
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0020| the fund in accordance with the New Mexico Finance Authority
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0021| Act.
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0022| B. The correctional facilities financing fund shall
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0023| consist of money appropriated, distributed or otherwise
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0024| allocated to the fund for the purpose of financing correctional
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0025| facilities in Lea and Guadalupe counties.
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0001| C. Money appropriated to pay administrative costs
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0002| and money available for administrative costs from other sources
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0003| shall not be deposited in the correctional facilities financing
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0004| fund but shall be deposited in a separate account of the
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0005| authority and may be used by the authority to meet
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0006| administrative costs of the authority. The authority is
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0007| authorized to deduct administrative costs annually from the
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0008| fund prior to making the transfer required by Subsection F of
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0009| this section.
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0010| D. Money in the correctional facilities financing
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0011| fund not needed for immediate disbursement, including any money
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0012| held in reserve, may be deposited with the state treasurer for
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0013| short-term investment pursuant to Section 6-10-10.1 NMSA 1978
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0014| or may be invested in direct and general obligations of or
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0015| obligations fully and unconditionally guaranteed by the United
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0016| States, obligations issued by agencies of the United States,
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0017| obligations of this state or any political subdivision of the
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0018| state, interest-bearing time deposits, commercial paper issued
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0019| by corporations organized and operating in the United States
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0020| and rated "prime" quality by a national rating service or as
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0021| otherwise provided by the trust indenture or bond resolution,
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0022| if money in the fund is pledged for or to secure payment of
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0023| bonds issued by the authority.
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0024| E. The authority shall establish fiscal controls
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0025| and accounting procedures that are sufficient to assure proper
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0001| accounting for correctional facilities financing fund payments,
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0002| disbursements and balances.
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0003| F. At the end of any fiscal year, after all debt
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0004| service charges, replenishment of reserves and administrative
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0005| costs on all outstanding revenue bonds, notes or other
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0006| obligations payable from the correctional facilities financing
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0007| fund are satisfied, the balance remaining in the correctional
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0008| facilities financing fund shall be transferred by the authority
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0009| to the public project revolving fund for public projects as
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0010| authorized by the legislature pursuant to the New Mexico
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0011| Finance Authority Act.
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0012| G. Local matching funds from the city of Hobbs and
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0013| Lea county that are deposited in the correctional facilities
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0014| financing fund are appropriated to the corrections department
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0015| for expenditure for the state correctional facility project in
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0016| Lea county and shall be distributed to the corrections
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0017| department for that purpose upon the department's certification
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0018| of the need for the funds."
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0019| Section 3. Section 6-21-6.1 NMSA 1978 (being Laws 1994,
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0020| Chapter 145, Section 2, as amended) is amended to read:
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0021| "6-21-6.1. PUBLIC PROJECT REVOLVING FUND--APPROPRIATIONS
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0022| TO OTHER FUNDS.--
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0023| A. The authority and the department of environment
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0024| may enter into a joint powers agreement pursuant to the Joint
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0025| Powers Agreements Act for the purpose of describing and
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0001| allocating duties and responsibilities with respect to creation
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0002| of an integrated loan and grant program to be financed through
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0003| issuance of bonds payable from the public project revolving
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0004| fund. The bonds may be issued in installments or at one time
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0005| by the authority in amounts authorized by law. The net
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0006| proceeds may be used for purposes of the Wastewater Facility
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0007| Construction Loan Act, the Rural Infrastructure Act or the
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0008| Solid Waste Act.
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0009| B. Public projects funded pursuant to the
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0010| Wastewater Facility Construction Loan Act, the Rural
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0011| Infrastructure Act or the Solid Waste Act shall not require
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0012| specific authorization by law as required in Sections 6-21-6
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0013| and 6-21-8 NMSA 1978.
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0014| C. At the end of each fiscal year, after all debt
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0015| service charges, replenishment of reserves and administrative
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0016| costs on all outstanding bonds, notes or other obligations
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0017| payable from the public project revolving fund are satisfied,
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0018| an aggregate amount not to exceed thirty-five percent of the
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0019| governmental gross receipts tax proceeds distributed pursuant
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0020| to Paragraph (1) of Subsection B of Section 7-1-6.38 NMSA 1978
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0021| to the public project revolving fund in the preceding fiscal
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0022| year less all debt service charges and administrative costs of
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0023| the authority paid in the preceding fiscal year on bonds issued
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0024| pursuant to this section may be appropriated by the legislature
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0025| from the public project revolving fund to the following funds
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0001| for local infrastructure financing:
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0002| (1) the wastewater facility construction loan
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0003| fund for purposes of the Wastewater Facility Construction Loan
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0004| Act;
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0005| (2) the rural infrastructure revolving loan
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0006| fund for purposes of the Rural Infrastructure Act; or
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0007| (3) the solid waste facility grant fund for
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0008| purposes of the Solid Waste Act.
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0009| D. The authority and the department of environment
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0010| in coordination with the New Mexico finance authority oversight
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0011| committee may recommend annually to each regular session of the
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0012| legislature amounts to be appropriated to the funds listed in
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0013| Subsection C of this section for local infrastructure
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0014| financing."
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0015| Section 4. Section 6-24-24 NMSA 1978 (being Laws 1995,
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0016| Chapter 155, Section 24) is amended to read:
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0017| "6-24-24. DISPOSITION OF REVENUE.--
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0018| A. As nearly as practical, an amount equal to at
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0019| least fifty percent of the gross annual revenues from the sale
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0020| of lottery tickets shall be returned to the public in the form
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0021| of lottery prizes.
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0022| B. The authority shall transmit all net revenues to
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0023| the state treasurer, who shall deposit sixty percent of the
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0024| revenues in the public school capital outlay fund for
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0025| expenditure pursuant to the provisions of the Public School
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0001| Capital Outlay Act and forty percent in the lottery tuition
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0002| fund. Estimated net revenues shall be transmitted monthly to
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0003| the state treasurer for deposit in the funds, provided the
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0004| total amount of annual net revenues for the fiscal year shall
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0005| be transmitted no later than August 1 each year.
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0006| C. In determining net revenues, operating expenses
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0007| of the lottery include all costs incurred in the operation and
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0008| administration of the lottery and all costs resulting from any
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0009| contracts entered into for the purchase or lease of goods or
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0010| services required by the lottery, including but not limited to,
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0011| the costs of supplies, materials, tickets, independent audit
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0012| services, independent studies, data transmission, advertising,
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0013| promotion, incentives, public relations, communications,
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0014| commissions paid to lottery retailers, printing, distribution
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0015| of tickets, purchases of annuities or investments to be used to
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0016| pay future installments of winning lottery tickets, debt
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0017| service and payment of any revenue bonds issued, contingency
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0018| reserves, transfers to the reserve fund and any other necessary
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0019| costs incurred in carrying out the provisions of the New Mexico
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0020| Lottery Act.
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0021| D. An amount up to two percent of the gross annual
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0022| revenues shall be set aside as a reserve fund to cover bonuses
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0023| and incentive plans for lottery retailers, special promotions
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0024| for retailers, purchasing special promotional giveaways,
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0025| sponsoring special promotional events, compulsive gambling
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0001| rehabilitation and such other purposes as the board deems
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0002| necessary to maintain the integrity and meet the revenue goals
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0003| of the lottery. The board shall report annually to the
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0004| governor and each regular session of the legislature on the use
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0005| of the money in the reserve fund. Any balance in excess of
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0006| fifty thousand dollars ($50,000) at the end of any fiscal year
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0007| shall be transferred to the lottery tuition fund.
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0008| E. As used in this section, "gross annual
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0009| revenues" does not include governmental gross receipts tax
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0010| collected or paid."
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0011| Section 5. Section 7-1-6.13 NMSA 1978 (being Laws 1983,
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0012| Chapter 211, Section 18, as amended) is amended to read:
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0013| "7-1-6.13. TRANSFER--REVENUES FROM COUNTY LOCAL OPTION
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0014| GROSS RECEIPTS TAXES.--
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0015| A. A transfer pursuant to Section 7-1-6.1 NMSA
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0016| 1978 shall be made to each county for which the department is
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0017| collecting a local option gross receipts tax imposed by that
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0018| county in an amount, subject to any increase or decrease made
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0019| pursuant to Section 7-1-6.15 NMSA 1978, equal to the net
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0020| receipts attributable to the local option gross receipts tax
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0021| imposed by that county, less any deduction for administrative
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0022| cost determined and made by the department pursuant to the
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0023| provisions of the act authorizing imposition by that county of
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0024| the local option gross receipts tax.
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0025| B. An amount shall be deducted from the transfer
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0001| pursuant to Subsection A of this section for a class C county
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0002| in which a state correctional facility is to be located, in the
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0003| amount of the net receipts attributable to the local option
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0004| gross receipts taxes imposed by that county on receipts from
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0005| the construction of that facility. The amount deducted shall
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0006| be distributed to the correctional facilities financing fund."
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0007| Section 6. Section 7-1-6.38 NMSA 1978 (being Laws 1994,
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0008| Chapter 145, Section 1, as amended) is amended to read:
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0009| "7-1-6.38. DISTRIBUTION--GOVERNMENTAL GROSS RECEIPTS
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0010| TAX.--
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0011| A. A distribution pursuant to Section 7-1-6.1 NMSA
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0012| 1978 shall be made to the correctional facilities financing
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0013| fund administered by the New Mexico finance authority in an
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0014| amount equal to the net receipts attributable to the
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0015| governmental gross receipts tax imposed on the receipts from
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0016| operation of the New Mexico state lottery.
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0017| B. From the balance remaining after the
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0018| distribution in Subsection A of this section of the net
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0019| receipts attributable to the governmental gross receipts tax:
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0020| [A.] (1) a distribution pursuant to
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0021| Section 7-1-6.1 NMSA 1978 shall be made to the public project
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0022| revolving fund administered by the New Mexico finance authority
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0023| in an amount equal to seventy-five percent of that balance of
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0024| the net receipts attributable to the governmental gross
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0025| receipts tax;
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0001| [B.] (2) a distribution pursuant to
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0002| Section 7-1-6.1 NMSA 1978 shall be made to the energy, minerals
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0003| and natural resources department in an amount equal to
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0004| [twenty-five] twenty-one and three-tenths percent of that
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0005| balance of the net receipts attributable to the governmental
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0006| gross receipts tax. [Forty] Forty-seven percent of the
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0007| distribution is appropriated to the energy, minerals and
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0008| natural resources department to implement the provisions of the
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0009| New Mexico Youth Conservation Corps Act, and [sixty] fifty-
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0010| three percent of the distribution is appropriated to the
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0011| energy, minerals and natural resources department for state
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0012| park and recreation area capital improvements, including the
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0013| costs of planning, engineering, design, construction,
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0014| renovation, repair, equipment and furnishings; and
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0015| (3) a distribution pursuant to Section 7-1-6.1
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0016| NMSA 1978 shall be made to the public project revolving fund
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0017| administered by the New Mexico finance authority in an amount
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0018| equal to three and seven-tenths percent of that balance of the
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0019| net receipts attributable to the governmental gross receipts
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0020| tax. If the reduction made by this 1997 act to the
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0021| distribution to the energy, minerals and natural resources
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0022| department impairs the payment of debt service on bonds payable
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0023| from the governmental gross receipts tax issued by the state
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0024| park and recreation division of the energy, minerals and
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0025| natural resources department prior to February 1, 1997, the New
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0001| Mexico finance authority shall reserve so much of the
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0002| distribution to the public project revolving fund made pursuant
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0003| to this paragraph as needed to pay debt service on those bonds
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0004| and shall then transfer the balance from the distribution
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0005| pursuant to this paragraph monthly to the correctional
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0006| facilities financing fund administered by the authority.
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0007| C. The state pledges to and agrees with the holders
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0008| of any bonds or notes issued by the New Mexico finance
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0009| authority or by the energy, minerals and natural resources
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0010| department and payable from the net receipts attributable to
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0011| the governmental gross receipts tax distributed to the New
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0012| Mexico finance authority or the energy, minerals and natural
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0013| resources department pursuant to this section that the state
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0014| will not limit, reduce or alter the distribution of the net
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0015| receipts attributable to the governmental gross receipts tax to
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0016| the New Mexico finance authority or the energy, minerals and
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0017| natural resources department; limit, reduce, alter or exempt
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0018| any of the receipts of governmental entities subject to the
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0019| governmental gross receipts tax; or limit, reduce or alter the
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0020| rate of imposition of the governmental gross receipts tax until
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0021| the bonds or notes together with the interest thereon are fully
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0022| met and discharged or provision has been made for their full
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0023| payment and discharge. The New Mexico finance authority and
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0024| the energy, minerals and natural resources department are
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0025| authorized to include this pledge and agreement of the state in
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0001| any agreement with the holders of the bonds or notes."
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0002|
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0003| Section 7. Section 7-9-3.2 NMSA 1978 (being Laws 1991,
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0004| Chapter 8, Section 1, as amended) is amended to read:
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0005| "7-9-3.2. ADDITIONAL DEFINITION.--As used in the Gross
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0006| Receipts and Compensating Tax Act, "governmental gross
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0007| receipts" means all receipts of the state [of New Mexico] or
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0008| any agency, institution, instrumentality or political
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0009| subdivision thereof from:
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0010| A. the sale of tangible personal property other
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0011| than water from facilities open to the general public;
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0012| B. the performance of or admissions to
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0013| recreational, athletic or entertainment services or events in
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0014| facilities open to the general public;
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0015| C. refuse collection, refuse disposal or both;
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0016| D. sewage services; [and]
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0017| E. the sale of water by a utility owned or operated
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0018| by a county, municipality or other political subdivision of the
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0019| state; and
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0020| F. the operation of a lottery.
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0021| "Governmental gross receipts" includes receipts from the
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0022| sale of tangible personal property handled on consignment when
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0023| sold from facilities open to the general public but excludes
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0024| cash discounts taken and allowed, governmental gross receipts
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0025| tax payable on transactions reportable for the period and any
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0001| type of time-price differential."
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0002| Section 8. NEW MEXICO FINANCE AUTHORITY--PUBLIC PROJECT
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0003| APPROVAL.--Pursuant to the provisions of Section 6-21-6 NMSA
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0004| 1978, the legislature authorizes the New Mexico finance
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0005| authority to issue and sell revenue bonds in installments or at
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0006| one time in an amount not to exceed fifteen million dollars
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0007| ($15,000,000) payable solely from the public project revolving
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0008| fund for the design, construction and equipping of state
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0009| correctional facilities in Lea and Guadalupe counties on terms
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0010| and conditions established by the authority when the
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0011| corrections department certifies the need for the issuance of
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0012| the bonds, subject to the prior issuance of the bonds
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0013| authorized in Sections 9 and 10 of this act for those
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0014| facilities. The net proceeds from the sale of the bonds are
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0015| appropriated to the corrections department for the design,
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0016| construction and equipping of state correctional facilities in
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0017| Lea county and Guadalupe county, subject to the provisions and
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0018| requirements in Section 9 of this act for those facilities.
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0019| Section 9. NEW MEXICO FINANCE AUTHORITY--REVENUE BONDS--
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0020| PURPOSE--APPROPRIATION OF PROCEEDS.--
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0021| A. The New Mexico finance authority may issue and
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0022| sell revenue bonds, payable solely from the correctional
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0023| facilities financing fund, in compliance with the provisions of
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0024| the New Mexico Finance Authority Act in installments or at one
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0025| time in an amount not to exceed twenty-nine million dollars
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0001| ($29,000,000) for the purpose of financing the design,
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0002| construction and equipping of state correctional facilities in
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0003| Lea county and Guadalupe county, including payment of costs of
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0004| issuance of the bonds and establishing necessary reserves for
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0005| the bonds, when the corrections department certifies the need
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0006| for the issuance of the bonds and the requirements of
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0007| Subsections C and D of this section have been met.
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0008| B. Twenty-six million dollars ($26,000,000) of the
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0009| net proceeds from the bonds are appropriated to the corrections
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0010| department to design, construct and equip:
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0011| (1) a correctional facility of not more than
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0012| eight hundred beds that is located in Guadalupe county and
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0013| built with the necessary infrastructure to accommodate one
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0014| thousand two hundred beds; and
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0015| (2) a correctional facility of not more than
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0016| one thousand six hundred beds that is located in Lea county and
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0017| built with the necessary infrastructure to accommodate two
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0018| thousand two hundred beds.
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0019| C. Each county or political subdivisions in the
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0020| county in which a correctional facility is to be located
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0021| pursuant to Subsection B of this section shall provide land for
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0022| the facility site and arrange for utilities, roads and related
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0023| infrastructure needs to the property line of the prison site in
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0024| the form of in-kind contributions. In addition, the city of
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0025| Hobbs and Lea county shall each contribute five million dollars
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0001| ($5,000,000) in local matching funds for the state correctional
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0002| facility project in Lea county, which shall be deposited into
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0003| the correctional facilities financing fund.
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0004| D. The bonds authorized in Subsection A of this
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0005| section and in Section 10 of this act for state correctional
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0006| facilities in Lea county and Guadalupe county shall not be
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0007| issued until the corrections department has certified that
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0008| neither of the facilities shall be constructed unless both of
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0009| the facilities are constructed, as nearly as practicable,
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0010| simultaneously.
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0011| Section 10. SEVERANCE TAX BONDS--PURPOSE--APPROPRIATION
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0012| OF PROCEEDS.--The state board of finance shall issue and sell
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0013| severance tax bonds in compliance with the Severance Tax
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0014| Bonding Act in an amount not to exceed seventy million dollars
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0015| ($70,000,000) when the corrections department certifies the
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0016| need for the issuance of the bonds. The state board of finance
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0017| shall schedule the issuance and sale of the bonds in the most
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0018| expeditious and economical manner possible upon a finding by
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0019| the board that the project has been developed sufficiently to
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0020| justify the issuance and that the project can proceed to
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0021| contract within a reasonable time. The state board of finance
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0022| shall further take the appropriate steps necessary to comply
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0023| with the Internal Revenue Code of 1986, as amended. The
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0024| proceeds from the sale of the bonds are appropriated to the
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0025| corrections department for the design, construction and
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0001| equipping of state correctional facilities in Lea county and
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0002| Guadalupe county, subject to the requirements and provisions
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0003| for those facilities in Section 9 of this act. Any unexpended
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0004| or unencumbered balance remaining six months after completion
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0005| of a project shall revert to the severance tax bonding fund.
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0006| If the corrections department has not certified the need for
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0007| the issuance of the bonds by the end of fiscal year 1999, the
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0008| authorization provided in this section shall be void.
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0009| Section 11. REPEAL.--Laws 1995, Chapter 214, Section 2 is
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0010| repealed.
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0011| Section 12. EFFECTIVE DATE.--
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0012| A. The effective date of the provisions of Sections
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0013| 4, 5 and 7 of this act is July 1, 1997.
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0014| B. The effective date of the provisions of Sections
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0015| 3 and 6 of this act is August 1, 1997.
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0016| Section 16. EMERGENCY.--It is necessary for the public
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0017| peace, health and safety that this act take effect immediately.
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0018|
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