0001| SENATE BILL 1055
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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| MANNY M. ARAGON
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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 CORRECTIONS FACILITIES FINANCING; INCREASING THE
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0012| RATE OF THE GROSS RECEIPTS TAX FOR TWO YEARS; PROVIDING FOR
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0013| CONSTRUCTION OR ACQUISITION OF CORRECTIONS AND TREATMENT
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0014| FACILITIES; AMENDING SECTIONS OF THE NMSA 1978; MAKING
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0015| APPROPRIATIONS; DECLARING AN EMERGENCY.
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0016|
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0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018| Section 1. [NEW MATERIAL] FUND CREATED--PURPOSE--
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0019| APPROPRIATION.--
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0020| A. The "corrections facilities financing fund" is
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0021| created as a special fund within the state treasury. The fund
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0022| shall consist of money appropriated to the fund and gross
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0023| receipts tax revenues distributed to the fund by law. Balances
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0024| in the fund at the end of any fiscal year shall remain in the
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0025| fund, except as provided in Subsection D of this section.
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0001| Earnings from investment of the fund shall be credited to the
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0002| fund.
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0003| B. Money in the corrections facilities financing
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0004| fund is appropriated to the property control division of the
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0005| general services department for the following specified
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0006| purposes:
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0007| (1) ninety-five million dollars ($95,000,000)
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0008| to design, construct and equip or acquire:
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0009| (a) a correctional facility in Guadalupe
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0010| county of not more than six hundred beds, expandable to one
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0011| thousand two hundred beds; and
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0012| (b) a correctional facility in Lea
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0013| county of not more than one thousand two hundred beds,
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0014| expandable to two thousand two hundred beds;
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0015| (2) twenty million dollars ($20,000,000) to
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0016| design, construct and equip or acquire a four-hundred-bed adult
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0017| male behavioral and mental health facility in the Rio Grande
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0018| corridor;
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0019| (3) two million dollars ($2,000,000) to
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0020| design, construct and equip or acquire a two-hundred-fifty-bed
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0021| adult female reintegration facility in the Rio Grande corridor;
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0022| (4) ten million dollars ($10,000,000) to
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0023| acquire:
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0024| (a) a fifty bed prefabricated juvenile
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0025| correctional facility at the youth development and diagnostic
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0001| center; and
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0002| (b) a fifty-bed prefabricated juvenile
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0003| correctional facility at the New Mexico boys' school at
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0004| Springer; and
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0005| (5) ten million dollars ($10,000,000) to
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0006| design, construct and equip or acquire a three-hundred-bed
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0007| behavioral and mental health facility for male juveniles in the
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0008| Rio Grande corridor.
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0009| C. No contract for the construction or acquisition
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0010| of a facility shall be entered into pursuant to Subsection B of
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0011| this section unless the secretary of the contracting agency
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0012| certifies that the facility will be built by a primary
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0013| contractor and subcontractors that:
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0014| (1) maintain their primary places of business
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0015| in New Mexico;
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0016| (2) hire laborers for construction of the
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0017| facilities as employees, rather than independent contractors,
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0018| and who are New Mexico residents;
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0019| (3) provide health care benefits and
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0020| retirement benefits to their employees working on construction
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0021| of the facilities; and
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0022| (4) maintain apprenticeship programs for
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0023| their employees.
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0024| D. Upon certification by the secretary of the
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0025| contracting agency that the agency has constructed or acquired
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0001| the facilities pursuant to Subsection B of this section and no
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0002| additional expenditures from the fund are necessary for that
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0003| purpose, any balance remaining in the corrections facilities
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0004| financing fund shall be transferred to the general fund.
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0005| E. Any law authorizing the distribution of taxes or
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0006| other revenues to the corrections facilities financing fund
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0007| shall not be amended or repealed or otherwise modified so as to
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0008| impair any contract entered into by the contracting agency
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0009| pursuant to which those taxes or revenues are dedicated to the
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0010| construction or acquisition of facilities as provided in this
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0011| section.
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0012| Section 2. A new section of the Tax Administration Act is
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0013| enacted to read:
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0014| "[NEW MATERIAL] DISTRIBUTION--CORRECTIONS FACILITIES
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0015| FINANCING FUND.--A distribution pursuant to Section 7-1-6.1
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0016| NMSA 1978 shall be made to the corrections facilities financing
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0017| fund administered by the corrections department equal to six
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0018| million dollars ($6,000,000) of the net receipts attributable
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0019| to the gross receipts tax imposed pursuant to the Gross
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0020| Receipts and Compensating Tax Act."
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0021| Section 3. Section 7-9-4 NMSA 1978 (being Laws 1966,
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0022| Chapter 47, Section 4, as amended) is amended to read:
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0023| "7-9-4. IMPOSITION AND RATE OF TAX--DENOMINATION AS
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0024| "GROSS RECEIPTS TAX".--
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0025| A. For the privilege of engaging in business, an
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0001| excise tax equal to [five percent] the following
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0002| percentages of gross receipts is imposed on any person
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0003| engaging in business in New Mexico:
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0004| (1) from July 1, 1997 through June 10, 1999,
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0005| five and one-quarter percent; and
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0006| (2) after June 30, 1999, five percent.
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0007| B. The tax imposed by this section shall be
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0008| referred to as the "gross receipts tax"."
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0009| Section 4. Section 33-1-17 NMSA 1978 (being Laws 1985,
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0010| Chapter 149, Section 1, as amended) is amended to read:
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0011| "33-1-17. PRIVATE CONTRACT.--
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0012| A. The corrections department may contract for the
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0013| operation of any adult female facility or for housing adult
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0014| female inmates in a private facility with a person or entity in
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0015| the business of providing correctional or jail services to
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0016| government entities.
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0017| B. The corrections department may contract with a
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0018| person or entity in the business of providing correctional or
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0019| jail services to government entities for
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0020| [(1) a correctional facility in Guadalupe
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county of not less than five hundred fifty and not more than
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two thousand two hundred beds;
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(2) a correctional facility in Lea, Chaves or
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Santa Fe county of not less than one thousand two hundred and
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not more than two thousand two hundred beds;
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(3) design and construction of a support
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services building, a laundry and an infirmary at the
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penitentiary of New Mexico in Santa Fe; or
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(4)] construction of a public facility to
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0005| house a special incarceration alternative program for adult
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0006| male and adult female felony offenders.
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0007| [C. The authorization in Subsection B of this
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section for a correctional facility in Guadalupe county and a
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correctional facility in Lea, Chaves or Santa Fe county is
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contingent upon construction of both facilities, so that one of
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the facilities shall not be constructed unless both of the
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facilities are constructed, as nearly as practicable,
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simultaneously.
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D.] C. The corrections department shall
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0015| solicit proposals and award any contract under this section in
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0016| accordance with the provisions of the Procurement Code. The
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0017| contract shall include such terms and conditions as the
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0018| corrections department may require after consultation with
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0019| the general services department; provided that the terms and
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0020| conditions shall include provisions:
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0021| (1) setting forth comprehensive standards for
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0022| conditions of incarceration;
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0023| (2) that the contractor assumes all liability
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0024| caused by or arising out of all aspects of the provision or
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0025| operation of the facility;
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0001| (3) for liability insurance or other proof of
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0002| financial responsibility acceptable to the general services
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0003| department covering the contractor and its officers, employees
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0004| and agents in an amount sufficient to cover all liability
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0005| caused by or arising out of all aspects of the provision or
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0006| operation of the facility;
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0007| (4) for termination for cause upon ninety
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0008| days' notice to the contractor for failure to meet contract
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0009| provisions when such failure seriously affects the availability
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0010| or operation of the facility;
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0011| (5) that venue for the enforcement of the
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0012| contract shall be in the district court for Santa Fe county;
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0013| (6) that continuation of the contract is
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0014| subject to the availability of funds; and
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0015| (7) that compliance with the contract shall be
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0016| monitored by the corrections department and the contract may be
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0017| terminated for noncompliance.
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0018| [E.] D. When the contractor begins operation of
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0019| a facility for which private contractor operation is
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0020| authorized, his employees performing the functions of
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0021| correctional officers shall be deemed correctional officers for
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0022| the purposes of Sections 33-1-10 and 33-1-11 NMSA 1978 but for
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0023| no other purpose of state law, unless specifically stated.
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0024| [F.] E. Any contract awarded pursuant to this
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0025| section may include terms to provide for the renovation of the
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0001| facility or for the construction of new buildings. Work
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0002| performed pursuant to such terms and conditions shall not be
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0003| considered a capital project as defined in Section 15-3-23.3
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0004| NMSA 1978 or a state public works project as defined in Section
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0005| 13-1-91 NMSA 1978 nor shall it be subject to the requirements
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0006| of Section 13-1-150 NMSA 1978 or of the Capital Program Act,
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0007| review by the staff architect of the property control division
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0008| of the general services department pursuant to Section 15-3-20
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0009| NMSA 1978 or regulation by the director of that division
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0010| pursuant to Section 15-3-11 NMSA 1978.
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0011| [G.] F. Any contract entered into by the
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0012| corrections department with a private contractor to operate an
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0013| existing facility shall include a provision securing the right
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0014| of all persons employed by that facility prior to the effective
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0015| date of that contract to be employed by that contractor in any
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0016| position for which they qualify before that position is offered
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0017| to any person not employed by that facility prior to that
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0018| date."
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0019| Section 5. Section 33-1-18 NMSA 1978 (being Laws 1990
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0020| (1st. S.S.), Chapter 5, Section 1, as amended) is amended to
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0021| read:
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0022| "33-1-18. [FUNDS] FUND CREATED.--There [are] is
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0023| created in the state treasury a special [funds] fund to
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0024| be known as the "corrections department building fund" [the
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"Guadalupe county prison fund" and the "New Mexico prison
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fund"]. The [funds] fund shall consist of money
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0002| appropriated by the legislature, from year to year, from the
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0003| income of the permanent fund and land income of which the
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0004| penitentiary of New Mexico is the beneficiary [and any other
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revenues that are appropriated to the funds, other than
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revenues derived from property taxes or general fund
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revenues]. Income from investment of [each special] the
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0008| corrections department building fund [created by this
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section] shall be credited to [that] the fund."
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0010| Section 6. Section 33-1-19 NMSA 1978 (being Laws 1990
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0011| (1st. S.S.), Chapter 5, Section 2, as amended by Laws 1995,
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0012| Chapter 43, Section 1 and also by Laws 1995, Chapter 215,
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0013| Section 4) is amended to read:
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0014| "33-1-19. USE OF FUNDS.--
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0015| A. The [funds created in or pursuant to Section
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33-1-18 NMSA 1978] corrections department building fund
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0017| shall be used by the corrections department or the state
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0018| board of finance for the purpose of acquiring, designing,
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0019| constructing or equipping, by lease or lease-purchase, or by
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0020| financing the ownership by the corrections department through
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0021| the issuance of bonds or other obligations by the corrections
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0022| department or the state board of finance, or other means, a
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0023| corrections department central office complex, a personnel
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0024| training academy, a special incarceration alternative facility.
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0025| [correctional facilities or any combination of these
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facilities, and for paying the expenses relating to the lease,
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lease-purchase or financing of these facilities. Before any of
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the funds created in Section 33-1-18 NMSA 1978 may be used for
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any such purpose, the state board of finance shall approve the
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proposed facility and the proposed use of the funds.
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B. The funds created in or pursuant to Section
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33-1-18 NMSA 1978 shall be used so that available
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appropriations are devoted to the following projects:
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(1) payment for the corrections department
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central office complex;
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(2) a correctional facility in Guadalupe
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county of not less than five hundred fifty and not more than
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two thousand two hundred beds;
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(3) a correctional facility in Lea, Chaves or
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Santa Fe county of not less than one thousand two hundred and
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not more than two thousand two hundred beds; and
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(4) design and construction of a support
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services building, a laundry and an infirmary at the
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penitentiary of New Mexico in Santa Fe.
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C. The use of funds designated in Subsection B of
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this section for a correctional facility in Guadalupe county
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and a correctional facility in Lea, Chaves or Santa Fe county
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is contingent upon construction of both facilities, so that one
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of the facilities shall not be constructed unless both of the
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facilities are constructed, as nearly as possible,
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simultaneously.
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D.] B. Any balance at the end of any fiscal year
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0003| in the [special funds created in Section 33-1-18 NMSA 1978]
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0004| corrections department building fund that [are] is not
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0005| needed to pay leases, loans, bonds or other financing
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0006| instruments in that fiscal year may be appropriated by the
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0007| legislature for expenditure in succeeding fiscal years by the
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0008| corrections department for corrections purposes."
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0009| Section 7. DELAYED REPEAL.--Section 2 of this act is
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0010| repealed effective August 1, 1999.
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0011| Section 8. EFFECTIVE DATE.--
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0012| A. The effective date of the provisions of Section
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0013| 2 of this act is August 1, 1997.
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0014| B. The effective date of the provisions of Section
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0015| 3 of this act is July 1, 1997.
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0016|
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