0001| SENATE BILL 318 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| MANNY M. ARAGON | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO FINANCING OF CORRECTIONAL FACILITIES; AUTHORIZING | 0012| THE ISSUANCE OF SEVERANCE TAX BONDS AND NEW MEXICO FINANCE | 0013| AUTHORITY REVENUE BONDS FOR ACQUISITION OF CORRECTIONAL | 0014| FACILITIES; AUTHORIZING THE CORRECTIONS DEPARTMENT TO ENTER | 0015| INTO CONTRACTS TO HOUSE INMATES; CREATING A FUND; REPEALING | 0016| AND ENACTING SECTIONS OF THE NMSA 1978; REPEALING A SECTION OF | 0017| LAWS 1995; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY. | 0018| | 0019| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0020| Section 1. CORRECTIONAL FACILITIES ACQUISITION FUND | 0021| CREATED.-- | 0022| A. The "correctional facilities acquisition fund" | 0023| is created in the state treasury. The fund shall consist of | 0024| severance tax bond proceeds, New Mexico finance authority | 0025| revenue bond proceeds and appropriations to the fund. Except | - 1 - 0001| as provided in Subsection C of this section, balances in the | 0002| fund at the end of any fiscal year shall remain in the fund. | 0003| Earnings from investment of the fund shall be credited to the | 0004| fund. | 0005| B. Money in the correctional facilities | 0006| acquisition fund is available for appropriation by the | 0007| legislature for the acquisition of correctional facilities. | 0008| C. Upon certification by the secretary of | 0009| corrections and the secretary of general services to the | 0010| department of finance and administration that no additional | 0011| money is needed from the correctional facilities acquisition | 0012| fund for the acquisition of correctional facilities, any | 0013| balances remaining in the fund shall be transferred to the | 0014| general fund. | 0015| Section 2. CONTRACT TO HOUSE ADULT INMATES IN TREATMENT | 0016| OR SPECIAL PROGRAM FACILITIES.-- | 0017| A. The corrections department shall solicit | 0018| proposals for the purpose of entering into a contract with a | 0019| private detention facility pursuant to Subsection G of Section | 0020| 31-20-2 NMSA 1978 to operate both an adult female | 0021| reintegration facility and an in-prison substance abuse | 0022| treatment facility for adult male inmates. | 0023| B. The facility contracting with the corrections | 0024| department pursuant to Subsection A of this section shall: | 0025| (1) be privately financed, designed, | - 2 - 0001| constructed and operated by the contractor; provided that a | 0002| facility financed by bonds issued pursuant to the Industrial | 0003| Revenue Bond Act or the County Industrial Revenue Bond Act and | 0004| sold to the contractor shall be privately financed by the | 0005| contractor for the purposes of this paragraph; | 0006| (2) consist of a two-hundred-fifty-bed adult | 0007| female reintegration facility and a four-hundred-bed adult | 0008| male in-prison substance abuse treatment facility located | 0009| adjacent to each other in a correctional complex located in | 0010| the 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 | 0016| the facility as employees, rather than as independent | 0017| contractors, and who are New Mexico residents; | 0018| (c) provided health care benefits, | 0019| retirement benefits and unemployment insurance to their | 0020| employees working on construction of the facility; and | 0021| (d) maintain apprenticeship programs | 0022| for their employees. | 0023| C. The corrections department shall solicit | 0024| proposals and award any contract pursuant to this section in | 0025| accordance with the provisions of the Procurement Code. The | - 3 - 0001| contract shall include such terms and conditions as the | 0002| department may require after consultation with the general | 0003| services department; provided that the terms and conditions | 0004| shall include provisions that: | 0005| (1) set forth comprehensive standards for | 0006| conditions of incarceration; | 0007| (2) require the facility to meet or exceed | 0008| corrections department standards and meet appropriate | 0009| certification requirements within one year after beginning | 0010| operation and remain accredited through the life of the | 0011| contract; | 0012| (3) require the contractor to assume all | 0013| liability caused by or arising out of all aspects of the | 0014| provision or operation of the facility; | 0015| (4) require liability insurance or other | 0016| proof of financial responsibility acceptable to the general | 0017| services department that covers the contractor and its | 0018| officers, employees and agents in an amount sufficient to | 0019| cover all liability caused by or arising out of all aspects of | 0020| the provision or operation of the facility; | 0021| (5) require termination for cause upon ninety | 0022| days' notice to the contractor for failure to meet contract | 0023| provisions when such failure seriously affects the | 0024| availability or operation of the facility; | 0025| (6) provide that venue for enforcement of the | - 4 - 0001| contract shall be in the district court for Santa Fe county; | 0002| (7) require continuation of the contract to | 0003| be subject to the availability of funds; | 0004| (8) provide that compliance with the contract | 0005| shall be monitored by the corrections department and the | 0006| contract may be terminated for noncompliance; and | 0007| (9) payments under the contract shall be made | 0008| only on a per diem per inmate basis. | 0009| Section 3. NEW MEXICO FINANCE AUTHORITY--PUBLIC PROJECT | 0010| APPROVAL.--Pursuant to the provisions of Section 6-21-6 NMSA | 0011| 1978, the legislature authorizes the New Mexico finance | 0012| authority to issue and sell revenue bonds in installments or | 0013| at one time in an amount not to exceed fifteen million dollars | 0014| ($15,000,000) payable solely from the public project revolving | 0015| fund for the acquisition of correctional facilities on terms | 0016| and conditions established by the authority when the | 0017| corrections department certifies the need for the issuance of | 0018| the bonds. The net proceeds from the sale of the bonds shall | 0019| be deposited in the correctional facilities acquisition fund | 0020| for appropriation by the legislature for acquisition of | 0021| correctional facilities. | 0022| Section 4. SEVERANCE TAX BONDS--PURPOSE.--The state | 0023| board of finance shall issue and sell severance tax bonds in | 0024| compliance with the Severance Tax Bonding Act in an amount not | 0025| to exceed forty-four million dollars ($44,000,000) when the | - 5 - 0001| corrections department certifies the need for the issuance of | 0002| the bonds. The state board of finance shall schedule the | 0003| issuance and sale of the bonds in the most expeditious and | 0004| economical manner possible upon a finding by the board that | 0005| the project has been developed sufficiently to justify the | 0006| issuance and that the project can proceed to contract within a | 0007| reasonable time. The state board of finance shall further | 0008| take the appropriate steps necessary to comply with the | 0009| Internal Revenue Code of 1986, as amended. The proceeds from | 0010| the sale of the bonds shall be deposited in the correctional | 0011| facilities acquisition fund for appropriation by the | 0012| legislature for acquisition of correctional facilities. Any | 0013| unexpended or unencumbered balance remaining six months after | 0014| completion of a project shall revert to the severance tax | 0015| bonding fund. If the corrections department has not certified | 0016| the need for the issuance of the bonds by the end of fiscal | 0017| year 2000, the authorization provided in this section shall be | 0018| void. | 0019| Section 5. MIDDLE RIO GRANDE CORRIDOR CORRECTIONAL | 0020| FACILITY STUDY.-- | 0021| A. The corrections department shall conduct a | 0022| study of the feasibility of locating a six-hundred-bed medium | 0023| security correctional facility for adult male inmates adjacent | 0024| to a correctional complex in the middle Rio Grande corridor | 0025| consisting of four hundred in-prison substance abuse treatment | - 6 - 0001| beds for adult males and two hundred fifty female | 0002| reintegration beds for adult females. The study shall focus | 0003| on a comparison of the advantages, cost-savings and other | 0004| differences between private and public operation of the medium | 0005| security facility, which would be located adjacent to a | 0006| correctional complex that includes an in-prison substance | 0007| abuse facility and a female reintegration facility, and the | 0008| feasibility of public and private sharing of infrastructure or | 0009| services among areas in the central campus of that | 0010| correctional complex. | 0011| B. The corrections department shall present the | 0012| results of the study, including its findings and | 0013| recommendations, to the appropriate interim legislative | 0014| committee dealing with corrections and the legislative finance | 0015| committee prior to November 1, 1998 and to the first session | 0016| of the forty-fourth legislature. | 0017| Section 6. APPROPRIATION--HOUSING INMATES IN CIBOLA | 0018| COUNTY--CONTRACT PROVISIONS.-- | 0019| A. Two million dollars ($2,000,000) is | 0020| appropriated from the general fund to the corrections | 0021| department for expenditure in fiscal year 1999 to contract | 0022| with Cibola county to house additional inmates at the Cibola | 0023| county corrections center. Any unexpended or unencumbered | 0024| balance remaining at the end of fiscal year 1999 shall revert | 0025| to the general fund. | - 7 - 0001| B. The contract entered into pursuant to | 0002| Subsection A of this section shall provide: | 0003| (1) that the total number of state inmates | 0004| housed at the Cibola county corrections center shall equal | 0005| five hundred fifty-two medium-security inmates and one hundred | 0006| seventy-six minimum-restrict inmates; and | 0007| (2) that the corrections department shall not | 0008| reduce the number of inmates housed at the Cibola county | 0009| corrections center below the numbers specified in Paragraph | 0010| (1) of this subsection unless it has first removed all | 0011| similarly classified state inmates from all other private, | 0012| county-operated or out-of-state correctional facilities. | 0013| Section 7. APPROPRIATION--GENERAL FUND.--Eight million | 0014| five hundred thousand dollars ($8,500,000) is appropriated | 0015| from the general fund to the correctional facilities | 0016| acquisition fund for expenditure in fiscal year 1998 and | 0017| subsequent fiscal years for acquisition of correctional | 0018| facilities. Any unexpended or unencumbered balance remaining | 0019| in the correctional facilities acquisition fund after any | 0020| fiscal year shall not revert to the general fund. | 0021| Section 8. ACQUISITION OF CORRECTIONAL FACILITIES-- | 0022| CONDITIONS--APPROPRIATIONS.-- | 0023| A. Sixty-seven million five hundred thousand | 0024| dollars ($67,500,000) is appropriated from the correctional | 0025| facilities acquisition fund to the property control division | - 8 - 0001| of the general services department for expenditure in fiscal | 0002| years 1998 through 2000 in the following amounts for the | 0003| following purposes: | 0004| (1) thirty-five million dollars ($35,000,000) | 0005| to acquire an eight-hundred-bed correctional facility in Lea | 0006| county that is expandable to one thousand two hundred beds; | 0007| and | 0008| (2) thirty-two million five hundred thousand | 0009| dollars ($32,500,000) to acquire a six-hundred-bed | 0010| correctional facility in Guadalupe county that is expandable | 0011| to nine hundred beds. | 0012| B. Each county or political subdivision in the | 0013| county in which a correctional facility is to be located | 0014| pursuant to Subsection A of this section shall provide land | 0015| for the facility site and arrange for utilities, roads and | 0016| related infrastructure needs to the property line of the | 0017| facility site in the form of in-kind contributions. In | 0018| addition to the appropriation in Paragraph (1) of Subsection A | 0019| of this section, the city of Hobbs and Lea county shall | 0020| contribute jointly ten million dollars ($10,000,000) in local | 0021| matching funds for the correctional facility project | 0022| authorized in Lea county pursuant to that paragraph. | 0023| C. No contract for the acquisition of a facility | 0024| shall be entered into pursuant to Subsection A of this section | 0025| unless the secretary of corrections certifies that the | - 9 - 0001| facility will be built by a primary contractor and | 0002| subcontractors that: | 0003| (1) maintain their primary places of business | 0004| in New Mexico; | 0005| (2) hire laborers for construction of the | 0006| facility as employees, rather than as independent contractors, | 0007| and who are New Mexico residents; | 0008| (3) provide health care benefits, retirement | 0009| benefits and unemployment insurance to their employees working | 0010| on construction of the facility; and | 0011| (4) maintain apprenticeship programs for | 0012| their employees. | 0013| Section 9. REPEAL.-- | 0014| A. Section 7-27-5.22 NMSA 1978 (being Laws 1995, | 0015| Chapter 215, Section 2) is repealed. | 0016| B. Laws 1995, Chapter 214, Section 2 is repealed. | 0017| Section 10. EMERGENCY.--It is necessary for the public | 0018| peace, health and safety that this act take effect | 0019| immediately. | 0020|  |