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F I S C A L I M P A C T R E P O R T





SPONSOR: SCONC DATE TYPED: 03/01/01 HB
SHORT TITLE: Corrections Contracts Exemptions SB 842/SCONCS
ANALYST: Trujillo


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
See Narrative Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



Relates to appropriation in the General Appropriation Act



SOURCES OF INFORMATION



LFC Files

Corrections Department (CD)



SUMMARY



Synopsis of Bill



SB842/SCONCS would amend Section 13-1-98 NMSA 1978 (Exemptions from the Procurement Code), adding contracts entered into by CD with a private independent contractor for the operation, or provision and operation, of a corrections facility, to those items already exempted from the procurement process.



Significant Issues



CD reports the bill will make it easier for the department to comply with the Independent Board of Inquiry's (IBI) recommendation that the contracts with Lea County and Guadalupe County for the private prisons in Hobbs and Santa Rosa be amended to provide for a direct contract between CD and Wackenhut. The bill will also result in lessening the administrative burden on staff who would otherwise be required to issue a Request for Proposals and evaluate the responses.



FISCAL IMPLICATIONS



CD reports this bill may have a positive fiscal implication since the lessened administrative burden in adhering to the procurement code for securing contracts for the provision and operation of prison facilities would be lessened with a concomitant fiscal savings due to administrative personnel spending less time securing and monitoring private contractors for the operation of correction facilities under the present procurement code requirements.



ADMINISTRATIVE IMPLICATIONS



CD indicates this bill would lessen the administrative burden imposed upon CD by eliminating the need to follow the procurement code for securing private contractors to operate corrections facilities.



SUBSTANTIVE ISSUES



This bill exempts CD from the standard procurement process when contacting with a private, independent contractor for operating or providing a corrections facility.



LAT/prr