SENATE FINANCE COMMITTEE SUBSTITUTE FOR

SENATE BILL 273

57th legislature - STATE OF NEW MEXICO - second session, 2026

 

 

 

 

 

 

 

AN ACT

RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; MAKING APPROPRIATIONS TO THE TOWN OF ESTANCIA, THE CITY OF GRANTS, THE VILLAGE OF MILAN, CIBOLA COUNTY AND OTERO COUNTY TO HOLD THOSE MUNICIPALITIES AND COUNTIES HARMLESS FROM THE ESTIMATED POTENTIAL LOSS OF REVENUE FROM A CONTRACT THAT COULD HAVE BEEN AGREED TO WITH A PRIVATE CORRECTIONAL FACILITY IF NOT FOR LAWS 2026, CHAPTER 5; PROVIDING LIMITATIONS.

 

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

     SECTION 1. APPROPRIATIONS--MONTHLY DISBURSEMENTS--CLAWBACK PROVISION.--

          A. Subject to the limitations provided in Subsection B of this section, the following appropriations are made from the general fund to the local government division of the department of finance and administration for expenditure in fiscal years 2027 and 2028 for the following municipalities and counties to hold the municipalities and counties harmless from the potential loss of the following revenues the municipalities and counties may have collected pursuant to and attributable to an agreement that may have been made with a private correctional facility but for the prohibitions of such agreements pursuant to Laws 2026, Chapter 5. Each appropriation shall be disbursed each month in an amount equal to one twenty-fourth of the amount appropriated. Any unexpended balance remaining at the end of each month and at the end of fiscal year 2028 shall revert to the general fund:

                (1) six hundred thousand dollars ($600,000) for the town of Estancia to hold the town of Estancia harmless from the potential loss of municipal local option gross receipts tax revenue, which shall be used to repair the town of Estancia's water well system;

                (2) two million dollars ($2,000,000) for Otero county to hold Otero county harmless from the loss of county local option gross receipts tax revenue, which shall be used for payment of principal and interest due in connection with, and other expenses related to, revenue bonds issued in 2007 for the purpose of constructing a facility to detain individuals for federal civil immigration violations;

                (3) seven hundred fifty thousand dollars ($750,000) for Cibola county to hold Cibola county harmless from the estimated potential loss of county local option gross receipts tax revenue;

                (4) three million two hundred thousand dollars ($3,200,000) for Cibola county to transport prisoners from Cibola county to a public correctional facility outside Cibola county;

                (5) eight hundred fifty thousand dollars ($850,000) for the village of Milan to hold the village of Milan harmless from the estimated potential loss of property tax revenue and revenue from the sale of water and sewer services;

                (6) one million four hundred thousand dollars ($1,400,000) for the village of Milan to hold the village of Milan harmless from the estimated potential loss of municipal local option gross receipts tax revenue; and

                (7) one million seven hundred thousand dollars ($1,700,000) for the city of Grants to hold the city of Grants harmless from the estimated potential loss of municipal local option gross receipts tax revenue.

          B. A municipality and a county shall notify the local government division of the department of finance and administration at least ninety days prior to any agreement with a private facility to detain individuals for federal civil immigration violations. As of the date in which the agreement goes into effect, no further disbursements to the municipality or county shall be made. If the municipality or county receives a disbursement while the agreement is in effect or is otherwise receiving revenue for which it is to be held harmless pursuant to Subsection A of this section, the municipality or county shall reimburse the general fund the amount that was disbursed.

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