0001| SENATE FINANCE COMMITTEE SUBSTITUTE FOR | 0002| SENATE BILL 318 | 0003| 43rd legislature - STATE OF NEW MEXICO - second session, 1998 | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO THE FINANCING OF CORRECTIONAL FACILITIES; | 0013| AUTHORIZING THE ISSUANCE OF NEW MEXICO FINANCE AUTHORITY | 0014| REVENUE BONDS TO CONTRACT WITH LEA COUNTY AND GUADALUPE COUNTY | 0015| TO ACQUIRE CORRECTIONAL FACILITIES CURRENTLY UNDER | 0016| CONSTRUCTION IN THOSE COUNTIES; AUTHORIZING THE CORRECTIONS | 0017| DEPARTMENT TO ASSUME BY ASSIGNMENT FROM LEA COUNTY AND | 0018| GUADALUPE COUNTY THE OPERATIONS CONTRACTS FOR THE CORRECTIONAL | 0019| FACILITIES IN THOSE COUNTIES; DISTRIBUTING A PORTION OF THE | 0020| GROSS RECEIPTS TAX TO A SPECIAL FUND AND PLEDGING THE REVENUES | 0021| FOR PAYMENT OF BONDS; CREATING A FUND; ENACTING SECTIONS OF | 0022| THE NMSA 1978; MAKING APPROPRIATIONS. | 0023| | 0024| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0025| Section 1. A new section of the Tax Administration Act | - 1 -0001| is enacted to read: | 0002| "[NEW MATERIAL] DISTRIBUTION--GROSS RECEIPTS TAX-- | 0003| PRISON BONDING FUND.--A distribution pursuant to Section 7-1- | 0004| 6.1 NMSA 1978 shall be made to the prison bonding fund in the | 0005| amount of eight hundred thirty-three thousand three hundred | 0006| thirty-four dollars ($833,334) of the net receipts | 0007| attributable to the gross receipts tax imposed pursuant to the | 0008| Gross Receipts and Compensating Tax Act." | 0009| Section 2. A new section of the New Mexico Finance | 0010| Authority Act is enacted to read: | 0011| "[NEW MATERIAL] AUTHORIZATION OF NEW MEXICO FINANCE | 0012| AUTHORITY BONDS--ACQUISITION OF PRISONS--PRISON BONDING FUND-- | 0013| APPROPRIATION.-- | 0014| A. The "prison bonding fund" is created within the | 0015| New Mexico finance authority. The fund shall be administered | 0016| by the authority as a separate account, and the authority may | 0017| create such subaccounts as the authority deems necessary to | 0018| carry out the purposes of the fund. The authority is | 0019| authorized to establish procedures as required to administer | 0020| the fund in accordance with the New Mexico Finance Authority | 0021| Act. | 0022| B. The prison bonding fund shall consist of gross | 0023| receipts tax revenues distributed to the fund pursuant to the | 0024| Tax Administration Act. | 0025| C. Money in the prison bonding fund not needed for | - 2 -0001| immediate disbursement, including any money held in reserve, | 0002| may be deposited with the state treasurer for short-term | 0003| investment pursuant to Section 6-10-10.1 NMSA 1978 or may be | 0004| invested in direct and general obligations of or obligations | 0005| fully and unconditionally guaranteed by the United States, | 0006| obligations issued by agencies of the United States, obligations | 0007| of this state or any political subdivision of the state, | 0008| interest-bearing time deposits, commercial paper issued by | 0009| corporations organized and operating in the United States and | 0010| rated "prime" quality by a national rating service or as | 0011| otherwise provided by the trust indenture or bond resolution, if | 0012| money in the fund is pledged for or to secure payment of bonds | 0013| issued by the authority. | 0014| D. The authority shall establish fiscal controls and | 0015| accounting procedures that are sufficient to ensure proper | 0016| accounting for prison bonding fund payments, disbursements and | 0017| balances. | 0018| E. At the end of any fiscal year, after all debt | 0019| service charges, establishment or replenishment of reserves and | 0020| other costs of or related to all outstanding revenue bonds, notes | 0021| or other obligations payable from the prison bonding fund are | 0022| satisfied, the balance remaining in the fund shall be transferred | 0023| by the authority to the state treasurer for deposit in the | 0024| general fund. | 0025| F. The New Mexico finance authority shall pledge | - 3 -0001| irrevocably all of the revenues distributed to the prison bonding | 0002| fund for the payment of principal, interest and any other | 0003| expenses or obligations related to revenue bonds issued by the | 0004| New Mexico finance authority for the purpose of acquiring | 0005| correctional facilities in Lea and Guadalupe counties. | 0006| G. A law that imposes or authorizes the imposition of | 0007| the gross receipts tax or that affects the gross receipts tax or | 0008| that requires distribution of the gross receipts tax to the | 0009| prison bonding fund, or a law supplemental to or otherwise | 0010| pertaining to the tax, shall not be amended, repealed or | 0011| otherwise directly or indirectly modified so as to impair | 0012| outstanding revenue bonds that may be secured by a pledge of the | 0013| gross receipts tax distributed to the prison bonding fund, unless | 0014| the outstanding revenue bonds have been discharged in full or | 0015| provisions have been for a full discharge." | 0016| Section 3. TERMS AND CONDITIONS FOR ACQUIRING CORRECTIONAL | 0017| FACILITIES.-- | 0018| A. The state's acquisition of correctional facilities | 0019| in Lea and Guadalupe counties shall be contingent upon the | 0020| following: | 0021| (1) continuing inspections during construction | 0022| of the correctional facilities by the construction industries | 0023| division of the regulation and licensing department and issuance | 0024| of a certificate of occupancy for the correctional facilities by | 0025| that division; | - 4 -0001| (2) completion of the construction of the | 0002| correctional facilities; | 0003| (3) certification by the general services | 0004| department that the correctional facilities satisfy all | 0005| applicable physical and operational correctional design | 0006| standards; | 0007| (4) inclusion of a corrections industries | 0008| building at the Lea county facility that can accommodate one | 0009| hundred twenty inmates; | 0010| (5) inclusion of a corrections industries | 0011| building at the Guadalupe county facility that can accommodate | 0012| sixty inmates; | 0013| (6) inclusion of appropriate family visitation | 0014| units at each correctional facility; and | 0015| (7) all housing unit fixtures and cell | 0016| fixtures in the correctional facilities shall be stainless steel, | 0017| except for fixtures in the three-hundred-bed therapeutic | 0018| community treatment unit located at the Lea county facility. | 0019| B. The corrections department is authorized to assume | 0020| by assignment from Lea county and Guadalupe county the operations | 0021| contracts for the correctional facilities entered into by the | 0022| counties and an independent contractor, subject to appropriate | 0023| amendments or modifications to the operations contracts. The | 0024| operations contracts between the corrections department and the | 0025| independent contractor shall be for an initial term of five | - 5 -0001| years. The corrections department shall have the option, to be | 0002| exercised solely by the corrections department, to renew the | 0003| operations contracts for two-year terms following the initial | 0004| term of five years. The operations contracts between the | 0005| corrections department and the independent contractor shall be | 0006| subject to annual legislative appropriations. | 0007| C. Inmate programs provided at the Lea county and | 0008| Guadalupe county correctional facilities shall include the | 0009| following programs, which shall be equal to or shall exceed | 0010| programs provided in state-run correctional facilities: | 0011| (1) adult basic education; | 0012| (2) pre-general-equivalency-diploma; | 0013| (3) general equivalency diploma; | 0014| (4) English as a second language; | 0015| (5) special education; | 0016| (6) post-secondary education; | 0017| (7) vocational education; | 0018| (8) anger management; | 0019| (9) life skills; | 0020| (10) basic substance abuse education; | 0021| (11) pre-release counseling; | 0022| (12) mental health counseling; | 0023| (13) work; | 0024| (14) religion; | 0025| (15) therapeutic community treatment provided | - 6 -0001| at a three-hundred-bed therapeutic community chemical dependency | 0002| treatment program located at the Lea county facility; | 0003| (16) family therapy; and | 0004| (17) prison industries. | 0005| Section 4. NEW MEXICO FINANCE AUTHORITY--REVENUE BONDS-- | 0006| PURPOSE--APPROPRIATION OF PROCEEDS.-- | 0007| A. The New Mexico finance authority may issue and | 0008| sell revenue bonds, payable solely from the prison bonding fund, | 0009| in compliance with the provisions of the New Mexico Finance | 0010| Authority Act in an amount not to exceed sixty-eight million two | 0011| hundred thousand dollars ($68,200,000), with a final maturity no | 0012| later than July 1, 2008, for the purpose of acquiring state | 0013| correctional facilities in Lea and Guadalupe counties, including, | 0014| to the extent necessary, payment of costs of issuance of the | 0015| bonds and establishing necessary reserves for the bonds, when the | 0016| corrections department certifies the need for the issuance of the | 0017| bonds. | 0018| B. The net proceeds from the bonds authorized in | 0019| Subsection A of this section are appropriated to the corrections | 0020| department for the acquisition of two state correctional | 0021| facilities, one located in Lea county and one located in | 0022| Guadalupe county. The corrections department is authorized to | 0023| contract with Lea county and Guadalupe county to acquire | 0024| correctional facilities currently under construction in those | 0025| counties pursuant to a contract between the counties and an | - 7 -0001| independent contractor. The acquisition of the correctional | 0002| facilities shall include all development costs, including | 0003| capitalized interest costs not to exceed two million nine hundred | 0004| thousand dollars ($2,900,000) and all construction costs, but | 0005| shall not include bond transaction costs, the underwriter's | 0006| commission or early termination premiums. Additionally the | 0007| acquisition of the correctional facilities shall be contingent | 0008| upon compliance with the terms and conditions set forth in | 0009| Section 3 of this act. | 0010| C. The revenue bonds issued by the New Mexico finance | 0011| authority pursuant to this section shall constitute a special | 0012| limited obligation of the New Mexico finance authority, payable | 0013| solely from the prison bonding fund, and shall never constitute | 0014| or be construed as a debt or general obligation of the state or | 0015| any political subdivision of the state under the laws or the | 0016| constitution of New Mexico. | 0017| Section 5. DELAYED REPEAL.--Section 1 of this act is | 0018| repealed effective July 1, 2008 or on any earlier date that shall | 0019| be the first day of the month following the month that the New | 0020| Mexico finance authority certifies that all obligations for the | 0021| revenue bonds issued pursuant to Section 3 of this act have been | 0022| fully discharged. | 0023| Section 6. EFFECTIVE DATE.--The effective date of the | 0024| provisions of Section 1 of this act is July 1, 1998. | 0025| | - 8 -