0001| SENATE BILL 1054 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| MANNY M. ARAGON | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO REVENUES; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX | 0012| BONDS FOR CONSTRUCTION OR ACQUISITION OF STATE CORRECTIONAL | 0013| FACILITIES AND TREATMENT FACILITIES FOR ADULT INMATES AND | 0014| JUVENILE OFFENDERS; REMOVING A CREDIT AGAINST THE GROSS | 0015| RECEIPTS TAX FOR MUNICIPAL GROSS RECEIPTS TAXES PAID; FUNDING | 0016| IN-PLANT DEVELOPMENT TRAINING AND A WATER RESOURCE STUDY AND | 0017| WATER RIGHTS ASSESSMENT; MAKING APPROPRIATIONS; AMENDING, | 0018| REPEALING AND ENACTING SECTIONS OF THE NMSA 1978; DECLARING AN | 0019| EMERGENCY. | 0020| | 0021| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0022| Section 1. FUND CREATED--PURPOSE--APPROPRIATION.-- | 0023| A. The "correctional facilities financing fund" is | 0024| created as a special fund within the state treasury. The fund | 0025| shall consist of money appropriated to the fund and gross | 0001| receipts tax revenues distributed to the fund by law. Balances | 0002| in the fund at the end of any fiscal year shall remain in the | 0003| fund, except as provided in Subsection E of this section. | 0004| Earnings from investment of the fund shall be credited to the | 0005| fund. | 0006| B. Money in the correctional facilities financing | 0007| fund is appropriated to the property control division of the | 0008| general services department for the following specified | 0009| purposes: | 0010| (1) ninety-five million dollars ($95,000,000) | 0011| to design, construct and equip or acquire: | 0012| (a) a correctional facility in Guadalupe | 0013| county of not more than six hundred beds, expandable to one | 0014| thousand two hundred beds; and | 0015| (b) a correctional facility in Lea | 0016| county of not more than one thousand two hundred beds, | 0017| expandable to two thousand two hundred beds; | 0018| (2) fifteen million dollars ($15,000,000) to | 0019| design, construct and equip or acquire a four-hundred-bed adult | 0020| male behavioral and mental health facility in the Rio Grande | 0021| corridor; | 0022| (3) two million dollars ($2,000,000) to | 0023| design, construct and equip or acquire a two-hundred-fifty-bed | 0024| adult female reintegration facility in the Rio Grande corridor; | 0025| (4) five million dollars ($5,000,000) to | 0001| acquire: | 0002| (a) a fifty-bed prefabricated juvenile | 0003| detention facility at the youth development and diagnostic | 0004| center; and | 0005| (b) a fifty-bed prefabricated juvenile | 0006| detention facility at the New Mexico boys' school at Springer; | 0007| and | 0008| (5) ten million dollars ($10,000,000) to | 0009| design, construct and equip or acquire a three-hundred-bed | 0010| behavioral and mental health facility for male juveniles in the | 0011| Rio Grande corridor. | 0012| C. No contract for the construction or acquisition | 0013| of a facility shall be entered into pursuant to Subsection B of | 0014| this section unless the secretary of the contracting agency | 0015| certifies that the facility will be built by a primary | 0016| contractor and subcontractors that: | 0017| (1) maintain their primary places of business | 0018| in New Mexico; | 0019| (2) hire laborers for construction of the | 0020| facilities as employees, rather than independent contractors, | 0021| and who are New Mexico residents; | 0022| (3) provide health care benefits and | 0023| retirement benefits to their employees working on construction | 0024| of the facilities; and | 0025| (4) maintain apprenticeship programs for their | 0001| employees. | 0002| | 0003| D. For the correctional facilities in Lea county | 0004| and Guadalupe county pursuant to Paragraphs (1) and (2) of | 0005| Subsection B of this section, each county or political | 0006| subdivisions in the county shall provide land for the facility | 0007| site and arrange for utilities, roads and related | 0008| infrastructure needs to the property line of the prison site in | 0009| the form of in-kind contributions. In addition, prior to | 0010| entering into a contract for the construction or acquisition of | 0011| the correctional facility in Lea county, the city of Hobbs and | 0012| Lea county shall each contribute five million dollars | 0013| ($5,000,000) in local matching funds, which shall be deposited | 0014| into the correctional facilities financing fund. | 0015| E. Upon certification by the secretary of the | 0016| contracting agency that the agency has constructed or acquired | 0017| the facilities pursuant to Subsection B of this section and no | 0018| additional expenditures from the fund are necessary for that | 0019| purpose, any balance remaining in the correctional facilities | 0020| financing fund shall be transferred to the general fund. | 0021| F. Any law authorizing the distribution of taxes or | 0022| other revenues to the correctional facilities financing fund | 0023| shall not be amended or repealed or otherwise modified so as to | 0024| impair any contract entered into by the contracting agency | 0025| pursuant to which those taxes or revenues are dedicated to the | 0001| construction or acquisition of facilities as provided in this | 0002| section. | 0003| Section 2. A new section of the Tax Administration Act is | 0004| enacted to read: | 0005| "[NEW MATERIAL] DISTRIBUTION--CORRECTIONAL FACILITIES | 0006| FINANCING FUND.--Unless a credit is allowed pursuant to Section | 0007| 7-9-82 NMSA 1978, a distribution pursuant to Section 7-1-6.1 | 0008| NMSA 1978 shall be made to the correctional facilities | 0009| financing fund in an amount equal to the net receipts, | 0010| exclusive of penalties and interest, attributable to one-fourth | 0011| of one percent of the taxable gross receipts subject to the | 0012| municipal gross receipts tax imposed pursuant to Section 7-19D- | 0013| 4 NMSA 1978." | 0014| Section 3. Section 7-9-82 NMSA 1978 (being Laws 1986, | 0015| Chapter 20, Section 68, as amended) is amended to read: | 0016| "7-9-82. CREDIT--GROSS RECEIPTS TAX--MUNICIPAL GROSS | 0017| RECEIPTS TAX PAID.--A credit shall be allowed for each | 0018| reporting period after July 1, 2002 against the gross | 0019| receipts tax for: | 0020| A. an amount of the municipal gross receipts tax | 0021| equal to one-half of one percent of the taxable gross receipts | 0022| for which the taxpayer is liable for that reporting period | 0023| imposed by a municipality pursuant to Section 7-19D-4 NMSA 1978 | 0024| if that municipality has imposed a total municipal gross | 0025| receipts tax rate of at least one-half of one percent; | 0001| or | 0002| B. an amount of the municipal gross receipts tax | 0003| equal to one-fourth of one percent of the taxable gross | 0004| receipts for which the taxpayer is liable for that reporting | 0005| period imposed by a municipality pursuant to Section 7-19D-4 | 0006| NMSA 1978 if that municipality has imposed a total municipal | 0007| gross receipts tax rate of one-fourth of one percent." | 0008| Section 4. Section 33-1-17 NMSA 1978 (being Laws 1985, | 0009| Chapter 149, Section 1, as amended) is amended to read: | 0010| "33-1-17. PRIVATE CONTRACT.-- | 0011| A. The corrections department may contract for the | 0012| operation of any adult female facility or for housing adult | 0013| female inmates in a private facility with a person or entity in | 0014| the business of providing correctional or jail services to | 0015| government entities. | 0016| B. The corrections department may contract [with a | 0017| person or entity in the business of providing correctional or | 0018| jail services to government entities] for the | 0019| [(1) a correctional facility in Guadalupe | 0020| county of not less than five hundred fifty and not more than | 0021| two thousand two hundred beds; | 0022| (2) a correctional facility in Lea, Chaves or | 0023| Santa Fe county of not less than one thousand two hundred and | 0024| not more than two thousand two hundred beds; | 0025| (3) design and construction of a support | 0001| services building, a laundry and an infirmary at the | 0002| penitentiary of New Mexico in Santa Fe; or | 0003| (4)] construction of a public facility to | 0004| house a special incarceration alternative program for adult | 0005| male and adult female felony offenders. | 0006| [C. The authorization in Subsection B of this | 0007| section for a correctional facility in Guadalupe county and a | 0008| correctional facility in Lea, Chaves or Santa Fe county is | 0009| contingent upon construction of both facilities, so that one of | 0010| the facilities shall not be constructed unless both of the | 0011| facilities are constructed, as nearly as practicable, | 0012| simultaneously. | 0013| D.] C. The corrections department shall | 0014| solicit proposals and award any contract under this section in | 0015| accordance with the provisions of the Procurement Code. The | 0016| contract shall include such terms and conditions as the | 0017| corrections department may require after consultation with | 0018| the general services department; provided that the terms and | 0019| conditions shall include provisions: | 0020| (1) setting forth comprehensive standards for | 0021| conditions of incarceration; | 0022| (2) that the contractor assumes all liability | 0023| caused by or arising out of all aspects of the provision or | 0024| operation of the facility; | 0025| (3) for liability insurance or other proof of | 0001| financial responsibility acceptable to the general services | 0002| department covering the contractor and its officers, employees | 0003| and agents in an amount sufficient to cover all liability | 0004| caused by or arising out of all aspects of the provision or | 0005| operation of the facility; | 0006| (4) for termination for cause upon ninety | 0007| days' notice to the contractor for failure to meet contract | 0008| provisions when such failure seriously affects the availability | 0009| or operation of the facility; | 0010| (5) that venue for the enforcement of the | 0011| contract shall be in the district court for Santa Fe county; | 0012| (6) that continuation of the contract is | 0013| subject to the availability of funds; and | 0014| (7) that compliance with the contract shall be | 0015| monitored by the corrections department and the contract may be | 0016| terminated for noncompliance. | 0017| [E.] D. When the contractor begins operation of | 0018| a facility, [for which private contractor operation is | 0019| authorized] his employees performing the functions of | 0020| correctional officers shall be deemed correctional officers for | 0021| the purposes of Sections 33-1-10 and 33-1-11 NMSA 1978 but for | 0022| no other purpose of state law, unless specifically stated. | 0023| [F.] E. Any contract awarded pursuant to this | 0024| section may include terms to provide for the renovation of the | 0025| facility or for the construction of new buildings. Work | 0001| performed pursuant to such terms and conditions shall not be | 0002| considered a capital project as defined in Section 15-3-23.3 | 0003| NMSA 1978 or a state public works project as defined in Section | 0004| 13-1-91 NMSA 1978 nor shall it be subject to the requirements | 0005| of Section 13-1-150 NMSA 1978 or of the Capital Program Act, | 0006| review by the staff architect of the property control division | 0007| of the general services department pursuant to Section 15-3-20 | 0008| NMSA 1978 or regulation by the director of that division | 0009| pursuant to Section 15-3-11 NMSA 1978. | 0010| [G.] F. Any contract entered into by the | 0011| corrections department with a private contractor to operate an | 0012| existing facility shall include a provision securing the right | 0013| of all persons employed by that facility prior to the effective | 0014| date of that contract to be employed by that contractor in any | 0015| position for which they qualify before that position is offered | 0016| to any person not employed by that facility prior to that | 0017| date." | 0018| Section 5. Section 33-1-18 NMSA 1978 (being Laws 1990 | 0019| (1st. S.S.), Chapter 5, Section 1, as amended) is amended to | 0020| read: | 0021| "33-1-18. [FUNDS] FUND CREATED.--There [are] is | 0022| created in the state treasury a special [funds] fund to | 0023| be known as the "corrections department building fund" [the | 0024| "Guadalupe county prison fund" and the "New Mexico prison | 0025| fund"]. The [funds] fund shall consist of money | 0001| appropriated by the legislature, from year to year, from the | 0002| income of the permanent fund and land income of which the | 0003| penitentiary of New Mexico is the beneficiary [and any other | 0004| revenues that are appropriated to the funds, other than | 0005| revenues derived from property taxes or general fund | 0006| revenues]. Income from investment of [each special] the | 0007| fund [created by this section] shall be credited to [that] | 0008| the fund. No other funds of the state shall be deposited or | 0009| paid into the corrections department building fund." | 0010| Section 6. Section 33-1-19 NMSA 1978 (being Laws 1990 | 0011| (1st. S.S.), Chapter 5, Section 2, as amended by Laws 1995, | 0012| Chapter 43, Section 1 and also by Laws 1995, Chapter 215, | 0013| Section 4) is amended to read: | 0014| "33-1-19. USE OF [FUNDS] FUND. [A.] The [funds | 0015| created in or pursuant to Section 33-1-18 NMSA 1978] | 0016| corrections department building fund shall be used by the | 0017| corrections department [or the board of finance] solely for | 0018| the purpose of acquiring, [designing, constructing or | 0019| equipping] by lease or [lease-purchase, or by financing the | 0020| ownership by the corrections department through the issuance of | 0021| bonds or other obligations by the corrections department or the | 0022| board of finance, or] other means, a corrections department | 0023| central office complex, a personnel training academy, a special | 0024| incarceration alternative facility [correctional facilities] | 0025| or any combination of these facilities. [and for paying the | 0001| expenses relating to the lease, lease-purchase or financing of | 0002| these facilities. Before any of the funds created in Section | 0003| 33-1-18 NMSA 1978 may be used for any such purpose, the state | 0004| board of finance shall approve the proposed facility and the | 0005| proposed use of the funds. | 0006| B. The funds created in or pursuant to Section | 0007| 33-1-18 NMSA 1978 shall be used so that available | 0008| appropriations are devoted to the following projects: | 0009| (1) payment for the corrections department | 0010| central office complex; | 0011| (2) a correctional facility in Guadalupe | 0012| county of not less than five hundred fifty and not more than | 0013| two thousand two hundred beds; | 0014| (3) a correctional facility in Lea, Chaves or | 0015| Santa Fe county of not less than one thousand two hundred and | 0016| not more than two thousand two hundred beds; and | 0017| (4) design and construction of a support | 0018| services building, a laundry and an infirmary at the | 0019| penitentiary of New Mexico in Santa Fe. | 0020| C. The use of funds designated in Subsection B of | 0021| this section for a correctional facility in Guadalupe county | 0022| and a correctional facility in Lea, Chaves or Santa Fe county | 0023| is contingent upon construction of both facilities, so that one | 0024| of the facilities shall not be constructed unless both of the | 0025| facilities are constructed, as nearly as possible, | 0001| simultaneously. | 0002| D.] Any balance at the end of any fiscal year in | 0003| the [special funds created in Section 33-1-18 NMSA 1978 that | 0004| are] corrections department building fund that is not needed | 0005| to pay leases, loans, bonds or other financing instruments in | 0006| that fiscal year may be appropriated by the legislature for | 0007| expenditure in succeeding fiscal years by the corrections | 0008| department for corrections purpose." | 0009| Section 7. SEVERANCE TAX BONDS--PURPOSE--APPROPRIATION OF | 0010| PROCEEDS.--The state board of finance shall issue and sell | 0011| severance tax bonds in compliance with the Severance Tax | 0012| Bonding Act in an amount not to exceed forty-seven million | 0013| dollars ($47,000,000) when the corrections department certifies | 0014| the need for the issuance of the bonds. The state board of | 0015| finance shall schedule the issuance and sale of the bonds in | 0016| the most expeditious and economical manner possible upon a | 0017| finding by the board that the project has been developed | 0018| sufficiently to justify the issuance and that the project can | 0019| proceed to contract within a reasonable time. The state board | 0020| of finance shall further take the appropriate steps necessary | 0021| to comply with the Internal Revenue Code of 1986, as amended. | 0022| The proceeds from the sale of the bonds are appropriated to the | 0023| correctional facilities financing fund for the design, | 0024| construction and equipping or acquisition of a state | 0025| correctional facility in Guadalupe county, a state correctional | 0001| facility in Lea county, a male adult behavioral and mental | 0002| health facility in the Rio Grande corridor, an adult female | 0003| reintegration facility in the Rio Grande corridor and a male | 0004| juvenile behavioral and mental health facility in the Rio | 0005| Grande corridor and acquisition of prefabricated juvenile | 0006| facilities at the youth development and diagnostic center and | 0007| the New Mexico boys' school at Springer as provided in Section | 0008| 1 of this act. Any unexpended or unencumbered balance remaining | 0009| six months after completion of a project shall revert to the | 0010| severance tax bonding fund. If the corrections department has | 0011| not certified the need for the issuance of the bonds by the end | 0012| of fiscal year 1999, the authorization provided in this section | 0013| shall be void. | 0014| Section 8. APPROPRIATIONS.-- | 0015| A. Six million dollars ($6,000,000) is appropriated | 0016| from the general fund to the development training fund for | 0017| expenditure in fiscal year 1998 and subsequent fiscal years. | 0018| B. One million dollars ($1,000,000) is appropriated | 0019| from the general fund to the state engineer for expenditure in | 0020| fiscal years 1998 and 1999 for the purpose of conducting a | 0021| comprehensive statewide water resources study, which includes | 0022| combining other ongoing or completed studies' data, and | 0023| compiling an assessment of water rights and water resources, | 0024| quantities, qualities and locations. | 0025| Section 9. REPEAL.-- | 0001| A. Section 7-27-5.22 NMSA 1978 (being Laws 1995, | 0002| Chapter 215, Section 2) is repealed. | 0003| B. Laws 1995, Chapter 214, Section 2 is repealed. | 0004| Section 10. EFFECTIVE DATE.-- | 0005| A. The effective date of the provisions of Sections | 0006| 3 and 8 of this act is July 1, 1997. | 0007| B. The effective date of the provisions of Section | 0008| 2 of this act is August 1, 1997. | 0009| Section 11. EMERGENCY.--It is necessary for the public | 0010| peace, health and safety that this act take effect immediately. | 0011|  | 0012| SENATE FINANCE COMMITTEE SUBSTITUTE FOR | 0013| SENATE BILL 1054 | 0014| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0015| | 0016| | 0017| | 0018| | 0019| | 0020| | 0021| | 0022| AN ACT | 0023| RELATING TO REVENUES; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX | 0024| BONDS AND NEW MEXICO FINANCE AUTHORITY REVENUE BONDS FOR | 0025| ACQUISITION OF CORRECTIONAL FACILITIES; REMOVING A CREDIT | 0001| AGAINST THE GROSS RECEIPTS TAX FOR MUNICIPAL GROSS RECEIPTS | 0002| TAXES PAID; CREATING FUNDS; MAKING DISTRIBUTIONS; EXPANDING THE | 0003| GOVERNMENTAL GROSS RECEIPTS TAX; AMENDING, REPEALING AND | 0004| ENACTING SECTIONS OF THE NMSA 1978; MAKING APPROPRIATIONS; | 0005| DECLARING AN EMERGENCY. | 0006| | 0007| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0008| Section 1. [NEW MATERIAL] CORRECTIONAL FACILITIES | 0009| ACQUISITION FUND CREATED.-- | 0010| A. The "correctional facilities acquisition fund" | 0011| is created in the state treasury. The fund shall consist of | 0012| severance tax bond proceeds and New Mexico finance authority | 0013| revenue bond proceeds deposited in the fund and appropriations | 0014| to the fund. Except as provided in Subsection C of this | 0015| section, balances in the fund at the end of any fiscal year | 0016| shall remain in the fund. Earnings from investment of the fund | 0017| shall be credited to the fund. | 0018| B. Money in the correctional facilities acquisition | 0019| fund is available for appropriation by the legislature for the | 0020| acquisition of correctional facilities. | 0021| C. Upon certification by the secretary of | 0022| corrections and the secretary of general services to the | 0023| department of finance and administration that no additional | 0024| money is needed from the correctional facilities acquisition | 0025| fund for the acquisition of correctional facilities, any | 0001| balance remaining in the fund shall be transferred to the | 0002| general fund. | 0003| Section 2. [NEW MATERIAL] PUBLIC HEALTH, SAFETY AND | 0004| WELFARE FUND CREATED.--The "public health, safety and welfare | 0005| fund" is created in the state treasury. The fund shall consist | 0006| of money distributed to the fund pursuant to Section 7-9-82 | 0007| NMSA 1978. Money in the fund may be appropriated by the | 0008| legislature for any general governmental purpose. Balances in | 0009| the fund at the end of any fiscal year shall remain in the | 0010| fund. Earnings from investment of the fund shall be credited | 0011| to the fund. | 0012| Section 3. A new section of the New Mexico Finance | 0013| Authority Act is enacted to read: | 0014| "[NEW MATERIAL] CORRECTIONAL FACILITIES DEBT SERVICE | 0015| FUND CREATED.-- | 0016| A. The "correctional facilities debt service fund" is | 0017| created within the authority. The fund shall be administered by | 0018| the authority as a separate account. The authority may create | 0019| such subaccounts as the authority deems necessary to carry out the | 0020| purposes of the fund. The authority is authorized to establish | 0021| procedures as required to administer the fund in accordance with | 0022| the New Mexico Finance Authority Act. | 0023| B. The correctional facilities debt service fund shall | 0024| consist of money distributed to the fund for the purpose of | 0025| acquiring correctional facilities. | 0001| C. Money appropriated to pay administrative costs and | 0002| money available for administrative costs from other sources shall | 0003| not be deposited in the correctional facilities debt service fund | 0004| but shall be deposited in a separate account of the authority and | 0005| may be used by the authority to meet administrative costs of the | 0006| authority. The authority is authorized to deduct administrative | 0007| costs annually from the fund prior to making the transfer required | 0008| by Subsection F of this section. | 0009| D. Money in the correctional facilities debt service | 0010| fund not needed for immediate disbursement, including any money | 0011| held in reserve, may be deposited with the state treasurer for | 0012| short-term investment pursuant to Section 6-10-10.1 NMSA 1978 or | 0013| may be invested in direct and general obligations of or | 0014| obligations fully and unconditionally guaranteed by the United | 0015| States, obligations issued by agencies of the United States, | 0016| obligations of this state or any political subdivision of the | 0017| state, interest-bearing time deposits, commercial paper issued by | 0018| corporations organized and operating in the United States and | 0019| rated "prime" quality by a national rating service or as otherwise | 0020| provided by the trust indenture or bond resolution, if money in | 0021| the fund is pledged for or to secure payment of bonds issued by | 0022| the authority. | 0023| E. The authority shall establish fiscal controls and | 0024| accounting procedures that are sufficient to assure proper | 0025| accounting for correctional facilities debt service fund payments, | 0001| disbursements and balances. | 0002| F. At the end of any fiscal year, after all debt | 0003| service charges, replenishment of reserves and administrative | 0004| costs on all outstanding revenue bonds, notes or other obligations | 0005| payable from the correctional facilities debt service fund are | 0006| satisfied, the balance remaining in the correctional facilities | 0007| debt service fund shall be transferred by the authority to the | 0008| general fund for appropriation by the legislature." | 0009| Section 4. Section 6-24-24 NMSA 1978 (being Laws 1995, | 0010| Chapter 155, Section 24) is amended to read: | 0011| "6-24-24. DISPOSITION OF REVENUE.-- | 0012| A. As nearly as practical, an amount equal to at least | 0013| fifty percent of the gross annual revenues from the sale of | 0014| lottery tickets shall be returned to the public in the form of | 0015| lottery prizes. | 0016| B. The authority shall transmit all net revenues to | 0017| the state treasurer, who shall deposit sixty percent of the | 0018| revenues in the public school capital outlay fund for expenditure | 0019| pursuant to the provisions of the Public School Capital Outlay Act | 0020| and forty percent in the lottery tuition fund. Estimated net | 0021| revenues shall be transmitted monthly to the state treasurer for | 0022| deposit in the funds, provided the total amount of annual net | 0023| revenues for the fiscal year shall be transmitted no later than | 0024| August 1 each year. | 0025| C. In determining net revenues, operating expenses of | 0001| the lottery include all costs incurred in the operation and | 0002| administration of the lottery and all costs resulting from any | 0003| contracts entered into for the purchase or lease of goods or | 0004| services required by the lottery, including but not limited to, | 0005| the costs of supplies, materials, tickets, independent audit | 0006| services, independent studies, data transmission, advertising, | 0007| promotion, incentives, public relations, communications, | 0008| commissions paid to lottery retailers, printing, distribution of | 0009| tickets, purchases of annuities or investments to be used to pay | 0010| future installments of winning lottery tickets, debt service and | 0011| payment of any revenue bonds issued, contingency reserves, | 0012| transfers to the reserve fund and any other necessary costs | 0013| incurred in carrying out the provisions of the New Mexico Lottery | 0014| Act. | 0015| D. An amount up to two percent of the gross annual | 0016| revenues shall be set aside as a reserve fund to cover bonuses and | 0017| incentive plans for lottery retailers, special promotions for | 0018| retailers, purchasing special promotional giveaways, sponsoring | 0019| special promotional events, compulsive gambling rehabilitation and | 0020| such other purposes as the board deems necessary to maintain the | 0021| integrity and meet the revenue goals of the lottery. The board | 0022| shall report annually to the governor and each regular session of | 0023| the legislature on the use of the money in the reserve fund. Any | 0024| balance in excess of fifty thousand dollars ($50,000) at the end | 0025| of any fiscal year shall be transferred to the lottery tuition | 0001| fund. | 0002| E. As used in this section, "gross annual revenues" | 0003| does not include governmental gross receipts tax collected or | 0004| paid." | 0005| Section 5. Section 7-1-6.38 NMSA 1978 (being Laws 1994, | 0006| Chapter 145, Section 1, as amended) is amended to read: | 0007| "7-1-6.38. DISTRIBUTION--GOVERNMENTAL GROSS RECEIPTS TAX.-- | 0008| A. A distribution pursuant to Section 7-1-6.1 NMSA | 0009| 1978 shall be made to the correctional facilities debt service | 0010| fund administered by the New Mexico finance authority in an amount | 0011| equal to the net receipts attributable to the governmental gross | 0012| receipts tax imposed on the receipts from operation of the New | 0013| Mexico state lottery. | 0014| B. From the balance remaining after the distribution | 0015| in Subsection A of this section of the net receipts attributable | 0016| to the governmental gross receipts tax: | 0017| [A.] (1) a distribution pursuant to Section | 0018| 7-1-6.1 NMSA 1978 shall be made to the public project revolving | 0019| fund administered by the New Mexico finance authority in an amount | 0020| equal to seventy-five percent of that balance of the net | 0021| receipts attributable to the governmental gross receipts tax; | 0022| and | 0023| [B.] (2) a distribution pursuant to Section | 0024| 7-1-6.1 NMSA 1978 shall be made to the energy, minerals and | 0025| natural resources department in an amount equal to twenty-five | 0001| percent of that balance of the net receipts attributable to the | 0002| governmental gross receipts tax. Forty percent of the | 0003| distribution is appropriated to the energy, minerals and natural | 0004| resources department to implement the provisions of the New Mexico | 0005| Youth Conservation Corps Act, and sixty percent of the | 0006| distribution is appropriated to the energy, minerals and natural | 0007| resources department for state park and recreation area capital | 0008| improvements, including the costs of planning, engineering, | 0009| design, construction, renovation, repair, equipment and | 0010| furnishings. | 0011| C. The state pledges to and agrees with the holders of | 0012| any bonds or notes issued by the New Mexico finance authority or | 0013| by the energy, minerals and natural resources department and | 0014| payable from the net receipts attributable to the governmental | 0015| gross receipts tax distributed to the New Mexico finance authority | 0016| or the energy, minerals and natural resources department pursuant | 0017| to this section that the state will not limit, reduce or alter the | 0018| distribution of the net receipts attributable to the governmental | 0019| gross receipts tax to the New Mexico finance authority or the | 0020| energy, minerals and natural resources department; limit, reduce, | 0021| alter or exempt any of the receipts of governmental entities | 0022| subject to the governmental gross receipts tax; or limit, reduce | 0023| or alter the rate of imposition of the governmental gross receipts | 0024| tax until the bonds or notes together with the interest thereon | 0025| are fully met and discharged or provision has been made for their | 0001| full payment and discharge. The New Mexico finance authority and | 0002| the energy, minerals and natural resources department are | 0003| authorized to include this pledge and agreement of the state in | 0004| any agreement with the holders of the bonds or notes." | 0005| Section 6. Section 7-9-3.2 NMSA 1978 (being Laws 1991, | 0006| Chapter 8, Section 1, as amended) is amended to read: | 0007| "7-9-3.2. ADDITIONAL DEFINITION.--As used in the Gross | 0008| Receipts and Compensating Tax Act, "governmental gross receipts" | 0009| means all receipts of the state [of New Mexico] or any agency, | 0010| institution, instrumentality or political subdivision thereof | 0011| from: | 0012| A. the sale of tangible personal property other than | 0013| water from facilities open to the general public; | 0014| B. the performance of or admissions to recreational, | 0015| athletic or entertainment services or events in facilities open to | 0016| the general public; | 0017| C. refuse collection, refuse disposal or both; | 0018| D. sewage services; [and] | 0019| E. the sale of water by a utility owned or operated by | 0020| a county, municipality or other political subdivision of the | 0021| state; and | 0022| F. the operation of a lottery. | 0023| "Governmental gross receipts" includes receipts from the | 0024| sale of tangible personal property handled on consignment when | 0025| sold from facilities open to the general public but excludes cash | 0001| discounts taken and allowed, governmental gross receipts tax | 0002| payable on transactions reportable for the period and any type of | 0003| time-price differential." | 0004| Section 7. Section 7-9-82 NMSA 1978 (being Laws 1986, | 0005| Chapter 20, Section 68, as amended) is amended to read: | 0006| "7-9-82. [CREDIT--GROSS RECEIPTS TAX--MUNICIPAL GROSS | 0007| RECEIPTS TAX PAID] DISTRIBUTION--AMOUNT EQUAL TO A PERCENTAGE OF | 0008| MUNICIPAL GROSS RECEIPTS TAX. [A credit shall be allowed for | 0009| each reporting period against the gross receipts tax for] After | 0010| August 1, 1997, from the net receipts attributable to the gross | 0011| receipts tax a distribution pursuant to Section 7-1-6.1 NMSA 1978 | 0012| shall be made to the public health, safety and welfare fund in an | 0013| amount equal to: | 0014| A. [an] the amount of the municipal gross receipts | 0015| tax equal to one-half of one percent of the taxable gross receipts | 0016| for which [the taxpayer is] taxpayers are liable for that | 0017| reporting period [imposed by a municipality pursuant to Section | 0018| 7-19D-4 NMSA 1978 if that municipality has imposed] to | 0019| municipalities that have imposed a total municipal gross receipts | 0020| tax rate of at least one-half of one percent [or] pursuant to | 0021| Section 7-19D-4 NMSA 1978; and | 0022| B. [an] the amount of the municipal gross receipts | 0023| tax equal to one-fourth of one percent of the taxable gross | 0024| receipts for which [the taxpayer is] taxpayers are liable for | 0025| that reporting period [imposed by a municipality pursuant to | 0001| Section 17-19D-4 NMSA 1978 if that municipality has imposed] to | 0002| municipalities that have imposed a total municipal gross receipts | 0003| tax rate of one-fourth of one percent pursuant to Section 7-19D-4 | 0004| NMSA 1978." | 0005| Section 8. NEW MEXICO FINANCE AUTHORITY--REVENUE BONDS-- | 0006| PURPOSE--APPROPRIATION OF PROCEEDS.--The New Mexico finance | 0007| authority may issue and sell revenue bonds, payable solely from | 0008| the correctional facilities debt service fund, in compliance with | 0009| the provisions of the New Mexico Finance Authority Act in | 0010| installments or at one time in an amount necessary to provide net | 0011| proceeds of twenty-one million dollars ($21,000,000) for the | 0012| acquisition of correctional facilities and for payment of the | 0013| costs of issuance of the bonds and establishing necessary reserves | 0014| for the bonds, when the corrections department certifies the need | 0015| for the issuance of the bonds. Twenty-one million dollars | 0016| ($21,000,000) of the proceeds from the bonds shall be deposited in | 0017| the correctional facilities acquisition fund for appropriation by | 0018| the legislature for acquisition of correctional facilities. | 0019| Section 9. SEVERANCE TAX BONDS--PURPOSE--APPROPRIATION OF | 0020| PROCEEDS.--The state board of finance shall issue and sell | 0021| severance tax bonds in compliance with the Severance Tax Bonding | 0022| Act in an amount not to exceed forty-four million dollars | 0023| ($44,000,000) when the corrections department certifies the need | 0024| for the issuance of the bonds. The state board of finance shall | 0025| schedule the issuance and sale of the bonds in the most | 0001| expeditious and economical manner possible upon a finding by the | 0002| board that the project has been developed sufficiently to justify | 0003| the issuance and that the project can proceed to contract within a | 0004| reasonable time. The state board of finance shall further take | 0005| the appropriate steps necessary to comply with the Internal | 0006| Revenue Code of 1986, as amended. The proceeds from the sale of | 0007| the bonds shall be deposited in the correctional facilities | 0008| acquisition fund for appropriation by the legislature for | 0009| acquisition of correctional facilities. Any unexpended or | 0010| unencumbered balance remaining six months after completion of a | 0011| project shall revert to the severance tax bonding fund. If the | 0012| corrections department has not certified the need for the issuance | 0013| of the bonds by the end of fiscal year 1999, the authorization | 0014| provided in this section shall be void. | 0015| Section 10. APPROPRIATION.--Twenty-eight million dollars | 0016| ($28,000,000) is appropriated from the general fund to the | 0017| correctional facilities acquisition fund in fiscal year 1998 for | 0018| appropriation by the legislature for acquisition of correctional | 0019| facilities. | 0020| Section 11. REPEAL.-- | 0021| A. Section 7-27-5.22 NMSA 1978 (being Laws 1995, | 0022| Chapter 215, Section 2, as amended) is repealed. | 0023| B. Laws 1995, Chapter 214, Section 2 is repealed. | 0024| Section 12. EFFECTIVE DATE.-- | 0025| A. The effective date of the provisions of Sections 4, | 0001| 6, 7 and 10 of this act is July 1, 1997. | 0002| B. The effective date of the provisions of Section 5 | 0003| of this act is August 1, 1997. | 0004| Section 13. EMERGENCY.--It is necessary for the public | 0005| peace, health and safety that this act take effect immediately | 0006|  FORTY-THIRD LEGISLATURE | 0007| FIRST SESSION | 0008| | 0009| | 0010| March 16, 1997 | 0011| | 0012| | 0013| SENATE FLOOR AMENDMENT number _______ to SENATE FINANCE COMMITTEE | 0014| SUBSTITUTE FOR | 0015| SENATE BILL 1054 | 0016| | 0017| Amendment sponsored by Senator Manny M. Aragon | 0018| | 0019| | 0020| 1. On page 1, line 13, after the semicolon strike the | 0021| remainder of the line, strike all of line 14 and on line 15, strike | 0022| "TAXES PAID" and insert in lieu thereof "INCREASING THE RATE OF THE | 0023| CIGARETTE TAX AND DISTRIBUTING THE ADDITIONAL REVENUES". | 0024| | 0025| 2. On page 2, strike Section 2 in its entirety. | 0001| | 0002| 3. Renumber the succeeding sections accordingly. | 0003| | 0004| 4. On page 6, between lines 11 and 12, insert the following | 0005| new section: | 0006| | 0007| "Section 4. Section 7-1-6.11 NMSA 1978 (being Laws 1983, | 0008| Chapter 211, Section 16, as amended) is amended to read: | 0009| | 0010| "7-1-6.11. DISTRIBUTIONS OF CIGARETTE TAXES.-- | 0011| | 0012| A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 | 0013| shall be made to the county and municipality recreational fund in an | 0014| amount equal to [four and three-quarters] three and twenty-three | 0015| hundredths percent of the net receipts, exclusive of penalties and | 0016| interest, attributable to the cigarette tax. | 0017| | 0018| B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 | 0019| shall be made to the county and municipal cigarette tax fund in an | 0020| amount equal to [nine and one-half] six and forty-five | 0021| hundredths percent of the net receipts, exclusive of penalties and | 0022| interest, attributable to the cigarette tax. | 0023| | 0024| C. A distribution pursuant to Section 7-1-6.1 NMSA 1978 | 0025| shall be made to the cancer center at the university of New Mexico | 0001| school of medicine in an amount equal to [four and three-quarters] | 0002| twelve and nine-tenths percent of the net receipts, exclusive of | 0003| penalties and interest, attributable to the cigarette tax. | 0004| | 0005| D. A distribution pursuant to Section 7-1-6.1 NMSA 1978 | 0006| shall be made to the New Mexico finance authority in an amount equal | 0007| to [seven and one-eighth] four and eighty-three hundredths | 0008| percent of the net receipts, exclusive of penalties and interest, | 0009| attributable to the cigarette tax. | 0010| | 0011| E. A distribution pursuant to Section 7-1-6.1 NMSA 1978 | 0012| shall be made to the board of regents of the university of New | 0013| Mexico in an amount equal to three and twenty-three hundredths | 0014| percent of the net receipts, exclusive of penalties and interest, | 0015| attributable to the cigarette tax for the purpose of establishing a | 0016| special chair for genetics research. | 0017| | 0018| F. A distribution pursuant to Section 7-1-6.1 NMSA 1978 | 0019| shall be made to the state fair commission in an amount equal to | 0020| three and twenty-three hundredths percent of the net receipts, | 0021| exclusive of penalties and interest, attributable to the cigarette | 0022| tax for the purpose of conducting the New Mexico state fair. | 0023| | 0024| G. A distribution pursuant to Section 7-1-6.1 NMSA 1978 | 0025| shall be made to the office of cultural affairs in an amount equal | 0001| to twelve and nine-tenths percent of the net receipts, exclusive of | 0002| penalties and interest, attributable to the cigarette tax to be | 0003| distributed as follows for the following purposes: | 0004| | 0005| (1) three-fourths of the distribution to the board of | 0006| directors of the New Mexico Hispanic cultural center for any | 0007| necessary design, construction or equipping of the Hispanic cultural | 0008| center and thereafter for the operation of the Hispanic cultural | 0009| center; | 0010| (2) one-eighth of the distribution to the New Mexico | 0011| farm and ranch heritage museum division for operation of the New | 0012| Mexico farm and ranch heritage museum; and | 0013| | 0014| (3) one-eighth of the distribution to the board of | 0015| trustees of the New Mexico museum of natural history and science for | 0016| operation of that museum. | 0017| | 0018| G. A distribution pursuant to Section 7-1-6.1 NMSA 1978 | 0019| shall be made to the brain injury services fund in an amount equal | 0020| to three and twenty-three hundredths percent of the net receipts, | 0021| exclusive of penalties and interest, attributable to the cigarette | 0022| tax, contingent upon enactment into law of Senate Bill 37 or other | 0023| bill of the first session of the forty-third legislature creating | 0024| the fund."". | 0025| | 0001| 5. Renumber the succeeding sections accordingly. | 0002| | 0003| 6. On pages 9 and 10, strike Section 7 in its entirety and | 0004| insert in lieu thereof: | 0005| | 0006| "Section 7. Section 7-12-3 NMSA 1978 (being Laws 1971, Chapter | 0007| 77, Section 3, as amended) is amended to read: | 0008| | 0009| "7-12-3. EXCISE TAX ON CIGARETTES--RATES.-- | 0010| | 0011| A. For the privilege of selling, giving or consuming | 0012| cigarettes in New Mexico, there is levied an excise tax at the rate | 0013| of [one and five hundredths cents ($.0105)] one and fifty-five | 0014| hundredths cents ($.0155) for each cigarette sold, given or | 0015| consumed in this state. | 0016| | 0017| B. The tax imposed by this section shall be referred to as | 0018| the "cigarette tax"."". | 0019| | 0020| 7. On page 12, line 1, strike "4" and insert in lieu thereof | 0021| "3". | 0022| | 0023| 8. On page 12, line 3, strike "Section" and insert in lieu | 0024| thereof "Sections 4 and". | 0025| | 0001| | 0002| | 0003| | 0004| | 0005| | 0006| | 0007| __________________________ | 0008| Manny M. Aragon | 0009| | 0010| | 0011| | 0012| Adopted ___________________ Not Adopted _______________________ | 0013| (Chief Clerk) (Chief Clerk) | 0014| | 0015| | 0016| Date _________________ | 0017| State of New Mexico | 0018| House of Representatives | 0019| | 0020| FORTY-THIRD LEGISLATURE | 0021| FIRST SESSION, 1997 | 0022| | 0023| | 0024| March 18, 1997 | 0025| | 0001| | 0002| Mr. Speaker: | 0003| | 0004| Your TAXATION AND REVENUE COMMITTEE, to whom has been | 0005| referred | 0006| | 0007| SENATE FINANCE COMMITTEE SUBSTITUTE | 0008| FOR SENATE BILL 1054, as amended | 0009| | 0010| has had it under consideration and reports same with recommendation | 0011| that it DO NOT PASS, but that | 0012| | 0013| HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE | 0014| FOR SENATE FINANCE COMMITTEE SUBSTITUTE | 0015| FOR SENATE BILL 1054 | 0016| | 0017| DO PASS, and thence referred to the APPROPRIATIONS AND | 0018| FINANCE COMMITTEE. | 0019| | 0020| Respectfully submitted, | 0021| | 0022| | 0023| | 0024| | 0025| Jerry W. Sandel, Chairman | 0001| | 0002| | 0003| Adopted Not Adopted | 0004| (Chief Clerk) | 0005| (Chief Clerk) | 0006| | 0007| Date | 0008| | 0009| The roll call vote was 11 For 1 Against | 0010| Yes: 11 | 0011| No: Parsons | 0012| Excused: Crook | 0013| Absent: None | 0014| | 0015| G:\BILLTEXT\BILLW_97\S1054 HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR | 0016| SENATE FINANCE COMMITTEE SUBSTITUTE FOR | 0017| | 0018| SENATE BILL 1054 | 0019| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0020| | 0021| | 0022| | 0023| | 0024| | 0025| | 0001| | 0002| AN ACT | 0003| RELATING TO REVENUES; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX | 0004| BONDS AND NEW MEXICO FINANCE AUTHORITY REVENUE BONDS FOR | 0005| ACQUISITION OF CORRECTIONAL FACILITIES; AUTHORIZING THE | 0006| CORRECTIONS DEPARTMENT TO ENTER INTO CONTRACTS TO HOUSE | 0007| INMATES; CREATING A FUND; MAKING DISTRIBUTIONS; EXPANDING THE | 0008| GOVERNMENTAL GROSS RECEIPTS TAX; AMENDING, REPEALING AND | 0009| ENACTING SECTIONS OF THE NMSA 1978; REPEALING A SECTION OF LAWS | 0010| 1995; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY. | 0011| | 0012| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0013| Section 1. A new section of the New Mexico Finance | 0014| Authority Act is enacted to read: | 0015| "[NEW MATERIAL] CORRECTIONAL FACILITIES DEBT SERVICE | 0016| FUND CREATED.-- | 0017| A. The "correctional facilities debt service fund" is | 0018| created within the authority. The fund shall be administered | 0019| by the authority as a separate account. The authority may | 0020| create such subaccounts as the authority deems necessary to | 0021| carry out the purposes of the fund. The authority is | 0022| authorized to establish procedures as required to administer | 0023| the fund in accordance with the New Mexico Finance Authority | 0024| Act. | 0025| B. The correctional facilities debt service fund | 0001| shall consist of money distributed to the fund for the purpose | 0002| of acquiring correctional facilities. | 0003| C. Money appropriated to pay administrative costs and | 0004| money available for administrative costs from other sources | 0005| shall not be deposited in the correctional facilities debt | 0006| service fund but shall be deposited in a separate account of | 0007| the authority and may be used by the authority to meet | 0008| administrative costs of the authority. The authority is | 0009| authorized to deduct administrative costs annually from the | 0010| fund prior to making the transfer required by Subsection F of | 0011| this section. | 0012| D. Money in the correctional facilities debt service | 0013| fund not needed for immediate disbursement, including any money | 0014| held in reserve, may be deposited with the state treasurer for | 0015| short-term investment pursuant to Section 6-10-10.1 NMSA 1978 | 0016| or may be invested in direct and general obligations of or | 0017| obligations fully and unconditionally guaranteed by the United | 0018| States, obligations issued by agencies of the United States, | 0019| obligations of this state or any political subdivision of the | 0020| state, interest-bearing time deposits, commercial paper issued by | 0021| corporations organized and operating in the United States and | 0022| rated "prime" quality by a national rating service or as otherwise | 0023| provided by the trust indenture or bond resolution, if money in | 0024| the fund is pledged for or to secure payment of bonds issued by | 0025| the authority. | 0001| E. The authority shall establish fiscal controls and | 0002| accounting procedures that are sufficient to assure proper | 0003| accounting for correctional facilities debt service fund payments, | 0004| disbursements and balances. | 0005| F. At the end of any fiscal year, after all debt service | 0006| charges, replenishment of reserves and administrative costs on all | 0007| outstanding revenue bonds, notes or other obligations payable from | 0008| the correctional facilities debt service fund are satisfied, the | 0009| balance remaining in the correctional facilities debt service fund | 0010| shall be transferred by the authority to the public project | 0011| revolving fund for public projects as authorized by the | 0012| legislature." | 0013| Section 2. Section 6-24-24 NMSA 1978 (being Laws 1995, | 0014| Chapter 155, Section 24) is amended to read: | 0015| "6-24-24. DISPOSITION OF REVENUE.-- | 0016| A. As nearly as practical, an amount equal to at least | 0017| fifty percent of the gross annual revenues from the sale of | 0018| lottery tickets shall be returned to the public in the form of | 0019| lottery prizes. | 0020| B. The authority shall transmit all net revenues to the | 0021| state treasurer, who shall deposit sixty percent of the revenues | 0022| in the public school capital outlay fund for expenditure pursuant | 0023| to the provisions of the Public School Capital Outlay Act and | 0024| forty percent in the lottery tuition fund. Estimated net revenues | 0025| shall be transmitted monthly to the state treasurer for deposit in | 0001| the funds, provided the total amount of annual net revenues for | 0002| the fiscal year shall be transmitted no later than August 1 each | 0003| year. | 0004| C. In determining net revenues, operating expenses of | 0005| the lottery include all costs incurred in the operation and | 0006| administration of the lottery and all costs resulting from any | 0007| contracts entered into for the purchase or lease of goods or | 0008| services required by the lottery, including but not limited to, | 0009| the costs of supplies, materials, tickets, independent audit | 0010| services, independent studies, data transmission, advertising, | 0011| promotion, incentives, public relations, communications, | 0012| commissions paid to lottery retailers, printing, distribution of | 0013| tickets, purchases of annuities or investments to be used to pay | 0014| future installments of winning lottery tickets, debt service and | 0015| payment of any revenue bonds issued, contingency reserves, | 0016| transfers to the reserve fund and any other necessary costs | 0017| incurred in carrying out the provisions of the New Mexico Lottery | 0018| Act. | 0019| D. An amount up to two percent of the gross annual | 0020| revenues shall be set aside as a reserve fund to cover bonuses and | 0021| incentive plans for lottery retailers, special promotions for | 0022| retailers, purchasing special promotional giveaways, sponsoring | 0023| special promotional events, compulsive gambling rehabilitation and | 0024| such other purposes as the board deems necessary to maintain the | 0025| integrity and meet the revenue goals of the lottery. The board | 0001| shall report annually to the governor and each regular session of | 0002| the legislature on the use of the money in the reserve fund. Any | 0003| balance in excess of fifty thousand dollars ($50,000) at the end | 0004| of any fiscal year shall be transferred to the lottery tuition | 0005| fund. | 0006| E. As used in this section, "gross annual revenues" | 0007| does not include governmental gross receipts tax collected or | 0008| paid." | 0009| Section 3. Section 7-1-6.38 NMSA 1978 (being Laws 1994, | 0010| Chapter 145, Section 1, as amended) is amended to read: | 0011| "7-1-6.38. DISTRIBUTION--GOVERNMENTAL GROSS RECEIPTS TAX.-- | 0012| A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 | 0013| shall be made to the correctional facilities debt service fund | 0014| administered by the New Mexico finance authority in an amount | 0015| equal to the net receipts attributable to the governmental gross | 0016| receipts tax imposed on the receipts from operation of the New | 0017| Mexico state lottery. | 0018| B. From the balance remaining after the distribution in | 0019| Subsection A of this section of the net receipts attributable to | 0020| the governmental gross receipts tax: | 0021| [A.] (1) a distribution pursuant to Section | 0022| 7-1-6.1 NMSA 1978 shall be made to the public project revolving | 0023| fund administered by the New Mexico finance authority in an amount | 0024| equal to seventy-five percent of that balance of the net | 0025| receipts attributable to the governmental gross receipts tax; | 0001| and | 0002| [B.] (2) a distribution pursuant to Section | 0003| 7-1-6.1 NMSA 1978 shall be made to the energy, minerals and | 0004| natural resources department in an amount equal to twenty-five | 0005| percent of that balance of the net receipts attributable to the | 0006| governmental gross receipts tax. Forty percent of the | 0007| distribution is appropriated to the energy, minerals and natural | 0008| resources department to implement the provisions of the New Mexico | 0009| Youth Conservation Corps Act, and sixty percent of the | 0010| distribution is appropriated to the energy, minerals and natural | 0011| resources department for state park and recreation area capital | 0012| improvements, including the costs of planning, engineering, | 0013| design, construction, renovation, repair, equipment and | 0014| furnishings. | 0015| C. The state pledges to and agrees with the holders of | 0016| any bonds or notes issued by the New Mexico finance authority or | 0017| by the energy, minerals and natural resources department and | 0018| payable from the net receipts attributable to the governmental | 0019| gross receipts tax distributed to the New Mexico finance authority | 0020| or the energy, minerals and natural resources department pursuant | 0021| to this section that the state will not limit, reduce or alter the | 0022| distribution of the net receipts attributable to the governmental | 0023| gross receipts tax to the New Mexico finance authority or the | 0024| energy, minerals and natural resources department; limit, reduce, | 0025| alter or exempt any of the receipts of governmental entities | 0001| subject to the governmental gross receipts tax; or limit, reduce | 0002| or alter the rate of imposition of the governmental gross receipts | 0003| tax until the bonds or notes together with the interest thereon | 0004| are fully met and discharged or provision has been made for their | 0005| full payment and discharge. The New Mexico finance authority and | 0006| the energy, minerals and natural resources department are | 0007| authorized to include this pledge and agreement of the state in | 0008| any agreement with the holders of the bonds or notes." | 0009| Section 4. Section 7-9-3.2 NMSA 1978 (being Laws 1991, | 0010| Chapter 8, Section 1, as amended) is amended to read: | 0011| "7-9-3.2. ADDITIONAL DEFINITION.--As used in the Gross | 0012| Receipts and Compensating Tax Act, "governmental gross receipts" | 0013| means all receipts of the state [of New Mexico] or any agency, | 0014| institution, instrumentality or political subdivision thereof | 0015| from: | 0016| A. the sale of tangible personal property other than | 0017| water from facilities open to the general public; | 0018| B. the performance of or admissions to recreational, | 0019| athletic or entertainment services or events in facilities open to | 0020| the general public; | 0021| C. refuse collection, refuse disposal or both; | 0022| D. sewage services; [and] | 0023| E. the sale of water by a utility owned or operated by a | 0024| county, municipality or other political subdivision of the state; | 0025| and | 0001| F. the operation of a lottery. | 0002| "Governmental gross receipts" includes receipts from the sale | 0003| of tangible personal property handled on consignment when sold | 0004| from facilities open to the general public but excludes cash | 0005| discounts taken and allowed, governmental gross receipts tax | 0006| payable on transactions reportable for the period and any type of | 0007| time-price differential." | 0008| Section 5. [NEW MATERIAL] CONTRACT TO HOUSE ADULT FEMALE | 0009| INMATES IN A REINTEGRATION FACILITY.-- | 0010| A. The corrections department shall solicit proposals | 0011| for the purpose of entering into a contract with a private | 0012| detention facility pursuant to Subsection G of Section 31-20-2 | 0013| NMSA 1978 to operate an adult female reintegration facility. | 0014| B. The facility contracting with the corrections | 0015| department pursuant to Subsection A of this section shall: | 0016| (1) be privately financed, designed, constructed | 0017| and operated by the contractor; provided that a facility financed | 0018| by bonds issued pursuant to the Industrial Revenue Bond Act or the | 0019| County Industrial Revenue Bond Act and sold to the contractor | 0020| shall be privately financed by the contractor for the purposes of | 0021| this paragraph; | 0022| (2) consist of a two-hundred-fifty-bed adult female | 0023| reintegration facility that is adjacent to a four-hundred-bed | 0024| medium-security correctional facility that is located in the | 0025| middle Rio Grande corridor; and | 0001| (3) certify that the facility was built by a | 0002| primary contractor and subcontractors that: | 0003| (a) maintain their primary places of business | 0004| in New Mexico; | 0005| (b) hired laborers for construction of the | 0006| facility as employees, rather than as independent contractors, and | 0007| who are New Mexico residents; | 0008| (c) provided health care benefits, retirement | 0009| benefits and unemployment insurance to their employees working on | 0010| construction of the facility; and | 0011| (d) maintain apprenticeship programs for their | 0012| employees. | 0013| C. The corrections department shall solicit proposals | 0014| and award any contract under this section in accordance with the | 0015| provisions of the Procurement Code. The contract shall include | 0016| such terms and conditions as the department may require after | 0017| consultation with the general services department; provided that | 0018| the terms and conditions shall include provisions that: | 0019| (1) set forth comprehensive standards for | 0020| conditions of incarceration; | 0021| (2) require the facility to meet or exceed | 0022| corrections department standards and meet appropriate | 0023| certification requirements within one year after beginning | 0024| operation and remain accredited through the life of the contract; | 0025| (3) require the contractor to assume all liability | 0001| caused by or arising out of all aspects of the provision or | 0002| operation of the facility; | 0003| (4) require liability insurance or other proof of | 0004| financial responsibility acceptable to the general services | 0005| department that covers the contractor and its officers, employees | 0006| and agents in an amount sufficient to cover all liability caused | 0007| by or arising out of all aspects of the provision or operation of | 0008| the facility; | 0009| (5) require termination for cause upon ninety days' | 0010| notice to the contractor for failure to meet contract provisions | 0011| when such failure seriously affects the availability or operation | 0012| of the facility; | 0013| (6) provide that venue for enforcement of the | 0014| contract shall be in the district court for Santa Fe county; | 0015| (7) require continuation of the contract to be | 0016| subject to the availability of funds; | 0017| (8) provide that compliance with the contract shall | 0018| be monitored by the corrections department and the contract may be | 0019| terminated for noncompliance; and | 0020| (9) payments under the contract shall be made only | 0021| on a per diem per inmate basis without any additional or separate | 0022| charge for capital costs. | 0023| Section 6. [NEW MATERIAL] CONTRACT TO HOUSE ADJUDICATED | 0024| DELINQUENTS IN A CARE, REHABILITATION AND TREATMENT FACILITY.-- | 0025| A. The children, youth and families department shall | 0001| solicit proposals for the purpose of entering into a contract with | 0002| a private care, rehabilitation and treatment facility to house | 0003| male adjudicated delinquents committed to the children, youth and | 0004| families department. | 0005| B. The facility contracting with the children, youth and | 0006| families department pursuant to Subsection A of this section | 0007| shall: | 0008| (1) be privately financed, designed, constructed | 0009| and operated by the contractor; provided that a facility financed | 0010| by bonds issued pursuant to the Industrial Revenue Bond Act or the | 0011| County Industrial Revenue Bond Act and sold to the contractor | 0012| shall be privately financed by the contractor for the purposes of | 0013| this paragraph; | 0014| (2) consist of one hundred fifty beds and provide | 0015| care, rehabilitation and treatment for male adjudicated | 0016| delinquents; | 0017| (3) be located in the middle Rio Grande corridor; | 0018| and | 0019| (4) certify that the facility was built by a | 0020| primary contractor and subcontractors that: | 0021| (a) maintain their primary places of business | 0022| in New Mexico; | 0023| (b) hired laborers for construction of the | 0024| facility as employees, rather than as independent contractors, and | 0025| who are New Mexico residents; | 0001| (c) provided health care benefits, retirement | 0002| benefits and unemployment insurance to their employees working on | 0003| construction of the facility; and | 0004| (d) maintain apprenticeship programs for their | 0005| employees. | 0006| C. The children, youth and families department shall | 0007| solicit proposals and award any contract under this section in | 0008| accordance with the provisions of the Procurement Code. The | 0009| contract shall include such terms and conditions as the department | 0010| may require after consultation with the general services | 0011| department; provided that the terms and conditions shall include | 0012| provisions that: | 0013| (1) set forth comprehensive standards for | 0014| conditions of incarceration; | 0015| (2) require the facility to meet or exceed | 0016| applicable juvenile detention facility standards and meet | 0017| appropriate certification requirements within one year after | 0018| beginning operation and remain accredited through the life of the | 0019| contract; | 0020| (3) require the contractor to assume all liability | 0021| caused by or arising out of all aspects of the provision or | 0022| operation of the facility; | 0023| (4) require liability insurance or other proof of | 0024| financial responsibility acceptable to the general services | 0025| department that covers the contractor and its officers, employees | 0001| and agents in an amount sufficient to cover all liability caused | 0002| by or arising out of all aspects of the provision or operation of | 0003| the facility; | 0004| (5) require termination for cause upon ninety days' | 0005| notice to the contractor for failure to meet contract provisions | 0006| when such failure seriously affects the availability or operation | 0007| of the facility; | 0008| (6) provide that venue for enforcement of the | 0009| contract shall be in the district court for Santa Fe county; | 0010| (7) require continuation of the contract to be | 0011| subject to the availability of funds; | 0012| (8) provide that compliance with the contract shall | 0013| be monitored by the children, youth and families department and | 0014| the contract may be terminated for noncompliance; and | 0015| (9) payments under the contract shall be made only | 0016| on a per diem per inmate basis without any additional or separate | 0017| charge for capital costs. | 0018| Section 7. NEW MEXICO FINANCE AUTHORITY--PUBLIC PROJECT | 0019| APPROVAL.--Pursuant to the provisions of Section 6-21-6 NMSA 1978, | 0020| the legislature authorizes the New Mexico finance authority to | 0021| issue and sell revenue bonds in installments or at one time in an | 0022| amount not to exceed twenty million dollars ($20,000,000) payable | 0023| solely from the public project revolving fund for the acquisition | 0024| of correctional facilities on terms and conditions established by | 0025| the authority when the corrections department certifies the need | 0001| for the issuance of the bonds. The net proceeds from the sale of | 0002| the bonds shall be appropriated by the legislature for the | 0003| acquisition of correctional facilities, subject to the provisions | 0004| and requirements in Section 13 of this act for those facilities. | 0005| Section 8. NEW MEXICO FINANCE AUTHORITY--GOVERNMENTAL GROSS | 0006| RECEIPTS TAX REVENUE BONDS--PURPOSE.--The New Mexico finance | 0007| authority may issue and sell revenue bonds, payable solely from | 0008| governmental gross receipts tax revenues distribution to the | 0009| correctional facilities debt service fund, in compliance with the | 0010| provisions of the New Mexico Finance Authority Act in installments | 0011| or at one time in an amount necessary to provide net proceeds of | 0012| twenty-one million dollars ($21,000,000) for the acquisition of | 0013| correctional facilities and for payment of the costs of issuance | 0014| of the bonds and establishing necessary reserves for the bonds, | 0015| when the corrections department certifies the need for the | 0016| issuance of the bonds. The net proceeds from the bonds shall be | 0017| appropriated by the legislature for acquisition of correctional | 0018| facilities, subject to the provisions and requirements in Section | 0019| 13 of this act for those facilities. Any unexpended or | 0020| unencumbered balance remaining six months after completion of a | 0021| project shall revert to the public project revolving fund for | 0022| appropriation by the legislature for public projects pursuant to | 0023| the provisions of the New Mexico Finance Authority Act. If the | 0024| corrections department has not certified the need for the issuance | 0025| of the bonds by the end of fiscal year 1999, the authorization | 0001| provided in this section shall be void. | 0002| Section 9. SEVERANCE TAX BONDS--PURPOSE.--The state board of | 0003| finance shall issue and sell severance tax bonds in compliance | 0004| with the Severance Tax Bonding Act in an amount not to exceed | 0005| forty-four million dollars ($44,000,000) when the corrections | 0006| department certifies the need for the issuance of the bonds. The | 0007| state board of finance shall schedule the issuance and sale of the | 0008| bonds in the most expeditious and economical manner possible upon | 0009| a finding by the board that the project has been developed | 0010| sufficiently to justify the issuance and that the project can | 0011| proceed to contract within a reasonable time. The state board of | 0012| finance shall further take the appropriate steps necessary to | 0013| comply with the Internal Revenue Code of 1986, as amended. The | 0014| proceeds from the sale of the bonds shall be appropriated by the | 0015| legislature for acquisition of correctional facilities subject to | 0016| the provisions and requirements in Section 13 of this act for | 0017| those facilities. Any unexpended or unencumbered balance | 0018| remaining six months after completion of a project shall revert to | 0019| the severance tax bonding fund. If the corrections department has | 0020| not certified the need for the issuance of the bonds by the end of | 0021| fiscal year 1999, the authorization provided in this section shall | 0022| be void. | 0023| Section 10. APPROPRIATIONS--HOUSING INMATES OUT OF STATE.-- | 0024| A. One million one hundred thousand dollars ($1,100,000) | 0025| is appropriated from the general fund to the corrections | 0001| department for expenditure in fiscal year 1997 for the purpose of | 0002| paying for adult male inmates transferred to out-of-state | 0003| correctional facilities for a period not to exceed twelve months | 0004| to relieve overcrowding in state correctional facilities and | 0005| paying for accompanying costs, including medical costs and | 0006| transportation costs. Any unexpended or unencumbered balance | 0007| remaining at the end of fiscal year 1997 shall revert to the | 0008| general fund. | 0009| B. One million eight hundred thousand dollars | 0010| ($1,800,000) is appropriated from the general fund to the | 0011| corrections department for expenditure in fiscal year 1998 for the | 0012| purpose of paying for adult male inmates transferred to out-of- | 0013| state correctional facilities for a period not to exceed twelve | 0014| months and paying for accompanying costs, including medical costs | 0015| and transportation costs. Any unexpended or unencumbered balance | 0016| remaining at the end of fiscal year 1998 shall revert to the | 0017| general fund. | 0018| Section 11. APPROPRIATION--HOUSING INMATES IN CIBOLA | 0019| COUNTY--CONTRACT PROVISIONS.-- | 0020| A. Two million dollars ($2,000,000) is appropriated from | 0021| the general fund to the corrections department for expenditure in | 0022| fiscal year 1998 to contract with Cibola county to house | 0023| additional inmates at the Cibola county corrections center. Any | 0024| unexpended or unencumbered balance remaining at the end of fiscal | 0025| year 1998 shall revert to the general fund. | 0001| B. The contract entered into pursuant to Subsection A of | 0002| this section shall provide: | 0003| (1) that the total number of state inmates housed | 0004| at the Cibola county corrections center shall equal five hundred | 0005| fifty-two medium-security inmates and one hundred seventy-six | 0006| 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 (1) of | 0010| this subsection unless it has first removed all similarly | 0011| classified state inmates from all other private or county operated | 0012| correctional facilities. | 0013| Section 12. APPROPRIATION--PREFABRICATED JUVENILE DETENTION | 0014| FACILITIES.--Five million dollars ($5,000,000) of the proceeds of | 0015| the general obligation bonds for juvenile correctional and | 0016| rehabilitative facilities approved by the voters in the 1996 | 0017| general election is appropriated to the children, youth and | 0018| families department for expenditure in fiscal years 1997 and 1998 | 0019| to acquire a fifty-bed prefabricated juvenile detention facility | 0020| at the youth development and diagnostic center in Albuquerque and | 0021| a fifty-bed prefabricated facility at the New Mexico boys' school | 0022| at Springer. | 0023| Section 13. ACQUISITION OF CORRECTIONAL FACILITIES-- | 0024| CONDITIONS--APPROPRIATIONS.-- | 0025| A. The corrections department shall solicit proposals | 0001| for the purpose of acquiring correctional facilities in Guadalupe | 0002| county, Lea county and the middle Rio Grande corridor as provided | 0003| in this section. The department shall solicit proposals | 0004| separately for each correctional facility. | 0005| B. The appropriations in this section for correctional | 0006| facilities are contingent upon the enactment into law of House | 0007| Taxation and Revenue Committee Substitute for Senate Finance | 0008| Committee Substitute for Senate Bill 1273 of the first session of | 0009| the forty-third legislature. | 0010| C. The following amounts from the following sources are | 0011| appropriated to the corrections department for expenditure in | 0012| fiscal years 1997 through 1999 for the acquisition of a six- | 0013| hundred-bed correctional facility in Guadalupe county: | 0014| (1) three million dollars ($3,000,000) of the | 0015| proceeds from the issuance of governmental gross receipts tax | 0016| revenue bonds by the New Mexico finance authority pursuant to | 0017| Section 8 of this act; | 0018| (2) twenty million dollars ($20,000,000) of the | 0019| proceeds from public project revenue bonds issued by the New | 0020| Mexico finance authority pursuant to Section 7 of this act; and | 0021| (3) eight million dollars ($8,000,000) of the | 0022| proceeds from the severance tax bonds issued pursuant to Section 9 | 0023| of this act. | 0024| D. The following amounts from the following sources are | 0025| appropriated to the corrections department for expenditure in | 0001| fiscal years 1997 through 1999 for the acquisition of an eight- | 0002| hundred-bed correctional facility in Lea county: | 0003| (1) thirteen million dollars ($13,000,000) from the | 0004| general fund; and | 0005| (2) eighteen million dollars ($18,000,000) of the | 0006| proceeds from the governmental gross receipts tax revenue bonds | 0007| issued by the New Mexico finance authority pursuant to Section 8 | 0008| of this act. | 0009| E. Thirty-six million dollars ($36,000,000) of the | 0010| proceeds from the severance tax bonds issued pursuant to Section 9 | 0011| of this act is appropriated to the corrections department for | 0012| expenditure in fiscal years 1997 through 1999 in the following | 0013| amounts for the acquisition of the following facilities to be | 0014| located adjacent to each other in the middle Rio Grande corridor: | 0015| | 0016| (1) twenty-one million dollars ($21,000,000) for a | 0017| correctional facility with four hundred medium-security beds for | 0018| adult male inmates; and | 0019| (2) fifteen million dollars ($15,000,000) for a | 0020| four-hundred-bed adult male in-prison substance abuse treatment | 0021| facility. | 0022| F. Each county or political subdivisions in the county | 0023| in which a correctional facility is to be located pursuant to | 0024| Subsections C and D of this section shall provide land for the | 0025| facility site and arrange for utilities, roads and related | 0001| infrastructure needs to the property line of the facility site in | 0002| the form of in-kind contributions. In addition, the city of Hobbs | 0003| and Lea county shall contribute jointly ten million dollars | 0004| ($10,000,000) in local matching funds for the correctional | 0005| facility project authorized in Lea county pursuant to Subsection D | 0006| of this section. | 0007| G. Any unexpended or unencumbered balance from the | 0008| general fund appropriation in Paragraph (1) of Subsection D of | 0009| this section remaining at the end of fiscal year 1999 shall revert | 0010| to the general fund. | 0011| H. No contract for the acquisition of a facility shall | 0012| be entered into pursuant to Subsections C through E of this | 0013| section unless the secretary of corrections certifies that the | 0014| facility will be built by a primary contractor and subcontractors | 0015| that: | 0016| (1) maintain their primary places of business in | 0017| New Mexico; | 0018| (2) hire laborers for construction of the facility | 0019| as employees, rather than as independent contractors, and who are | 0020| New Mexico residents; | 0021| (3) provide health care benefits, retirement | 0022| benefits and unemployment insurance to their employees working on | 0023| construction of the facility; and | 0024| (4) maintain apprenticeship programs for their | 0025| employees. | 0001| Section 14. REPEAL.-- | 0002| A. Section 7-27-5.22 NMSA 1978 (being Laws 1995, Chapter | 0003| 215, Section 2, as amended) is repealed. | 0004| B. Laws 1995, Chapter 214, Section 2 is repealed. | 0005| Section 15. EFFECTIVE DATE.-- | 0006| A. The effective date of the provisions of Sections 2, 4 | 0007| and 11 of this act is July 1, 1997. | 0008| B. The effective date of the provisions of Section 3 of | 0009| this act is August 1, 1997. | 0010| Section 16. EMERGENCY.--It is necessary for the public | 0011| peace, health and safety that this act take effect immediately. | 0012|  |