CORRECTION FACILIITY LOSS OF REVENUE

SFC/SB 273
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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, OTERO COUNTY AND
TORRANCE 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 ENTITY
TO USE A MUNICIPAL OR COUNTY CORRECTIONAL FACILITY IF NOT FOR
LAWS 2026, CHAPTER 5; PROVIDING LIMITATIONS; MAKING
APPROPRIATIONS TO THE CHILDREN, YOUTH AND FAMILIES
DEPARTMENT, THE PUBLIC EDUCATION DEPARTMENT, THE DEPARTMENT
OF FINANCE AND ADMINISTRATION, THE AGING AND LONG-TERM
SERVICES DEPARTMENT AND THE DEPARTMENT OF TRANSPORTATION.
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 year 2027 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
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pursuant to and attributable to an agreement that may have
been made with a private entity to use a municipal or county
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-twelfth of the amount appropriated. Any
unexpended balance remaining at the end of each month and at
the end of fiscal year 2027 shall revert to the general fund:
(1) nine hundred thousand dollars ($900,000)
for the town of Estancia to hold the town of Estancia
harmless from the potential loss of municipal local option
gross receipts tax revenue;
(2) six hundred forty-two thousand dollars
($642,000) for Torrance county to hold Torrance county
harmless from the potential loss of county local option gross
receipts tax revenue;
(3) five million nine hundred forty thousand
dollars ($5,940,000) 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;
(4) three hundred seventy-five thousand
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dollars ($375,000) for Cibola county to hold Cibola county
harmless from the estimated potential loss of county local
option gross receipts tax revenue;
(5) one million six hundred thousand dollars
($1,600,000) for Cibola county to transport prisoners from
Cibola county to a public correctional facility outside
Cibola county;
(6) four hundred fifty thousand dollars
($450,000) for Torrance county to transport prisoners from
Torrance county to a public correctional facility outside
Torrance county;
(7) four hundred twenty-five thousand
dollars ($425,000) 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;
(8) seven hundred thousand dollars
($700,000) 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
(9) eight hundred fifty thousand dollars
($850,000) 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. If a municipality's or county's correctional
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facility is or will be used for any purpose for which the
municipality or county may collect revenue that is being held
harmless by the appropriations made pursuant to Subsection A
of this section, the municipality or county shall notify the
local government division of the department of finance and
administration at least ninety days prior to the facility
being used for that purpose. As of the date in which the
facility is used for that purpose, no further disbursements
to the municipality or county shall be made. If the
municipality or county receives a disbursement while the
facility is being used for that purpose 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.
SECTION 2. APPROPRIATIONS.--
A. The following appropriations are made from the
general fund for expenditure in fiscal year 2026. Any
unexpended balance remaining at the end of fiscal year 2026
shall revert to the general fund:
(1) two million seven hundred thousand
dollars ($2,700,000) to the juvenile justice division of the
children, youth and families department to carry out the
duties of that division; and
(2) seven million dollars ($7,000,000) to
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the protective services division of the children, youth and
families department to carry out the duties of that
department.
B. The following appropriations are made from the
general fund for expenditure in fiscal year 2027. Any
unexpended balance remaining at the end of fiscal year 2027
shall revert to the general fund:
(1) eight million dollars ($8,000,000) to
the children, youth and families department to finalize and
implement the department's child welfare information system;
(2) four million dollars ($4,000,000) to the
public education department for school improvement
activities;
(3) two million dollars ($2,000,000) to the
department of finance and administration for payment to the
Pueblo of Zia for past, present and future use by the state
of the Zia symbol;
(4) four million dollars ($4,000,000) to the
aging and long-term services department for the department's
New MexiCare program; and
(5) six million dollars ($6,000,000) to the
department of transportation for the rural air service
enhancement grant program.