I don't know if that is the exact same sign, but a very similar one (including the bullet marks) is in New Mexico. I can't remember the city as pretty much the only thing is the prison in it but we passed it going north from Albuqurque to Cortez Colorado.
To me, it looks just like that sign my wife and I saw about 4 years ago, down around Roswell, NM. But my wife says it's the one we saw outside of Barstow, Ca.
I have a vivid memory from when I was a kid in gradeschool -- we were on a road trip and passed a sign like that in Oklahoma. There was a man literally beating his head against the sign. I'll never forget that.