SENATE BILL 432
57th legislature - STATE OF NEW MEXICO - first session, 2025
INTRODUCED BY
Steve D. Lanier and Pat Woods
AN ACT
RELATING TO BEHAVIORAL HEALTH; CREATING THE BEHAVIORAL HEALTH GRANT PROGRAM AND THE BEHAVIORAL HEALTH GRANT PROGRAM FUND; MAKING DISTRIBUTIONS TO THE BEHAVIORAL HEALTH GRANT PROGRAM FUND FROM NET RECEIPTS ATTRIBUTABLE TO THE LIQUOR EXCISE TAX AND THE CANNABIS EXCISE TAX; DISTRIBUTING A PORTION OF THE LIQUOR EXCISE TAX TO THE HEALTH CARE AUTHORITY TO INCREASE MEDICAID REIMBURSEMENT FOR COMMUNITY-BASED PROGRAMS AND SERVICES FOR THE PREVENTION, TREATMENT AND SCREENING OF BEHAVIORAL HEALTH ISSUES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] BEHAVIORAL HEALTH GRANT PROGRAM.--
A. The division shall establish a behavioral health grant program to make grants to municipalities and counties for new or existing community-based programs or services for the prevention, treatment and screening of behavioral health issues. Grants shall be awarded by the division pursuant to the advice and recommendation of the behavioral health services division of the health care authority and the interagency behavioral health purchasing collaborative.
B. In awarding grants, the division shall:
(1) give consideration to a broad range of approaches to prevention, treatment and screening of behavioral health issues and prioritize those that are evidence-based or research-based;
(2) make grants only to counties that submit an adopted county behavioral health plan or municipalities that submit an adopted municipal behavioral health plan;
(3) consult with the behavioral health services division of the health care authority to develop and use guidelines to ensure equity when prioritizing and selecting grant recipients that take into consideration geographic allocation, per capita deaths or accidents related to behavioral health issues, needs-based assessments, population and availability of existing programs and services; and
(4) not make grants for programs or services that are inconsistent with the statewide master plan developed by the interagency behavioral health purchasing collaborative pursuant to Section 24A-3-1 NMSA 1978.
C. The division may prioritize innovative or model programs and programs designed to prevent, treat and screen behavioral health issues of children.
D. A municipality or county seeking a grant shall apply to the division on forms and in the manner required by the division.
E. As used in this section:
(1) "division" means the local government division of the department of finance and administration;
(2) "evidence-based" means that a program, service or activity:
(a) incorporates methods demonstrated to be effective for the intended population through scientifically based research, including statistically controlled evaluations or randomized trials;
(b) can be implemented with a set of procedures to allow successful replication in New Mexico; and
(c) when possible, has been determined to be cost beneficial; and
(3) "research-based" means that a program, service or activity has some research demonstrating effectiveness, but does not yet meet the standard of evidence-based.
SECTION 2. [NEW MATERIAL] BEHAVIORAL HEALTH GRANT PROGRAM FUND.--The "behavioral health grant program fund" is created as a nonreverting fund in the state treasury. The fund consists of distributions, appropriations, gifts, grants, donations and income from investment of the fund. The local government division of the department of finance and administration shall administer the fund. Money in the fund is subject to appropriation by the legislature for the purposes of awarding grants pursuant to Section 1 of this 2025 act. Expenditures from the fund shall be by warrant of the secretary of finance and administration pursuant to vouchers signed by the director of the local government division or the director's authorized representative.
SECTION 3. [NEW MATERIAL] ADMINISTRATION OF BEHAVIORAL HEALTH GRANT PROGRAM--RULES.--The local government division of the department of finance and administration shall:
A. administer and evaluate the behavioral health grant program; and
B. promulgate rules necessary for operation of the behavioral health grant program, including:
(1) eligibility requirements;
(2) forms and procedures for the application process;
(3) documentation to be provided by the applicant to ensure compliance with the program requirements;
(4) procedures and guidelines for review, evaluation and approval of grant awards; and
(5) procedures and guidelines for oversight, evaluation and audit of grantees to ensure that grants are being administered in the manner and for the purposes that the grants were awarded, including submission by each grantee of an annual report on the data, outcomes and effectiveness of its programs and services.
SECTION 4. Section 7-1-6.40 NMSA 1978 (being Laws 1997, Chapter 182, Section 1, as amended) is amended to read:
"7-1-6.40. DISTRIBUTION OF LIQUOR EXCISE TAX--LOCAL DWI GRANT FUND--CERTAIN MUNICIPALITIES--DRUG COURT FUND--BEHAVIORAL HEALTH GRANT PROGRAM FUND--HEALTH CARE AUTHORITY.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to forty-five percent of the net receipts attributable to the liquor excise tax shall be made to the local DWI grant fund.
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 of twenty thousand seven hundred fifty dollars ($20,750) monthly from the net receipts attributable to the liquor excise tax shall be made to a municipality that is located in a class A county and that has a population according to the most recent federal decennial census of more than thirty thousand but less than sixty thousand and shall be used by the municipality only for the provision of alcohol treatment and rehabilitation services for street inebriates.
C. [Beginning July 1, 2019] A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to five percent of the net receipts attributable to the liquor excise tax shall be made to the drug court fund.
D. A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to two percent of the net receipts attributable to the liquor excise tax shall be made to the behavioral health grant program fund.
E. A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to two percent of the net receipts attributable to the liquor excise tax shall be made to the health care authority to increase medicaid reimbursement for new or existing programs or services for the prevention, treatment and screening of behavioral health issues."
SECTION 5. Section 7-1-6.68 NMSA 1978 (being Laws 2021 (1st S.S.), Chapter 4, Section 50, as amended) is amended to read:
"7-1-6.68. DISTRIBUTION--CANNABIS EXCISE TAX--MUNICIPALITIES AND COUNTIES--BEHAVIORAL HEALTH GRANT PROGRAM FUND.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each municipality, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, in an amount equal to thirty-three and thirty-three hundredths percent of the net receipts attributable to the cannabis excise tax from business locations within the municipality as reported pursuant to Section 7-42-4 NMSA 1978.
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each county in an amount equal to thirty-three and thirty-three hundredths percent of the net receipts attributable to the cannabis excise tax from business locations within the county area of the county as reported pursuant to Section 7-42-4 NMSA 1978.
C. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the behavioral health grant program fund in an amount equal to five percent of the net receipts attributable to the cannabis excise tax.
[C.] D. The department may deduct an amount not to exceed three percent of the distributions made pursuant to this section for the reasonable costs for administering the distributions.
[D.] E. As used in this section, "county area" means that portion of a county located outside the boundaries of any municipality."
SECTION 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2025.
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