Master FIR (1988)

NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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F I S C A L I M P A C T R E P O R T

SPONSOR:	SFL		DATE TYPED:	03/08/01		HB
SHORT TITLE:		Create Experimental Treatment Fund				SB	719/SFLS
					ANALYST:		Wilson

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY01	FY02	FY01	FY02	Recurring or Non-Rec	Fund Affected
$ 500.0				Recurring	General Fund

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY01	FY02	Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
	$ (500.0)		Recurring	General Fund
	$ 500.0		Recurring	New Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 571; SB 240

SOURCES OF INFORMATION

LFC files

SUMMARY

Synopsis of Bill

SB 719/SFLS appropriates $500,000 to the Department of Health to create the Holly Gonzales Experimental Treatment Fund to be used to pay for the costs of federal drug administration approved experimental treatments or procedures for children with catastrophic, debilitating or terminal illnesses.

Significant Issues

Currently most health insurance policies written in New Mexico do not cover experimental treatment of any kind. This bill will enable some children to receive treatments that might save their lives and which their families could not otherwise be able to afford.

$500,000 will not cover the existing needs in New Mexico since experimental treatment is often very expensive.

FISCAL IMPLICATIONS

SB 719/SFLS appropriates $500,000 from the general fund to the Holly Gonzales Experimental Treatment Fund for expenditure in fiscal years 2001 and 2002 for carrying out the purposes of the Fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2002 shall revert to the general fund.

Continuing Appropriations

This bill creates a new fund and provides for continuing appropriations. The LFC objects to including continuing appropriation language in the statutory provisions for newly created funds. Earmarking reduces the ability of the legislature to establish spending priorities.

ADMINISTRATIVE IMPLICATIONS

The Department of Health will have to develop procedures for disbursing these funds.

RELATIONSHIP

Relates to:

SB 571, Coverage for Experimental Drug Treatment

SB 240, Insurance Coverage of Cancer Clinic Trials

DW/sb