SENATE BILL 347

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Timothy Z. Jennings

AN ACT

RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX CREDIT FOR UNPAID SERVICES OF NOT-FOR-PROFIT CLINICAL LABORATORIES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:

     "[NEW MATERIAL] CREDIT--GROSS RECEIPTS TAX--UNPAID CHARGES FOR SERVICES PROVIDED TO A CLINICAL LABORATORY.--

          A. A clinical laboratory may claim a credit against gross receipts tax due in the following amounts:

                (1) from July 1, 2008 through June 30, 2009, thirty-three percent of the value of unpaid qualified clinical laboratory services;

                (2) from July 1, 2009 through June 30, 2010, sixty-seven percent of the value of unpaid qualified clinical laboratory services; and

                (3) on and after July 1, 2010, one hundred percent of the value of unpaid qualified clinical laboratory services.

          B. As used in this section:

                (1) "clinical laboratory" means a not-for-profit laboratory providing clinical laboratory services that is accredited pursuant to 42 U.S.C. Section 263a but that is not a laboratory in a physician's office or in a hospital defined pursuant to 42 U.S.C. Section 1395x;

                (2) "health care practitioner" means:

                     (a)  a chiropractic physician licensed pursuant to the provisions of the Chiropractic Physician Practice Act;

                     (b)  a dentist or dental hygienist licensed pursuant to the Dental Health Care Act;

                     (c)  a doctor of oriental medicine licensed pursuant to the provisions of the Acupuncture and Oriental Medicine Practice Act;

                     (d)  an optometrist licensed pursuant to the provisions of the Optometry Act;

                     (e)  an osteopathic physician licensed pursuant to the provisions of Chapter 61, Article 10 NMSA 1978 or an osteopathic physician's assistant licensed pursuant to the provisions of the Osteopathic Physicians' Assistants Act;

                     (f)  a physical therapist licensed pursuant to the provisions of the Physical Therapy Act;

                     (g)  a physician or physician assistant licensed pursuant to the provisions of Chapter 61, Article 6 NMSA 1978;

                     (h)  a podiatrist licensed pursuant to the provisions of the Podiatry Act; or

                     (i)  a respiratory care practitioner licensed pursuant to the provisions of the Respiratory Care Act;

                (3) "qualified clinical laboratory services" means laboratory services provided by a clinical laboratory pursuant to an order of a health care practitioner; and

                (4) "value of unpaid qualified clinical laboratory services" means the amount that is charged for qualified clinical laboratory services, not to exceed one hundred thirty percent of the reimbursement rate for services under the medicaid program administered by the human services department, that remains unpaid one year after the date of billing and that the clinical laboratory has reason to believe will not be paid because:

                     (a) at the time the services were provided, the person receiving the services had no health insurance or had health insurance that did not cover the services provided;

                     (b) at the time the services were provided, the person receiving the services was not eligible for medicaid; and

                     (c) the charges are not reimbursable under a program established pursuant to the Indigent Hospital and County Health Care Act."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2008.

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