SB0106

SENATE BILL 106

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

Howie C. Morales

AN ACT

RELATING TO STATE GOVERNMENT; CREATING THE EARLY CHILDHOOD SERVICES DEPARTMENT; PROVIDING POWERS AND DUTIES; ASSIGNING LEAD DEPARTMENT STATUS FOR CERTAIN FEDERAL PROGRAMS AND GRANTS; TRANSFERRING PROGRAMS, FUNCTIONS, PERSONNEL, APPROPRIATIONS, MONEY, RECORDS, PROPERTY, CONTRACTUAL OBLIGATIONS AND STATUTORY REFERENCES; REPEALING NONCONFORMING SECTIONS OF LAW; PRESCRIBING PENALTIES.

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

SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 15 of this act may be cited as the "Early Childhood Services Department Act".

SECTION 2. [NEW MATERIAL] FINDINGS AND PURPOSE.--

A. The legislature finds that research shows an intense focus on young children from birth to age five and early childhood learning reaps significant rewards in later student achievement and taxpayer cost, including:

(1) substantial reading and mathematics gains when children enter elementary school, with students performing at or above grade level;

(2) less academic intervention and remediation;

(3) lower truancy rates;

(4) higher graduation rates; and

(5) higher attendance rates at colleges and universities or technical vocational institutes.

B. The purpose of the Early Childhood Services Department Act is to provide the needed intense single-focus on children from birth to age five to ensure that every child in New Mexico is given the best opportunity at the earliest time to succeed in school, career and life. The early childhood services department is responsible for administering all laws and exercising all functions formerly administered by other departments or agencies, including programs and functions of various departments of the executive branch pertaining to early childhood from:

(1) the children, youth and families department's early childhood services division and infant and early childhood mental health services;

(2) the department of health, including:

(a) the family, infant, toddler program;

(b) the interagency coordinating council; and

(3) the public education department, including:

(a) public pre-kindergarten; and

(b) the even start family literacy program.

SECTION 3. [NEW MATERIAL] DEFINITIONS.--As used in the Early Childhood Services Department Act:

A. "child" means a child from birth to age five, except for a child to age eight or thirteen in specific programs;

B. "department" means the early childhood services department; and

C. "secretary" means the secretary of early childhood services.

SECTION 4. [NEW MATERIAL] DEPARTMENT CREATED.--

A. The "early childhood services department" is created as a cabinet department pursuant to the Executive Reorganization Act and consists of the following divisions:

(1) the administrative services division;

(2) the office of the secretary;

(3) the child care licensing and services division;

(4) the early childhood education division; and

(5) the early intervention services division, including the following bureaus:

(a) the early childhood mental health bureau;

(b) the family nutrition bureau;

(d) the family, infant, toddler program.

B. The secretary may reorganize the department, but the secretary shall report the reorganization to the legislature.

C. The governor, by executive order, may transfer any other early childhood services or programs from any other department under the governor's control to the early childhood services department; provided that this power of transfer shall end by January 1, 2019.

SECTION 5. [NEW MATERIAL] SECRETARY OF EARLY CHILDHOOD SERVICES--APPOINTMENT.--

A. The chief executive and administrative officer of the department is the "secretary of early childhood services". The secretary shall be appointed by the governor with the consent of the senate. The secretary shall hold office at the pleasure of the governor and shall serve in the executive cabinet.

B. An appointed secretary shall serve and have all the duties, responsibilities and authority of that office during the period of time prior to final action by the senate confirming or rejecting the secretary's appointment.

SECTION 6. [NEW MATERIAL] SECRETARY--DUTIES AND GENERAL POWERS.--

A. The secretary is responsible to the governor for the operation of the department. It is the secretary's duty to manage all operations of the department and to administer and enforce the laws with which the secretary or the department is charged.

B. To perform the secretary's duties, the secretary has every power expressly enumerated in the law, whether granted to the secretary, the department or any division of the department, except when any division is explicitly exempted from the secretary's power by statute. In accordance with these provisions, the secretary shall:

(1) except as otherwise provided in the Early Childhood Services Department Act, exercise general supervisory and appointing power over all department employees, subject to applicable personnel laws and rules;

(2) delegate power to subordinates as the secretary deems necessary and appropriate, clearly delineating such delegated power and the limitations to that power;

(3) organize the department into organizational units as necessary to enable it to function most efficiently, subject to any provisions of law requiring or establishing specific organizational units;

(4) within the limitations of available appropriations and applicable laws, employ and fix the compensation of those persons necessary to discharge the secretary's duties;

(5) take administrative action by issuing orders and instructions, not inconsistent with law, to assure implementation of and compliance with the provisions of law for which administration or execution the secretary is responsible and to enforce those orders and instructions by appropriate administrative action in the courts;

(6) conduct research and studies that will improve the operation of the department and the provision of services to the residents of the state;

(7) provide courses of instruction and practical training for employees of the department and other persons involved in the administration of programs with the objectives of improving the operations and efficiency of administration and of promoting comprehensive, coordinated, culturally sensitive services that address the whole child and early learning;

(8) prepare an annual budget for the department; and

(9) provide cooperation, at the request of administratively attached agencies and adjunct agencies, in order to:

(a) minimize or eliminate duplication of services and jurisdictional conflicts;

(b) coordinate activities and resolve problems of mutual concern; and

(c) resolve by agreement the manner and extent to which the department shall provide budgeting, record keeping and related clerical assistance to administratively attached agencies.

C. The secretary may apply for and receive, with the governor's approval, in the name of the department, any public or private funds, including United States government funds, available to the department to carry out its programs, duties or services.

D. The secretary may make and adopt such reasonable and procedural rules as may be necessary to carry out the duties of the department and its divisions. No rule promulgated by the director of any division in carrying out the functions and duties of the division shall be effective until approved by the secretary. Unless otherwise provided by statute, no rule affecting any person or agency outside the department shall be adopted, amended or repealed without a public hearing on the proposed action before the secretary or a hearing officer designated by the secretary. The public hearing shall be held in Santa Fe unless otherwise permitted by statute. Notice of the subject matter of the rule, the action proposed to be taken, the time and place of the hearing, the manner in which interested persons may present their views and the method by which copies of the proposed rule or proposed amendment or repeal of an existing rule may be obtained shall be published once at least thirty days prior to the hearing date in a newspaper of general circulation and mailed at least thirty days prior to the hearing date to all persons who have made a written request for advance notice of hearing. All rules shall be filed in accordance with the State Rules Act.

E. If the secretary certifies to the secretary of finance and administration and gives contemporaneous notice of such certification through the human services register that the department has insufficient state funds to operate any of the programs it administers and that reductions in services or benefit levels are necessary, the secretary may engage in interim rulemaking. Notwithstanding any provision to the contrary in the State Rules Act, interim rulemaking shall be conducted pursuant to Subsection D of this section, except:

(1) the period of notice of public hearing shall be fifteen days;

(2) the department shall send individual notices of the interim rulemaking and of the public hearing to affected providers and beneficiaries;

(3) rules promulgated under this subsection shall be in effect not less than five days after the public hearing;

(4) rules promulgated under this subsection shall not be in effect for more than ninety days; and

(5) if final rules are necessary to replace the interim rules, the department shall give notice of intent to promulgate final rules at the time of notice as provided in Subsection D of this section. The final rules shall be promulgated not more than forty-five days after the public hearing filed in accordance with the State Rules Act.

SECTION 7. [NEW MATERIAL] DEPARTMENT--ADDITIONAL DUTIES.--In addition to other duties provided by law or assigned to the department by the governor, the department shall:

A. develop priorities for department services and resources based on state policy, national best-practice standards, evidence-based interventions and practices and local considerations and priorities;

B. strengthen collaboration and coordination in state and local services for early childhood programs by integrating critical functions as appropriate, including service delivery, and contracting for services across divisions and related agencies;

C. coordinate implementation of state, federal and private early childhood programs and services to avoid duplication of effort and maximize available resources;

D. develop and maintain a statewide database, including client tracking of services for children;

E. develop standards of service within the department that focus on prevention, monitoring and outcomes;

F. analyze policies of other departments that affect children to encourage common contracting procedures, common service definitions and a uniform system of access;

G. develop reimbursement criteria for child care centers and home providers licensed by the department;

H. conduct biennial assessments of child care or early learning service gaps and needs and establish outcome measurements to address those service gaps and needs; and

I. fingerprint and conduct national criminal background checks on all department employees and on staff members and volunteers of early childhood service providers whose jobs involve direct contact with department clients, including prospective employees and employees who are promoted, transferred or hired into new positions, the superiors of all department employees and all staff members and volunteers of early childhood service providers who have direct unsupervised contact with department clients.

SECTION 8. [NEW MATERIAL] DIVISION DIRECTORS.--The secretary may appoint, with the approval of the governor, "directors" of such divisions as are established within the department. Directors are exempt from the Personnel Act.

SECTION 9. [NEW MATERIAL] BUREAUS--CHIEFS.--The secretary may establish within each division such "bureaus" as the secretary deems necessary to carry out the provisions of the Early Childhood Services Department Act. The secretary shall appoint a "chief" to be the administrative head of any such bureau. The chief and all subsidiary employees of the department shall be covered by the provisions of the Personnel Act.

SECTION 10. [NEW MATERIAL] ORGANIZATIONAL UNITS OF THE DEPARTMENT--POWERS AND DUTIES SPECIFIED BY LAW--ACCESS TO INFORMATION.--

A. Unless expressly exempted from the powers of the secretary by law, those organizational units of the department and the officers of those units specified by law shall have all of the powers and duties enumerated in the specific laws involved. However, the carrying out of those powers and duties shall be subject to the direction and supervision of the secretary, who shall retain the final decision-making authority and responsibility for the administration of any such laws as provided in Subsection B of Section 6 of the Early Childhood Services Department Act.

B. The department shall have access to all records, data and information of other state departments that are not specifically held confidential by law. The department shall enter into agreements with the children, youth and families department and the public education department to share confidential information without violating federal or state confidentiality laws.

SECTION 11. [NEW MATERIAL] DEPARTMENT DESIGNATION--FAMILY, INFANT, TODDLER PROGRAM--AUTHORIZATION--PAYMENT SYSTEM.--

A. The department is designated as the lead state agency for the development and administration of a statewide system of comprehensive, coordinated, multidisciplinary, interagency early intervention services for eligible children with or at risk of developmental delay and their families, known as the "family, infant, toddler program".

B. The parent may choose whether the parent's eligible child shall participate in the family, infant, toddler program.

C. The public education department, the human services department, the children, youth and families department, the department of health and other publicly funded services shall collaborate with the early childhood services department and continue to provide all services within their respective statutory responsibilities to eligible children. State and local interagency agreements shall delineate responsibility for provisions of the family, infant, toddler program.

D. The department shall establish a payment system that shall maximize funds from appropriate federal, state, local and private sources to support the family, infant, toddler program.

E. The secretary shall meet the requirements of the federal Individuals with Disabilities Education Act, Part C contingent on voluntary participation by the state, including:

(1) establishing policies and promulgating rules necessary to comply with that act;

(2) implementing procedures to ensure that services are provided to eligible children in a timely manner;

(3) making arrangements for the provisions of the family, infant, toddler program;

(4) carrying out the general administration, supervision and monitoring of the family, infant, toddler program;

(5) resolving complaints concerning the family, infant, toddler program;

(6) maintaining and expanding state and local coordination and interagency agreements pertaining to the family, infant, toddler program;

(7) identifying and coordinating all available resources for early intervention services for the family, infant, toddler program; and

(8) establishing requirements for qualified personnel involved in the family, infant, toddler program.

F. As used in this section:

(1) "early intervention services" means services that are designed to meet the developmental needs of eligible children, including physical development, communications development, adaptive development, social and emotional development or sensory development; and

(2) "eligible child" means an infant or toddler between the ages of birth and thirty-six months with developmental delay or who is at risk of delay according to

specific criteria established by the department of health.

SECTION 12. [NEW MATERIAL] CUSTODIAN OF FUNDS.--The department is designated as the custodian of all money that may be received by the state from any appropriation made by the congress of the United States for the purpose of implementing the federal Individuals with Disabilities Education Act, Part C.

SECTION 13. [NEW MATERIAL] CRIMINAL HISTORY RECORD INVESTIGATIONS--PROCEDURE--CONFIDENTIALITY--VIOLATION--PENALTY.--

A. The department shall submit fingerprints for each department employee required to be fingerprinted pursuant to Subsection I of Section 7 of the Early Childhood Services Department Act to the department of public safety and the federal bureau of investigation. Child care facilities, pre-kindergarten programs and other early childhood providers are responsible for the cost of obtaining criminal histories on their employees and volunteers; provided that the facilities, programs or other providers may require the employees or volunteers to pay the costs.

B. Criminal histories obtained are confidential and shall be used only for the purpose of determining the suitability of an employee or volunteer or prospective employee or volunteer for employment with or provision of services to the department, a child care facility, pre-kindergarten program or other early childhood providers or a contractor or an employee of a contractor or prospective contractor; except that criminal histories may be released or disclosed to another agency or person only upon court order or with the written consent of the person who is the subject of the criminal history record.

C. A person who releases or discloses criminal history records or information contained in those records in violation of the provisions of this section is guilty of a misdemeanor and if convicted shall be sentenced pursuant to the provisions of Section 31-19-1 NMSA 1978.

SECTION 14. [NEW MATERIAL] PROHIBITION ON EMPLOYMENT FOR PERSONS WITH SUBSTANTIATED ALLEGATIONS OF CHILD ABUSE OR NEGLECT--PROHIBITION ON CONVICTED FELONS--DISCIPLINARY ACTION--CONFIDENTIALITY OF ABUSE AND NEGLECT RECORDS.--

A. No employee, staff member or volunteer at the department or at a child care facility, a pre-kindergarten program or other early childhood provider, including prospective employees and volunteers, having direct unsupervised contact with department clients, nor the superiors of any such employee, staff member or volunteer, shall have been the subject of a substantiated allegation of child abuse or neglect.

B. No employee, staff member or volunteer at the department who has direct unsupervised contact with department clients, or the superiors of an employee, staff member or volunteer at the department who has direct unsupervised contact with department clients shall have been convicted of a felony offense that is directly related to the job duties of the employee by a court of this state, any other state or the United States.

C. An employee or staff member subject to the Personnel Act who has been the subject of a substantiated allegation of abuse or neglect as investigated and determined by the department may be subject to increased supervision or disciplinary action pursuant to the Personnel Act. Upon appeal of a disciplinary action to the personnel board pursuant to this section, the personnel board shall defer to the record of the administrative hearing affirming a substantiated allegation of abuse or neglect, if one exists, in determining whether the action taken by the agency was with just cause.

D. An employee or a staff member of the department subject to dismissal under this section shall have no right to progressive discipline as a condition precedent to discipline under this section.

E. In any appeal of an employee or staff member to the personnel board as provided by the Personnel Act, records that are otherwise confidential pursuant to the Abuse and Neglect Act shall be discoverable by the parties and admissible as to any relevant fact; provided that any identifying information related to the reporting party, any other party providing information and information the department finds would be likely to endanger the life or safety of any person providing information to the department may be redacted.

F. The children, youth and families department, the department of health and the public education department shall assist the early childhood services department in ensuring that the early childhood services department, a child care facility, a pre-kindergarten program or other early childhood provider shall not employ or have as a volunteer any person who has been the subject of a substantiated allegation of child abuse or neglect if that employee or volunteer will have direct unsupervised contact with a child.

SECTION 15. [NEW MATERIAL] CHILD CARE ASSISTANCE PROGRAM--REPORTING.--

A. The department shall convene a group consisting of representatives of the legislative finance committee and the department of finance and administration and child care

providers representing various geographical regions of the state, who shall be a majority of the group, to meet and, in accordance with the provisions of the Accountability in

Government Act, to:

(1) develop an outcomes measurement plan to monitor outcomes for children and families receiving services through child care assistance programs, taking into

consideration child care categories;

(2) develop goals and objectives with corresponding indicators that measure each objective established in the outcomes measurement plan; and

(3) complete and submit the outcomes measurement plan by December 31, 2017 to the legislature, the governor and the state early learning advisory council.

B. Beginning December 31, 2017 and annually thereafter, the department shall produce an annual outcomes report for the legislature, the governor and the state early learning advisory council that includes:

(1) the goals and achieved outcomes of the child care assistance program implemented pursuant to the Child Care Assistance Accountability Act; and

(2) the following data:

(a) the number and type of child care assistance programs that the department has funded;

(b) the income levels of families served;

(d) the number of children served, including the monthly average and the total served by county;

(e) the number and percentage of children receiving child care assistance by quality level and provider type;

(f) the average monthly participation by children in the child care assistance program;

(g) any evidence of an increase in school readiness, child development and literacy;

(h) the number and percentage of children who enter kindergarten ready to learn, as measured by a kindergarten entry assessment;

(i) the number and percentage of children receiving regular immunizations;

(j) evidence that children receive regular meals;

(k) staff retention rates;

(l) staff wages;

(m) staff certification and education levels; and

(n) evidence that families are engaged.

SECTION 16. Section 9-7-6.4 NMSA 1978 (being Laws 2004, Chapter 46, Section 8, as amended) is amended to read:

"9-7-6.4. INTERAGENCY BEHAVIORAL HEALTH PURCHASING COLLABORATIVE.--

A. [There is created] The "interagency behavioral health purchasing collaborative" is created, consisting of:

(1) the secretaries of:

(a) aging and long-term services;

(b) Indian affairs;

(d) health;

(e) corrections;

(f) children, youth and families;

(g) early childhood services;

(h) finance and administration;

(i) workforce solutions;

(j) public education; and

(k) transportation;

(2) the directors of:

(a) the administrative office of the courts;

(b) the New Mexico mortgage finance authority;

(d) the developmental disabilities planning council;

(e) the [instructional support and] vocational rehabilitation division of the public education department; and

(f) the New Mexico health policy commission; and

(3) the governor's health policy coordinator [or their designees].

B. The members may appoint designees. The collaborative shall be chaired by the secretary of human services with the respective secretaries of health and, children, youth and families alternating annually as co-chairs. If the secretaries appoint designees, those designees shall serve as co-chairs.

[B.] C. The collaborative shall meet regularly and at the call of either co-chair and shall:

(1) identify behavioral health needs statewide, with an emphasis on that hiatus between needs and services set forth in the department of health's gap analysis and in ongoing needs assessments, and develop a master plan for statewide delivery of services;

(2) give special attention to regional differences, including cultural, rural, frontier, urban and border issues;

(3) inventory all expenditures for behavioral health, including mental health and substance abuse;

(4) plan, design and direct a statewide behavioral health system, ensuring both availability of services and efficient use of all behavioral health funding, taking into consideration funding appropriated to specific affected departments; and

(5) contract for operation of one or more behavioral health entities to ensure availability of services throughout the state.

[C.] D. The plan for delivery of behavioral health services shall include specific service plans to address the needs of infants, children, adolescents, adults and seniors, as well as to address workforce development and retention and quality improvement issues. The plan shall be revised every two years and shall be adopted by the department of health as part of the statewide health plan.

[D.] E. The plan shall take the following principles into consideration, to the extent practicable and within available resources:

(1) services should be individually centered and family-focused based on principles of individual capacity for recovery and resiliency;

(2) services should be delivered in a culturally responsive manner in a home- or community-based setting, where possible;

(3) services should be delivered in the least restrictive and most appropriate manner;

(4) individualized service planning and case management should take into consideration individual and family circumstances, abilities and strengths and be accomplished in consultation with appropriate family members, caregivers and other persons critical to the individual's life and well-being;

(5) services should be coordinated, accessible, accountable and of high quality;

(6) services should be directed by the individual or family served to the extent possible;

(7) services may be consumer- or family- provided, as defined by the collaborative;

(8) services should include behavioral health promotion, prevention, early intervention, treatment and community support; and

(9) services should consider regional differences, including cultural, rural, frontier, urban and border issues.

[E.] F. The collaborative shall seek and consider suggestions of Native American representatives from Indian nations, tribes and pueblos and the urban Indian population, located wholly or partially within New Mexico, in the development of the plan for delivery of behavioral health services.

[F.] G. Pursuant to the State Rules Act, the collaborative shall adopt rules through the human services department for:

(1) standards of delivery for behavioral health services provided through contracted behavioral health entities, including:

(a) quality management and improvement;

(b) performance measures;

(d) utilization management;

(e) credentialing of providers;

(f) rights and responsibilities of consumers and providers;

(g) clinical evaluation and treatment and supporting documentation; and

(h) confidentiality of consumer records; and

(2) approval of contracts and contract amendments by the collaborative, including public notice of the proposed final contract.

[G.] H. The collaborative shall, through the human services department, submit a separately identifiable consolidated behavioral health budget request. The consolidated behavioral health budget request shall account for requested funding for the behavioral health services program at the human services department and any other requested funding for behavioral health services from agencies identified in Subsection A of this section that will be used pursuant to Paragraph (5) of Subsection [B] C of this section. Any contract proposed, negotiated or entered into by the collaborative is subject to the provisions of the Procurement Code.

[H.] I. The collaborative shall, with the consent of the governor, appoint a "director of the collaborative". The director is responsible for the coordination of day-to-day activities of the collaborative, including the coordination of staff from the collaborative member agencies.

[I.] J. The collaborative shall provide a quarterly report to the legislative finance committee on performance outcome measures. The collaborative shall submit an annual report to the legislative finance committee and the interim legislative health and human services committee that provides information on:

(1) the collaborative's progress toward achieving its strategic plans and goals;

(2) the collaborative's performance information, including contractors and providers; and

(3) the number of people receiving services, the most frequently treated diagnoses, expenditures by type of service and other aggregate claims data relating to services rendered and program operations."

SECTION 17. Section 13-7-7 NMSA 1978 (being Laws 2001, Chapter 351, Section 3, as amended) is amended to read:

"13-7-7. CONSOLIDATED ADMINISTRATIVE FUNCTIONS--BENEFIT.--

A. By December 1, 2001, the publicly funded health care agencies, political subdivisions and other persons participating in the consolidated purchasing single process pursuant to the Health Care Purchasing Act shall cooperatively study and provide a status report on the consolidation of administrative functions to the legislative health and human services committee and the governor.

B. By December 31, 2003, the publicly funded health care agencies, political subdivisions and other persons participating in the consolidated purchasing single process pursuant to the Health Care Purchasing Act shall consolidate, standardize and administer the administrative functions that those entities can effectively and efficiently administer as reflected in the study.

C. The publicly funded health care agencies, political subdivisions and other persons participating in the consolidated purchasing single process pursuant to the Health Care Purchasing Act may enter into a joint powers agreement pursuant to the Joint Powers Agreements Act with the publicly funded health care agencies and political subdivisions to determine assessments or provisions of resources to consolidate, standardize and administer the consolidated purchasing single process and subsequent activities pursuant to the Health Care Purchasing Act. The publicly funded health care agencies, political subdivisions and other persons participating in the consolidated purchasing single process pursuant to the Health Care Purchasing Act may enter into contracts with nonpublic persons to provide the service of determining assessments or provision of resources for consolidation, standardization and administrative activities.

D. Each agency will retain its responsibility to determine policy direction of the benefit plans, plan development, training and coordination with respect to participants and its benefits staff, as well as to respond to benefits eligibility inquiries and establish and enforce eligibility rules.

E. Notwithstanding Subsection D of this section, publicly funded health care agencies, political subdivisions and other persons participating in the consolidated purchasing single process pursuant to the Health Care Purchasing Act shall provide coverage for children, from birth through three years of age, for or under the family, infant, toddler program administered by the early childhood services department [of health], provided eligibility criteria are met, for a maximum benefit of three thousand five hundred dollars ($3,500) annually for medically necessary early intervention services provided as part of an individualized family service plan and delivered by certified and licensed personnel [as defined in 7.30.8 NMAC] who are working in early intervention programs approved by the early childhood department [of health]. No payment under this subsection shall be applied against any maximum lifetime or annual limits specified in the policy, health benefits plan or contract."

SECTION 18. Section 32A-22-1 NMSA 1978 (being Laws 2005, Chapter 64, Section 1) is amended to read:

"32A-22-1. SHORT TITLE.--[This act] Chapter 32A, Article 22 NMSA 1978 may be cited as the "Children's Cabinet Act"."

SECTION 19. Section 32A-22-2 NMSA 1978 (being Laws 2005, Chapter 64, Section 2) is amended to read:

"32A-22-2. CHILDREN'S CABINET CREATED.--

A. The "children's cabinet" is created and is administratively attached to the office of the governor. The children's cabinet shall meet at least six times each year.

B. The children's cabinet shall consist of the following members:

(1) the governor;

(2) the lieutenant governor;

(3) the secretary of children, youth and families;

(4) the secretary of corrections;

(5) the secretary of human services;

(6) the secretary of [labor] workforce solutions;

(7) the secretary of health;

(8) the secretary of finance and administration;

(9) the secretary of economic development;

(10) the secretary of public safety;

(11) the secretary of aging and long-term services;

(12) the secretary of Indian affairs; [and]

(13) the secretary of public education; and

(14) the secretary of early childhood services.

C. Each year the children's cabinet shall select the governor or lieutenant governor to be the chairperson."

SECTION 20. Section 32A-23-1 NMSA 1978 (being Laws 2005, Chapter 170, Section 1) is amended to read:

"32A-23-1. SHORT TITLE.--[This act] Chapter 32A, Article 23 NMSA 1978 may be cited as the "Pre-Kindergarten Act"."

SECTION 21. Section 32A-23-2 NMSA 1978 (being Laws 2005, Chapter 170, Section 2) is amended to read:

"32A-23-2. FINDINGS AND PURPOSE.--The legislature finds that:

A. special needs are present among the state's population of three- and four-year-old children and those needs warrant the provision of pre-kindergarten programs;

B. participation in quality pre-kindergarten has a positive effect on children's intellectual, emotional, social and physical development; and

C. pre-kindergarten will advance governmental interests and childhood development and readiness."

SECTION 22. Section 32A-23-3 NMSA 1978 (being Laws 2005, Chapter 170, Section 3) is amended to read:

"32A-23-3. DEFINITIONS.--As used in the Pre-Kindergarten Act:

A. "community" means an area defined by school district boundaries, tribal boundaries or joint boundaries of a school district and tribe or any combination of school districts and tribes;

B. ["departments"] "department" means the [children, youth and families] early childhood services department [and the public education department acting jointly];

C. "early childhood development specialist" means the adult responsible for working directly with three- and four-year-old children in implementing pre-kindergarten services;

D. "eligible provider" means a person licensed by the [children, youth and families] department that provides early childhood developmental readiness services or preschool special education, or is a public school, tribal program or head start program;

E. "pre-kindergarten" means a voluntary developmental readiness program for children who have attained their [fourth] third birthday prior to September 1; and

F. "tribe" means an Indian nation, tribe or pueblo located in New Mexico."

SECTION 23. Section 32A-23-4 NMSA 1978 (being Laws 2005, Chapter 170, Section 4) is amended to read:

"32A-23-4. VOLUNTARY PRE-KINDERGARTEN--INTERAGENCY COOPERATION--CONTRACTS--CONTRACT MONITORING--RESEARCH.--

A. The [children, youth and families department and the public education department shall cooperate in the development and implementation of] department shall develop and implement a voluntary program for the provision of pre-kindergarten services throughout the state. The pre-kindergarten program shall address the total developmental needs of [preschool] three- and four-year-old children, including physical, cognitive, social and emotional needs, and shall include health care, nutrition, safety and multicultural sensitivity.

B. To address the total development of three- and four-year-old children participating in the pre-kindergarten program, the department shall implement program standards and performance measures to ensure the provision of high-quality and effective services so that children enter kindergarten prepared. The department and the public education department shall coordinate efforts to ensure alignment of program standards for pre-kindergarten and kindergarten, and each department shall certify the pre-kindergarten program and standards prior to implementation. The department and the public education department shall enter into an agreement to share data necessary to report on the performance of the program, including the percentage of pre-kindergarten participants entering kindergarten that meet total child development expectations, need special services, are proficient in reading and math and are retained in any grade through the third grade.

C. The department shall coordinate the pre-kindergarten program with federal head start agencies to avoid duplication of effort and to maximize the use of all available resources.

[B.] D. The [departments shall collaborate on promulgating] department shall promulgate rules on pre-kindergarten services, including state policies and standards, and shall review the process for contract awards and for the expenditure and use of contract funds.

[C.] E. The [departments] department shall monitor pre-kindergarten contracts to ensure the effectiveness of child-centered, developmentally appropriate practices and outcomes. The [departments] department shall assign staff to work on the development and implementation of the program and on the monitoring of contract awards. The early childhood training and technical assistance programs of the [children, youth and families] department [and assigned staff from the public education department staff] shall provide technical assistance to eligible providers.

[D.] F. The [departments] department shall provide an annual report to the governor and the legislature on the progress of the state's voluntary pre-kindergarten program."

SECTION 24. Section 32A-23-5 NMSA 1978 (being Laws 2005, Chapter 170, Section 5, as amended) is amended to read:

"32A-23-5. PRE-KINDERGARTEN--ELIGIBILITY.--Pre-kindergarten services may be provided by public schools or other eligible providers on a per-child reimbursement rate in communities with public elementary schools that are designated as Title 1 schools."

SECTION 25. Section 32A-23-6 NMSA 1978 (being Laws 2005, Chapter 170, Section 6, as amended) is amended to read:

"32A-23-6. REQUESTS FOR PROPOSALS--CONTRACTS FOR SERVICES.--

A. [Each] The department shall publish a request for proposals [or a request for applications] that contains [the same] requested information for pre-kindergarten services, including for half-day and full-day programs.

B. Eligible providers shall submit proposals [or applications] for pre-kindergarten services to the [appropriate] department. An eligible provider's proposal [or application] shall include a description of the services that will be provided, including:

(1) how those services meet [children, youth and families department or public education] department standards;

(2) the number of three- and four-year-old children the eligible provider can serve in either half-day or full-day programs;

(3) site and floor plans and a description of the facilities;

(4) revenue sources and amounts other than state funding available for the pre-kindergarten program;

(5) a description of the qualifications and experience of the early childhood development staff for each site;

(6) the plan for communicating with and involving parents in the pre-kindergarten program;

(7) how those services meet the continuum of services to children; and

(8) other relevant information requested by the [departments] department.

C. [Each] The department shall accept and evaluate proposals [or applications] for funding for pre-kindergarten.

D. For funding purposes, [applications and] proposals shall be evaluated and priority given to programs in communities with public elementary schools that are designated as Title 1 schools and that have at least sixty-six percent of the children served living within the attendance zone of a Title 1 elementary school. Additional funding criteria include:

(1) the number of three- and four-year-olds residing in the community and the number of three- and four-year-olds proposed to be served;

(2) the adequacy and capacity of pre-kindergarten facilities in the community;

(3) language and literacy services in the community;

(4) the cultural, historic and linguistic responsiveness to the community;

(5) parent education services available for parents of three- and four-year-olds in the community;

(6) the qualifications of eligible providers in the community;

(7) staff professional development plans;

(8) the capacity of local organizations and persons interested in and involved in programs and services for three- and four-year-olds and their commitment to work together;

(9) the extent of local support for pre-kindergarten services in the community; and

(10) other relevant criteria specified by [joint] rule of the [departments] department.

E. A contract [or agreement] with an eligible provider shall specify and ensure that funds shall not be used for any religious, sectarian or denominational purposes, instruction or material."

SECTION 26. Section 32A-23-8 NMSA 1978 (being Laws 2005, Chapter 170, Section 8) is amended to read:

"32A-23-8. [FUNDS] FUND CREATED--ADMINISTRATION.--

A. The "[public] pre-kindergarten fund" is created as a nonreverting fund in the state treasury. The fund shall consist of appropriations, income from investment of the fund, gifts, grants and donations. The fund shall be administered by the [public education] department, and money in the fund is [appropriated] subject to appropriation to the department to carry out the provisions of the Pre-Kindergarten Act. Disbursements from the fund shall be by warrant of the secretary of finance and administration upon vouchers signed by the secretary of [public education] early childhood services or the secretary's authorized representative. The department may use up to ten percent of the money in the fund each year for administrative program support expenses. The remaining minimum ninety percent shall be distributed to eligible service providers.

[B. The "children, youth and families pre-kindergarten fund" is created as a nonreverting fund in the state treasury. The fund shall consist of appropriations, income from investment of the fund, gifts, grants and donations. The fund shall be administered by the children, youth and families department, and money in the fund is appropriated to the department to carry out the provisions of the Pre-Kindergarten Act. Disbursements from the fund shall be by warrant of the secretary of finance and administration upon vouchers signed by the secretary of children, youth and families or the secretary's authorized representative. The department may use up to ten percent of the money in the fund each year for administrative expenses.]

B. On July 1, 2017, money in the children, youth and families pre-kindergarten fund shall be transferred to the pre-kindergarten fund."

SECTION 27. Section 32A-23-9 NMSA 1978 (being Laws 2011, Chapter 126, Section 1) is amended to read:

"32A-23-9. EQUAL DIVISION OF APPROPRIATIONS.--Any money appropriated for pre-kindergarten programs shall be divided equally between [the public education department and the children, youth and families department] public school programs and private programs to the extent practicable."

SECTION 28. Section 32A-23A-1 NMSA 1978 (being Laws 2011, Chapter 123, Section 1) is amended to read:

"32A-23A-1. SHORT TITLE.--[This act] Chapter 32A, Article 23A NMSA 1978 may be cited as the "Early Childhood Care and Education Act"."

SECTION 29. Section 32A-23A-2 NMSA 1978 (being Laws 2011, Chapter 123, Section 2) is amended to read:

"32A-23A-2. DEFINITIONS.--As used in the Early Childhood Care and Education Act:

A. "council" means the state early learning advisory council;

B. "department" means the [children, youth and families] early childhood services department;

C. "early childhood" means from [prenatal] birth to the age of five years;

D. "fund" means the early childhood care and education fund;

E. "pre-kindergarten" means a voluntary developmental readiness program for children who have attained their fourth birthday prior to September 1; and

F. "secretary" means the secretary of [children, youth and families] early childhood services."

SECTION 30. Section 32A-23A-3 NMSA 1978 (being Laws 2011, Chapter 123, Section 3) is amended to read:

"32A-23A-3. FINDINGS AND PURPOSE.--

A. The legislature finds that an early childhood care and education system is vital [in] to ensuring that every New Mexico child is eager to learn and ready to succeed by the time that child enters kindergarten, that high-quality early learning experiences have been proven to prepare children for success in school and later in life and that cost-benefit research demonstrates a high return on investment for money spent on early childhood care and education for at-risk children.

B. The legislature further finds that, to be successful, an early childhood care and education system should be:

(1) developmentally, culturally and linguistically appropriate and should include the implementation of program models, standards and curriculum based on research and best practices;

(2) data-driven, including the identification and prioritization of communities most at risk, while striving to make the system universally available to all those who wish to participate;

(3) accountable through developmentally appropriate methods of measuring, reporting and tracking a child's growth and development and the improvement of the system's programs;

(4) accessible, especially to those children most at risk for school failure;

(5) of the highest possible quality through the [utilization] use of qualified practitioners who have completed specialized training in early childhood growth, development and learning that is specific to the practitioner's role in the system and the maintenance of quality rating methods for the programs in the system;

(6) fully aligned within each community to ensure the most efficient and effective use of resources by combining funding sources and supporting seamless transitions for children within the system and for children transitioning into kindergarten;

(7) family-centered by recognizing that parents are the first and most important teachers of their children and by providing the support and referrals necessary for parents to assume this critical role in their child's development; and

(8) a partnership between the state and private individuals or institutions with an interest or expertise in early childhood care and education.

C. The purpose of the Early Childhood Care and Education Act is to establish a comprehensive early childhood care and education system through an aligned continuum of state and private programs, including home visitation, early intervention, child care, early head start, head start, early childhood special education, family support and pre-kindergarten, and to maintain or establish the infrastructure necessary to support quality in the system's programs."

SECTION 31. Section 32A-23A-4 NMSA 1978 (being Laws 2011, Chapter 123, Section 4) is amended to read:

"32A-23A-4. STATE EARLY LEARNING ADVISORY COUNCIL CREATED--MEMBERSHIP.--

A. The "state early learning advisory council" is created. The council is attached to the department.

B. The council consists of [fifteen] seventeen members. The secretary of public education or the secretary's designee, the secretary of [children, youth and families] early childhood services or the secretary's designee, [and] the director of the head start state collaboration office of the department and the directors of the legislative education study committee and the legislative finance committee shall serve ex officio. The remaining members shall be qualified electors and, if appointment is not otherwise provided for in this subsection, shall be appointed by the governor [for four-year terms expiring on January 1 of the appropriate year]. Except as otherwise provided in Section 40 of this 2017 act, terms of council members appointed by the governor before January 1, 2018 shall be for four years and terms of council members appointed by the governor on or after January 1, 2018 shall be for two years. Terms shall expire on December 31 of the appropriate year. Council members appointed by the governor shall serve staggered terms as determined by the governor at the time of their initial appointment, and no more than five of the governor's appointees shall be from the same political party. Council members shall not be appointed to serve for more than three terms. Along with the ex-officio members, the council shall consist of the following members:

(1) one representative of an institution of higher education;

(2) one representative of a local educational agency;

(3) one representative from a head start or early head start organization;

(4) [two providers] one provider of early care and education services [at least one of whom shall represent a privately owned provider];

(5) one representative of a state agency responsible for programs under Section 619 or Part C of the federal Individuals with Disabilities Education Act;

(6) one representative of the state agency responsible for children's health or mental health care issues;

(7) [three] two members of the New Mexico business roundtable for educational excellence, appointed by and whose terms shall be set by the roundtable's board of directors; and

(8) [two] four public members, including two public members with knowledge and experience in early childhood care and education.

C. Annually, the members shall designate a chair and vice chair from the members of the council.

D. A majority of the members constitutes a quorum for the conduct of business. The council shall meet at the call of the chair, and the chair shall coordinate the activities of the council.

E. The council may form subcommittees or task forces needed to make recommendations to the council. Task force members may include [individuals] persons who are not members of the council but have an interest or expertise in early childhood education, health care or related matters.

F. Members of the council shall not be removed except for incompetence, neglect of duty or malfeasance in office. A vacancy in the membership of the council occurring other than by expiration of term shall be filled in the same manner as the original appointment, but for the unexpired term only.

G. Council members shall not be paid nor shall they receive per diem and mileage as provided in the Per Diem and Mileage Act."

SECTION 32. Section 32A-23A-5 NMSA 1978 (being Laws 2011, Chapter 123, Section 5) is amended to read:

"32A-23A-5. COUNCIL AND DEPARTMENT DUTIES.--

A. The council is designated as the council required pursuant to the federal Improving Head Start for School Readiness Act of 2007. The council shall fulfill all of the duties required under the federal act for early childhood care and education. The council shall also lead the development or enhancement of a high-quality, comprehensive system of early childhood development and care that ensures statewide coordination and collaboration among the wide range of early childhood programs and services within the state, including child care, early head start, head start, federal Individuals with Disabilities Education Act programs for preschool, infants and families and pre-kindergarten programs and services.

B. The council and department may apply for and accept gifts, grants, donations or bequests for the fund from any source, public or private, and enter into contracts or other transactions with any federal or state agency, any private organization or any other source in furtherance of the purpose of the Early Childhood Care and Education Act.

C. In addition to the duties assigned to the council under federal law, the council shall:

(1) make recommendations to the department and the legislature on the most efficient and effective way to leverage state and federal funding for early childhood care and education, including on grant applications made by the department to benefit the fund; [and]

(2) make recommendations to the department and the legislature on how to coordinate and align an early childhood care and education system to include child care, pre-kindergarten, home visitation, early head start, head start, early childhood special education, early intervention and family support and to provide New Mexico families with consistent access to appropriate care and education services. In developing recommendations, the council shall:

(a) consider how to consolidate and coordinate resources and public funding streams for early childhood care and education and ensure the accountability and coordinated development of all early childhood care and education services;

(b) consider how to provide a system of seamless transition from prenatal services provided to pregnant women to early childhood programs to kindergarten;

(c) take into account [a parent's] the decisive role of parents in the planning, operation and evaluation of programs that aid families in the care and education of children;

(d) examine ways to provide consumer education and accessibility to early childhood care and education resources;

(e) consider the advancement of quality early childhood care and education programs [in order] to support the healthy development of children and [preparation] to prepare them for [their] success in school;

(f) consider the development of a seamless service delivery system with local points of entry for early childhood care and education programs administered by local, state and federal agencies;

(g) ensure effective collaboration with state and local child welfare programs and early childhood health and behavioral health programs;

(h) consider how to develop and manage effective data collection systems to support the necessary functions of a coordinated system of early childhood care and education and to track children through the education system from [prenatal to] early childhood to kindergarten to higher education, in order to enable accurate evaluation of the impact of early childhood care and education;

(i) focus on the diversity, cultural heritage and strengths of the families and communities of the state;

(j) consider the development of an aligned system of professional development for professionals providing early childhood care and education; and

(k) consider the establishment of an administrative framework to promote the development of high-quality early childhood care and education services that are staffed by well-qualified professionals and are available in every community for all families that express a need for them; and

(3) make recommendations to the early childhood services department and the legislature on:

(a) statewide coordination of early childhood care and education;

(b) delineating and addressing the current gaps in child care programs and the early childhood care and education system, including child care home visitation, pre-kindergarten, head start, early head start and family, infant, toddler program early intervention services;

(c) methods for improving the quality of and increasing the capacity for growth in the early childhood education and care system; and

(d) describing pre-kindergarten services and parenting components."

SECTION 33. Section 32A-23A-7 NMSA 1978 (being Laws 2011, Chapter 123, Section 7) is amended to read:

"32A-23A-7. TERMINATION OF AGENCY LIFE--DELAYED

REPEAL.--The council is terminated on July 1, [2017] 2023 pursuant to the provisions of the Sunset Act. The council shall continue to operate pursuant to the provisions of Sections [4 and 5 of the Early Childhood Care and Education Act] 32A-23A-4 and 32A-23A-5 NMSA 1978 until July 1, [2018] 2024. Effective July 1, [2018] 2024, Section [4 of the Early Childhood Care and Education Act] 32A-23A-4 NMSA 1978 is repealed."

SECTION 34. Section 32A-23B-1 NMSA 1978 (being Laws 2013, Chapter 118, Section 1) is amended to read:

"32A-23B-1. SHORT TITLE.--[This act] Chapter 32A, Article 23B NMSA 1978 may be cited as the "Home Visiting Accountability Act"."

SECTION 35. Section 32A-23B-2 NMSA 1978 (being Laws 2013, Chapter 118, Section 2) is amended to read:

"32A-23B-2. DEFINITIONS.--As used in the Home Visiting Accountability Act:

A. "culturally and linguistically appropriate" means taking into consideration the culture, customs and language of an eligible family's home;

B. "department" means the [children, youth and families] early childhood services department;

C. "eligible family" means a family that elects to receive home visiting and includes:

(1) a child, from birth until kindergarten entry; or

(2) a pregnant woman, an expectant father, a parent or a primary caregiver;

D. "home visiting" means a program strategy that:

(1) delivers a variety of informational, educational, developmental, referral and other support services for eligible families who are expecting or who have children who have not yet entered kindergarten and that is designed to promote child well-being and prevent adverse childhood experiences;

(2) provides a comprehensive array of services that promote parental competence and successful early childhood health and development by building long-term relationships with families and optimizing the relationships between parents and children in their home environments; and

(3) does not include:

(a) provision of case management or a one-time home visit or infrequent home visits, such as a home visit for a newborn child or a child in preschool or kindergarten;

(b) home visiting that is provided as a supplement to other services; or

(c) services delivered through an individualized family service plan or an individualized education program under Part B or Part C of the federal Individuals with Disabilities Education Act;

E. "home visiting program" means a program that:

(1) uses home visiting as a primary service delivery strategy; and

(2) offers services on a voluntary basis to pregnant women, expectant fathers and parents and primary caregivers of children from birth to kindergarten entry;

F. "home visiting system" means the infrastructure and programs that support and provide home visiting. A "home visiting system":

(1) provides universal, voluntary access;

(2) provides a common framework for service delivery and accountability across all home visiting programs;

(3) establishes a consistent statewide system of home visiting; and

(4) allows for the collection, aggregation and analysis of common data; and

G. "standards-based program" means a home visiting program that:

(1) is research-based and grounded in relevant, empirically based best practices and knowledge that:

(a) is linked to and measures the following outcomes: 1) babies that are born healthy; 2) children that are nurtured by their parents and caregivers; 3) children that are physically and mentally healthy; 4) children that are ready for school; 5) children and families that are safe; and 6) families that are connected to formal and informal supports in their communities;

(b) has comprehensive home visiting standards that ensure high-quality service delivery and continuous quality improvement; and

(2) follows program standards that specify the purpose, outcomes, duration and frequency of services that constitute the program;

(3) follows a research-based curriculum or combinations of research-based curricula, or follows the curriculum of an evidence-based home visiting model or promising approach that the home visiting program has adopted pursuant to department rules defining "evidence-based model" and "promising approach";

(4) employs well-trained and competent staff and provides continual professional supervision and development relevant to the specific program or model being delivered;

(5) demonstrates strong links to other community-based services;

(6) operates within an organization that ensures compliance with home visiting standards;

(7) continually evaluates performance to ensure fidelity to the program standards;

(8) collects data on program activities and program outcomes; and

(9) is culturally and linguistically appropriate."

SECTION 36. Section 32A-23B-3 NMSA 1978 (being Laws 2013, Chapter 118, Section 3) is amended to read:

"32A-23B-3. HOME VISITING PROGRAMS--ACCOUNTABILITY--EXCLUSIONS--CONTRACTING--REPORTING.--

A. The department shall provide statewide home visiting services using a standards-based program. The department shall adopt and promulgate rules by which the standards-based home visiting program shall operate. The department may prioritize funding for standards-based programs with strong evidence of effectiveness and high-risk populations.

B. The department shall fund only standards-based home visiting programs that include periodic home visits to improve the health, well-being and self-sufficiency of eligible families.

C. A home visiting program shall provide culturally and linguistically appropriate, face-to-face visits by nurses, social workers and other early childhood and health professionals or by trained and supervised lay workers.

D. A home visiting program shall do two or more of the following:

(1) improve prenatal, maternal, infant or child health outcomes, including reducing preterm births;

(2) promote positive parenting practices;

(3) build healthy parent and child relationships;

(4) enhance children's social-emotional and language development;

(5) support children's cognitive and physical development;

(6) improve the health of eligible families;

(7) provide resources and supports that may help to reduce child maltreatment and injury;

(8) increase children's readiness to succeed in school; and

(9) improve coordination of referrals for, and the provision of, other community resources and supports for eligible families.

E. The department shall work with the early learning advisory council and develop internal processes that provide for a greater ability to collaborate with other state agencies, local governments and private entities and share relevant home visiting data and information. The processes may include a uniform format for the collection of data relevant to each home visiting program.

F. When the department authorizes funds through payments, contracts or grants that are used for home visiting programs, it shall include language regarding home visiting in its funding agreement contract or grant that is consistent with the provisions of the Home Visiting Accountability Act.

G. The department and the providers of home visiting services, in consultation with one or more experts in home visiting program evaluation, shall:

(1) jointly develop an outcomes measurement plan to monitor outcomes for children and families receiving services through home visiting programs;

(2) develop indicators that measure each objective established pursuant to Subsection D of this section; and

(3) complete and submit the outcomes measurement plan by November 1, 2013 to the legislature, the governor and the early learning advisory council.

H. Beginning January 1, 2014 and annually thereafter, the department shall produce an annual outcomes report to the governor, the legislature and the early learning advisory council.

I. The annual outcomes report shall include:

(1) the goals and achieved outcomes of the home visiting system implemented pursuant to the Home Visiting Accountability Act; and

(2) data regarding:

(a) the cost per eligible family served;

(b) the number of eligible families served;

(d) the duration of participation by eligible families in the program;

(e) the number and type of programs that the department has funded;

(f) any increases in school readiness, child development and literacy;

(g) decreases in child maltreatment or child abuse;

(h) any reductions in risky parental behavior;

(i) the percentage of children receiving regular well-child exams, as recommended by the American academy of pediatrics;

(j) the percentage of infants on schedule to be fully immunized by age two;

(k) the number of children that received an ages and stages questionnaire and what percent scored age appropriately in all developmental domains;

(l) the number of children identified with potential developmental delay and, of those, how many began services within two months of the screening; and

(m) the percentage of children receiving home visiting services who are enrolled in high-quality licensed child care programs."

SECTION 37. Section 59A-22-34.2 NMSA 1978 (being Laws 1994, Chapter 64, Section 2, as amended) is amended to read:

"59A-22-34.2. COVERAGE OF CHILDREN.--

A. An insurer shall not deny enrollment of a child under the health plan of the child's parent on the grounds that the child:

(1) was born out of wedlock;

(2) is not claimed as a dependent on the parent's federal tax return; or

(3) does not reside with the parent or in the insurer's service area.

B. When a child has health coverage through an insurer of a noncustodial parent, the insurer shall:

(1) provide such information to the custodial parent as may be necessary for the child to obtain benefits through that coverage;

(2) permit the custodial parent or the provider, with the custodial parent's approval, to submit claims for covered services without the approval of the noncustodial parent; and

(3) make payments on claims submitted in accordance with Paragraph (2) of this subsection directly to the custodial parent, the provider or the state medicaid agency.

C. When a parent is required by a court or administrative order to provide health coverage for a child and the parent is eligible for family health coverage, the insurer shall be required:

(1) to permit the parent to enroll, under the family coverage, a child who is otherwise eligible for the coverage without regard to any enrollment season restrictions;

(2) if the parent is enrolled but fails to make application to obtain coverage for the child, to enroll the child under family coverage upon application of the child's other parent, the state agency administering the medicaid program or the state agency administering 42 U.S.C. Sections 651 through 669, the child support enforcement program; and

(3) not to disenroll or eliminate coverage of the child unless the insurer is provided satisfactory written evidence that:

(a) the court or administrative order is no longer in effect; or

(b) the child is or will be enrolled in comparable health coverage through another insurer that will take effect not later than the effective date of disenrollment.

D. An insurer shall not impose requirements on a state agency that has been assigned the rights of an individual eligible for medical assistance under the medicaid program and covered for health benefits from the insurer that are different from requirements applicable to an agent or assignee of any other individual so covered.

E. An insurer shall provide coverage for children, from birth through three years of age, for or under the family, infant, toddler program administered by the early childhood services department [of health], provided eligibility criteria are met, for a maximum benefit of three thousand five hundred dollars ($3,500) annually for medically necessary early intervention services provided as part of an individualized family service plan and delivered by certified and licensed personnel [as defined in 7.30.8 NMAC] who are working in early intervention programs approved by the early childhood services department [of health]. No payment under this subsection shall be applied against any maximum lifetime or annual limits specified in the policy, health benefits plan or contract."

SECTION 38. Section 59A-23-7.2 NMSA 1978 (being Laws 1994, Chapter 64, Section 5, as amended) is amended to read:

"59A-23-7.2. COVERAGE OF CHILDREN.--