HOUSE BILL 46

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Eleanor Chávez

 

 

 

 

 

AN ACT

RELATING TO FINANCIAL INSTITUTIONS; AMENDING THE DEFINITION OF "HEALTH-RELATED EQUIPMENT" BY REMOVING REAL PROPERTY; CLARIFYING THE APPLICATION OF THE TAX EXEMPTION FOR REAL PROPERTY FIRST PURCHASED, ACQUIRED, LEASED, FINANCED OR REFINANCED PRIOR TO JULY 1, 2025 WITH THE PROCEEDS OF BONDS ISSUED PURSUANT TO THE HOSPITAL EQUIPMENT LOAN ACT.

 

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

     SECTION 1. Section 58-23-3 NMSA 1978 (being Laws 1983, Chapter 290, Section 3, as amended) is amended to read:

     "58-23-3. DEFINITIONS.--As used in the Hospital Equipment Loan Act:

          A. "board" means the board of directors of the council;

          B. "bonds" means bonds, notes, interim certificates, bond anticipation notes or other evidences of indebtedness of the council issued pursuant to the Hospital Equipment Loan Act, including refunding bonds;

          C. "cost" as applied to health-related equipment means any and all costs of equipment, including but not limited to the following:

                (1) all direct or indirect costs of the acquisition, including repair, restoration, reconditioning, financing and refinancing or installation of the health-related equipment;

                (2) the cost of any property interest in the health-related equipment, including an option to purchase or a lease-hold interest;

                (3) the cost of architectural, engineering, planning, drafting, legal and any incidental or related services necessary for acquisition of the health-related equipment;

                (4) the cost of all financing charges and interest accrued prior to the acquisition or refinancing of the health-related equipment for a maximum of two years after or prior to such acquisition or refinancing;

                (5) all direct and indirect costs incurred in connection with the financing of the health-related equipment, including out-of-pocket expenses; the cost of financing; legal, accounting, financial, advisory and consulting expenses; the cost of [any] a policy of insurance; the cost of printing, engraving and reproduction services; and costs associated with [any] trust indenture; and

                (6) [any] the costs incurred by the council for the administration of [any] a program for the purchase, sale or lease of or the making of loans for health-related equipment to [any] a participating health-care provider;

          D. "council" means the New Mexico hospital equipment loan council;

          E. "health facility" means [any] a person that:

                (1) is licensed by the [department of] health care authority to provide health-related services, assisted living support or long-term care;

                (2) provides health-related research; or

                (3) is properly accredited or certified and eligible to receive medicare or medicaid reimbursement for all or part of its activities [providing] that provide mental health services, developmental disabilities services or related specialized support to or on behalf of persons or a defined group of persons;

          F. "health-related equipment" means [any real or] personal property, an instrument, a service or an operational necessity that is found and determined by the council to be needed, directly or indirectly, for medical care, treatment or research or other equipment as [otherwise] might be needed to operate the health facility;

          G. "participating health facility" means a public or private nonprofit or for-profit corporation, association, foundation, trust, cooperative, agency or other person or organization that operates or proposes to operate a health facility in New Mexico and contracts with the council for the financing or refinancing of the lease or acquisition of health-related equipment. Public, district, county, city, county-municipal or other municipal hospitals and hospitals affiliated with an institution of higher education in New Mexico are participating [health-care] health care facilities; and

          H. "program" means the New Mexico hospital equipment loan program created by the Hospital Equipment Loan Act and administered by the council."

     SECTION 2. Section 58-23-29 NMSA 1978 (being Laws 1983, Chapter 290, Section 29, as amended by Laws 2006, Chapter 90, Section 3 and by Laws 2006, Chapter 92, Section 3) is amended to read:

     "58-23-29. EXEMPTION FROM TAXATION--ASSETS TO STATE UPON DISSOLUTION.--

          A. All property acquired or held by the council under the Hospital Equipment Loan Act, income therefrom and bonds issued under the Hospital Equipment Loan Act, plus the interest payable and income derived from the bonds, shall be exempt from taxation by the state or any subdivision thereof. Upon dissolution of the council, its assets, after payment of its indebtedness, shall inure to the benefit of the state.

          B. All health-related equipment purchased, acquired, leased, financed or refinanced with the proceeds of bonds issued under the Hospital Equipment Loan Act is exempt from property taxation for as long as the participating health facility remains liable for any amount under any lease, loan or other agreement securing the bonds, but not to exceed thirty years from the date the bonds were issued for the health-related equipment. Real property that was first purchased, acquired, leased, financed or refinanced prior to July 1, 2025 with the proceeds of bonds issued pursuant to the Hospital Equipment Loan Act that is then purchased, acquired, leased, financed or refinanced on or after July 1, 2025 shall no longer be exempt from property taxation pursuant to this subsection."

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2025.

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