0001| AN ACT
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0002| RELATING TO PRIMARY CARE; AMENDING SECTIONS OF THE NMSA 1978
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0003| PERTAINING TO SECURING LOANS FOR CAPITAL PROJECTS; REPEALING
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0004| SECTIONS OF THE NMSA 1978.
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0005|
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0006| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0007| Section 1. Section 24-1C-1 NMSA 1978 (being Laws 1994, Chapter 62, Section 7) is
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0008| amended to read:
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0009| "24-1C-1. SHORT TITLE.--Chapter 24, Article 1C NMSA 1978 may be cited as the
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0010| "Primary Care Capital Funding Act"."
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0011| Section 2. Section 24-1C-6 NMSA 1978 (being Laws 1994, Chapter 62, Section 12) is
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0012| amended to read:
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0013| "24-1C-6. DEPARTMENT--AUTHORITY--POWERS AND DUTIES.--
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0014| A. The department and the authority shall administer the loan programs and
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0015| contracts for services established pursuant to the provisions of the Primary Care Capital Funding
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0016| Act. The department and authority shall:
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0017| (1) enter into joint powers agreements with each other or other
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0018| appropriate public agencies to carry out the provisions of that act; and
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0019| (2) apply to any appropriate federal, state or local governmental agency or
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0020| private organization for grants and gifts to carry out the provisions of that act or to fund allied
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0021| community-based health care programs.
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0022| B. The department or authority may, instead of a loan, contract for services with
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0023| an eligible entity to provide free or reduced fee primary care services for sick and medically
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0024| indigent persons as reasonably adequate legal consideration for money from the fund to the entity
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0025| so it may acquire or construct a capital project to provide the services.
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0001| C. The department and authority may:
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0002| (1) make and enter into contracts and agreements necessary to carry out
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0003| their powers and duties pursuant to the provisions of the Primary Care Capital Funding Act; and
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0004| (2) do all things necessary or appropriate to carry out the provisions of the
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0005| Primary Care Capital Funding Act.
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0006| D. The authority is responsible for all financial duties of the programs, including:
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0007| (1) administering the fund;
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0008| (2) accounting for all money received, controlled or disbursed for capital
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0009| projects in accordance with the provisions of the Primary Care Capital Funding Act;
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0010| (3) evaluating and approving loans and contracts for services, including
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0011| determining financial capacity of an eligible entity;
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0012| (4) enforcing contract provisions of loans and contracts for services,
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0013| including the ability to sue to recover money or property owed the state;
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0014| (5) determining interest rates and other financial aspects of a loan and
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0015| relevant terms of a contract for services; and
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0016| (6) performing other duties in accordance with the provisions of the
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0017| Primary Care Capital Funding Act, regulations promulgated pursuant to that act or joint powers
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0018| agreements entered into with the department.
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0019| E. The department is responsible for the following duties:
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0020| (1) defining sick and medically indigent persons for purposes of the
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0021| Primary Care Capital Funding Act;
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0022| (2) establishing priorities for loans and contracts for services;
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0023| (3) determining the appropriateness of the capital project;
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0024| (4) evaluating the capability of an applicant to provide and maintain
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0025| primary care or hospice services;
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0001| (5) selecting recipients of loans and persons with whom to contract for
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0002| services;
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0003| (6) determining that capital projects comply with all state and federal
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0004| licensing and procurement requirements; and
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0005| (7) contracting with an eligible entity to provide primary care services
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0006| without charge or at a reduced fee for sick and medically indigent persons as defined by the
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0007| department.
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0008| F. The authority may make a loan to an eligible entity to acquire, construct,
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0009| renovate or otherwise improve a capital project, provided there is a finding:
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0010| (1) by the department that the project will provide primary care services to
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0011| sick and medically indigent persons as defined by the department; and
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0012| (2) by the authority that there is adequate protection including but not
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0013| limited to loan guarantees, real property liens, title insurance, security interests in or pledges of
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0014| accounts and other assets, loan covenants and warranties or restrictions on other encumbrances
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0015| and pledges for the state funds extended for the loan."
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0016| Section 3. Section 24-1C-9 NMSA 1978 (being Laws 1994, Chapter 62, Section 15) is
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0017| amended to read:
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0018| "24-1C-9. ELIGIBLE ENTITY--CHANGE IN STATUS.--If an eligible entity that has
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0019| received a loan or contract for services for a capital project ceases to maintain its nonprofit status
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0020| or ceases to deliver primary care services at the site of the capital project for twelve consecutive
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0021| months, the state may pursue the remedies provided in the loan agreement or contract for services
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0022| or as provided by law."
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0023| Section 4. REPEAL.--Sections 24-1C-7 and 24-1C-8 NMSA 1978 (being Laws
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0024| 1994, Chapter 62, Sections 13 and 14) are repealed.
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