State of New Mexico House of Representatives FORTY-THIRD LEGISLATURE FIRST SESSION, 1997 February 19, 1997 Mr. Speaker: Your JUDICIARY COMMITTEE, to whom has been referred HOUSE BILL 365 has had it under consideration and reports same with recommendation that it DO PASS, amended as follows: 1. On page 1, line 12, after "CONTRACTS" insert "AND REVISE LOAN PROVISIONS". 2. On page 1, between lines 15 and 16, insert the following section: "Section 1. Section 24-1C-1 NMSA 1978 (being Laws 1994, Chapter 62, Section 7) is amended to read: "24-1C-1. SHORT TITLE.--[Sections 7 through 16 of this act] Chapter 24, Article 1C NMSA 1978 may be cited as the "Primary Care Capital Funding Act"."". 3. Renumber succeeding sections accordingly. 4. On page 2, strike all of lines 10 and 11 and insert in lieu thereof the following new sections: "Section 3. Section 24-1C-6 NMSA 1978 (being Laws 1994, Chapter 62, Section 12) is amended to read: "24-1C-6. DEPARTMENT--AUTHORITY--POWERS AND DUTIES.-- A. The department and the authority shall administer the loan programs and contracts for services established pursuant to the provisions of the Primary Care Capital Funding Act. The department and authority shall: (1) enter into joint powers agreements with each other or other appropriate public agencies to carry out the provisions of that act; and (2) apply to any appropriate federal, state or local governmental agency or private organization for grants and gifts to carry out the provisions of that act or to fund allied community-based health care programs. B. The department or authority may, instead of a loan, contract for services with an eligible entity to provide free or reduced fee primary care services for sick and medically indigent persons as reasonably adequate legal consideration for money from the fund to the entity so it may acquire or construct a capital project to provide the services. C. The department and authority may: (1) make and enter into contracts and agreements necessary to carry out their powers and duties pursuant to the provisions of the Primary Care Capital Funding Act; and (2) do all things necessary or appropriate to carry out the provisions of the Primary Care Capital Funding Act. D. The authority is responsible for all financial duties of the programs, including: (1) administering the fund; (2) accounting for all money received, controlled or disbursed for capital projects in accordance with the provisions of the Primary Care Capital Funding Act; (3) evaluating and approving loans and contracts for services, including determining financial capacity of an eligible entity; (4) enforcing contract provisions of loans and contracts for services, including the ability to sue to recover money or property owed the state; (5) determining interest rates and other financial aspects of a loan and relevant terms of a contract for services; and (6) performing other duties in accordance with the provisions of the Primary Care Capital Funding Act, regulations promulgated pursuant to that act or joint powers agreements entered into with the department. E. The department is responsible for [programmatic] the following duties [, including]: (1) defining sick and medically indigent persons for purposes of the Primary Care Capital Funding Act; (2) establishing priorities for loans and contracts for services; (3) determining the appropriateness of the capital project; (4) evaluating the capability of an applicant to provide and maintain primary care or hospice services; (5) selecting recipients of loans and persons with whom to contract for services; (6) determining that capital projects comply with all state and federal licensing and procurement requirements; and (7) contracting with an eligible entity to provide primary care services without charge or at a reduced fee for sick and medically indigent persons as defined by the department. F. The authority may make a loan to an eligible entity to acquire [or], construct, renovate or otherwise improve a capital project, provided there is a finding: (1) by the department that the project will provide primary care services to sick and medically indigent persons as defined by the department; and (2) by the authority that there is adequate protection including but not limited to loan guarantees, real property liens, title insurance, security interests in or pledges of accounts and other assets, loan covenants and warranties or restrictions on other encumbrances and pledges for the state funds extended for the loan." Section 4. Section 24-1C-9 NMSA 1978 (being Laws 1994, Chapter 62, Section 15) is amended to read: "24-1C-9. ELIGIBLE ENTITY--CHANGE IN STATUS.--If an eligible entity that has received a loan or contract for services for a capital project ceases to maintain its nonprofit status or ceases to deliver primary care services at the site of the capital project for twelve consecutive months, the state [shall have the following remedies at its option, subject to other liens having preference: A. order liquidation of the premises and recover any loan balance or amount due on the contract and any interest previously forgiven on the loan, imputed at the prevailing interest rate at the time of the loan; or B. foreclose on the property and convert it to state use or transfer title to another eligible entity] may pursue the remedies provided in the loan agreement or contract for services or as provided by law." Section 5. REPEAL.--Sections 24-1C-7 and 24-1C-8 NMSA 1978 (being Laws 1994, Chapter 62, Sections 13 and 14) are repealed.". 5. On page 2, lines 7 and 8, strike "balance in the fund shall be expended to enter into" and insert in lieu thereof "financing from the fund for capital projects shall be in the form of"., and thence referred to the APPROPRIATIONS AND FINANCE COMMITTEE. Respectfully submitted, Thomas P. Foy, Chairman Adopted Not Adopted (Chief Clerk) (Chief Clerk) Date The roll call vote was 8 For 0 Against Yes: 8 Excused: Alwin, Larranaga, Luna, Rios, Sanchez Absent: None .117365.1 .116455.1 G:\BILLTEXT\AMEND_97\H0365JC1