State of New Mexico
                      House of Representatives
  
                      FORTY-THIRD LEGISLATURE
                        FIRST SESSION, 1997
  
  
                                                   March 17, 1997
  
  
  Mr. Speaker:
  
       Your CONSUMER AND PUBLIC AFFAIRS COMMITTEE, to
  whom has been referred
  
       SENATE PUBLIC AFFAIRS COMMITTEE SUBSTITUTE FOR 
                       SENATE BILL 189
                               
  has had it under consideration and reports same with
  recommendation that it DO PASS, amended as follows:
       
       1.  On page 1, line 14, before the period insert "; MAKING AN
  APPROPRIATION.".
  
       2.  On page 4, line 25, strike "who shall serve ex officio".
  
       3.  On page 9, line 10, strike "and".
  
       4.  On page 9, between lines 13 and 14, insert the following
  new subsections to read:
  
            "J.  reinsure any or all of the risk of the association;
  and
  
            K.  assess each original and new provider service network
  an initial administrative fee of five thousand dollars ($5,000)
  times the number of providers in the provider service network.  If a
  provider service network adds new members to increase the number of
  providers, then that provider service network shall pay an
  additional administrative fee of five thousand dollars ($5,000) for
  each additional provider.  An employee of a provider shall not be
  used in computing the administrative fee due under this
  subsection.".
  
       5.  On page 9, line 21, after "ASSESSMENTS" insert "--FUND
  CREATED".
  
       6.  On page 9, strike lines 22 through 25, and on page 10,
  strike line 1 and insert in lieu thereof: 
  
            "A.  The "provider service network guarantee fund" is
  created in the state treasury.  The fund shall be administered by
  the board and money in the fund is appropriated to the board to
  carry out the provisions of the Provider Service Network Act.  Money
  in the fund shall be invested by the state treasurer as other state
  funds are invested; provided that interest on the fund shall be
  credited to the fund.  Any unexpended or unencumbered balance
  remaining in the fund at the end of any fiscal year shall not
  revert.".
  
       7.  On page 10, line 3, strike "annually by March 31" and
  insert in lieu thereof "within thirty days of the close of each
  calendar quarter".
  
       8.  On page 10, lines 4 and 5, strike "the previous calendar
  year" and insert in lieu thereof "that calendar quarter".
  
       9.  On page 10, line 11, after "multiplying" strike the
  remainder of the line and on line 12, strike "the numerator of which
  equals".
  
       10.  On page 10, line 14, strike "year" and strike lines 15
  through 20 and insert in lieu thereof "quarter by a percentage set
  by the board not to exceed five percent.".
       
       11.  On page 10, strike lines 21 through 25, and on page 11,
  strike line 1 and insert a new subsection to read: 
  
            "E.  The board shall notify each member of the amount of
  the assessment within forty-five days of the close of a calendar
  quarter. The member shall pay the assessment within sixty days of
  the close of a calendar quarter.".
       
       12.  On page 11, strike line 25 and on page 12, strike lines 1
  through 10.
  
       13. Renumber the succeeding sections accordingly.
  
  
  
  
                                Respectfully submitted,
  
  
  
                                                                                               
                                                              Gary King, Chairman
  
  
  Adopted                       Not Adopted                       
            (Chief Clerk)                       (Chief Clerk)
  
                         Date             
  
  The roll call vote was 7  For 0  Against
  Yes:      7
            Excused:  Johnson, Rios, Vigil
            Absent:   None
  
  
  118702.2
  G:\BILLTEXT\AMEND_97\S0189CP1