0001| SENATE BILL 918
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| TIMOTHY Z. JENNINGS
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO HEALTH; ENACTING THE COUNTY HEALTH COMMISSION ACT;
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0012| ENACTING A NEW SECTION OF THE HOSPITAL FUNDING ACT; AMENDING
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0013| CERTAIN SECTIONS OF THE NMSA 1978 PERTAINING TO OPEN MEETINGS,
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0014| PROCUREMENT AND PUBLIC RECORDS; DECLARING AN EMERGENCY.
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0015|
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0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017| Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1
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0018| through 7 of this act may be cited as the "County Health
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0019| Commission Act".
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0020| Section 2. [NEW MATERIAL] PURPOSE.--The purpose of the
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0021| County Health Commission Act is to permit the transfer of
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0022| ownership of a county hospital to a county health commission,
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0023| thereby enhancing the ability of the hospital to compete in the
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0024| competitive and rapidly changing health care marketplace, while
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0025| ensuring that the hospital maintains its primary purpose of
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0001| providing health care for the benefit of the citizens of the
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0002| county through the requirement of a publicly elected
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0003| commission.
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0004| Section 3. [NEW MATERIAL] DEFINITIONS.--As used in the
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0005| County Health Commission Act:
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0006| A. "commission" means a county health commission
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0007| created pursuant to the County Health Commission Act;
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0008| B. "county hospital" means a hospital owned by a
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0009| county; and
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0010| C. "county health commission hospital" means a
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0011| hospital, the ownership and responsibility for operation of
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0012| which have been transferred from a county to a county health
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0013| commission.
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0014| Section 4. [NEW MATERIAL] CREATION OF COMMISSION.--The
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0015| board of county commissioners of a county in which there is a
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0016| county hospital:
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0017| A. may create a county health commission by the
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0018| adoption of a resolution creating the commission and calling
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0019| for an election of the members of the commission; or
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0020| B. shall create a county health commission by the
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0021| adoption of a resolution creating the commission and calling
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0022| for an election of the members of the commission when a
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0023| petition requesting the action is presented to the board of
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0024| county commissioners. The number of signatures required on the
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0025| petition shall be at least five percent of the number of votes
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0001| cast for governor in the county in the last preceding
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0002| gubernatorial election.
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0003| Section 5. [NEW MATERIAL] MEMBERSHIP OF COMMISSION--
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0004| ELECTION OF MEMBERS--TRANSFER OF HOSPITAL.--
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0005| A. An election of the county health commission
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0006| shall be held within ninety days of the date of passage of the
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0007| resolution by the board of county commissioners. Elections
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0008| shall be conducted in the manner provided in the Election Code
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0009| for the conduct of special elections.
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0010| B. Election districts for the commission shall be
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0011| identical to those districts designated for elections of the
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0012| board of county commissioners. Two county health commissioners
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0013| shall be elected from each district by the voters of the
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0014| district. A commissioner shall be a resident of the district
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0015| from which he is elected. To provide for staggered terms, one
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0016| commissioner from each district shall have an initial term of
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0017| two years, and the other commissioner from the district shall
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0018| have an initial term of four years. The commissioners shall
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0019| draw lots to determine the allocation of the initial terms.
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0020| Thereafter, commissioners shall be elected for terms of four
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0021| years. A vacancy on the commission shall be filled by
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0022| appointment by the board of county commissioners for the
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0023| remainder of the unexpired term.
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0024| C. Within ten days after the results of the
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0025| election are certified, the newly elected commission shall meet
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0001| and organize itself.
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0002| D. Within thrity days after the results of the
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0003| election are certified, the county shall transfer ownership of
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0004| the county hospital to the commission. The commission shall
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0005| thereafter own the hospital and be responsible for the
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0006| operations of the hospital; provided that a county health
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0007| commission hospital may be operated by another party pursuant
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0008| to a lease or management contract with the commission.
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0009| Section 6. [NEW MATERIAL] POWERS AND DUTIES OF
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0010| COMMISSION.--
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0011| A. A county health commission shall operate the
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0012| hospital that has been transferred to its control as a public
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0013| hospital for the benefit of the residents of the county in
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0014| which it is located.
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0015| B. A commission shall have all powers necessary and
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0016| appropriate to carry out and effectuate its public purposes,
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0017| including the following powers:
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0018| (1) to adopt, amend and repeal bylaws for the
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0019| administration and regulation of the affairs of the commission;
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0020| (2) to sue and be sued;
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0021| (3) to purchase, lease, receive, acquire, own,
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0022| hold, use and otherwise deal in and with real property or
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0023| personal property;
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0024| (4) to sell, convey, lease, pledge, exchange,
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0025| transfer and otherwise dispose of all or any part of any of its
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0001| assets and properties for such consideration upon such terms
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0002| and conditions as the commission shall determine;
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0003| (5) to make contracts, incur liabilities and
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0004| borrow money at such rates of interest as the commission may
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0005| determine;
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0006| (6) to make and execute contracts and all
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0007| other instruments necessary or convenient in the exercise of
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0008| its powers and functions;
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0009| (7) to receive, administer, hold and use all
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0010| funds made available to it from any source;
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0011| (8) to apply for and accept gifts or grants of
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0012| property, funds, services or aid in any form from the United
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0013| States, a unit of government or a person;
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0014| (9) to invest and reinvest its funds;
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0015| (10) to conduct its activities, carry out its
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0016| operations, have offices and facilities and exercise the powers
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0017| granted by the County Health Commission Act;
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0018| (11) to employ such officers and employees as
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0019| it deems necessary, set their compensation and describe their
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0020| duties;
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0021| (12) to procure insurance against any loss in
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0022| connection with its operations, property and other assets;
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0023| (13) to employ advisors, consultants, agents
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0024| and employees as may be required in its judgment and to fix and
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0025| pay compensation; and
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0001| (14) to do all things authorized by law not
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0002| inconsistent with the provisions of the County Health
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0003| Commission Act.
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0004| Section 7. [NEW MATERIAL] DISSOLUTION.--In the event
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0005| of dissolution of a county health commission, all rights and
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0006| properties of the commission shall be transferred by action of
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0007| the commission, or in the absence of that action, automatically
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0008| by operation of law, to the board of county commissioners,
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0009| subject to the rights of any bondholders, lienholders or
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0010| creditors of the commission.
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0011| Section 8. A new section of the Hospital Funding Act,
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0012| Section 4-48B-7.1 NMSA 1978, is enacted to read:
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0013| "4-48B-7.1. [NEW MATERIAL] POWER TO TRANSFER HOSPITAL
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0014| TO COUNTY HEALTH COMMISSION.--All counties shall have the power
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0015| to transfer a county hospital to a commission created pursuant
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0016| to the County Health Commission Act."
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0017| Section 9. Section 10-15-1 NMSA 1978 (being Laws 1974,
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0018| Chapter 91, Section 1, as amended) is amended to read:
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0019| "10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN
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0020| MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.--
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0021| A. In recognition of the fact that a representative
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0022| government is dependent upon an informed electorate, it is
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0023| declared to be public policy of this state that all persons are
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0024| entitled to the greatest possible information regarding the
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0025| affairs of government and the official acts of those officers
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0001| and employees who represent them. The formation of public
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0002| policy or the conduct of business by vote shall not be
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0003| conducted in closed meeting. All meetings of any public body
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0004| except the legislature and the courts shall be public meetings,
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0005| and all persons so desiring shall be permitted to attend and
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0006| listen to the deliberations and proceedings. Reasonable
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0007| efforts shall be made to accommodate the use of audio and video
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0008| recording devices.
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0009| B. All meetings of a quorum of members of any
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0010| board, commission, administrative adjudicatory body or other
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0011| policymaking body of any state agency, any agency or authority
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0012| of any county, municipality, district or any political
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0013| subdivision, held for the purpose of formulating public policy,
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0014| including the development of personnel policy, rules,
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0015| regulations or ordinances, discussing public business or for
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0016| the purpose of taking any action within the authority of or the
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0017| delegated authority of any board, commission or other
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0018| policymaking body are declared to be public meetings open to
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0019| the public at all times, except as otherwise provided in the
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0020| constitution of New Mexico or the Open Meetings Act. No public
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0021| meeting once convened that is otherwise required to be open
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0022| pursuant to the Open Meetings Act shall be closed or dissolved
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0023| into small groups or committees for the purpose of permitting
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0024| the closing of the meeting.
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0025| C. If otherwise allowed by law or rule of the
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0001| public body, a member of a public body may participate in a
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0002| meeting of the public body by means of a conference telephone
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0003| or other similar communications equipment when it is otherwise
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0004| difficult or impossible for the member to attend the meeting in
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0005| person, provided that each member participating by conference
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0006| telephone can be identified when speaking, all participants are
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0007| able to hear each other at the same time and members of the
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0008| public attending the meeting are able to hear any member of the
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0009| public body who speaks during the meeting.
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0010| D. Any meetings at which the discussion or adoption
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0011| of any proposed resolution, rule, regulation or formal action
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0012| occurs and at which a majority or quorum of the body is in
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0013| attendance, and any closed meetings, shall be held only after
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0014| reasonable notice to the public. The affected body shall
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0015| determine at least annually in a public meeting what notice for
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0016| a public meeting is reasonable when applied to that body. That
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0017| notice shall include broadcast stations licensed by the federal
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0018| communications commission and newspapers of general circulation
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0019| that have provided a written request for such notice.
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0020| E. A public body may recess and reconvene a meeting
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0021| to a day subsequent to that stated in the meeting notice if,
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0022| prior to recessing, the public body specifies the date, time
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0023| and place for continuation of the meeting, and, immediately
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0024| following the recessed meeting, posts notice of the date, time
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0025| and place for the reconvened meeting on or near the door of the
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0001| place where the original meeting was held and in at least one
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0002| other location appropriate to provide public notice of the
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0003| continuation of the meeting. Only matters appearing on the
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0004| agenda of the original meeting may be discussed at the
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0005| reconvened meeting.
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0006| F. Meeting notices shall include an agenda
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0007| containing a list of specific items of business to be discussed
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0008| or transacted at the meeting or information on how the public
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0009| may obtain a copy of such an agenda. Except in the case of an
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0010| emergency, the agenda shall be available to the public at least
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0011| twenty-four hours prior to the meeting. Except for emergency
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0012| matters, a public body shall take action only on items
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0013| appearing on the agenda. For purposes of this subsection, an
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0014| "emergency" refers to unforeseen circumstances that, if not
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0015| addressed immediately by the public body, will likely result in
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0016| injury or damage to persons or property or substantial
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0017| financial loss to the public body.
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0018| G. The board, commission or other policymaking body
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0019| shall keep written minutes of all its meetings. The minutes
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0020| shall include at a minimum the date, time and place of the
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0021| meeting, the names of members in attendance and those absent,
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0022| the substance of the proposals considered and a record of any
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0023| decisions and votes taken that show how each member voted. All
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0024| minutes are open to public inspection. Draft minutes shall be
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0025| prepared within ten working days after the meeting and shall be
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0001| approved, amended or disapproved at the next meeting where a
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0002| quorum is present. Minutes shall not become official until
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0003| approved by the policymaking body.
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0004| H. The provisions of Subsections A, B and G of this
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0005| section do not apply to:
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0006| (1) meetings pertaining to issuance,
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0007| suspension, renewal or revocation of a license, except that a
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0008| hearing at which evidence is offered or rebutted shall be open.
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0009| All final actions on the issuance, suspension, renewal or
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0010| revocation of a license shall be taken at an open meeting;
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0011| (2) limited personnel matters; provided that
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0012| for purposes of the Open Meetings Act, "limited personnel
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0013| matters" means the discussion of hiring, promotion, demotion,
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0014| dismissal, assignment or resignation of or the investigation or
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0015| consideration of complaints or charges against any individual
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0016| public employee; provided further that this subsection is not
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0017| to be construed as to exempt final actions on personnel from
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0018| being taken at open public meetings, nor does it preclude an
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0019| aggrieved public employee from demanding a public hearing.
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0020| Judicial candidates interviewed by any commission shall have
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0021| the right to demand an open interview;
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0022| (3) deliberations by a public body in
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0023| connection with an administrative adjudicatory proceeding. For
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0024| purposes of this paragraph, an "administrative adjudicatory
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0025| proceeding" means a proceeding brought by or against a person
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0001| before a public body in which individual legal rights, duties
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0002| or privileges are required by law to be determined by the
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0003| public body after an opportunity for a trial-type hearing.
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0004| Except as otherwise provided in this section, the actual
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0005| administrative adjudicatory proceeding at which evidence is
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0006| offered or rebutted and any final action taken as a result of
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0007| the proceeding shall occur in an open meeting;
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0008| (4) the discussion of personally identifiable
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0009| information about any individual student, unless the student,
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0010| his parent or guardian requests otherwise;
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0011| (5) meetings for the discussion of bargaining
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0012| strategy preliminary to collective bargaining negotiations
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0013| between the policymaking body and a bargaining unit
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0014| representing the employees of that policymaking body and
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0015| collective bargaining sessions at which the policymaking body
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0016| and the representatives of the collective bargaining unit are
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0017| present;
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0018| (6) that portion of meetings at which a
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0019| decision concerning purchases in an amount exceeding two
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0020| thousand five hundred dollars ($2,500) that can be made only
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0021| from one source and that portion of meetings at which the
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0022| contents of competitive sealed proposals solicited pursuant to
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0023| the Procurement Code are discussed during the contract
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0024| negotiation process. The actual approval of purchase of the
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0025| item or final action regarding the selection of a contractor
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0001| shall be made in an open meeting;
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0002| (7) meetings subject to the attorney-client
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0003| privilege pertaining to threatened or pending litigation in
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0004| which the public body is or may become a participant;
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0005| (8) meetings for the discussion of the
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0006| purchase, acquisition or disposal of real property or water
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0007| rights by the public body; and
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0008| (9) those portions of meetings of committees
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0009| or boards of public hospitals [that receive less than fifty
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percent of their operating budget from direct public funds and
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appropriations] or county health commissions where strategic
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0012| and long-range business plans are discussed. For purposes of
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0013| this paragraph, "strategic and long-range business plans"
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0014| includes all matters involving proprietary information the
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0015| disclosure of which would be likely to impede the ability of
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0016| the hospital to compete in the health care market; provided
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0017| that discussion of possible sale of a public hospital or county
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0018| health commission hospital or its assets to another entity is
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0019| not within the exception provided by this paragraph.
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0020| I. If any meeting is closed pursuant to the
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0021| exclusions contained in Subsection H of this section, the
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0022| closure:
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0023| (1) if made in an open meeting, shall be
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0024| approved by a majority vote of a quorum of the policymaking
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0025| body; the authority for the closure and the subject to be
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0001| discussed shall be stated with reasonable specificity in the
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0002| motion calling for the vote on a closed meeting; the vote shall
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0003| be taken in an open meeting; and the vote of each individual
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0004| member shall be recorded in the minutes. Only those subjects
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0005| announced or voted upon prior to closure by the policymaking
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0006| body may be discussed in a closed meeting; and
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0007| (2) if called for when the policymaking body
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0008| is not in an open meeting, shall not be held until public
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0009| notice, appropriate under the circumstances, stating the
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0010| specific provision of the law authorizing the closed meeting
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0011| and stating with reasonable specificity the subject to be
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0012| discussed is given to the members and to the general public.
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0013| J. Following completion of any closed meeting, the
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0014| minutes of the open meeting that was closed or the minutes of
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0015| the next open meeting if the closed meeting was separately
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0016| scheduled shall state that the matters discussed in the closed
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0017| meeting were limited only to those specified in the motion for
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0018| closure or in the notice of the separate closed meeting. This
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0019| statement shall be approved by the public body under Subsection
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0020| G of this section as part of the minutes."
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0021| Section 10. Section 13-1-98 NMSA 1978 (being Laws 1984,
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0022| Chapter 65, Section 71, as amended) is amended to read:
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0023| "13-1-98. EXEMPTIONS FROM THE PROCUREMENT CODE.--The
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0024| provisions of the Procurement Code shall not apply to:
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0025| A. procurement of items of tangible personal
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0001| property or services by a state agency or a local public body
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0002| from a state agency, a local public body or external
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0003| procurement unit except as otherwise provided in Sections
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0004| 13-1-135 through 13-1-137 NMSA 1978;
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0005| B. procurement of tangible personal property or
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0006| services for the governor's mansion and grounds;
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0007| C. printing and duplicating contracts involving
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0008| materials which are required to be filed in connection with
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0009| proceedings before administrative agencies or state or federal
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0010| courts;
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0011| D. purchases of publicly provided or publicly
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0012| regulated gas, electricity, water, sewer and refuse collection
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0013| services;
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0014| E. purchases of books and periodicals from the
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0015| publishers or copyright holders thereof;
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0016| F. travel or shipping by common carrier or by
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0017| private conveyance or to meals and lodging;
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0018| G. purchase of livestock at auction rings or to the
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0019| procurement of animals to be used for research and
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0020| experimentation or exhibit;
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0021| H. contracts with businesses for public school
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0022| transportation services;
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0023| I. procurement of tangible personal property or
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0024| services, as defined by Sections 13-l-87 and 13-l-93 NMSA 1978,
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0025| by the corrections industries division of the corrections
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0001| department pursuant to regulations adopted by the corrections
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0002| [industries] commission, which shall be reviewed by the
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0003| purchasing division of the general services department prior to
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0004| adoption;
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0005| J. minor purchases consisting of magazine
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0006| subscriptions, conference registration fees and other similar
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0007| purchases where prepayments are required;
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0008| K. municipalities having adopted home rule charters
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0009| and having enacted their own purchasing ordinances;
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0010| L. the issuance, sale and delivery of public
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0011| securities pursuant to the applicable authorizing statute, with
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0012| the exception of bond attorneys and general financial
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0013| consultants;
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0014| M. contracts entered into by a local public body
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0015| with a private independent contractor for the operation, or
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0016| provision and operation, of a jail pursuant to Sections 33-3-26
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0017| and 33-3-27 NMSA 1978;
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0018| N. contracts for maintenance of grounds and
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0019| facilities at highway rest stops and other employment
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0020| opportunities, excluding those intended for the direct care and
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0021| support of persons with handicaps, entered into by state
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0022| agencies with private, nonprofit, independent contractors who
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0023| provide services to persons with handicaps;
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0024| O. contracts and expenditures for services to be
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0025| paid or compensated by money or other property transferred to
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0001| New Mexico law enforcement agencies by the United States
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0002| department of justice drug enforcement administration;
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0003| P. contracts for retirement and other benefits
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0004| pursuant to Sections 22-11-47 through 22-11-52 NMSA 1978;
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0005| [and]
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0006| Q. contracts with professional entertainers; and
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0007| R. procurement of items of tangible personal
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0008| property or services by a hospital owned and operated by a
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0009| county health commission pursuant to purchasing regulations
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0010| adopted by that commission."
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0011| Section 11. Section 14-2-1 NMSA 1978 (being Laws 1947,
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0012| Chapter 130, Section 1, as amended) is amended to read:
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0013| "14-2-1. RIGHT TO INSPECT PUBLIC RECORDS--EXCEPTIONS.--
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0014| Every person has a right to inspect any public records of this
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0015| state except:
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0016| A. records pertaining to physical or mental
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0017| examinations and medical treatment of persons confined to any
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0018| institution;
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0019| B. letters of reference concerning employment,
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0020| licensing or permits;
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0021| C. letters or memorandums which are matters of
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0022| opinion in personnel files or students' cumulative files;
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0023| D. law enforcement records that reveal confidential
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0024| sources, methods, information or individuals accused but not
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0025| charged with a crime. Law enforcement records include evidence
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0001| in any form received or compiled in connection with any
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0002| criminal investigation or prosecution by any law enforcement or
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0003| prosecuting agency, including inactive matters or closed
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0004| investigations to the extent that they contain the information
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0005| listed above;
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0006| E. as provided by the Confidential Materials Act;
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0007| [and]
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0008| F. records of a county health commission or a
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0009| county health commission hospital if the records include
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0010| proprietary information, the disclosure of which would be
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0011| likely to impede the ability of the hospital to compete in the
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0012| health care market; and
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0013| [F.] G. as otherwise provided by law."
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0014| Section 12. EMERGENCY.--It is necessary for the public
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0015| peace, health and safety that this act take effect immediately.
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0016|
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0017|
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0018| FORTY-THIRD LEGISLATURE
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0019| FIRST SESSION, 1997
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0020|
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0021|
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0022| March 7, 1997
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0023|
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0024| Mr. President:
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0025|
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0001| Your PUBLIC AFFAIRS COMMITTEE, to whom has been
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0002| referred
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0003|
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0004| SENATE BILL 918
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0005|
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0006| has had it under consideration and reports same with
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0007| recommendation that it DO NOT PASS, but that
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0008|
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0009| SENATE PUBLIC AFFAIRS COMMITTEE SUBSTITUTE FOR
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0010| SENATE BILL 918
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0011|
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0012| DO PASS.
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0013|
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0014| Respectfully submitted,
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0015|
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0016|
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0017|
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0018|
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0019| __________________________________
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0020| Shannon Robinson, Chairman
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0021|
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0022|
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0023|
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0024| Adopted_______________________ Not
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0025| Adopted_______________________
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0001| (Chief Clerk) (Chief Clerk)
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0002|
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0003|
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0004| Date ________________________
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0005|
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0006|
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0007| The roll call vote was 5 For 0 Against
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0008| Yes: 5
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0009| No: 0
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0010| Excused: Boitano, Adair, Feldman, Vernon
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0011| Absent: None
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0012|
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0013|
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0014| S0918PA1
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0015|
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0016| SENATE PUBLIC AFFAIRS COMMITTEE SUBSTITUTE FOR
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0017| SENATE BILL 918
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0018| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0019|
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0020|
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0021|
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0022|
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0023|
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0024|
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0025|
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0001| AN ACT
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0002| RELATING TO HEALTH; ENACTING THE COUNTY HEALTH COMMISSION ACT;
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0003| ENACTING A NEW SECTION OF THE HOSPITAL FUNDING ACT; AMENDING
|
0004| CERTAIN SECTIONS OF THE NMSA 1978 PERTAINING TO OPEN MEETINGS,
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0005| PROCUREMENT AND PUBLIC RECORDS; DECLARING AN EMERGENCY.
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0006|
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0007| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0008| Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1
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0009| through 8 of this act may be cited as the "County Health
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0010| Commission Act".
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0011| Section 2. [NEW MATERIAL] PURPOSE.--The purpose of the
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0012| County Health Commission Act is to permit the transfer of
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0013| ownership of a county hospital to a county health commission,
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0014| thereby enhancing the ability of the hospital to compete in the
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0015| competitive and rapidly changing health care marketplace, while
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0016| ensuring that the hospital maintains its primary purpose of
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0017| providing health care for the benefit of the citizens of the
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0018| county through the requirement of a publicly elected
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0019| commission.
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0020| Section 3. [NEW MATERIAL] DEFINITIONS.--As used in the
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0021| County Health Commission Act:
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0022| A. "commission" means a county health commission
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0023| created pursuant to the County Health Commission Act;
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0024| B. "county" means a class B county having a
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0025| population of more than fifty thousand but less than fifty-five
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0001| thousand according to the 1990 federal decennial census and
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0002| having a net taxable value for rate-setting purposes for the
|
0003| 1996 property tax year of more than four hundred fifty million
|
0004| dollars ($450,000,000) but less than five hundred million
|
0005| dollars ($500,000,000);
|
0006| C. "county hospital" means a hospital owned by a
|
0007| county; and
|
0008| D. "county health commission hospital" means a public
|
0009| hospital, the ownership and responsibility for operation of
|
0010| which have been transferred from a county to a county health
|
0011| commission.
|
0012| Section 4. [NEW MATERIAL] CREATION OF COMMISSION.--The
|
0013| board of county commissioners of a county in which there is a
|
0014| county hospital:
|
0015| A. may create a county health commission by the
|
0016| adoption of a resolution creating the commission; or
|
0017| B. may call for an election on the question of
|
0018| creating a county health commission. Such an election shall be
|
0019| required upon presentation to the board of county commissioners
|
0020| of a petition signed by registered electors of the county
|
0021| requesting an election on the question. The number of signatures
|
0022| required on the petition shall be at least five percent of the
|
0023| number of votes cast for governor in the county in the last
|
0024| preceding gubernatorial election. An election pursuant to this
|
0025| subsection shall be conducted in the manner provided in the
|
0001| Election Code for the conduct of special elections. If the
|
0002| election is held as the result of presentation of a petition to
|
0003| the board of county commissioners, the election shall be held
|
0004| within forty-five days of the receipt of the petition.
|
0005| Section 5. [NEW MATERIAL] MEMBERSHIP OF COMMISSION--
|
0006| ELECTION OF MEMBERS--TRANSFER OF HOSPITAL.--
|
0007| A. The initial election of the county health commission
|
0008| shall be held within sixty days of the adoption by the board of
|
0009| county commissioners of a resolution creating a county health
|
0010| commission, or of an election pursuant to Section 4 of the County
|
0011| Health Commission Act in which a majority of the voters voted in
|
0012| favor of creating a county health commission. The election shall
|
0013| be conducted in the manner provided in the Election Code for the
|
0014| conduct of special elections.
|
0015| B. Election districts for the commission shall be
|
0016| identical to those districts designated for elections of the board
|
0017| of county commissioners. Two county health commissioners shall be
|
0018| elected from each district by the voters of the district. A
|
0019| commissioner shall be a resident of the district from which he is
|
0020| elected. Commissioners elected in the initial election shall
|
0021| serve until the next general election. Thereafter, elections for
|
0022| the commission shall be conducted at general elections.
|
0023| C. At the first general election in which there is an
|
0024| election for the county health commission, commissioners shall be
|
0025| elected for staggered terms. One commissioner from each district
|
0001| shall be elected to a term of four years, and the other
|
0002| commissioner from the district shall be elected to a term of two
|
0003| years. The commissioner receiving the highest vote total shall
|
0004| have the four-year term. Thereafter, commissioners shall be
|
0005| elected for terms of four years. A vacancy on the commission
|
0006| shall be filled by appointment by the board of county
|
0007| commissioners for the remainder of the unexpired term.
|
0008| D. Within ten days after the results of the election are
|
0009| certified, the newly elected commission shall meet and organize
|
0010| itself.
|
0011| E. Within thirty days after the results of the election
|
0012| are certified, the county shall transfer ownership of the county
|
0013| hospital to the commission. The commission shall thereafter own
|
0014| the hospital, which shall remain a public hospital. The county
|
0015| health commission shall be responsible for the operations of the
|
0016| hospital; provided that a county health commission hospital may be
|
0017| operated by another party pursuant to a lease or management
|
0018| contract with the commission.
|
0019| Section 6. [NEW MATERIAL] POWERS AND DUTIES OF
|
0020| COMMISSION.--
|
0021| A. A county health commission shall operate the hospital
|
0022| that has been transferred to its control as a public hospital for
|
0023| the benefit of the residents of the county in which it is located.
|
0024| B. A commission shall have all powers necessary and
|
0025| appropriate to carry out and effectuate its public purposes,
|
0001| including the following powers:
|
0002| (1) to adopt, amend and repeal bylaws for the
|
0003| administration and regulation of the affairs of the commission;
|
0004| (2) to sue and be sued;
|
0005| (3) to purchase, lease, receive, acquire, own,
|
0006| hold, use and otherwise deal in and with real property or personal
|
0007| property;
|
0008| (4) to sell, convey, lease, pledge, exchange,
|
0009| transfer and otherwise dispose of all or any part of any of its
|
0010| assets and properties for such consideration upon such terms and
|
0011| conditions as the commission shall determine;
|
0012| (5) to make contracts, incur liabilities and borrow
|
0013| money at such rates of interest as the commission may determine;
|
0014| (6) to make and execute contracts and all other
|
0015| instruments necessary or convenient in the exercise of its powers
|
0016| and functions;
|
0017| (7) to receive, administer, hold and use all funds
|
0018| made available to it from any source;
|
0019| (8) to apply for and accept gifts or grants of
|
0020| property, funds, services or aid in any form from the United
|
0021| States, a unit of government or a person;
|
0022| (9) to invest and reinvest its funds;
|
0023| (10) to conduct its activities, carry out its
|
0024| operations, have offices and facilities and exercise the powers
|
0025| granted by the County Health Commission Act;
|
0001| (11) to employ such officers and employees as it
|
0002| deems necessary, set their compensation and describe their duties;
|
0003| (12) to procure insurance against any loss in
|
0004| connection with its operations, property and other assets;
|
0005| (13) to employ advisors, consultants, agents and
|
0006| employees as may be required in its judgment and to fix and pay
|
0007| compensation; and
|
0008| (14) to do all things authorized by law not
|
0009| inconsistent with the provisions of the County Health Commission
|
0010| Act.
|
0011| Section 7. [NEW MATERIAL] HOSPITAL REVENUE BONDS.--
|
0012| A. A county health commission may issue hospital revenue
|
0013| bonds pursuant to the County Health Commission Act for the purpose
|
0014| of constructing, purchasing, remodeling, equipping or re-equipping
|
0015| a county health commission hospital.
|
0016| B. The county health commission issuing the hospital
|
0017| revenue bonds pursuant to the County Health Commission Act may
|
0018| pledge irrevocably all or a portion of the revenues derived from
|
0019| the operation of the county health commission hospital and
|
0020| revenues derived from the leasing or other contractual arrangement
|
0021| for the operation of a county health commission hospital for the
|
0022| payment of principal and interest on the revenue bonds.
|
0023| C. At a regular or special meeting called for the
|
0024| purpose of issuing revenue bonds as authorized pursuant to the
|
0025| County Health Commission Act the county health commission may
|
0001| adopt a resolution that:
|
0002| (1) declares the necessity for issuing revenue
|
0003| bonds;
|
0004| (2) authorizes the issuance of revenue bonds by an
|
0005| affirmative vote of a majority of the county health commission;
|
0006| and
|
0007| (3) designates the source of the pledged revenues.
|
0008| D. Hospital revenue bonds:
|
0009| (1) may have interest, appreciated principal value
|
0010| or any part thereof payable at intervals or at maturity as may be
|
0011| determined by the county health commission;
|
0012| (2) may be subject to a prior redemption at the
|
0013| option of the county health commission at such time and upon such
|
0014| terms and conditions, with or without the payment of a premium, as
|
0015| may be provided by resolution of the county health commission;
|
0016| (3) may mature at any time not exceeding thirty
|
0017| years after the date of issuance;
|
0018| (4) may be serial in form and maturity or may
|
0019| consist of one bond payable at one time or in installments or may
|
0020| be in any other form as may be provided in the resolution
|
0021| authorizing the bonds;
|
0022| (5) shall be sold for cash at above or below par
|
0023| and at a price that results in a net effective interest rate which
|
0024| does not exceed the maximum permitted by the Public Securities
|
0025| Act; and
|
0001| (6) may be sold at a public or private sale.
|
0002| E. Hospital revenue bonds issued under the authority of
|
0003| the County Health Commission Act shall not be the general
|
0004| obligations of the county and shall be payable only from the
|
0005| proper pledged revenues, and each bond shall state that it is
|
0006| payable solely from the proper pledged revenues and that the
|
0007| bondholders may not look to any other fund for the payment of the
|
0008| principal and interest on the bonds.
|
0009| F. Hospital revenue bonds issued under authority of the
|
0010| County Health Commission Act and the income from the bonds shall
|
0011| be exempt from all taxation by the state or any political
|
0012| subdivision of the state.
|
0013| G. It is unlawful to divert, use or expend any money
|
0014| received from the issuance of hospital revenue bonds for any
|
0015| purpose other than the purpose for which the bonds were issued.
|
0016| Section 8. [NEW MATERIAL] SALE OR DISSOLUTION.--In the
|
0017| event of sale of a county health commission hospital, all proceeds
|
0018| from the sale of the hospital shall be transferred to the board of
|
0019| county commissioners subject to the rights of any bondholders,
|
0020| lienholders or creditors of the commission. In the event of
|
0021| dissolution of a county health commission, all rights and
|
0022| properties of the commission shall be transferred by action of the
|
0023| commission, or in the absence of that action, automatically by
|
0024| operation of law, to the board of county commissioners, subject to
|
0025| the rights of any bondholders, lienholders or creditors of the
|
0001| commission.
|
0002| Section 9. A new section of the Hospital Funding Act,
|
0003| Section 4-48B-7.1 NMSA 1978, is enacted to read:
|
0004| "4-48B-7.1. [NEW MATERIAL] POWER TO TRANSFER HOSPITAL TO
|
0005| COUNTY HEALTH COMMISSION.--All counties shall have the power to
|
0006| transfer a county hospital to a commission created pursuant to the
|
0007| County Health Commission Act."
|
0008| Section 10. Section 10-15-1 NMSA 1978 (being Laws 1974,
|
0009| Chapter 91, Section 1, as amended) is amended to read:
|
0010| "10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN
|
0011| MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.--
|
0012| A. In recognition of the fact that a representative
|
0013| government is dependent upon an informed electorate, it is
|
0014| declared to be public policy of this state that all persons are
|
0015| entitled to the greatest possible information regarding the
|
0016| affairs of government and the official acts of those officers and
|
0017| employees who represent them. The formation of public policy or
|
0018| the conduct of business by vote shall not be conducted in closed
|
0019| meeting. All meetings of any public body except the legislature
|
0020| and the courts shall be public meetings, and all persons so
|
0021| desiring shall be permitted to attend and listen to the
|
0022| deliberations and proceedings. Reasonable efforts shall be made
|
0023| to accommodate the use of audio and video recording devices.
|
0024| B. All meetings of a quorum of members of any board,
|
0025| commission, administrative adjudicatory body or other policymaking
|
0001| body of any state agency, any agency or authority of any county,
|
0002| municipality, district or any political subdivision, held for the
|
0003| purpose of formulating public policy, including the development of
|
0004| personnel policy, rules, regulations or ordinances, discussing
|
0005| public business or for the purpose of taking any action within the
|
0006| authority of or the delegated authority of any board, commission
|
0007| or other policymaking body are declared to be public meetings open
|
0008| to the public at all times, except as otherwise provided in the
|
0009| constitution of New Mexico or the Open Meetings Act. No public
|
0010| meeting once convened that is otherwise required to be open
|
0011| pursuant to the Open Meetings Act shall be closed or dissolved
|
0012| into small groups or committees for the purpose of permitting the
|
0013| closing of the meeting.
|
0014| C. If otherwise allowed by law or rule of the public
|
0015| body, a member of a public body may participate in a meeting of
|
0016| the public body by means of a conference telephone or other
|
0017| similar communications equipment when it is otherwise difficult or
|
0018| impossible for the member to attend the meeting in person,
|
0019| provided that each member participating by conference telephone
|
0020| can be identified when speaking, all participants are able to hear
|
0021| each other at the same time and members of the public attending
|
0022| the meeting are able to hear any member of the public body who
|
0023| speaks during the meeting.
|
0024| D. Any meetings at which the discussion or adoption of
|
0025| any proposed resolution, rule, regulation or formal action occurs
|
0001| and at which a majority or quorum of the body is in attendance,
|
0002| and any closed meetings, shall be held only after reasonable
|
0003| notice to the public. The affected body shall determine at least
|
0004| annually in a public meeting what notice for a public meeting is
|
0005| reasonable when applied to that body. That notice shall include
|
0006| broadcast stations licensed by the federal communications
|
0007| commission and newspapers of general circulation that have
|
0008| provided a written request for such notice.
|
0009| E. A public body may recess and reconvene a meeting to a
|
0010| day subsequent to that stated in the meeting notice if, prior to
|
0011| recessing, the public body specifies the date, time and place for
|
0012| continuation of the meeting, and, immediately following the
|
0013| recessed meeting, posts notice of the date, time and place for the
|
0014| reconvened meeting on or near the door of the place where the
|
0015| original meeting was held and in at least one other location
|
0016| appropriate to provide public notice of the continuation of the
|
0017| meeting. Only matters appearing on the agenda of the original
|
0018| meeting may be discussed at the reconvened meeting.
|
0019| F. Meeting notices shall include an agenda containing a
|
0020| list of specific items of business to be discussed or transacted
|
0021| at the meeting or information on how the public may obtain a copy
|
0022| of such an agenda. Except in the case of an emergency, the agenda
|
0023| shall be available to the public at least twenty-four hours prior
|
0024| to the meeting. Except for emergency matters, a public body shall
|
0025| take action only on items appearing on the agenda. For purposes
|
0001| of this subsection, an "emergency" refers to unforeseen
|
0002| circumstances that, if not addressed immediately by the public
|
0003| body, will likely result in injury or damage to persons or
|
0004| property or substantial financial loss to the public body.
|
0005| G. The board, commission or other policymaking body
|
0006| shall keep written minutes of all its meetings. The minutes shall
|
0007| include at a minimum the date, time and place of the meeting, the
|
0008| names of members in attendance and those absent, the substance of
|
0009| the proposals considered and a record of any decisions and votes
|
0010| taken that show how each member voted. All minutes are open to
|
0011| public inspection. Draft minutes shall be prepared within ten
|
0012| working days after the meeting and shall be approved, amended or
|
0013| disapproved at the next meeting where a quorum is present.
|
0014| Minutes shall not become official until approved by the
|
0015| policymaking body.
|
0016| H. The provisions of Subsections A, B and G of this
|
0017| section do not apply to:
|
0018| (1) meetings pertaining to issuance, suspension,
|
0019| renewal or revocation of a license, except that a hearing at which
|
0020| evidence is offered or rebutted shall be open. All final actions
|
0021| on the issuance, suspension, renewal or revocation of a license
|
0022| shall be taken at an open meeting;
|
0023| (2) limited personnel matters; provided that for
|
0024| purposes of the Open Meetings Act, "limited personnel matters"
|
0025| means the discussion of hiring, promotion, demotion, dismissal,
|
0001| assignment or resignation of or the investigation or consideration
|
0002| of complaints or charges against any individual public employee;
|
0003| provided further that this subsection is not to be construed as to
|
0004| exempt final actions on personnel from being taken at open public
|
0005| meetings, nor does it preclude an aggrieved public employee from
|
0006| demanding a public hearing. Judicial candidates interviewed by
|
0007| any commission shall have the right to demand an open interview;
|
0008| (3) deliberations by a public body in connection
|
0009| with an administrative adjudicatory proceeding. For purposes of
|
0010| this paragraph, an "administrative adjudicatory proceeding" means
|
0011| a proceeding brought by or against a person before a public body
|
0012| in which individual legal rights, duties or privileges are
|
0013| required by law to be determined by the public body after an
|
0014| opportunity for a trial-type hearing. Except as otherwise
|
0015| provided in this section, the actual administrative adjudicatory
|
0016| proceeding at which evidence is offered or rebutted and any final
|
0017| action taken as a result of the proceeding shall occur in an open
|
0018| meeting;
|
0019| (4) the discussion of personally identifiable
|
0020| information about any individual student, unless the student, his
|
0021| parent or guardian requests otherwise;
|
0022| (5) meetings for the discussion of bargaining
|
0023| strategy preliminary to collective bargaining negotiations between
|
0024| the policymaking body and a bargaining unit representing the
|
0025| employees of that policymaking body and collective bargaining
|
0001| sessions at which the policymaking body and the representatives of
|
0002| the collective bargaining unit are present;
|
0003| (6) that portion of meetings at which a decision
|
0004| concerning purchases in an amount exceeding two thousand five
|
0005| hundred dollars ($2,500) that can be made only from one source and
|
0006| that portion of meetings at which the contents of competitive
|
0007| sealed proposals solicited pursuant to the Procurement Code are
|
0008| discussed during the contract negotiation process. The actual
|
0009| approval of purchase of the item or final action regarding the
|
0010| selection of a contractor shall be made in an open meeting;
|
0011| (7) meetings subject to the attorney-client
|
0012| privilege pertaining to threatened or pending litigation in which
|
0013| the public body is or may become a participant;
|
0014| (8) meetings for the discussion of the purchase,
|
0015| acquisition or disposal of real property or water rights by the
|
0016| public body; and
|
0017| (9) those portions of meetings of committees or
|
0018| boards of public hospitals [that receive less than fifty percent
|
of their operating budget from direct public funds and
|
appropriations] or county health commissions where strategic
|
0021| and long-range business plans are discussed. For purposes of this
|
0022| paragraph, "strategic and long-range business plans" includes all
|
0023| matters involving proprietary information the disclosure of which
|
0024| would be likely to impede the ability of the hospital to compete
|
0025| in the health care market; provided that discussion of possible
|
0001| sale of a public hospital or county health commission hospital or
|
0002| its assets to another entity is not within the exception provided
|
0003| by this paragraph.
|
0004| I. If any meeting is closed pursuant to the exclusions
|
0005| contained in Subsection H of this section, the closure:
|
0006| (1) if made in an open meeting, shall be approved
|
0007| by a majority vote of a quorum of the policymaking body; the
|
0008| authority for the closure and the subject to be discussed shall be
|
0009| stated with reasonable specificity in the motion calling for the
|
0010| vote on a closed meeting; the vote shall be taken in an open
|
0011| meeting; and the vote of each individual member shall be recorded
|
0012| in the minutes. Only those subjects announced or voted upon prior
|
0013| to closure by the policymaking body may be discussed in a closed
|
0014| meeting; and
|
0015| (2) if called for when the policymaking body is not
|
0016| in an open meeting, shall not be held until public notice,
|
0017| appropriate under the circumstances, stating the specific
|
0018| provision of the law authorizing the closed meeting and stating
|
0019| with reasonable specificity the subject to be discussed is given
|
0020| to the members and to the general public.
|
0021| J. Following completion of any closed meeting, the
|
0022| minutes of the open meeting that was closed or the minutes of the
|
0023| next open meeting if the closed meeting was separately scheduled
|
0024| shall state that the matters discussed in the closed meeting were
|
0025| limited only to those specified in the motion for closure or in
|
0001| the notice of the separate closed meeting. This statement shall
|
0002| be approved by the public body under Subsection G of this section
|
0003| as part of the minutes."
|
0004| Section 11. Section 13-1-98 NMSA 1978 (being Laws 1984,
|
0005| Chapter 65, Section 71, as amended) is amended to read:
|
0006| "13-1-98. EXEMPTIONS FROM THE PROCUREMENT CODE.--The
|
0007| provisions of the Procurement Code shall not apply to:
|
0008| A. procurement of items of tangible personal property or
|
0009| services by a state agency or a local public body from a state
|
0010| agency, a local public body or external procurement unit except as
|
0011| otherwise provided in Sections 13-1-135 through 13-1-137 NMSA
|
0012| 1978;
|
0013| B. procurement of tangible personal property or services
|
0014| for the governor's mansion and grounds;
|
0015| C. printing and duplicating contracts involving
|
0016| materials which are required to be filed in connection with
|
0017| proceedings before administrative agencies or state or federal
|
0018| courts;
|
0019| D. purchases of publicly provided or publicly regulated
|
0020| gas, electricity, water, sewer and refuse collection services;
|
0021| E. purchases of books and periodicals from the
|
0022| publishers or copyright holders thereof;
|
0023| F. travel or shipping by common carrier or by private
|
0024| conveyance or to meals and lodging;
|
0025| G. purchase of livestock at auction rings or to the
|
0001| procurement of animals to be used for research and experimentation
|
0002| or exhibit;
|
0003| H. contracts with businesses for public school
|
0004| transportation services;
|
0005| I. procurement of tangible personal property or
|
0006| services, as defined by Sections 13-l-87 and 13-l-93 NMSA 1978, by
|
0007| the corrections industries division of the corrections department
|
0008| pursuant to regulations adopted by the corrections [industries]
|
0009| commission, which shall be reviewed by the purchasing division of
|
0010| the general services department prior to adoption;
|
0011| J. minor purchases consisting of magazine subscriptions,
|
0012| conference registration fees and other similar purchases where
|
0013| prepayments are required;
|
0014| K. municipalities having adopted home rule charters and
|
0015| having enacted their own purchasing ordinances;
|
0016| L. the issuance, sale and delivery of public securities
|
0017| pursuant to the applicable authorizing statute, with the exception
|
0018| of bond attorneys and general financial consultants;
|
0019| M. contracts entered into by a local public body with a
|
0020| private independent contractor for the operation, or provision and
|
0021| operation, of a jail pursuant to Sections 33-3-26 and 33-3-27 NMSA
|
0022| 1978;
|
0023| N. contracts for maintenance of grounds and facilities
|
0024| at highway rest stops and other employment opportunities,
|
0025| excluding those intended for the direct care and support of
|
0001| persons with handicaps, entered into by state agencies with
|
0002| private, nonprofit, independent contractors who provide services
|
0003| to persons with handicaps;
|
0004| O. contracts and expenditures for services to be paid or
|
0005| compensated by money or other property transferred to New Mexico
|
0006| law enforcement agencies by the United States department of
|
0007| justice drug enforcement administration;
|
0008| P. contracts for retirement and other benefits pursuant
|
0009| to Sections 22-11-47 through 22-11-52 NMSA 1978; [and]
|
0010| Q. contracts with professional entertainers; and
|
0011| R. procurement of items of tangible personal property or
|
0012| services by a hospital owned and operated by a county health
|
0013| commission pursuant to purchasing regulations adopted by that
|
0014| commission."
|
0015| Section 12. Section 14-2-1 NMSA 1978 (being Laws 1947,
|
0016| Chapter 130, Section 1, as amended) is amended to read:
|
0017| "14-2-1. RIGHT TO INSPECT PUBLIC RECORDS--EXCEPTIONS.--Every
|
0018| person has a right to inspect any public records of this state
|
0019| except:
|
0020| A. records pertaining to physical or mental examinations
|
0021| and medical treatment of persons confined to any institution;
|
0022| B. letters of reference concerning employment, licensing
|
0023| or permits;
|
0024| C. letters or memorandums which are matters of opinion
|
0025| in personnel files or students' cumulative files;
|
0001| D. law enforcement records that reveal confidential
|
0002| sources, methods, information or individuals accused but not
|
0003| charged with a crime. Law enforcement records include evidence in
|
0004| any form received or compiled in connection with any criminal
|
0005| investigation or prosecution by any law enforcement or prosecuting
|
0006| agency, including inactive matters or closed investigations to the
|
0007| extent that they contain the information listed above;
|
0008| E. as provided by the Confidential Materials Act;
|
0009| [and]
|
0010| F. records of a county health commission or a county
|
0011| health commission hospital if the records include proprietary
|
0012| information, the disclosure of which would be likely to impede the
|
0013| ability of the hospital to compete in the health care market; and
|
0014| [F.] G. as otherwise provided by law."
|
0015| Section 13. EMERGENCY.--It is necessary for the public
|
0016| peace, health and safety that this act take effect immediately.
|
0017| State of New Mexico
|
0018| House of Representatives
|
0019|
|
0020| FORTY-THIRD LEGISLATURE
|
0021| FIRST SESSION, 1997
|
0022|
|
0023|
|
0024| March 15, 1997
|
0025|
|
0001|
|
0002| Mr. Speaker:
|
0003|
|
0004| Your VOTERS AND ELECTIONS COMMITTEE, to whom has
|
0005| been referred
|
0006|
|
0007| SENATE PUBLIC AFFAIRS COMMITTEE SUBSTITUTE FOR
|
0008| SENATE BILL 918
|
0009|
|
0010| has had it under consideration and reports same with
|
0011| recommendation that it DO PASS, amended as follows:
|
0012|
|
0013| 1. On page 1, line 11, after the second semicolon insert
|
0014| "ENACTING THE NONPROFIT HOSPITAL SALE ACT;".
|
0015|
|
0016| 2. On page 2, line 1, before "citizens" insert "sick and
|
0017| indigent".
|
0018|
|
0019| 3. On page 2, line 8, strike "fifty-five" and insert in lieu
|
0020| thereof "sixty".
|
0021|
|
0022| 4. On page 19, line 18, before "records" insert "those
|
0023| portions of".
|
0024|
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0025| 5. On page 19, line 19, strike "if the records" and insert in
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0001| lieu thereof "that".
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0002|
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0003| 6. On page 19, between lines 22 and 23, insert the following
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0004| new sections:
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0005|
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0006| "Section 13. [NEW MATERIAL] SHORT TITLE.--Sections 13
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0007| through 22 of this act may be cited as the "Nonprofit Hospital Sale
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0008| Act".
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0009|
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0010| Section 14. [NEW MATERIAL] DEFINITIONS.--As used in the
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0011| Nonprofit Hospital Sale Act:
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0012|
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0013| A. "acquire" or "acquisition" means the acquiring by a
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0014| person of an interest in a hospital, whether by purchase, merger,
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0015| lease, gift or otherwise, that results in a change of ownership or
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0016| control of twenty percent or greater or that results in the
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0017| acquiring person holding a fifty percent or greater interest in the
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0018| ownership or control of a hospital, but "acquisition" does not
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0019| include the acquiring of an interest in a hospital owned by a
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0020| nonprofit corporation if the transferee:
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0021|
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0022| (1) is a nonprofit corporation having a substantially
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0023| similar charitable health care purpose as the transferor; and
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0024|
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0025| (2) will continue representation from the affected
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0001| community on the local board;
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0002|
|
0003| B. "department" means the department of health;
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0004|
|
0005| C. "hospital" means a general or acute care or specialty
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0006| hospital licensed by the department;
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0007|
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0008| D. "nonprofit corporation" means a person exempt from
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0009| federal income tax pursuant to Section 501(c)(3) of the Internal
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0010| Revenue Code of 1986 or the state or a department, agency,
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0011| institution or political subdivision of the state; and
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0012|
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0013| E. "person" means an individual or other legal entity, not
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0014| including the state or a department, agency, institution or
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0015| political subdivision of the state.
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0016|
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0017| Section 15. [NEW MATERIAL] ACQUISITIONS--APPLICATIONS--
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0018| APPROVALS.--
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0019|
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0020| A. No person shall acquire a hospital owned by a nonprofit
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0021| corporation without first applying for and receiving the approval of
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0022| the department and without first notifying the attorney general and,
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0023| if applicable, receiving approval from the attorney general pursuant
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0024| to the Nonprofit Hospital Sale Act.
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0025|
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0001| B. Except as provided in Subsection C of this section, no
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0002| person shall acquire a hospital owned by a person other than a
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0003| nonprofit corporation without first applying for and receiving the
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0004| approval of the department pursuant to the Nonprofit Hospital Sale
|
0005| Act unless the acquiring person is a nonprofit corporation.
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0006|
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0007| C. Approval of the department and the attorney general is
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0008| not required for the acquisition of a hospital if the acquisition is
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0009| a result of:
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0010|
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0011| (1) the lease of a county hospital;
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0012|
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0013| (2) the dissolution of a hospital district; or
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0014|
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0015| (3) the merger of hospital districts or governmental
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0016| hospitals.
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0017|
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0018| D. The acquisition application shall be submitted to the
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0019| department and the attorney general on forms provided by the
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0020| department and shall include the name of the seller, the name of the
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0021| purchaser or other parties to the acquisition, the terms of the
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0022| proposed agreement, the sale price, a copy of the acquisition
|
0023| agreement, a financial and economic analysis and report from an
|
0024| independent expert or consultant of the effect of the acquisition
|
0025| based on the criteria set forth in Sections 7 and 8 of the Nonprofit
|
0001| Hospital Sale Act and all other related documents. A copy of the
|
0002| application and copies of all additional related materials shall be
|
0003| submitted to the department and to the attorney general at the same
|
0004| time. Applications and all related documents are public records.
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0005|
|
0006| E. A person not required to obtain approval for an
|
0007| acquisition shall notify the department and the attorney general at
|
0008| least thirty days before the acquisition. The notice shall briefly
|
0009| describe the impending acquisition, including any change in
|
0010| ownership of tangible and intangible assets.
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0011|
|
0012| Section 16. [NEW MATERIAL] APPLICATION--CONTENTS--TIME
|
0013| PERIODS--APPROVALS OR DISAPPROVALS.--
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0014|
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0015| A. Within ten days after receipt of an application, the
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0016| department shall publish notice of the application in a newspaper of
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0017| general circulation in the county where the hospital is located and
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0018| shall notify by mail any person who has requested notice of the
|
0019| filing of applications. The notice shall state that an application
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0020| has been received, state the names of the parties to the agreement,
|
0021| describe the contents of the application and state the date by which
|
0022| a person may submit written comments about the application to the
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0023| department.
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0024|
|
0025| B. Within twenty days after receiving an application, the
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0001| attorney general shall determine whether to review the application
|
0002| in accordance with Section 7 of the Nonprofit Hospital Sale Act and
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0003|
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0004|
|
0005| shall notify the applicant of his decision. If the attorney general
|
0006| reviews the application, he shall approve or disapprove the
|
0007| acquisition within sixty days.
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0008|
|
0009| C. Within sixty days after receiving an application, the
|
0010| department shall review the application in accordance with the
|
0011| standards set forth in the Nonprofit Hospital Sale Act and shall:
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0012|
|
0013| (1) approve the acquisition, with or without any
|
0014| specific modifications; or
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0015|
|
0016| (2) disapprove the acquisition.
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0017|
|
0018| D. If during its review the department determines that the
|
0019| application is incomplete, it may return the application to the
|
0020| applicant or may request additions or changes to the application.
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0021| All deadlines are suspended during the time an application is
|
0022| incomplete.
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0023|
|
0024| E. The department shall not make its decision subject to
|
0025| any condition not directly related to criteria enumerated in Section
|
0001| 8 of the Nonprofit Hospital Sale Act, and any condition or
|
0002| modification shall bear a direct and rational relationship to the
|
0003| application under review.
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0004|
|
0005| F. An affected person may appeal a final decision by the
|
0006| department pursuant to the Nonprofit Hospital Sale Act in the same
|
0007| manner as appeals related to the department's denial, suspension or
|
0008| revocation of a hospital license pursuant to Section 24-1-5 NMSA
|
0009| 1978.
|
0010|
|
0011| Section 17. [NEW MATERIAL] PUBLIC HEARING.--The department
|
0012| and the attorney general shall hold a public hearing in which any
|
0013| person may file written comments and exhibits or appear and make a
|
0014| statement. The department and the attorney general may subpoena
|
0015| additional information or witnesses, require and administer oaths,
|
0016| require sworn statements, take depositions and use related discovery
|
0017| procedures for purposes of the hearing and at any time prior to
|
0018| making a decision on the application. The hearing shall be held not
|
0019| later than forty days after receipt of an application. The hearing
|
0020| shall be held upon ten working days' notice, not including days the
|
0021| application is deemed incomplete.
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0022|
|
0023| Section 18. [NEW MATERIAL] DECLARATORY JUDGMENT.--After the
|
0024| attorney general approves or disapproves the acquisition, the
|
0025| applicant or any person who has submitted comments pursuant to
|
0001| Section 5 of the Nonprofit Hospital Sale Act, if the person has an
|
0002| interest in the hospital being acquired or in another hospital that
|
0003| has contracted with the acquirable hospital for the provision of
|
0004| essential health services, may bring an action for declaratory
|
0005| judgment for a determination that the acquisition is or is not in
|
0006| the public interest as provided in Section 7 of that act.
|
0007|
|
0008| Section 19. [NEW MATERIAL] ATTORNEY GENERAL--CRITERIA.--
|
0009|
|
0010| A. The attorney general shall approve the application
|
0011| unless he finds that the acquisition is not in the public interest.
|
0012| An acquisition is not in the public interest unless appropriate
|
0013| steps have been taken to safeguard the value of charitable assets
|
0014| and ensure that any proceeds of the transaction are used for
|
0015| appropriate charitable health care purposes as provided in Paragraph
|
0016| (8) of Subsection B of this section.
|
0017|
|
0018| B. In determining whether the acquisition meets the
|
0019| requirements of the Nonprofit Hospital Sale Act, the attorney
|
0020| general shall consider:
|
0021|
|
0022| (1) whether the acquisition is permitted by the
|
0023| Nonprofit Corporation Act and other laws of New Mexico governing
|
0024| public procurement or nonprofit entities;
|
0025|
|
0001| (2) whether the nonprofit hospital exercised due
|
0002| diligence in deciding to sell, selecting the purchaser and
|
0003| negotiating the terms and conditions of the sale;
|
0004|
|
0005| (3) the procedures used by the seller in making its
|
0006| decision, including whether appropriate expert assistance was used;
|
0007|
|
0008| (4) whether conflict of interest was disclosed,
|
0009| including conflicts of interest related to board members of,
|
0010| executives of and experts retained by the seller, purchaser or other
|
0011| parties to the acquisition;
|
0012|
|
0013| (5) whether the seller will receive reasonable
|
0014| consideration and fair value for its assets. The attorney general
|
0015| may employ, at the seller's expense, reasonably necessary expert
|
0016| assistance in making this determination;
|
0017|
|
0018| (6) whether public and charitable funds are placed at
|
0019| unreasonable risk, if the acquisition is financed in part by the
|
0020| seller;
|
0021|
|
0022| (7) whether any management contract under the
|
0023| acquisition is for reasonable consideration and fair value;
|
0024|
|
0025| (8) whether the sale proceeds will be used for
|
0001| appropriate public and charitable health care purposes consistent
|
0002| with the seller's original purpose or for the support and promotion
|
0003| of health care in the affected community and whether the proceeds
|
0004| will be controlled as public or charitable funds independent of the
|
0005| purchaser or parties to the acquisition; and
|
0006|
|
0007| (9) whether a right of first refusal has been
|
0008| retained to repurchase the assets by a successor nonprofit
|
0009| corporation or foundation if the hospital is subsequently sold to,
|
0010| acquired by or merged with another entity.
|
0011|
|
0012| Section 20. [NEW MATERIAL] DEPARTMENT CRITERIA.--
|
0013|
|
0014| A. In determining whether the acquisition meets the
|
0015| requirements of the Nonprofit Hospital Sale Act, the department
|
0016| shall consider:
|
0017|
|
0018| (1) whether sufficient safeguards are included to
|
0019| assure the affected community continued access to affordable and
|
0020| appropriate health care;
|
0021|
|
0022| (2) whether the purchaser and parties to the
|
0023| acquisition have made a commitment to provide health care to the
|
0024|
|
0025| disadvantaged, the uninsured and the underinsured and to provide
|
0001| benefits to the affected community to promote health care.
|
0002| Activities and funding provided by the seller to provide such health
|
0003| care may be considered in evaluating compliance with this paragraph;
|
0004| and
|
0005|
|
0006| (3) if health care providers will be offered the
|
0007| opportunity to invest or own an interest in the purchaser or an
|
0008| entity related to the purchaser, whether procedures or safeguards
|
0009| are in place to avoid conflict of interest in patient referral and
|
0010| the nature of the procedures or safeguards.
|
0011|
|
0012| B. This section does not apply higher standards to
|
0013| hospitals covered by the provisions of the Nonprofit Hospital Sale
|
0014| Act than those applicable to hospitals not covered by the provisions
|
0015| of that act.
|
0016|
|
0017| Section 21. [NEW MATERIAL] ACQUISITION--FAILURE TO FULFILL
|
0018| OBLIGATIONS--REVOCATION OF LICENSE.--If the department receives
|
0019| information indicating that the acquiring person is not fulfilling
|
0020| the commitment to the affected community pursuant to Section 7 of
|
0021| the Nonprofit Hospital Sale Act, the department shall hold a hearing
|
0022| on ten working days' notice to the affected parties. If after the
|
0023| hearing the department determines that the information is true, it
|
0024| may institute proceedings to revoke the license issued to the
|
0025| purchaser.
|
0001|
|
0002| Section 22. [NEW MATERIAL] LICENSURE--DENIAL, SUSPENSION OR
|
0003| REVOCATION.--
|
0004|
|
0005| A. No license to operate a hospital shall be issued or
|
0006| renewed by the department and a license that has been issued shall
|
0007| be suspended or revoked if:
|
0008|
|
0009| (1) there is an acquisition of a hospital without
|
0010| first having received the approval, if applicable, of the department
|
0011| pursuant to the Nonprofit Hospital Sale Act;
|
0012|
|
0013| (2) there is an acquisition of a hospital without the
|
0014| approval of the attorney general if the attorney general determines
|
0015|
|
0016| to review the application pursuant to the Nonprofit Hospital Sale
|
0017| Act;
|
0018|
|
0019| (3) there is an acquisition of a hospital and there
|
0020| is a judicial determination that the acquisition is not in the
|
0021| public interest; or
|
0022|
|
0023| (4) the hospital is not fulfilling its commitment
|
0024| pursuant to Section 8 of the Nonprofit Hospital Sale Act.
|
0025|
|
0001| B. Hearings and appeals of department actions pursuant to
|
0002| this section shall be taken in the same manner as provided for other
|
0003| hospital license suspensions or revocations in Section 24-1-5 NMSA
|
0004| 1978.".
|
0005|
|
0006| 7. Renumber the succeeding section accordingly.,
|
0007|
|
0008| Respectfully submitted,
|
0009|
|
0010|
|
0011|
|
0012|
|
0013| Edward C. Sandoval, Chairman
|
0014|
|
0015|
|
0016| Adopted Not Adopted
|
0017| (Chief Clerk) (Chief Clerk)
|
0018|
|
0019| Date
|
0020|
|
0021| The roll call vote was 9 For 0 Against
|
0022| Yes: 9
|
0023| Excused: Lujan, Nicely, Sanchez
|
0024| Absent: None
|
0025|
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0001|
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0002| .118867.2
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0003| G:\BILLTEXT\BILLW_97\S0918
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