FORTY-FIFTH LEGISLATURE

SECOND SESSION, 2002





February 7, 2002





Mr. Speaker:



Your GOVERNMENT AND URBAN AFFAIRS COMMITTEE, to whom has been referred



HOUSE BILL 262



has had it under consideration and reports same with recommendation that it DO PASS, amended as follows:



1. On page 1, lines 11 and 12, strike "PUBLIC SCHOOL INSURANCE AUTHORITY; EXEMPTING DENTAL CARE AND EYE CARE COVERAGE FROM GROUP HEALTH INSURANCE" and insert in lieu thereof "CONSOLIDATED PURCHASING OF HEALTH CARE BENEFITS; PROVIDING EXEMPTIONS FOR CERTAIN HEALTH CARE BENEFITS".



2. On page 1, between lines 15 and 16, insert the following two new sections:



"Section 1. Section 13-7-4 NMSA 1978 (being Laws 1997, Chapter 74, Section 4) is amended to read:



"13-7-4. MANDATORY CONSOLIDATED PURCHASING.--



A. The publicly funded health care agencies shall enter into a cooperative consolidated purchasing effort to provide plans of health care benefits for the benefit of eligible participants of the respective agencies. The request for proposal shall set forth one or more plans of health care benefits and shall include accommodation of fully funded arrangements as well as varying degrees of self-funded pool options.



B. A consolidated purchasing request for proposals for all health care benefits by the publicly funded health care agencies shall be issued on or before July 1, 1999 and any contracts for health care benefits renewed or issued on or after July 1, 2000 shall be the result of consolidated purchasing.



C. All requests for proposals issued as part of the consolidated purchasing shall include at least one distinct service area consisting of the Albuquerque metropolitan area. Proposals on a distinct service area shall be evaluated separately.



D. A school district within the public school insurance authority is exempt from mandatory participation in the consolidated purchasing for dental care and eye care benefits provided that the school district offers dental care and eye care benefits to its employees. The school district may enter into a joint powers agreement with a county, municipality, state educational institution or other political subdivision to obtain an insurance policy or self-insure for dental care and eye care."



Section 2. Section 13-7-5 NMSA 1978 (being Laws 2001, Chapter 351, Section 1) is amended to read:



"13-7-5. CONSOLIDATED PURCHASING FOR OTHER PERSONS.--



A. Counties, municipalities, state educational institutions and other political subdivisions that wish to use the consolidated purchasing single process for the procurement of health care benefits shall create or enter into an existing association, cooperative or other mutual alliance to create larger pools of eligible participants.



B. Counties, municipalities, state educational institutions and other political subdivisions that wish to use the consolidated purchasing single process shall, through their respective association, cooperative or mutual alliance, participate in the subsequent consolidated purchasing single process with the publicly funded health care agencies.



C. Counties, municipalities, state educational institutions and other political subdivisions that wish to use the consolidated purchasing single process are exempt from mandatory participation in the consolidated purchasing for dental care and eye care benefits. The county, municipality, state educational institution or other political subdivision may enter into a joint powers agreement with another political subdivision to obtain an insurance policy or self-insure for dental care and eye care benefits."".



3. Renumber the succeeding sections accordingly.,





and thence referred to the BUSINESS AND INDUSTRY COMMITTEE.



Respectfully submitted,







Mimi Stewart, Chairman





Adopted Not Adopted

(Chief Clerk) (Chief Clerk)



Date



The roll call vote was 4 For 1 Against

Yes: 4

No: Stewart

Excused: None

Absent: Hobbs, Wallace





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