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Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

F I S C A L    I M P A C T    R E P O R T

 

 

 

SPONSOR

Gonzales

DATE TYPED

2-5-04

HB

229

 

SHORT TITLE

Continuing Care Recipients Gross Receipts

SB

 

 

 

ANALYST

Neel

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

 

 

 

 

(110.0)

Increasing

Recurring

General Fund

 

(70.0)

Increasing

Recurring

Local Governments

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

LFC Files

 

Responses Received From

Taxation and Revenue Department (TRD)

Health Policy Commission (HPC)

 

SUMMARY

 

Synopsis of Bill

 

House bill 229 amends statute to provide a gross receipts tax deduction for receipts of facilities that provide continuing care in accordance with the Continuing Care Act (Chapter 24, Article 17 NMSA 1978).  This bill also provides clarifying amendments that include:

 

·        Under Section 24-17-3 C., the definition of  “continuing care” is expanded to specifically state that entrance, service or periodic fees are a requirement of services provided under a continuing care service contract and that the definition of entrance fees should not include security or damage deposit fees amounting to less than three month’s service or periodic fees.

 

·        Under  Section 24-17-4 A., requirements for a consumer’s guide to be provided as part of disclosure requirements are amended to read “furnished by” rather than “prepared by” the State Agency on Aging or the Attorney General’s Office. In addition, a section on advertising, legislating that the advertising of close physical proximity of health services implies a service obligation, is struck from current law.

 

·        Under  Section 24-17-4 B., requirements for fiscal disclosure are amended to allow the use of a financial statement and audit report prepared within the last two years, instead of one year, and to include the addition of a previous year’s IRS tax filing.

 

·        Under  Section 24-17-5 B(12), the existing requirements for notice and justification of fee increases would be clarified by the requirement that rules be promulgated by the State Agency on Aging no later than January 31, 2005.

 

·        Under  Section 24-17-6, escrow requirements would be amended to allow release of deposited funds to the provider upon receipt of the signed continuing care contract in addition to the current release upon notification to the trustee that the resident has occupied the contracted unit.

 

·        Under  Section 24-17-8, HB229 would  revise the mandatory responsibility of the State Agency on Aging or the Attorney General’s office for the publication and distribution of consumer information to a voluntary status by striking the term “shall” for replacement with the term “may.” This consumer information includes a Consumer’s Guide to Continuing Care Communities and an Annual Directory of Continuing Care Communities in New Mexico

 

Significant Issues

 

FISCAL IMPLICATIONS

 

TRD notes that according to the New Mexico Aging and Long Term Care Department there are currently only a small number of facilities providing continuing care in accordance with the Continuing Care Act.  Further, most of these facilities are 501(c)(3) non-profit organizations that do not pay GRT.  Hence, the taxable base affected by this proposal appears to be quite limited.

 

 

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