Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

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 also 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

Sandoval

DATE TYPED

1/30/04

HB

249

 

SHORT TITLE

Behavioral Health Capital Funding Act

SB

 

 

 

ANALYST

Kehoe

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

 

 

See Narrative

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

 

 

SOURCES OF INFORMATION

 

LFC Files

New Mexico Finance Authority (NMFA)

 

SUMMARY

 

Synopsis of Bill

 

House Bill 249 proposes enacting a Behavioral Health Capital Funding Act and creating a loan program for funding capital projects for nonprofit behavioral health facilities with NMFA.

 

Significant Issues

 

The purpose of the Behavioral Health Capital Funding Act is to increase behavioral health care services to sick and indigent patients.  The revolving loan program, administered by NMFA, would provide financial assistance to nonprofit behavioral health facilities that have assets totaling less than $10 million, is a 501(c) (3) nonprofit corporation for federal income tax purposes and that serves primarily sick and indigent persons.  The type of projects eligible for funding includes repair, renovation or construction of behavioral health facilities, including the purchase of land or acquisition of capital equipment of a long-term nature.

 

 

 

 

 

House Bill 249 requires the Department of Health (DOH) and NMFA to jointly adopt rules, procedures, an evaluation process, and other functions necessary to implement the provisions of the Act.  However, NMFA would be responsible for all financial aspects of the program, and DOH is responsible for defining sick and medically indigent persons, establishing priorities for loans, determining the appropriateness of a capital project, evaluating the capability of an applicant to provide behavioral health services, select recipients of loans and determine compliance of the capital projects with all state and federal licensing and procurement requirements.

 

The bill specifies that if an eligible entity that has received a loan for a capital project ceases to maintain its nonprofit status or ceases to deliver behavioral health services at the site of the capital project for 12 consecutive months, the state may pursue remedies in the loan agreement provided by the law.

 

DOH and NMFA are required to provide an annual report of the activities of the behavioral health capital funding program to the governor and the legislature by December 1 of each year.

 

FISCAL IMPLICATIONS

 

The loan program shall consist of appropriations, loan repayments, gifts, grants, donations and interest earned on investment of the fund.  Money in the fund shall not revert at the end of a fiscal year.

 

ADMINISTRATIVE IMPLICATIONS

 

The bill states that no administrative costs incurred by NMFA or DOH may be paid from the fund.  NMFA estimates the annual costs of administration will total approximately $50 thousand.

 

DUPLICATION

 

This bill duplicates Senate Bill 248 in its entirety.

 

LMK/dm