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.

FISCAL  IMPACT REPORT

SPONSOR	Aragon		DATE TYPED	2-12-2003		HB
SHORT TITLE		Health Facility Daily Bed Surcharge				SB	385/aSPAC
					ANALYST		Taylor

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY04	FY05
	22,500.0	22,500.0	Recurring	General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates  HB 395

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Response Received From

Human Services Department

SUMMARY

Synopsis of SPAC Amendment

The Senate Public Affairs Committee amendment deletes the bill’s original daily bed surcharge rate language and substitutes new language imposing a “daily bed surcharge” on licensed nursing home, licensed intermediate care facilities for the mentally retarded, and licensed residential treatment centers. By June 1 each year, the Human Services Department determines the rate for the following year and notifies the Taxation and Revenue Department as well as all affected facilities.  The rate must be uniform to the degree that federal regulations allow, and should be structured so that the total revenue raised is equal to 6 percent of prior year revenues.

FISCAL IMPLICATIONS

The Human Services Department estimates that an average surcharge rate of 6 percent per facility equates to a per occupied bed per day rate of $8.82, and the surcharge will increase revenues by about $22.5 million. The estimate is based on the following calculation: $8.82 multiplied by 6,986 beds by 365 days. 

Synopsis of Original Bill

Senate Bill 385 imposes a “daily bed surcharge” on licensed nursing home, licensed intermediate care facilities for the mentally retarded, and licensed residential treatment centers.  The surcharge may not exceed either 6 percent of total annual gross receipts, or $8.82 per day per occupied bed.  The Tax Administration Act is amended to include the daily bed surcharge. The surcharge is paid monthly and remitted to the Taxation and Revenue Department.  Receipts from the daily bed surcharge are distributed to the general fund and earmarked for the medicaid program.

The bill also requires HSD to study the feasibility of applying for a federal waiver exempting medicare and private care beds from the daily bed surcharge.

The bill has an effective date of July 1, 2004.  It also carries a delayed repeal of June 30, 2007.

ADMINISTRATIVE IMPLICATIONS

This bill adds the daily bed surcharge to the set of taxes administered by the Taxation and Revenue Department.  It may have an administrative impact on the department, but the department has not submitted an FIR at this time.

SUBSTANTIVE ISSUE

The bill earmarks the additional revenue for the Medicaid program.  It should be noted, however, that both the revenue and proposed spending form part of the general fund.

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