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

SPONSOR Martinez

ORIGINAL DATE

LAST UPDATED

2/1/06

HB HJR 10

SHORT TITLE Health Care Coverage Trust Fund, CA

SB

ANALYST Lewis

APPROPRIATION (dollars in thousands)

Appropriation

FY06

FY07

Recurring

or Non-Rec

Fund

Affected

NFI*

(Parenthesis ( ) Indicate Expenditure Decreases)

*See narrative.

Companion to HB 610 (Health Coverage Trust Fund Implementation).

Relates to HB 481/SB 280 (Health Coverage for New Mexicans Committee).

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Health (DOH)

Secretary of State (SOS)

SUMMARY

Synopsis of Bill

House Joint Resolution 10

proposes to amend Article 16 of the Constitution of New Mexico by

adding a new section creating the health care coverage trust fund in the State Treasury.

The fund shall consist of money appropriated, donated or otherwise accrued to the fund. Money

in the fund shall be invested by the State Investment Officer as land grant permanent funds are

invested. Earnings from investment of the fund shall be credited to the fund. Money in the fund

shall not revert or be expended for any purpose, but an annual distribution shall be made pursu-

ant to law.

Contingent upon the enactment of a bill that transfers $100 million dollars to the health care cov-

erage trust fund, the amendment proposed by this resolution shall be submitted to the people for

their approval or rejection at the next general election or at any special election prior to that date

that may be called for that purpose.

House Joint Resolution 10 – Page

2

FISCAL IMPLICATIONS

The companion bill to HJR 10, HB 610,

with emergency clause, creates the Blue Ribbon Health

Care Coverage Task Force and transfers $100 million from the general fund to the health care

coverage trust fund (contingent upon approval of the constitutional amendment creating the

fund), with the specification that money in the fund shall only be used to make an annual appro-

priation, in fiscal year 2009 and each fiscal year thereafter, based on recommendations of the

task force, for any health care coverage or insurance program for the prevention, diagnosis and

treatment of disease, illness or injury.

Analysis by the Secretary of State (SOS) does not provide any estimate of the cost involved in

putting the constitutional amendment on the ballot for the 2006 general election, or of any related

costs.

SIGNIFICANT ISSUES

According to the Health Policy Commission (HPC),

New Mexico has the second highest rate of

uninsured in the nation, with 21 percent of the population or nearly 400,000 uninsured. HPC’s

most recent Employer Survey has confirmed that small businesses in particular do not offer

health insurance largely because of the high cost. Also noted was the increasing cost of health

insurance and the possibility that more employers would drop or reduce health benefits because

of affordability.

The Department of Health (DOH) notes that HB 610’s one-time transfer of $100 million from

the general fund to the new health care coverage trust fund would convert a current year revenue

surplus into long-term use.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

The health care coverage trust fund would not be created, and $100 million would not be appro-

priated to the fund by HB 610. However, the Blue Ribbon Health Care Coverage Task Force

could still be established, without funding, by HB 610.

ML/yr