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 a vailable 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 Stewart

ORIGINAL DATE

LAST UPDATED

1/31/2007

3/6/2007 HB 234/aSPAC

SHORT TITLE

Public Benefit Expiration Notices & Responses

SB

ANALYST Weber

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department (HSD)

SUMMARY

Synopsis of SPAC Amendment

Senate Public Affairs Committee Amendment to Senate Bill 234 makes several language

changes but does not change the substance of the bill. Item 10 eliminates the changes in Section

2 entirely. The Section 2 changes are apparently already covered in the new material added by

Section 1.

Synopsis of Original Bill

House Bill 234 creates a new section in the public assistance act. HB 234 states a recipient is

entitled to notice of expiration of Medicaid benefits when the recipient or the recipient's

guardian, custodian or other authorized representative files a request for notice of expiration of

benefits with the Human Services Department (HSD). The department shall respond to a request

for notice of expiration of benefits within five business days of receipt of the request made on a

form the department shall devise and make available to a recipient. The response shall be by

physical mail, electronic mail or facsimile or by data input into a department-authorized web site.

HB 234 amends the public assistance act, 27-2-7 NMSA 1978, with the inclusion of a new

subsection D. The new section states that when the department receives a request for notice of

House Bill 234/aSPAC – Page

2

expiration of benefits from a recipient, it shall provide such notice to the recipient and other

persons authorized by the recipient to receive notice within five days of the submission of the

request, informing the recipient or the recipient's designee of the current expiration date of

benefits.

FISCAL IMPLICATIONS

HSD Indicates there should be cost involved for the development and supply of request forms,

mailing costs, along with possible changes to the automated eligibility system (ISD2). The

change to the automated eligibility system (ISD2) would cost approximately $80,000.00. The

printing of two-ply manual expiration notices and two-ply requests for the expiration notice

would cost approximately $30,000 per fiscal year.

SIGNIFICANT ISSUES

The Human Services Department reports.

The intent of HB 234 is unclear as HSD is currently providing computer-generated expiration

notices to recipients of all department-administered programs, including the Medicaid and

General Assistance (GA) programs.

Currently, HSD provides recipients of all department -administered programs a notice of

expiration the month prior to the month of expiration, including Medicaid and GA.

HB 234 indicates that a recipient of Medicaid and GA is entitled to notice of expiration of

benefits when the recipient or the recipient’s guardian, custodian or other authorized

representative files a request for notice of expiration. While the department automatically issues

a notice of expiration of benefits the month prior to expiration of benefits, this bill would require

in statute that the department also provide a notice of expiration upon request. This is a

procedural process as written and could be developed through a regulatory process as the

department would continue to automatically provide this information to a recipient as is currently

done.

MW/nt