HOUSE BILL 27
49th legislature - STATE OF NEW MEXICO - first session, 2009
INTRODUCED BY
William "Bill" R. Rehm
AN ACT
RELATING TO TAXATION; IMPOSING A HEALTH CARE SURTAX ON GROSS RECEIPTS FOR DISTRIBUTION TO THE UNIVERSITY OF NEW MEXICO HOSPITALS PRIMARY CARE FUND FOR THE UNIVERSITY OF NEW MEXICO HOSPITALS; TERMINATING THE AUTHORITY OF A COUNTY THAT RECEIVES DISTRIBUTIONS OF THE HEALTH CARE SURTAX TO IMPOSE A PROPERTY TAX LEVY FOR COUNTY HOSPITAL FUNDING; CREATING A FUND; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Tax Administration Act is
enacted to read:
"[NEW MATERIAL] DISTRIBUTION--UNIVERSITY OF NEW MEXICO--HEALTH CARE SERVICES.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 of the net receipts attributable to the health care surtax shall be made as follows:
A. ninety-nine percent of the amount shall be distributed to the university of New Mexico hospitals primary care fund for the provision of health care services at the university of New Mexico hospitals; and
B. one percent of the amount shall be distributed to the Bernalillo county commission to oversee the expenditure of funds distributed to the board of regents of the university of New Mexico from the university of New Mexico hospitals primary care fund and to identify persons eligible for available health insurance plans and enroll them in available insurance plans."
Section 2. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:
"[NEW MATERIAL] GROSS RECEIPTS--HEALTH CARE SURTAX.--The gross receipts tax shall be increased by a surtax, hereby imposed. The surtax is equal to one-sixteenth of one percent of gross receipts. The surtax may be referred to as the "health care surtax". The department shall administer and enforce collection of the health care surtax pursuant to the provisions of the Tax Administration Act and the Gross Receipts and Compensating Tax Act in the same manner as the gross receipts tax."
Section 3. [NEW MATERIAL] UNIVERSITY OF NEW MEXICO HOSPITALS PRIMARY CARE FUND--CREATED--USE--APPROPRIATION BY THE LEGISLATURE.--
A. There is created in the state treasury the "university of New Mexico hospitals primary care fund". The fund shall be invested by the state treasurer as other state funds are invested. Income earned from investment of the fund shall be credited to the fund. The secretary of human services shall take all steps necessary to obtain matching funds from the federal government to match funds distributed to the fund. The human services department shall provide for budgeting and accounting of payments to the fund. The fund shall not revert in any fiscal year.
B. Money in the fund is subject to appropriation by the legislature to support primary health care and medicaid programs at the university of New Mexico hospitals.
C. In the event that federal matching funds for the fund are not received by New Mexico for any eighteen-month period, the unencumbered balance remaining in the fund at the end of the fiscal year following the end of that eighteen-month period shall be paid within a reasonable time to the board of regents of the university of New Mexico for the provision of health care services at the university of New Mexico hospitals.
Section 4. Section 4-48B-12 NMSA 1978 (being Laws 1981, Chapter 83, Section 12, as amended) is amended to read:
"4-48B-12. TAX LEVIES AUTHORIZED.--
A. Except as provided in Subsection F of this section, the county commissioners are authorized to impose a mill levy and collect annual assessments against the net taxable value of the property in a county to pay the cost of operating and maintaining county hospitals or to pay to contracting hospitals in accordance with a health care facilities contract and in class A counties to pay for the county's transfer to the county-supported medicaid fund pursuant to Section 27-10-4 NMSA 1978 as follows:
(1) in class A counties as defined in Section 4-44-1 NMSA 1978, the mill levy shall not exceed a rate of six dollars fifty cents ($6.50), or any lower maximum amount required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978 upon a mill levy imposed pursuant to this paragraph, on each one thousand dollars ($1,000) of net taxable value of property allocated to the county; however, if the county uses any portion, not to exceed one dollar fifty cents ($1.50), of the rate authorized by this paragraph to meet the requirement of Section 27-10-4 NMSA 1978, the provisions of Section 7-37-7.1 NMSA 1978 do not apply to the portion of the rate necessary to produce the revenues required, provided that the portion of the rate does not exceed one dollar fifty cents ($1.50); and
(2) in other counties, the mill levy shall not exceed four dollars twenty-five cents ($4.25), or any lower maximum amount required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978 upon a mill levy imposed pursuant to this paragraph, on each one thousand dollars ($1,000) of net taxable value of property allocated to the county.
B. The mill levies provided in Paragraphs (1) and (2) of Subsection A of this section shall be made at the direction of the county commissioners, but only to the extent that the county commissioners deem it necessary to operate and maintain county hospitals, to pay the amounts required in the performance of any health care facilities contracts made pursuant to the Hospital Funding Act and to provide for a class A county's transfer to the county-supported medicaid fund pursuant to Section 27-10-4 NMSA 1978.
C. In the event that the mill levy provided for in Paragraph (1) of Subsection A of this section is not authorized by the electorate or the resulting mill levy proceeds are not remitted to the entity operating the hospital within a reasonable time period, any lease for operation of the hospital between a county and a state educational institution named in Article 12, Section 11 of the constitution of New Mexico may, at the option of the state educational institution, be terminated immediately. Except as provided in Subsection D of this section, in the event that the mill levy provided for in Paragraph (1) of Subsection A of this section is authorized, an amount not less than the amount that would be produced by a mill levy at the rate of four dollars ($4.00), or any lower amount that would be required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978 upon this rate, on each one thousand dollars ($1,000) of net taxable value of property allocated to the county shall be provided from the proceeds of the mill levy to the state educational institution operating the hospital for hospital purposes unless the institution determines that the amount is not necessary.
D. A class A county imposing the mill levy provided for in Paragraph (1) of Subsection A of this section may enter into a mutual agreement with a state educational institution named in Article 12, Section 11 of the constitution of New Mexico operating the hospital permitting the transfer to the county-supported medicaid fund by the county pursuant to Section 27-10-4 NMSA 1978 of not to exceed the amount that would be produced by a mill levy at a rate of one dollar fifty cents ($1.50) applied to the net taxable value of property allocated to the county for the prior property tax year and also not to exceed the amount that would be produced by imposition of the county health care gross receipts tax.
E. The distribution of the mill levy authorized at the rates specified in Subsection A of this section shall be made to county and contracting hospitals as authorized in the Hospital Funding Act.
F. A mill levy authorized by this section shall not be imposed or take effect on or after January 1, 2010 in a class A county having a population of more than five hundred thousand persons according to the most recent federal decennial census that receives distributions of the health care surtax. A mill levy imposed and in effect prior to January 1, 2010 in such a county shall cease to have effect after December 31, 2009; provided, however, that amounts calculated as owed with respect to the 2009 property tax year shall remain in effect and be collected."
Section 5. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2010.
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