HOUSE BILL 99
49th legislature - STATE OF NEW MEXICO - second session, 2010
INTRODUCED BY
Jose A. Campos
FOR THE LEGISLATIVE HEALTH AND HUMAN SERVICES COMMITTEE
AN ACT
RELATING TO EMERGENCY SERVICES; AMENDING SECTIONS OF THE EMERGENCY MEDICAL SERVICES FUND ACT; AMENDING SECTIONS OF THE TRAUMA SYSTEM FUND AUTHORITY ACT; AMENDING SECTIONS OF CHAPTER 59A, ARTICLE 6 NMSA 1978; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 24-10A-3 NMSA 1978 (being Laws 1978, Chapter 178, Section 3, as amended by Laws 2001, Chapter 258, Section 3 and by Laws 2001, Chapter 273, Section 3) is amended to read:
"24-10A-3. EMERGENCY MEDICAL SERVICES FUND CREATED--FUNDING.--
A. The "emergency medical services fund" is created in the state treasury. Money in the fund shall not revert at the end of any fiscal year. Money appropriated to the fund or accruing to it through distributions from the emergency services insurance premium surtax imposed pursuant to Subsection D of Section 59A-6-2 NMSA 1978 as well as any other gifts, grants, fees or bequests shall be deposited in the fund. Interest earned on investment of the fund shall be credited to the general fund. Money in the fund is appropriated to the department, and disbursements from the fund shall be made upon warrants drawn by the secretary of finance and administration pursuant to vouchers signed by the secretary of health or [his] the secretary's authorized representative.
B. The bureau shall administer the fund and provide for the distribution of the fund pursuant to the Emergency Medical Services Fund Act and rules adopted pursuant to the provisions of that act.
C. In any fiscal year, no less than [seventy-five] sixty-one percent of the money in the fund shall be used for the local emergency medical services funding program to support the cost of supplies and equipment and operational costs other than salaries and benefits for emergency medical services personnel. This money shall be distributed to municipalities and counties on behalf of eligible local recipients, using a formula established pursuant to rules adopted by the department. The formula shall determine each municipality's and county's share of the fund based on the relative geographic size and population of each county. The formula shall also base the distribution of money for each municipality and county on the relative number of runs of each local recipient eligible to participate in the distribution.
D. In any fiscal year, no more than:
(1) [twenty-two] eighteen percent of the fund may be used for emergency medical services system improvement projects, including the purchase of emergency medical services vehicles, local and statewide emergency medical services system support projects [the statewide trauma care system program] and the emergency medical dispatch agency support program; [and]
(2) [three] four percent of the fund may be used by the bureau [and emergency medical services regional offices] for administrative costs, including monitoring and providing technical assistance and data collection program implementation; and
(3) seventeen percent of the fund shall be used to contract with nonprofit emergency medical services offices to fund the operational costs associated with regional planning and development, technical assistance and support and coordination of emergency medical services in their respective geographic regions, unless the department shows good cause for not contracting for these services.
E. In any fiscal year, money in the fund that is not distributed pursuant to the provisions of Subsection D of this section may be distributed pursuant to the provisions of Subsection C of this section."
Section 2. Section 24-10E-6 NMSA 1978 (being Laws 2006, Chapter 13, Section 6) is amended to read:
"24-10E-6. TRAUMA SYSTEM FUND CREATED--FUNDING.--
A. The "trauma system fund" is created in the state treasury. The fund shall consist of distributions from the emergency services insurance premium surtax imposed pursuant to Subsection D of Section 59A-6-2 NMSA 1978 as well as any other money appropriated and transferred to the fund, money received by the authority from any public or private source and tax revenues distributed to the fund by law. Interest earned on investment of the fund shall be credited to the fund. Disbursements from the fund shall be made upon warrants drawn by the secretary of finance and administration pursuant to vouchers signed by the secretary of health or the secretary's authorized representative. Money in the fund shall not revert at the end of any fiscal year.
B. Money in the fund is appropriated to the department for the purpose of making distributions approved by the authority and for administering the Trauma System Fund Authority Act; provided that no more than [five] eleven percent of the fund may be used by the department for administrative costs, including monitoring, trauma system development and providing technical assistance, and for the operation of the trauma registry data system and injury prevention programs."
Section 3. Section 59A-6-2 NMSA 1978 (being Laws 1984, Chapter 127, Section 102, as amended) is amended to read:
"59A-6-2. PREMIUM TAX--HEALTH INSURANCE PREMIUM SURTAX.--
A. The premium tax provided for in this section shall apply as to the following taxpayers:
(1) each insurer authorized to transact insurance in New Mexico;
(2) each insurer formerly authorized to transact insurance in New Mexico and receiving premiums on policies remaining in force in New Mexico, except that this provision shall not apply as to an insurer that withdrew from New Mexico prior to March 26, 1955;
(3) each plan operating under provisions of Chapter 59A, Articles 46 through 49 NMSA 1978;
(4) each property bondsman, as that person is defined in Section 59A-51-2 NMSA 1978, as to any consideration received as security or surety for a bail bond in connection with a judicial proceeding, which consideration shall be considered "gross premiums" for the purposes of this section; and
(5) each unauthorized insurer that has assumed a contract or policy of insurance directly or indirectly from an authorized or formerly authorized insurer and is receiving premiums on such policies remaining in force in New Mexico, except that this provision shall not apply if a ceding insurer continues to pay the tax provided in this section as to such policy or contract.
B. Each such taxpayer shall pay in accordance with this subsection a premium tax of three and three-thousandths percent of the gross premiums and membership and policy fees received or written by it, as reported in Schedule T and supporting schedules of its annual financial statement on insurance or contracts covering risks within this state during the preceding calendar year, less all return premiums, including dividends paid or credited to policyholders or contract holders and premiums received for reinsurance on New Mexico risks.
C. In addition to the premium tax imposed pursuant to Subsection B of this section, each taxpayer described in Subsection A of this section that transacts health insurance in New Mexico or is a plan described in Chapter 59A, Article 46 or 47 NMSA 1978 shall pay a health insurance premium surtax of one percent of the gross health insurance premiums and membership and policy fees received by it on hospital and medical expense incurred insurance or contracts; nonprofit health care service plan contracts, excluding dental or vision only contracts; and health maintenance organization subscriber contracts covering health risks within this state during the preceding calendar year, less all return health insurance premiums, including dividends paid or credited to policyholders or contract holders and health insurance premiums received for reinsurance on New Mexico risks. Except as provided in this section, all references in the Insurance Code to the premium tax shall include both the premium tax and the health insurance premium surtax.
D. In addition to the premium tax imposed pursuant to Subsection B of this section, each taxpayer described in Subsection A of this section that transacts property or vehicle insurance in New Mexico or offers insurance as described in Section 59A-7-4 or 59A-7-7 NMSA 1978 shall pay an emergency services insurance premium surtax on the gross insurance premiums and membership and policy fees received by it on homeowners' insurance, as "homeowners' insurance" is defined by the superintendent, and vehicle insurance within the state during the preceding calendar year, less all return homeowners' and vehicle insurance premiums, including dividends paid or credited to policyholders and homeowners' and vehicle insurance premiums received for reinsurance on New Mexico risks. Except as provided in this section, all references in the Insurance Code to the premium tax shall include both the premium tax and the emergency services insurance premium surtax. The emergency services insurance premium surtax shall consist of:
(1) eight hundred eighty-five thousandths percent of all the gross insurance premiums and membership and policy fees received during the preceding calendar year, beginning July 1, 2010;
(2) one and one hundred thirty-five thousandths percent of all the gross insurance premiums and membership and policy fees received during the preceding calendar year, beginning July 1, 2013;
(3) one and three hundred eighty-five thousandths percent of all the gross insurance premiums and membership and policy fees received during the preceding calendar year, beginning July 1, 2016;
(4) one and six hundred thirty-five thousandths percent of all the gross insurance premiums and membership and policy fees received during the preceding calendar year, beginning July 1, 2019;
(5) one and eight hundred eighty-five thousandths percent of all the gross insurance premiums and membership and policy fees received during the preceding calendar year, beginning July 1, 2022;
(6) two and one hundred thirty-five thousandths percent of all the gross insurance premiums and membership and policy fees received during the preceding calendar year, beginning July 1, 2025;
(7) two and three hundred eighty-five thousandths percent of all the gross insurance premiums and membership and policy fees received during the preceding calendar year, beginning July 1, 2028;
(8) two and six hundred thirty-five thousandths percent of all the gross insurance premiums and membership and policy fees received during the preceding calendar year, beginning July 1, 2031; and
(9) two and eight hundred eighty-five thousandths percent of all the gross insurance premiums and membership and policy fees received during the preceding calendar year, beginning July 1, 2034.
[D.] E. For each calendar quarter, an estimated payment of the premium tax and the health insurance premium surtax shall be made on April 15, July 15, October 15 and the following January 15. The estimated payments shall be equal to at least one-fourth of either the payment made during the previous calendar year or eighty percent of the actual payment due for the current calendar year, whichever is greater. The final adjustment for payments due for the prior year shall be made with the return, which shall be filed on April 15 of each year, at which time all taxes for that year are due. Dividends paid or credited to policyholders or contract holders and refunds, savings, savings coupons and similar returns or credits applied or credited to payment of premiums for existing, new or additional insurance shall, in the amount so used, constitute premiums subject to tax under this section for the year in which so applied or credited.
[E.] F. Exempted from the taxes imposed by this section are:
(1) premiums attributable to insurance or contracts purchased by the state or a political subdivision for the state's or political subdivision's active or retired employees; and
(2) payments received by a health maintenance organization from the federal secretary of health and human services pursuant to a contract issued under the provisions of 42 U.S.C. Section 1395 mm(g)."
Section 4. [NEW MATERIAL] EMERGENCY SERVICES INSURANCE PREMIUM SURTAX REVENUES--DISTRIBUTION.--Distribution of revenues from the emergency services insurance premium surtax imposed pursuant to Subsection D of Section 59A-6-2 NMSA 1978 shall be made as follows:
A. fifty-one and one-half percent of the revenues shall be made to the emergency medical services fund; and
B. forty-eight and one-half percent of the revenues shall be made to the trauma system fund.
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