HOUSE BILL 323

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

William "Bill" R. Rehm

AN ACT

RELATING TO TAXATION; REDUCING THE PROPERTY TAX LEVY FOR CLASS A COUNTY HOSPITAL FUNDING; PROVIDING FOR IMPOSITION OF A PROPERTY TAX BY A CLASS A COUNTY FOR TRANSFER TO THE SAFETY NET CARE POOL FUND.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. 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. 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] provided in this section.

          B. The county commissioners of a class A [counties as defined in Section 4-44-1 NMSA 1978, the] county may impose, and after January 1, 2017 may collect, a mill levy [shall] not to exceed a rate of [six dollars fifty cents ($6.50)] one dollar ($1.00), 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 ($1.50)] twenty-three cents ($.23), of the rate authorized by this [paragraph] subsection 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] twenty-three cents ($.23).

          C. The county commissioners of a county other than a class A county may impose a mill levy [shall] not to 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] subsection, on each one thousand dollars ($1,000) of net taxable value of property allocated to the county.

          [B.] D. 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.] E. In the event that the mill levy provided for in [Paragraph (1) of] Subsection [A] B 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] F of this section, in the event that the mill levy provided for in [Paragraph (1) of] Subsection [A] B 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 ($4.00)] sixty-one cents ($.61), 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.] F. A class A county imposing the mill levy provided for in [Paragraph (1) of] Subsection [A] B 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 ($1.50)] twenty-three cents ($.23) 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.] G. The distribution of the mill levy authorized at the rates specified in Subsection [A] B or C of this section shall be made to county and contracting hospitals as authorized in the Hospital Funding Act."

     SECTION 2. Section 4-48B-15 NMSA 1978 (being Laws 1953, Chapter 174, Section 2, as amended) is amended to read:

     "4-48B-15. ELECTION ON SPECIAL LEVY.--

          A. In the event the county commissioners of a county, other than a class A county, desire to provide the mill levy authorized in [Paragraph (2) of] Subsection [A] C of Section 4-48B-12 NMSA 1978, the county commissioners shall submit to the qualified electors of the county the question of levying those taxes not to exceed four dollars twenty-five cents ($4.25) on each one thousand dollars ($1,000) of net taxable value of property allocated to the county for a period of time not less than four years nor more than eight years.

          B. In the event the county commissioners of a class A county desire to provide the mill levy authorized in [Paragraph (1) of] Subsection [A] B of Section 4-48B-12 NMSA 1978, the county commissioners shall submit to the qualified electors of the county the question of levying those taxes not to exceed [six dollars fifty cents ($6.50)] one dollar ($1.00) on each one thousand dollars ($1,000) of net taxable value of property allocated to the county for a period of time of not less than four years nor more than eight years.

          C. The question may be submitted to the electors and voted upon as a separate question at any general election or at any special election called for that purpose by the county commissioners. The election upon the question of a mill levy shall be called, held, conducted and canvassed in substantially the same manner as now or hereafter may be provided by law for general elections.

          D. In the event the mill levy submitted under Subsection A or B of this section is voted upon favorably by the electors of the county, the mill levy shall become effective and be made for the ensuing fiscal year and those future years, not less than three nor more than seven, as stated in the question voted upon; provided that the question of continuing the mill levy shall thereafter be submitted to the electors at the general election immediately prior to the expiration of the period of assessment previously approved. The county commissioners shall decrease the rate of any mill levy imposed under the Hospital Funding Act if required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978. Subject to the provisions of Subsection [D] F of Section 4-48B-12 NMSA 1978, the county commissioners may direct that the mill levy be decreased or not be made for any year if, in their judgment, sufficient funds for operation and maintenance of the hospital and transfer to the county-supported medicaid fund, if applicable, are available or will be obtained from other sources and if, relative to a county hospital operated by a state educational institution named in Article 12, Section 11 of the constitution of New Mexico, a decision to decrease the mill levy is agreed to by the state educational institution.

          E. In the event that the mill levy approved by the electors is less than the maximum mill levy authorized for the county by Subsection [A] B or C of Section 4-48B-12 NMSA 1978 and the county commissioners desire to increase the amount of the approved mill levy, the county commissioners shall submit, in accordance with Subsection C of this section, to the qualified electors of the county the questions of levying those additional taxes for a period of time consistent with the expiration of the mill levy previously approved; provided that the additional taxes, when added to the mill levy previously approved, may not exceed the mill levy maximum for the county provided in Subsection [A] B or C of Section 4-48B-12 NMSA 1978. In the event that the mill levy increase is voted upon favorably by the electors of the county, the increase shall become effective for the years stated in the question voted upon. Nothing in this subsection shall be construed as requiring an election to restore the mill levy to an amount no higher than the mill levy approved by the electors after a reduction in the mill levy made pursuant to Subsection D of this section."

     SECTION 3. A new section of the Indigent Hospital and County Health Care Act is enacted to read:

     "[NEW MATERIAL] TAX LEVIES AUTHORIZATION.--

          A. A board of county commissioners of a class A county may adopt a resolution to submit to the qualified electors of the county the question of whether a property tax at a rate not to exceed the rate specified in the resolution should be imposed on or after January 1, 2017 upon the net taxable value of property allocated to the county under the Property Tax Code for the purpose of making transfers to the safety net care pool fund for payments to qualifying hospitals.

          B. The resolution shall specify the rate of the proposed tax, which shall not exceed one dollar ($1.00) on each one thousand dollars ($1,000) of net taxable value of property allocated to the county under the Property Tax Code and shall:

                (1) specify the date of the election at which the question of imposition of the tax to the qualified electors of the county shall be held, which may be a general election or a special election called for that purpose; and

                (2) limit the imposition of the proposed tax to no more than eight years.

          C. The question shall be voted upon as a separate question and shall be called, conducted and canvassed in substantially the same manner as provided by law for general elections. Upon certification, copies of the election shall be mailed immediately to the department of finance and administration and the taxation and revenue department.

          D. As used in this section, "class A county" means a county with a population of greater than six hundred seventy thousand according to the most recent federal decennial census and with a county hospital operated and maintained pursuant to a lease or operating agreement with a state educational institution named in Article 12, Section 11 of the constitution of New Mexico.

          E. If a county uses any portion, not to exceed twenty-three cents ($.23), of the rate authorized by this section to meet the requirements of Section 27-10-4 NMSA 1978, the provisions of Section 7-37-7.1 NMSA 1978 do not apply to the portion of the rate necessary to produce the revenues required, provided that the portion of the rate does not exceed twenty-three cents ($.23)."

     SECTION 4. Section 27-5-7 NMSA 1978 (being Laws 1965, Chapter 234, Section 7, as amended) is amended to read:

     "27-5-7. HEALTH CARE ASSISTANCE FUND.--

          A. There is created in the county treasury of each county a "health care assistance fund".

          B. Collections under the levy made pursuant to [the Indigent Hospital and County Health Care Act] Section 27-5-9 NMSA 1978 and all payments shall be placed into the fund, and the amount placed in the fund shall be budgeted and expended only for the purposes specified in the Indigent Hospital and County Health Care Act, by warrant upon vouchers approved by the county. Payments for indigent hospitalizations shall not be made from any other county fund.

          C. The fund shall be audited in the manner that other state and county funds are audited, and all records of payments and verified statements of qualification upon which payments were made from the fund shall be open to the public.

          D. Any balance remaining in the fund at the end of the fiscal year shall carry over into the ensuing year, and that balance shall be taken into consideration in the determination of the ensuing year's budget and certification of need for purposes of making a tax levy.

          E. Money may be transferred to the fund from other sources, but no transfers may be made from the fund for any purpose other than those specified in the Indigent Hospital and County Health Care Act."

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