0001| AN ACT | 0002| RELATING TO HEALTH CARE; REVISING PROVISIONS AFFECTING COUNTY INDIGENT | 0003| FUNDS; MAKING APPROPRIATIONS. | 0004| | 0005| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0006| Section 1. Section 7-20E-9 NMSA 1978 (being Laws 1983, Chapter | 0007| 213, Section 30, as amended) is amended to read: | 0008| "7-20E-9. COUNTY GROSS RECEIPTS TAX--AUTHORITY TO IMPOSE RATE--INDIGENT FUND REQUIREMENTS.-- | 0009| A. The majority of the members of the governing body of any | 0010| county may enact an ordinance imposing an excise tax not to exceed a | 0011| rate of three-eighths of one percent of the gross receipts of any person | 0012| engaging in business in the county for the privilege of engaging in | 0013| business in the county. Any ordinance imposing an excise tax pursuant | 0014| to this section shall impose the tax in independent increments of one-eighth percent, which shall be separately denominated as "first one-eighth", "second one-eighth" and "third one-eighth", respectively, not | 0015| to exceed an aggregate amount of three-eighths percent. | 0016| B. This tax is to be referred to as the "county gross | 0017| receipts tax". | 0018| C. Any class A county with a county hospital operated and | 0019| maintained pursuant to a lease with a state educational institution | 0020| named in Article 12, Section 11 of the constitution of New Mexico | 0021| enacting the second or third one-eighth increment of county gross | 0022| receipts tax shall provide, each year that the tax is in effect, not | 0023| less than one million dollars ($1,000,000) in funds for each additional | 0024| increment of one-eighth percent enacted, and that amount shall be | 0025| dedicated to the support of indigent patients who are residents of that | 0001| county. Funds for indigent care shall be made available each month of | 0002| each year the tax is in effect in an amount not less than eighty-three | 0003| thousand three hundred thirty-three dollars thirty-three cents | 0004| ($83,333.33). The interest from the investment of county funds for | 0005| indigent care may be used for other assistance to indigent persons not | 0006| to exceed twenty thousand dollars ($20,000) for all other assistance in | 0007| any year. | 0008| D. Any county, except a class A county with a county | 0009| hospital operated and maintained pursuant to a lease with a state | 0010| educational institution named in Article 12, Section 11 of the | 0011| constitution of New Mexico, imposing the second one-eighth increment of | 0012| county gross receipts tax shall be required to dedicate the entire | 0013| amount of revenue produced by the imposition of the second one-eighth | 0014| increment for the support of indigent patients who are residents of that | 0015| county. Fifty percent of the revenue produced by the imposition of the | 0016| third one-eighth increment may be used for general purposes. The | 0017| requirements of this subsection shall apply regardless of the | 0018| combination or sequence of one-eighth increments enacted. Any county | 0019| that has imposed the second one-eighth increment or the third one-eighth | 0020| increment, or both, on January 1, 1996 for support of indigent patients | 0021| in the county or imposes one or both increments after January 1, 1996 | 0022| shall deposit the revenue from the second one-eighth increment, if | 0023| enacted and at least one-half of the third one-eighth increment, if | 0024| enacted in the county indigent hospital claims fund and such revenues | 0025| shall be expended pursuant to the Indigent Hospital and County Health | 0001| Care Act. | 0002| Section 2. Section 24-1A-3 NMSA 1978 (being Laws 1981, Chapter | 0003| 295, Section 3, as amended) is amended to read: | 0004| "24-1A-3. DEFINITIONS.--As used in the Rural Primary Health Care | 0005| Act: | 0006| A. "health care underserved areas" means a geographic area | 0007| in which it has been determined by the department of health, through | 0008| the use of indices and other standards set by the department, that | 0009| sufficient primary health care is not being provided to the citizens of | 0010| that area; | 0011| B. "eligible programs" means nonprofit community-based en- | 0012| tities that provide or commit to provide primary health care services | 0013| for residents of health care underserved areas and includes rural health | 0014| facilities and those serving primarily low-income populations; | 0015| C. "department" means the department of health; and | 0016| D. "primary health care" means the first level of basic or | 0017| general health care for an individual's health needs, including diag- | 0018| nostic and treatment services." | 0019| Section 3. Section 24-1A-3.1 NMSA 1978 (being Laws 1983, Chapter | 0020| 236, Section 3, as amended) is amended to read: | 0021| "24-1A-3.1. DEPARTMENT--TECHNICAL AND FINANCIAL ASSISTANCE.--To | 0022| the extent funds are made available for the purposes of the Rural | 0023| Primary Health Care Act, the department is authorized to: | 0024| A. provide for a program to recruit and retain health care | 0025| personnel in health care underserved areas; | 0001| B. develop plans for and coordinate the efforts of other | 0002| public and private entities assisting in the provision of primary health | 0003| care services through eligible programs; | 0004| C. provide for technical assistance to eligible programs in | 0005| the areas of administrative and financial management, clinical services, | 0006| outreach and planning; | 0007| D. provide for distribution of financial assistance to | 0008| eligible programs that have applied for and demonstrated a need for | 0009| assistance in order to sustain a minimum level of delivery of primary | 0010| health care services; and | 0011| E. provide a program for enabling the development of new | 0012| primary care health care services or facilities, and that program: | 0013| (1) shall give preference to communities that have few | 0014| or no community-based primary care services; | 0015| (2) may require in-kind support from local communities | 0016| where primary care health care services or facilities are established; | 0017| (3) may require primary care health care services or | 0018| facilities to assure provision of health care to the medically indigent; | 0019| and | 0020| (4) shall permit the implementation of innovative and | 0021| creative uses of local or statewide health care resources, or both, | 0022| other than those listed in Paragraphs (2) and (3) of this subsection." | 0023| Section 4. Section 27-5-7 NMSA 1978 (being Laws 1965, Chapter | 0024| 234, Section 7, as amended) is amended to read: | 0025| "27-5-7. COUNTY INDIGENT HOSPITAL CLAIMS FUND.-- | 0001| A. There is created in the county treasury of each county a | 0002| "county indigent hospital claims fund". | 0003| B. Collections under the levy made pursuant to the Indigent | 0004| Hospital and County Health Care Act and all payments shall be placed | 0005| into the fund, and the amount placed in the fund shall be budgeted and | 0006| expended only for the purposes specified in the Indigent Hospital and | 0007| County Health Care Act, by warrant upon vouchers approved by a majority | 0008| of the board and signed by the chairman of the board. Payments for | 0009| indigent hospitalizations shall not be made from any other county fund. | 0010| C. The fund shall be audited in the manner that other state | 0011| and county funds are audited, and all records of payments and verified | 0012| statements of qualification upon which payments were made from the fund | 0013| shall be open to the public. | 0014| D. Any balance remaining in the fund at the end of the | 0015| fiscal year pursuant to Subsection F of this section shall carry over | 0016| into the ensuing year, and that balance shall be taken into | 0017| consideration in the determination of the ensuing year's budget and | 0018| certification of need for purposes of making a tax levy. | 0019| E. Money may be transferred to the fund from other sources, | 0020| but no transfers may be made from the fund for any purpose other than | 0021| those specified in the Indigent Hospital and County Health Care Act. | 0022| F. On June 30 of each fiscal year, beginning in 1998, the | 0023| board shall transfer to the county-supported medicaid fund that amount | 0024| of the balance in the county indigent hospital claims fund that exceeds | 0025| two hundred thousand dollars ($200,000) or that exceeds the amount equal | 0001| to thirty percent of the income to the fund during that fiscal year, | 0002| whichever is greater. Beginning in 1998, the transfer shall be made by | 0003| September 1 of each fiscal year. Any amount transferred to the county-supported medicaid fund pursuant to this subsection is in addition to | 0004| the county's obligation pursuant to Section 27-10-4 NMSA 1978." | 0005| Section 5. Section 27-10-2 NMSA 1978 (being Laws 1991, Chapter | 0006| 212, Section 2, as amended) is amended to read: | 0007| "27-10-2. FINDINGS AND PURPOSE.-- | 0008| A. Access to health care reduces long-term medical and | 0009| social costs. The effectiveness of statewide health care has been | 0010| decreased by excessive fragmentation and failure to maximize the use of | 0011| existing in-state revenues and to develop effective ways of drawing upon | 0012| potential federal revenue sources. An effective statewide health care | 0013| system must retain local health care efforts, stimulate local | 0014| innovations for meeting particular health care needs and use existing | 0015| resources to expand health care options, especially for those citizens | 0016| unable to pay for their own care. | 0017| B. The purpose of the county-supported medicaid fund is to | 0018| leverage existing resources to better address the state's health care | 0019| needs. The county-supported medicaid fund will be used to accomplish | 0020| this purpose by using local revenues to support the state medicaid | 0021| program and to institute or support primary care health care services | 0022| pursuant to Section 24-1A-3.1 NMSA 1978. Money appropriated from the | 0023| county-supported medicaid fund to institute or support primary care | 0024| health care services pursuant to Section 24-1A-3.1 NMSA 1978 shall be | 0025| supplemental to general fund appropriations." | 0001| Section 6. Section 27-10-3 NMSA 1978 (being Laws 1991, Chapter | 0002| 212, Section 3, as amended) is amended to read: | 0003| "27-10-3. COUNTY-SUPPORTED MEDICAID FUND CREATED--USE-- | 0004| APPROPRIATION BY THE LEGISLATURE.-- | 0005| A. There is created in the state treasury the "county-supported medicaid fund". The fund shall be invested by the state | 0006| treasurer as other state funds are invested. Income earned from | 0007| investment of the fund shall be credited to the county-supported | 0008| medicaid fund. The fund shall not revert in any fiscal year. | 0009| B. Money in the county-supported medicaid fund is subject to | 0010| appropriation by the legislature to support the state medicaid program | 0011| and to institute or support primary care health care services pursuant | 0012| to Subsections D and E of Section 24-1A-3.1 NMSA 1978. Of the amount | 0013| appropriated each year, nine percent shall be appropriated to the | 0014| department of health to institute or support primary care health care | 0015| services pursuant to Subsections D and E of Section | 0016| 24-1A-3.1 NMSA 1978. | 0017| C. Up to three percent of the county-supported medicaid fund | 0018| each year may be expended for administrative costs related to medicaid | 0019| or developing new primary care health care centers or facilities. | 0020| D. In the event federal funds for medicaid are not received | 0021| by New Mexico for any eighteen-month period, the unencumbered balance | 0022| remaining in the county-supported medicaid fund and the sole community | 0023| provider fund at the end of the fiscal year following the end of any | 0024| eighteen-month period shall be paid within a reasonable time to each | 0025| county for deposit in the county indigent hospital claims fund in | 0001| proportion to the payments made by each county through tax revenues or | 0002| transfers in the previous fiscal year as certified by the local | 0003| government division of the department of finance and administration. | 0004| The department will provide for budgeting and accounting of payments to | 0005| the fund." | 0006| | 0007| HB | 0008| 298 | 0009| Page  |