0001| SENATE BILL 445
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0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003| 1996
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0004| INTRODUCED BY
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0005| MANNY M. ARAGON
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0007|
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0008|
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0009|
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0010|
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0011| AN ACT
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0012| RELATING TO INDIGENT HEALTH CARE REVENUES; INCREASING AMOUNTS
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0013| THAT COUNTIES ARE REQUIRED TO DEDICATE TO THE COUNTY-SUPPORTED
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0014| MEDICAID FUND; PROVIDING FOR CERTAIN HOSPITAL PAYMENTS FROM THE
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0015| COUNTY-SUPPORTED MEDICAID FUND; AMENDING SECTIONS OF THE NMSA
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0016| 1978.
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0017|
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0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019| Section 1. Section 27-5-6 NMSA 1978 (being Laws 1965,
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0020| Chapter 234, Section 6, as amended) is amended to read:
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0021| "27-5-6. POWERS AND DUTIES OF THE BOARD.--The board:
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0022| A. shall administer claims pursuant to the
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0023| provisions of the Indigent Hospital and County Health Care Act;
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0024| B. shall prepare and submit a budget to the board of
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0025| county commissioners for the amount needed to defray claims made
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0001| upon the fund and to pay costs of administration of the Indigent
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0002| Hospital and County Health Care Act, which costs of
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0003| administration shall in no event exceed the following
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0004| percentages of revenues based on the previous fiscal year
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0005| revenues for a fund that has existed for at least one fiscal
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0006| year or based on projected revenues for the year being budgeted
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0007| for a fund that has existed for less than one fiscal year. The
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0008| percentage of the revenues in the fund that may be used for
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0009| administrative costs is equal to the sum of the following:
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0010| (1) ten percent of the amount in the fund not
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0011| over five hundred thousand dollars ($500,000);
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0012| (2) eight percent of the amount in the fund
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0013| over five hundred thousand dollars ($500,000) but not over one
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0014| million dollars ($1,000,000); and
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0015| (3) four and one-half percent of the amount in
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0016| the fund over one million dollars ($1,000,000);
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0017| C. shall make rules and regulations necessary to
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0018| carry out the provisions of the Indigent Hospital and County
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0019| Health Care Act; provided that the standards for eligibility and
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0020| allowable costs for county indigent patients shall be no more
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0021| restrictive than the standards for eligibility and allowable
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0022| costs prior to December 31, 1992;
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0023| D. shall set criteria and cost limitations for
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0024| medical care in licensed out-of-state hospitals, ambulance
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0025| services or health care providers;
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0001| E. shall cooperate with appropriate state agencies
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0002| to use available funds efficiently and to make health care more
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0003| available;
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0004| F. shall cooperate with the department in making any
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0005| investigation to determine the validity of claims made upon the
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0006| fund for any indigent patient;
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0007| G. may accept contributions or other county
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0008| revenues, which shall be deposited in the fund;
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0009| H. may hire personnel to carry out the provisions of
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0010| the Indigent Hospital and County Health Care Act;
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0011| I. shall review all claims presented by a hospital,
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0012| ambulance service or health care provider to determine
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0013| compliance with the rules and regulations adopted by the board
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0014| or with the provisions of the Indigent Hospital and County
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0015| Health Care Act, determine whether the patient for whom the
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0016| claim is made is an indigent patient and determine the allowable
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0017| medical or ambulance service costs; provided that the burden of
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0018| proof of any claim shall be upon the hospital, ambulance service
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0019| or health care provider;
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0020| J. shall state in writing the reason for rejecting
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0021| or disapproving any claim and shall notify the submitting
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0022| hospital, ambulance service or health care provider of the
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0023| decision;
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0024| K. shall pay all claims that are not matched with
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0025| federal funds under the state medicaid program and that have
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0001| been approved by the board from the fund;
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0002| L. shall determine by county ordinance the types of
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0003| health care providers that will be eligible to submit claims
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0004| under the Indigent Hospital and County Health Care Act; and
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0005| [M. shall review, verify and approve all medicaid
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0006| sole community provider hospital payment requests in accordance
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0007| with rules and regulations adopted by the board prior to their
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0008| submittal by the hospital to the department for payment but no
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0009| later than January 1 of each year;
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0010| N. shall transfer to the state treasurer by the last
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0011| day of March, June, September and December of each year an
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0012| amount equal to one-fourth of the county's payment for support
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0013| of sole community provider payments as calculated by the
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0014| department for that county for the current fiscal year. This
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0015| money shall be deposited in the sole community provider fund;
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0016| and
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0017| O.] M. may provide for the transfer of money from
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0018| the county indigent hospital claims fund to the county-supported
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0019| medicaid fund to meet the requirements of the Statewide Health
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0020| Care Act."
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0021| Section 2. Section 27-5-6.1 NMSA 1978 (being Laws 1993,
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0022| Chapter 321, Section 18) is amended to read:
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0023| "27-5-6.1. SOLE COMMUNITY PROVIDER FUND CREATED.-- A. The "sole community provider fund" is created in
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0024| the state treasury. The sole community provider fund, which
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0025| shall be administered by the [human services] department,
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0001| shall consist of funds [provided by counties] transferred
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0002| from the county-supported medicaid fund to match federal funds
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0003| for medicaid sole community provider hospital payments. Money
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0004| in the sole community provider fund shall be invested by the
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0005| state treasurer as other state funds are invested. Any
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0006| unexpended or unencumbered balance remaining in the fund at the
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0007| end of any fiscal year shall not revert.
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0008| B. Money in the sole community provider fund is
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0009| appropriated to the [human services] department to make sole
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0010| community provider hospital payments pursuant to the state
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0011| medicaid program. No sole community provider hospital payments
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0012| or money in the sole community provider fund shall be used to
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0013| supplant any general fund support for the state medicaid
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0014| program.
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0015| C. Money in the sole community provider fund shall
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0016| [be remitted back to the individual counties from which it
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0017| came] revert to the county-supported medicaid fund if federal
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0018| medicaid matching funds are not received for medicaid sole
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0019| community provider hospital payments."
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0020| Section 3. Section 27-5-7 NMSA 1978 (being Laws 1965,
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0021| Chapter 234, Section 7, as amended) is amended to read:
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0022| "27-5-7. COUNTY INDIGENT HOSPITAL CLAIMS FUND.--
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0023| A. There is created in the county treasury of each
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0024| county a "county indigent hospital claims fund".
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0025| B. Collections under the levy made pursuant to the
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0001| Indigent Hospital and County Health Care Act and all payments
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0002| shall be placed into the fund, and the amount placed in the fund
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0003| shall be budgeted and expended only for the purposes specified
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0004| in the Indigent Hospital and County Health Care Act, by warrant
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0005| upon vouchers approved by a majority of the board and signed by
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0006| the chairman of the board. Payments for indigent
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0007| hospitalizations shall not be made from any other county fund.
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0008| C. The fund shall be audited in the manner that
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0009| other state and county funds are audited, and all records of
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0010| payments and verified statements of qualification upon which
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0011| payments were made from the fund shall be open to the public.
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0012| D. Any balance remaining in the fund at the end of
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0013| the fiscal year, [pursuant to Subsections F and G] except as
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0014| otherwise provided in Subsection F of this section, shall carry
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0015| over into the ensuing year, and that balance shall be taken into
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0016| consideration in the determination of the ensuing year's budget
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0017| and certification of need for purposes of making a tax levy.
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0018| E. Money may be transferred to the fund from other
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0019| sources, but no transfers may be made from the fund for any
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0020| purpose other than those specified in the Indigent Hospital and
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0021| County Health Care Act.
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0022| F. On [June 30 of each fiscal year, beginning in
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0023| 1996] September 30, 1996 and on each September 30 thereafter,
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0024| the board shall [tranfer] transfer to the county-supported
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0025| medicaid fund that amount of the balance in the county indigent
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0001| hospital claims fund on the preceding June 30 that exceeds two
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0002| hundred thousand dollars ($200,000) or that exceeds the amount
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0003| equal to thirty percent of the income to the fund during
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0004| [that] the preceding fiscal year, whichever is greater.
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0005| [Beginning in 1996, the transfer shall be made by September 1
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0006| of each fiscal year.] Any amount transferred to the county-supported medicaid fund pursuant to this subsection is in
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0007| addition to the county's obligation pursuant to Section 27-10-4
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0008| NMSA 1978."
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0009| Section 4. Section 27-5-7.1 NMSA 1978 (being Laws 1993,
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0010| Chapter 321, Section 16) is amended to read:
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0011| "27-5-7.1. COUNTY INDIGENT HOSPITAL CLAIMS FUND--AUTHORIZED USES OF THE FUND.--
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0012| A. The fund shall be used
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0013| [(1) to meet the county's contribution for
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0014| support of sole community provider payments as calculated by the
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0015| department for that county; and
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0016| (2)] to pay all claims that have been approved by
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0017| the board that are not matched with federal funds under the
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0018| state medicaid program.
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0019| B. The fund may be used to meet the county's
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0020| obligation under Section 27-10-4 NMSA 1978.
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0021| C. Until June 30, 1996, the cash reserves from the
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0022| fund may be used to meet the county's obligation under Section
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0023| 27-10-4 NMSA 1978."
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0024| Section 5. Section 27-10-3 NMSA 1978 (being Laws 1991,
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0025| Chapter 212, Section 3, as amended) is amended to read:
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0001| "27-10-3. COUNTY-SUPPORTED MEDICAID FUND CREATED--USE--
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0002| APPROPRIATION BY THE LEGISLATURE.--
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0003| A. There is created in the state treasury the
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0004| "county-supported medicaid fund". The fund shall be invested by
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0005| the state treasurer as other state funds are invested. Income
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0006| earned from investment of the fund shall be credited to the
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0007| county-supported medicaid fund. The fund shall not revert in
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0008| any fiscal year.
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0009| B. Money in the county-supported medicaid fund is
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0010| subject to appropriation by the legislature to support the state
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0011| medicaid program, [and] to institute primary care health care
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0012| services pursuant to Subsection E of Section 24-1A-3.1 NMSA 1978
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0013| [Of the amount appropriated each year, nine percent] and make
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0014| distributions to hospitals that provide a disproportionate share
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0015| of care to indigent patients or that are sole community
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0016| providers. After setting aside fifteen percent of the total
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0017| amount transferred annually by counties to the county-supported
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0018| medicaid fund, nine percent of the remaining amount available
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0019| for appropriation each year shall be appropriated to the
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0020| department of health to institute primary care health care
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0021| services pursuant to Subsection E of Section 24-1A-3.1 NMSA
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0022| 1978.
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0023| C. Fifteen percent of the total amount transferred
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0024| annually by counties to the county-supported medicaid fund shall
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0025| be distributed in quarterly payments to hospitals that provide a
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0001| disproportionate share of care to indigent patients or that are
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0002| sole community provider hospitals as that term is defined in the
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0003| Indigent Hospital and County Health Care Act. The New Mexico
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0004| health policy commission, in consultation with the department of
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0005| health and the human services department, shall adopt
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0006| regulations by September 15, 1996 providing for distribution of
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0007| the funds. The distribution formula shall give priority to
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0008| maintaining the sole community provider payments pursuant to the
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0009| state medicaid program so long as federal funds are available to
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0010| match. Any amount to be used for sole community provider
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0011| payments shall be transferred to the sole community provider
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0012| fund.
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0013| [C.] D. Up to [three] one percent of the
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0014| county-supported medicaid fund each year may be expended for
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0015| administrative costs related to medicaid or developing new
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0016| primary care health care centers or facilities.
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0017| [D.] E. In the event federal funds for medicaid
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0018| are not received by New Mexico for any eighteen-month period,
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0019| the unencumbered balance remaining in the county-supported
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0020| medicaid fund and the sole community provider fund at the end of
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0021| the fiscal year following the end of any eighteen-month period
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0022| shall be paid within a reasonable time to each county for
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0023| deposit in the county indigent hospital claims fund in
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0024| proportion to the payments made by each county through tax
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0025| revenues or transfers in the previous fiscal year as certified
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0001| by the local government division of the department of finance
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0002| and administration. The department will provide for budgeting
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0003| and accounting of payments to the fund."
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0004| Section 6. Section 27-10-4 NMSA 1978 (being Laws 1991,
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0005| Chapter 212, Section 4, as amended) is amended to read:
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0006| "27-10-4. ALTERNATIVE REVENUE SOURCE TO IMPOSITION OF
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0007| COUNTY HEALTH CARE GROSS RECEIPTS TAX--TRANSFER TO COUNTY-SUPPORTED MEDICAID FUND.--
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0008| [A. In the event a county does not enact an
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0009| ordinance imposing a county health care gross receipts tax
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0010| pursuant to Section 7-20D-3 NMSA 1978, the county shall, by
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0011| ordinance to be effective July 1, 1993, dedicate to the county-supported medicaid fund an amount equal to a gross receipts tax
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0012| rate of one-sixteenth of one percent applied to the taxable
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0013| gross receipts reported during the prior fiscal year by persons
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0014| engaging in business in the county. For purposes of this
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0015| subsection, a county may use funds from any existing authorized
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0016| revenue source of the county.]
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0017| A. Beginning July 1, 1996, each county by ordinance
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0018| shall dedicate to the county-supported medicaid fund, from any
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0019| existing authorized revenue source of the county, an amount
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0020| equal to a gross receipts tax rate of:
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0021| (1) three-sixteenths of one percent applied to
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0022| the taxable gross receipts reported during the prior fiscal year
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0023| by persons engaging in business in the county, if the county
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0024| does not enact an ordinance imposing a county health care gross
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0025| receipts tax pursuant to Section 7-20E-18 NMSA 1978 to be
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0001| effective for that year; or
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0002| (2) one-eighth of one percent applied to the
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0003| taxable gross receipts reported during the prior fiscal year by
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0004| persons engaging in business in the county, if the county has
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0005| enacted an ordinance imposing a county health care gross
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0006| receipts tax pursuant to Section 7-20E-18 NMSA 1978 to be
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0007| effective for that year.
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0008| B. For each county that has in effect an ordinance
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0009| enacted pursuant to Subsection A of this section on July 1 of
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0010| each year, the taxation and revenue department shall certify to
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0011| the county by September 15, 1993 and by September 15 of each
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0012| subsequent fiscal year the amount of gross receipts reported for
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0013| the county for purposes of the gross receipts tax during the
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0014| prior fiscal year. Upon certification by the department, any
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0015| county enacting an ordinance pursuant to Subsection A of this
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0016| section shall transfer to the county-supported medicaid fund by
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0017| the last day of March, June, September and December of each year
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0018| an amount equal to a rate of [one-sixty-fourth] three sixty-fourths of one percent applied to the certified amount if the
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0019| county is subject to the requirement under Paragraph (1) of
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0020| Subsection A of this section or an amount equal to a rate of one
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0021| thirty-second of one percent applied to the certified amount if
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0022| the county is subject to the requirement under Paragraph (2) of
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0023| Subsection A of this section.
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0024| C. The requirements of an ordinance enacted pursuant
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0025| to this section may not be terminated [for a county only on
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0001| the effective date of an ordinance enacted by the county
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0002| imposing the county health care gross receipts tax; provided
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0003| that if the effective date of the ordinance imposing the tax is
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0004| January 1, the termination does not apply to the payments
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0005| required for September and December of that year]."
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0006| Section 7. EFFECTIVE DATE.--The effective date of the
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0007| provisions of this act is July 1, 1996.
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0008|
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0009|
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0010|
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0011| FORTY-SECOND LEGISLATURE
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0012| SECOND SESSION, 1996
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0013|
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0014|
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0015| JANUARY 30, 1996
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0016|
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0017| Mr. President:
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0018|
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0019| Your COMMITTEES' COMMITTEE, to whom has been referred
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0020|
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0021| SENATE BILL 445
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0022|
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0023| has had it under consideration and finds same to be GERMANE, PURSUANT
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0024| TO CONSTITUTIONAL PROVISIONS, and thence referred to the FINANCE
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0025| COMMITTEE.
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0001|
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0002| Respectfully submitted,
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0003|
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0004|
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0005|
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0006|
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0007| __________________________________
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0008| SENATOR MANNY M. ARAGON, Chairman
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0009|
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0010|
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0011|
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0012| Adopted_______________________ Not Adopted_______________________
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0013| (Chief Clerk) (Chief Clerk)
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0014|
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0015|
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0016| Date ________________________
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0017|
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0018|
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0019|
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0020| S0445CC1
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