SB 423 — NMFA OPERATING CAPITAL

(5) determining interest rates and other e t 17 financial aspects of a loan and relevant terms of a contract w l n d 18 for services;

and = = 19 a l (6) performing other duties in accordance with i a e r 20 the provisions of the Behavioral Health Capital Funding Act, a t m m 21 rules promulgated pursuant to that act or joint powers d r e 22 agreements entered into with the department.

c e s k 23 D.

The department is responsible for the following e a n b 24 duties:

u [ (1) defining sick and medically indigent .224810.4SA - 6 - persons for purposes of the Behavioral Health Capital Funding Act;

(3) determining the appropriateness of a [capital] project;

(5) selecting recipients of loans and SB 423 Page 6 persons with whom to contract for services;

and (6) determining that [capital] projects comply with all state and federal licensing [and procurement] requirements.

(1) by the department that the project will e t 17 provide behavioral health services to sick and indigent persons w l n d 18 as [defined] determined by the department;

and = = 19 a l (2) by the authority that there is adequate i a e r 20 protection, including loan guarantees, real property liens, a t m m 21 title insurance, security interests in or pledges of accounts d r e 22 and other assets, loan covenants and warranties or restrictions c e s k 23 or other encumbrances and pledges for the state funds extended e a n b 24 for the loan." u [ SECTION 5.

Section 6-26-7 NMSA 1978 (being Laws 2004, .224810.4SA - 7 - Chapter 71, Section 7) is amended to read:

ELIGIBLE ENTITY--CHANGE IN STATUS.--If an eligible entity that has received a loan or contract for services for a [capital] project ceases to maintain its nonprofit status or ceases to deliver behavioral health services at the site of the [capital] project for twelve consecutive months, the [state] authority may pursue the remedies provided in the loan agreement or contract for services or as provided by law." SECTION 6.

Section 24-1C-3 NMSA 1978 (being Laws 1994, SB 423 Page 7 Chapter 62, Section 9, as amended) is amended to read:

"capital project" means acquisition, repair, e t 17 renovation or construction of a facility;

w l n d 18 acquisition of capital equipment of a long-term nature;

or = = 19 a l acquisition of capital equipment to be used in the delivery of i a e r 20 primary care, telehealth or hospice services;

a t m m 21 C.

d r e 22 D.

c e s k 23 (1) a community-based nonprofit primary care e a n b 24 clinic or hospice that operates in a rural or other health care u [ underserved area of the state, that is a 501(c)(3) nonprofit .224810.4SA - 8 - corporation for federal income tax purposes and that is eligible for funding pursuant to the Rural Primary Health Care Act;

(3) a primary care clinic that operates in a rural or other health care underserved area of the state, that is owned by a county or municipality and that meets SB 423 Page 8 department requirements for eligibility;

[and] F.

"operating capital" means funds needed to meet e t 17 short-term obligations, such as accounts payable, wages, debt w l n d 18 servicing, lease and income tax payments;

= = 19 a l [F.] G.

"primary care" means the first level of i a e r 20 basic or general health care for an individual's health needs, a t m m 21 including diagnostic and treatment services and including d r e 22 services delivered at a primary care clinic, a telehealth site c e s k 23 or a school-based health center;

"primary care" includes the e a n b 24 provision of mental health services if those services are u [ integrated into the eligible entity's service array;

and .224810.4SA - 9 - H.

The "primary care capital fund" is created as a revolving fund in the [state treasury] authority.

A separate account shall be maintained for appropriations, loan SB 423 Page 9 repayments, gifts, grants, donations and interest earned on investment of the account for loans to school-based health centers and telehealth sites.

e t 17 The authority may recover from the fund the actual costs of w l n d 18 administering the fund and originating loansloans." [upSECTION to8. an amount = = 19 a l equal to ten percent of original loan amounts.

MoneySection in24-1C-5 theNMSA i1978 a(being eLaws r1994, 20Chapter fund62, shallSection be11) expendedis onlyamended on warrants drawn by the secretary a t m m 21 of finance and administration pursuant to vouchersread: signed by d r e 22 the chief executive officer of the authority or the chief c e s k 23 executive officer's authorized representative]." e a n b 24 SECTION 8.

Section"24-1C-5. 24-1C-5 NMSA 1978 (being Laws 1994, u [ Chapter 62, Section 11) is amended to read:

.224810.4SARULES.--The -authority 10shall -adopt "24-1C-5.rules to administer and implement the provisions of the Primary Care Capital Funding Act, including providing for:

[REGULATIONS]A. RULES.--[A.

Prior to September 15, 1994, the department, in conjunction with] The authority shall adopt [regulations] rules to administer and implement the provisions of the Primary Care Capital Funding Act, including providing for:

[(1)] A.

[(2)] B.

procedures and forms for applying for loans or contracts for services for [capital] projects;

[(3)] C.

documentation required to be provided by the applicant to justify the need for the [capital] project;

[(4)] D.

[(5)] E.

procedures for review, evaluation and e t 17 approval of loans and contracts for services, including the wSB l423 nPage d10 18 programmatic, organizational and financial information = = 19 a l necessary to review, evaluate and approve an application;

i a e r 20 [(6)] F.

evaluation of the ability and competence a t m m 21 of an applicant to provide efficiently and adequately for the d r e 22 completion of a proposed [capital] project;

c e s k 23 [(7)] G.

approval of loan and contract for services e a n b 24 applications, including provisions that accord priority u [ attention to areas with the greatest need for primary care .224810.4SA - 11 - services;

[(8)] H.

and [(9)I. requirements for repayment of loans, including payment schedules, interest rates, loan terms and other requirements;

(10)such ensuringother therequirements state'sdeemed interestnecessary inby anythe capitaldepartment projectto byensure that the filingstate ofreceives athe lienprimary equalcare toservices for which the totallegislature ofappropriates money and that protect the state's financialinterest participation in thea project;project." SECTION 9.

andSection (11)]24-1C-6 I.NMSA 1978 (being Laws 1994, Chapter 62, Section 12, as amended) is amended to read:

such"24-1C-6. other requirements deemed necessary by the department to ensure that the state receives the primary care services for which the legislature appropriates money and that [protects] protect the state's interest in a [capital] project.

[B.DEPARTMENT--AUTHORITY--POWERS AND DUTIES.-- A.

RegulationsThe adopteddepartment byand the departmentauthority shall becomeadminister effectivethe whenloan filedprograms inand accordancecontracts withfor theservices provisionsestablished epursuant tto 17the provisions of the StatePrimary RulesCare Act.]"Capital wFunding lAct. n d 18 SECTION 9.

Section 24-1C-6 NMSA 1978 (being Laws 1994, = = 19 a l Chapter 62, Section 12, as amended) is amended to read:

i a e r 20 "24-1C-6.

DEPARTMENT--AUTHORITY--POWERS AND DUTIES.-- a t m m 21 A.

The department and the authority shall d r e 22 administer the loan programs and contracts for services c e s k 23 established pursuant to the provisions of the Primary Care e a n b 24 Capital Funding Act.

u [ (1) enter into joint powers agreements with .224810.4SA - 12 - each other or other appropriate public agencies to carry out the provisions of that act;

and SB 423 Page 11 (2) apply to any appropriate federal, state or local governmental agency or private organization for grants and gifts to carry out the provisions of that act or to fund allied community-based health care programs.

(1) make and enter into contracts and agreements necessary to carry out their powers and duties pursuant to the provisions of the Primary Care Capital Funding e t 17 Act;

and w l n d 18 (2) do all things necessary or appropriate to = = 19 a l carry out the provisions of the Primary Care Capital Funding i a e r 20 Act.

a t m m 21 D.

The authority is responsible for all financial d r e 22 duties of the programs, including:

c e s k 23 (1) administering the fund;

e a n b 24 (2) accounting for all money received, u [ controlled or disbursed for capital projects in accordance with .224810.4SA - 13 - the provisions of the Primary Care Capital Funding Act;

SB 423 Page 12 (3) evaluating and approving loans and contracts for services, including determining financial capacity of an eligible entity;

[and] (6) ensuring the authority's interest in any project by the filing of a lien equal to the total of the authority's financial participation in the project;

and [(6)] (7) performing other duties in accordance with the provisions of the Primary Care Capital e t 17 Funding Act, [regulations] rules promulgated pursuant to that w l n d 18 act or joint powers agreements entered into with the = = 19 a l department.

i a e r 20 E.

The department is responsible for the following a t m m 21 duties:

d r e 22 (1) defining sick and medically indigent c e s k 23 persons for purposes of the Primary Care Capital Funding Act;

e a n b 24 (2) establishing priorities for loans and u [ contracts for services;

.224810.4SA - 14 - (3) determining the appropriateness of the [capital] project;

SB 423 Page 13 (4) evaluating the capability of an applicant to provide and maintain primary care or hospice services;

(6) determining that capital projects comply with all state and federal licensinglicensing; [and procurement requirements];

The authority may make a loan to an eligible entity to acquire, construct, renovate or otherwise improve a capital project or to fund operating capital, provided there is e t 17 a finding:

w l n d 18 (1) by the department that the project will = = 19 a l provide primary care services to sick and medically indigent i a e r 20 persons as defined by the department;

and a t m m 21 (2) by the authority that there is adequate d r e 22 protection, including loan guarantees, real property liens, c e s k 23 title insurance, security interests in or pledges of accounts e a n b 24 and other assets, loan covenants and warranties or restrictions u [ on other encumbrances and pledges for the state funds extended .224810.4SA - 15 - for the loan.

The authority may make a loan to a school-school-based basedSB 423 Page 14 health center that operates in a [public] school district or to a telehealth site for a capital project;

ELIGIBLE ENTITY--CHANGE IN STATUS.--If an eligible entity that has received a loan or contract for services for a capital project ceases to maintain its nonprofit status or ceases to deliver primary care services at the site of the capital project for twelve consecutive months, the [state] authority may pursue the remedies provided in the loan agreement or contract for services or as e t 17 provided by law." w l n d 18 SECTION 11.

Section 24-24-3 NMSA 1978 (being Laws 2003, = = 19 a l Chapter 316, Section 3) is amended to read:

i a e r 20 "24-24-3.

DEFINITIONS.--As used in the Child Care a t m m 21 Facility Loan Act:

d r e 22 A.

"department" means the [children, youth and c e s k 23 families] early childhood education and care department;

e a n b 24 B.

"facility" means a child care facility u [ operated by a provider, including both family home-based and .224810.4SA - 16 - center-based programs, licensed by the department to provide care to infants, toddlers and children;

[and]SB 423 Page 15 D.

and [D.] E.

The "child care facility revolving loan fund" is created in the New Mexico finance authority to provide low-interest, long-term loans to providers to make health and e t 17 safety improvements in their facilities and for operating w l n d 18 capital.

The fund shall consist of appropriations, gifts, = = 19 a l grants and donations to the fund, which shall be invested as i a e r 20 provided in the New Mexico Finance Authority Act.

Money in a t m m 21 the fund shall not revert and is appropriated to the d r e 22 department, which shall utilize the fund for the purposes of c e s k 23 the Child Care Facility Loan Act.

Administrative costs of e a n b 24 the authority may be paid from the fund.

[Expenditures from u [ the fund for loans to providers shall be made upon warrants .224810.4SA - 17 - of the secretary of finance and administration pursuant to vouchers signed by the secretary of children, youth and families or his authorized representative.] B.

Loans from the fund are to be made at [thean lowestinterest legallySB permissible]423 anPage interest16 [rates] rate greater than zero percent for [the longest amount of time in order to allow the providers the maximum opportunity to maintain the business while repaying the loan] a term that does not exceed the useful life of the project being financed.

No more than twenty percent of the fund may be loaned [to] for a single provider in a single [loan.project.

AThe providerdepartment thatshall hasgive receivedpriority afor loanloans fromto thefacilities fundof inproviders the e t 17 immediately preceding five years or that hasserve notproportionately completedhigh wnumbers l n d 18 repayment of astate-subsidized previousclients loanand fromlow-income thefamilies. fund is ineligible for = = 19 a l a new loan] project.

TheD. department shall give priority for i a e r 20 loans to facilities of providers that serve proportionately a t m m 21 high numbers of state-subsidized clients and low-income d r e 22 families.

cThe edepartment, sin kconjunction 23with D.the New Mexico finance authority, shall adopt rules to administer and implement the Child Care Facility Loan Act.

The department,rules inshall conjunctionbecome witheffective thewhen Newfiled ein aaccordance nwith bthe 24State MexicoRules financeAct." authority,SB shall423 adoptPage rules17 to25 administer and u [ implement the Child Care Facility Loan Act.

The rules shall .224810.4SA - 18 - become effective when filed in accordance with the State Rules Act." - 19 - 5 7 9 11 13 15 e t 17 w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .224810.4SA