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AN ACT
RELATING TO TAXATION; PROVIDING GROSS RECEIPTS TAX DEDUCTIONS
FOR CERTAIN HEALTH CARE PROVIDERS; PROVIDING AN INCOME TAX
CREDIT FOR RURAL HEALTH CARE PRACTITIONERS; PROVIDING A GROSS
RECEIPTS AND GOVERNMENTAL GROSS RECEIPTS TAX DEDUCTION FOR
RECEIPTS FROM THE SALE OF OXYGEN AND OXYGEN SERVICES;
PROVIDING A GROSS RECEIPTS TAX DEDUCTION FOR INDIAN HEALTH
SERVICE PAYMENTS FOR CERTAIN MEDICAL AND HEALTH SERVICES;
ADDING CERTAIN CLINICAL LABORATORIES TO HEALTH CARE
PRACTITIONERS ELIGIBLE FOR A GROSS RECEIPTS TAX DEDUCTION;
PROVIDING A GROSS RECEIPTS TAX DEDUCTION FOR RECEIPTS RELATED
TO FITTING AND DISPENSING HEARING AIDS AND VISION AIDS;
PROVIDING A PHASED-IN CREDIT FOR THE STATE PORTION OF THE
GROSS RECEIPTS TAX FOR CERTAIN HOSPITALS; PROVIDING A GROSS
RECEIPTS TAX CREDIT FOR UNPAID SERVICES OF A PHYSICIAN WHILE
ON CALL; REVISING TAX INCENTIVES FOR HEALTH INSURERS THAT ARE
ASSESSED PURSUANT TO THE MEDICAL INSURANCE POOL .
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Tax Administration Act
is enacted to read:
"DISTRIBUTION ADJUSTMENT--TAX ADMINISTRATION SUSPENSE
FUND--CREDIT FOR RECEIPTS OF HOSPITALS.--Distributions from
the tax administration suspense fund to the general fund of
net receipts attributable to the gross receipts tax shall be
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adjusted for the full cost of credits issued pursuant to the
Gross Receipts and Compensating Tax Act for receipts of
hospitals licensed by the department of health."
Section 2. A new section of the Income Tax Act is
enacted to read:
"TAX CREDIT--RURAL HEALTH CARE PRACTITIONER TAX
CREDIT.--
A. A taxpayer who files an individual New Mexico
tax return, who is not a dependent of another individual, who
is an eligible health care practitioner and who has provided
health care services in New Mexico in a rural health care
underserved area in a taxable year, may claim a credit against
the tax liability imposed by the Income Tax Act. The credit
provided in this section may be referred to as the "rural
health care practitioner tax credit".
B. The rural health care practitioner tax credit
may be claimed and allowed in an amount that shall not exceed
five thousand dollars ($5,000) for all eligible physicians,
osteopathic physicians, dentists, clinical psychologists,
podiatrists and optometrists who qualify pursuant to the
provisions of this section, except the credit shall not exceed
three thousand dollars ($3,000) for all eligible dental
hygienists, physician assistants, certified nurse-midwives,
certified registered nurse anesthetists, certified nurse
practitioners and clinical nurse specialists.
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C. To qualify for the rural health care
practitioner tax credit, an eligible health care practitioner
shall have provided health care during a taxable year for at
least two thousand eighty hours at a practice site located in
an approved, rural health care underserved area. An eligible
rural health care practitioner who provided health care
services for at least one thousand forty hours but less than
two thousand eighty hours at a practice site located in an
approved rural health care underserved area during a taxable
year is eligible for one-half of the credit amount.
D. Before an eligible health care practitioner may
claim the rural health care practitioner tax credit, the
practitioner shall submit an application to the department of
health that describes the practitioner's clinical practice and
contains additional information that the department of health
may require. The department of health shall determine whether
an eligible health care practitioner qualifies for the rural
health care practitioner tax credit, and shall issue a
certificate to each qualifying eligible health care
practitioner. The department of health shall provide the
taxation and revenue department appropriate information for
all eligible health care practitioners to whom certificates
are issued.
E. A taxpayer claiming the credit provided by this
section shall submit a copy of the certificate issued by the
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department of health with the taxpayer's New Mexico income tax
return for the taxable year. If the amount of the credit
claimed exceeds a taxpayer's tax liability for the taxable
year in which the credit is being claimed, the excess may be
carried forward for three consecutive taxable years.
F. As used in this section:
(1) "eligible health care practitioner"
means:
(a) a certified nurse-midwife licensed
by the board of nursing as a registered nurse and licensed by
the public health division of the department of health to
practice nurse-midwifery as a certified nurse-midwife;
(b) a dentist or dental hygienist
licensed pursuant to the Dental Health Care Act;
(c) an optometrist licensed pursuant to
the provisions of the Optometry Act;
(d) an osteopathic physician licensed
pursuant to the provisions of Chapter 61, Article 10 NMSA 1978
or an osteopathic physician assistant licensed pursuant to the
provisions of the Osteopathic Physicians' Assistants Act;
(e) a physician or physician assistant
licensed pursuant to the provisions of Chapter 61, Article 6
NMSA 1978;
(f) a podiatrist licensed pursuant to
the provisions of the Podiatry Act;
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(g) a clinical psychologist licensed
pursuant to the provisions of the Professional Psychologist
Act; and
(h) a registered nurse in advanced
practice who has been prepared through additional formal
education as provided in Sections 61-3-23.2 through 61-3-23.4
NMSA 1978 to function beyond the scope of practice of
professional registered nursing, including certified nurse
practitioners, certified registered nurse anesthetists and
clinical nurse specialists;
(2) "health care underserved area" means a
geographic area or practice location in which it has been
determined by the department of health, through the use of
indices and other standards set by the department of health,
that sufficient health care services are not being provided;
(3) "practice site" means a private
practice, public health clinic, hospital, public or private
nonprofit primary care clinic or other health care service
location in a health care underserved area; and
(4) "rural" means an area or location
identified by the department of health as falling outside of
an urban area."
Section 3. Section 7-9-73.2 NMSA 1978 (being Laws 1998,
Chapter 95, Section 2 and Laws 1998, Chapter 99, Section 4, as
amended) is amended to read:
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"7-9-73.2. DEDUCTION--GROSS RECEIPTS TAX AND
GOVERNMENTAL GROSS RECEIPTS TAX--PRESCRIPTION DRUGS--OXYGEN.--
A. Receipts from the sale of prescription drugs
and oxygen and oxygen services provided by a licensed medicare
durable medical equipment provider may be deducted from gross
receipts and governmental gross receipts.
B. For the purposes of this section, "prescription
drugs" means insulin and substances that are:
(1) dispensed by or under the supervision of
a licensed pharmacist or by a physician or other person
authorized under state law to do so;
(2) prescribed for a specified person by a
person authorized under state law to prescribe the substance;
and
(3) subject to the restrictions on sale
contained in Subparagraph 1 of Subsection (b) of 21 USCA 353."
Section 4. Section 7-9-77.1 NMSA 1978 (being Laws 1998,
Chapter 96, Section 1, as amended) is amended to read:
"7-9-77.1. DEDUCTION--GROSS RECEIPTS TAX--CERTAIN
MEDICAL AND HEALTH CARE SERVICES.--
A. Receipts from payments by the United States
government or any agency thereof for provision of medical and
other health services by medical doctors, osteopathic
physicians, doctors of oriental medicine, athletic trainers,
chiropractic physicians, counselor and therapist
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practitioners, dentists, massage therapists, naprapaths,
nurses, nutritionists, dietitians, occupational therapists,
optometrists, pharmacists, physical therapists, psychologists,
radiologic technologists, respiratory care practitioners,
audiologists, speech-language pathologists, social workers and
podiatrists or of medical, other health and palliative
services by hospices or nursing homes to medicare
beneficiaries pursuant to the provisions of Title 18 of the
federal Social Security Act may be deducted from gross
receipts.
B. Receipts from payments by a third-party
administrator of the federal TRICARE program for provision of
medical and other health services by medical doctors and
osteopathic physicians to covered beneficiaries may be
deducted from gross receipts.
C. Receipts from payments by or on behalf of the
Indian health service of the United States department of
health and human services for provision of medical and other
health services by medical doctors and osteopathic physicians
to covered beneficiaries may be deducted from gross receipts.
D. Receipts from payments by the United States
government or any agency thereof for medical services provided
by a clinical laboratory to medicare beneficiaries pursuant to
the provisions of Title 18 of the federal Social Security Act
may be deducted from gross receipts.
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E. Receipts from payments by the United States
government or any agency thereof for medical, other health and
palliative services provided by a home health agency to
medicare beneficiaries pursuant to the provisions of Title 18
of the federal Social Security Act may be deducted from gross
receipts.
F. For the purposes of this section:
(1) "athletic trainer" means a person
licensed as an athletic trainer pursuant to the provisions of
Chapter 61, Article 14D NMSA 1978;
(2) "chiropractic physician" means a person
who practices chiropractic as defined in the Chiropractic
Physician Practice Act;
(3) "clinical laboratory" means a laboratory
accredited pursuant to 42 USCA 263a;
(4) "counselor and therapist practitioner"
means a person licensed to practice as a counselor or
therapist pursuant to the provisions of Chapter 61, Article 9A
NMSA 1978;
(5) "dentist" means a person licensed to
practice as a dentist pursuant to the provisions of Chapter
61, Article 5A NMSA 1978;
(6) "doctor of oriental medicine" means a
person licensed as a physician to practice acupuncture or
oriental medicine pursuant to the provisions of Chapter 61,
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Article 14A NMSA 1978;
(7) "home health agency" means a for-profit
entity that is licensed by the department of health and
certified by the federal centers for medicare and medicaid
services as a home health agency and certified to provide
medicare services;
(8) "hospice" means a for-profit entity
licensed by the department of health as a hospice and
certified to provide medicare services;
(9) "massage therapist" means a person
licensed to practice massage therapy pursuant to the
provisions of Chapter 61, Article 12C NMSA 1978;
(10) "medical doctor" means a person
licensed as a physician to practice medicine pursuant to the
provisions of the Medical Practice Act;
(11) "naprapath" means a person licensed as
a naprapath pursuant to the provisions of Chapter 61, Article
12E NMSA 1978;
(12) "nurse" means a person licensed as a
registered nurse pursuant to the provisions of Chapter 61,
Article 3 NMSA 1978;
(13) "nursing home" means a for-profit
entity licensed by the department of health as a nursing home
and certified to provide medicare services;
(14) "nutritionist" or "dietitian" means a
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person licensed as a nutritionist or dietitian pursuant to the
provisions of Chapter 61, Article 7A NMSA 1978;
(15) "occupational therapist" means a person
licensed as an occupational therapist pursuant to the
provisions of Chapter 61, Article 12A NMSA 1978;
(16) "osteopathic physician" means a person
licensed as an osteopathic physician pursuant to the
provisions of Chapter 61, Article 10 NMSA 1978;
(17) "optometrist" means a person licensed
to practice optometry pursuant to the provisions of Chapter
61, Article 2 NMSA 1978;
(18) "pharmacist" means a person licensed as
a pharmacist pursuant to the provisions of Chapter 61, Article
11 NMSA 1978;
(19) "physical therapist" means a person
licensed as a physical therapist pursuant to the provisions of
Chapter 61, Article 12D NMSA 1978;
(20) "podiatrist" means a person licensed as
a podiatrist pursuant to the provisions of the Podiatry Act;
(21) "psychologist" means a person licensed
as a psychologist pursuant to the provisions of Chapter 61,
Article 9 NMSA 1978;
(22) "radiologic technologist" means a
person licensed as a radiologic technologist pursuant to the
provisions of Chapter 61, Article 14E NMSA 1978;
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(23) "respiratory care practitioner" means a
person licensed as a respiratory care practitioner pursuant to
the provisions of Chapter 61, Article 12B NMSA 1978;
(24) "social worker" means a person licensed
as an independent social worker pursuant to the provisions of
Chapter 61, Article 31 NMSA 1978;
(25) "speech-language pathologist" means a
person licensed as a speech-language pathologist pursuant to
the provisions of Chapter 61, Article 14B NMSA 1978; and
(26) "TRICARE program" means the program
defined in 10 U.S.C. 1072(7)."
Section 5. Section 7-9-93 NMSA 1978 (being Laws 2004,
Chapter 116, Section 6, as amended) is amended to read:
"7-9-93. DEDUCTION--GROSS RECEIPTS--CERTAIN RECEIPTS
FOR SERVICES PROVIDED BY HEALTH CARE PRACTITIONER.--
A. Receipts from payments by a managed health care
provider or health care insurer for commercial contract
services or medicare part C services provided by a health care
practitioner that are not otherwise deductible pursuant to
another provision of the Gross Receipts and Compensating Tax
Act may be deducted from gross receipts, provided that the
services are within the scope of practice of the person
providing the service. Receipts from fee-for-service payments
by a health care insurer may not be deducted from gross
receipts. The deduction provided by this section shall be
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separately stated by the taxpayer.
B. For the purposes of this section:
(1) "commercial contract services" means
health care services performed by a health care practitioner
pursuant to a contract with a managed health care provider or
health care insurer other than those health care services
provided for medicare patients pursuant to Title 18 of the
federal Social Security Act or for medicaid patients pursuant
to Title 19 or Title 21 of the federal Social Security Act;
(2) "health care insurer" means a person
that:
(a) has a valid certificate of
authority in good standing pursuant to the New Mexico
Insurance Code to act as an insurer, health maintenance
organization or nonprofit health care plan or prepaid dental
plan; and
(b) contracts to reimburse licensed
health care practitioners for providing basic health services
to enrollees at negotiated fee rates;
(3) "health care practitioner" means:
(a) a chiropractic physician licensed
pursuant to the provisions of the Chiropractic Physician
Practice Act;
(b) a dentist or dental hygienist
licensed pursuant to the Dental Health Care Act;
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(c) a doctor of oriental medicine
licensed pursuant to the provisions of the Acupuncture and
Oriental Medicine Practice Act;
(d) an optometrist licensed pursuant to
the provisions of the Optometry Act;
(e) an osteopathic physician licensed
pursuant to the provisions of Chapter 61, Article 10 NMSA 1978
or an osteopathic physician's assistant licensed pursuant to
the provisions of the Osteopathic Physicians' Assistants Act;
(f) a physical therapist licensed
pursuant to the provisions of the Physical Therapy Act;
(g) a physician or physician assistant
licensed pursuant to the provisions of Chapter 61, Article 6
NMSA 1978;
(h) a podiatrist licensed pursuant to
the provisions of the Podiatry Act;
(i) a psychologist licensed pursuant to
the provisions of the Professional Psychologist Act;
(j) a registered lay midwife registered
by the department of health;
(k) a registered nurse or licensed
practical nurse licensed pursuant to the provisions of the
Nursing Practice Act;
(l) a registered occupational therapist
licensed pursuant to the provisions of the Occupational
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Therapy Act;
(m) a respiratory care practitioner
licensed pursuant to the provisions of the Respiratory Care
Act;
(n) a speech-language pathologist or
audiologist licensed pursuant to the Speech-Language
Pathology, Audiology and Hearing Aid Dispensing Practices Act;
(o) a professional clinical mental
health counselor, marriage and family therapist or
professional art therapist licensed pursuant to the provisions
of the Counseling and Therapy Practice Act who has obtained a
master's degree or a doctorate;
(p) an independent social worker
licensed pursuant to the provisions of the Social Work
Practice Act; and
(q) a clinical laboratory that is
accredited pursuant to 42 U.S.C. Section 263a but that is not
a laboratory in a physician's office or in a hospital defined
pursuant to 42 U.S.C. Section 1395x;
(4) "managed health care provider" means a
person that provides for the delivery of comprehensive basic
health care services and medically necessary services to
individuals enrolled in a plan through its own employed health
care providers or by contracting with selected or
participating health care providers. "Managed health care
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provider" includes only those persons that provide
comprehensive basic health care services to enrollees on a
contract basis, including the following:
(a) health maintenance organizations;
(b) preferred provider organizations;
(c) individual practice associations;
(d) competitive medical plans;
(e) exclusive provider organizations;
(f) integrated delivery systems;
(g) independent physician-provider
organizations;
(h) physician hospital-provider
organizations; and
(i) managed care services
organizations; and
(5) "medicare part C services" means
services performed pursuant to a contract with a managed
health care provider for medicare patients pursuant to Title
18 of the federal Social Security Act."
Section 6. A new section of the Gross Receipts and
Compensating Tax Act is enacted to read:
"DEDUCTION--GROSS RECEIPTS--HEARING AIDS AND VISION AIDS
AND RELATED SERVICES.--
A. Receipts that are not exempt from gross
receipts taxation and are not deductible pursuant to another
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provision of the Gross Receipts and Compensating Tax Act that
are from the sale of vision aids or hearing aids or related
services may be deducted from gross receipts.
B. As used in this section:
(1) "hearing aid" means a small electronic
prescription device that amplifies sound and is usually worn
in or behind the ear of a person that compensates for impaired
hearing, including cochlear implants, amplification systems or
other devices that are:
(a) specifically designed for use by
and marketed to persons with hearing loss; and
(b) not normally used by a person who
does not have a hearing loss;
(2) "low vision" means impaired vision with
a significant reduction in visual function that cannot be
corrected with conventional glasses or contact lenses;
(3) "related services" means services
required to fit or dispense hearing aids or vision aids;
(4) "vision aid" means closed circuit
television systems, monoculars, magnification systems, speech
output devices or other systems that are:
(a) specifically designed for use by
and marketed to persons with low vision or visual impairments;
and
(b) not normally used by a person who
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does not have low vision or a visual impairment; and
(5) "visual impairment" means a central
visual acuity of 20/200 or less in the better eye with the use
of a correcting lens or a limitation in the fields of vision
so that the widest diameter of the visual field subtends an
angle of twenty degrees or less."
Section 7. A new section of the Gross Receipts and
Compensating Tax Act is enacted to read:
"CREDIT--GROSS RECEIPTS TAX--RECEIPTS OF CERTAIN
HOSPITALS.--
A. A hospital licensed by the department of health
may claim a credit for each reporting period against the gross
receipts tax due for that reporting period as follows:
(1) for a hospital located in a
municipality:
(a) on or after July 1, 2007 but before
July 1, 2008, in an amount equal to seven hundred fifty-five
thousandths percent of the hospital's taxable gross receipts
for that reporting period after all applicable deductions have
been taken;
(b) on or after July 1, 2008 but before
July 1, 2009, in an amount equal to one and fifty-one
hundredths percent of the hospital's taxable gross receipts
for that reporting period after all applicable deductions have
been taken;
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(c) on or after July 1, 2009 but before
July 1, 2010, in an amount equal to two and two hundred sixty-
five thousandths percent of the hospital's taxable gross
receipts for that reporting period after all applicable
deductions have been taken;
(d) on or after July 1, 2010 but before
July 1, 2011, in an amount equal to three and two hundredths
percent of the hospital's taxable gross receipts for that
reporting period after all applicable deductions have been
taken; and
(e) on or after July 1, 2011, in an
amount equal to three and seven hundred seventy-five
thousandths percent of the hospital's taxable gross receipts
for that reporting period after all applicable deductions have
been taken; and
(2) for a hospital located in the
unincorporated area of a county:
(a) on or after July 1, 2007 but before
July 1, 2008, in an amount equal to one percent of the
hospital's taxable gross receipts for that reporting period
after all applicable deductions have been taken;
(b) on or after July 1, 2008, but
before July 1, 2009, in an amount equal to two percent of the
hospital's taxable gross receipts for that reporting period
after all applicable deductions have been taken;
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(c) on or after July 1, 2009 but before
July 1, 2010, in an amount equal to three percent of the
hospital's taxable gross receipts for that reporting period
after all applicable deductions have been taken;
(d) on or after July 1, 2010 but before
July 1, 2011, in an amount equal to four percent of the
hospital's taxable gross receipts for that reporting period
after all applicable deductions have been taken; and
(e) on or after July 1, 2011, in an
amount equal to five percent of the hospital's taxable gross
receipts for that reporting period after all applicable
deductions have been taken.
B. For the purposes of this section, "hospital"
means a facility providing emergency or urgent care, inpatient
medical care and nursing care for acute illness, injury,
surgery or obstetrics and includes a facility licensed by the
department of health as a critical access hospital, general
hospital, long-term acute care hospital, psychiatric hospital,
rehabilitation hospital, limited services hospital and special
hospital."
Section 8. A new section of the Gross Receipts and
Compensating Tax Act is enacted to read:
"CREDIT--GROSS RECEIPTS TAX--UNPAID CHARGES FOR SERVICES
PROVIDED IN A HOSPITAL.--
A. A licensed medical doctor or licensed
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osteopathic physician may claim a credit against gross
receipts taxes due in the following amounts:
(1) from July 1, 2007 through June 30, 2008,
thirty-three percent of the value of unpaid qualified health
care services;
(2) from July 1, 2008 through June 30, 2009,
sixty-seven percent of the value of unpaid qualified health
care services; and
(3) on and after July 1, 2009, one hundred
percent of the value of unpaid qualified health care services.
B. As used in this section:
(1) "qualified health care services" means
medical care services provided by a licensed medical doctor or
licensed osteopathic physician while on call to a hospital;
and
(2) "value of unpaid qualified health care
services" means the amount that is charged for qualified
health care services, not to exceed one hundred thirty percent
of the reimbursement rate for the services under the medicaid
program administered by the human services department, that
remains unpaid one year after the date of billing and that the
licensed medical doctor or licensed osteopathic physician has
reason to believe will not be paid because:
(a) at the time the services were
provided, the person receiving the services had no health
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insurance or had health insurance that did not cover the
services provided;
(b) at the time the services were
provided, the person receiving the services was not eligible
for medicaid; and
(c) the charges are not reimbursable
under a program established pursuant to the Indigent Hospital
and County Health Care Act."
Section 9. Section 59A-54-10 NMSA 1978 (being Laws
1989, Chapter 154, Section 10, as amended by Laws 2005,
Chapter 301, Section 5 and by Laws 2005, Chapter 305, Section
5) is amended to read:
"59A-54-10. ASSESSMENTS.--
A. Following the close of each fiscal year, the
pool administrator shall determine the net premium, being
premiums less administrative expense allowances, the pool
expenses and claim expense losses for the year, taking into
account investment income and other appropriate gains and
losses. The assessment for each insurer shall be determined
by multiplying the total cost of pool operation by a fraction,
the numerator of which equals that insurer's premium and
subscriber contract charges or their equivalent for health
insurance written in the state during the preceding calendar
year and the denominator of which equals the total of all
premiums and subscriber contract charges written in the state;
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provided that premium income shall include receipts of
medicaid managed care premiums but shall not include any
payments by the secretary of health and human services
pursuant to a contract issued under Section l876 of the Social
Security Act, as amended. The board may adopt other or
additional methods of adjusting the formula to achieve equity
of assessments among pool members, including assessment of
health insurers and reinsurers based upon the number of
persons they cover through primary, excess and stop-loss
insurance in the state.
B. If assessments exceed actual losses and
administrative expenses of the pool, the excess shall be held
at interest and used by the board to offset future losses or
to reduce pool premiums. As used in this subsection, "future
losses" includes reserves for incurred but not reported
claims.
C. The proportion of participation of each member
in the pool shall be determined annually by the board based on
annual statements and other reports deemed necessary by the
board and filed with it by the member. Any deficit incurred
by the pool shall be recouped by assessments apportioned among
the members of the pool pursuant to the assessment formula
provided by Subsection A of this section; provided that the
assessment for any pool member shall be allowed as a fifty-
percent credit on the premium tax return for that member and a
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seventy-five-percent credit on the premium tax return for that
member for the assessments attributable to pool policy holders
that receive premiums, in whole or in part, through the
federal Ryan White CARE Act, the Ted R. Montoya hemophilia
program at the university of New Mexico health sciences
center, the children's medical services bureau of the public
health division of the department of health or other program
receiving state funding or assistance.
D. The board may abate or defer, in whole or in
part, the assessment of a member of the pool if, in the
opinion of the board, payment of the assessment would endanger
the ability of the member to fulfill its contractual
obligation. In the event an assessment against a member of
the pool is abated or deferred in whole or in part, the amount
by which such assessment is abated or deferred may be assessed
against the other members in a manner consistent with the
basis for assessments set forth in Subsection A of this
section. The member receiving the abatement or deferment
shall remain liable to the pool for the deficiency for four
years."
Section 10. APPLICABILITY.--
A. The provisions of Section 2 of this act apply
to taxable years beginning on or after January 1, 2007.
B. The provisions of Section 7 of this act apply
to reporting periods beginning on or after July 1, 2007.
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C. The premium tax credit in Section 9 of this act
shall apply to assessments made pursuant to the Medical
Insurance Pool Act beginning on or after July 1, 2007.
Section 11. EFFECTIVE DATE.--The effective date of the
provisions of Sections 3 through 6 and 8 of this act is July
1, 2007.
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