SENATE BILL 139
56th legislature - STATE OF NEW MEXICO - second session, 2024
George K. Muñoz and Nancy Rodriguez
RELATING TO PUBLIC FINANCE; CREATING THE MEDICAID TRUST FUND AND THE STATE-SUPPORTED MEDICAID FUND; MAKING A TRANSFER FROM THE GENERAL FUND TO THE MEDICAID TRUST FUND.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of Chapter 6, Article 4 NMSA 1978 is enacted to read:
"[NEW MATERIAL] MEDICAID TRUST FUND.--
A. The "medicaid trust fund" is created within the state treasury. The fund consists of distributions, appropriations, gifts, grants and donations. Income from investment of the fund shall be credited to the fund. Money in the fund shall be expended only as provided in this section.
B. The state investment officer, subject to the approval of the state investment council, shall invest money in the fund:
(1) in accordance with the prudent investor rule set forth in the Uniform Prudent Investor Act; and
(2) in consultation with the state treasurer.
C. The state investment officer shall report quarterly to the legislative finance committee and the state investment council on the investments made pursuant to this section. Annually, a report shall be submitted no later than October 1 to the legislative finance committee, the
revenue stabilization and tax policy committee and any other appropriate interim committees.
D. On July 1, 2027 and each July 1 thereafter, a distribution shall be made from the trust fund to the state-supported medicaid fund in an amount equal to five percent of the average of the year-end market values of the trust fund for the immediately preceding three calendar years. If, on July 1 of a year, distributions have been made for less than three calendar years, the distribution shall be in an amount equal to five percent of the average of the year-end market values of the trust fund for the immediately preceding number of calendar years that distributions have been made.
E. In addition to the distribution pursuant to Subsection D of this section, money in the medicaid trust fund may be expended in the event that general fund balances, including all authorized revenues and transfers to the general fund and balances in the general fund operating reserve, the appropriation contingency fund and the tax stabilization reserve, will not meet the level of appropriations authorized from the general fund for a fiscal year. In that event, to avoid an unconstitutional deficit, the legislature may appropriate from the trust fund to the general fund only in the amount necessary to meet general fund appropriations for that fiscal year and only if the legislature has authorized transfers from the appropriation contingency fund, the general fund operating reserve and the tax stabilization reserve that exhaust those fund balances."
SECTION 2. [NEW MATERIAL] STATE-SUPPORTED MEDICAID FUND.--The "state-supported medicaid fund" is created as a nonreverting fund in the state treasury. The fund consists of distributions, appropriations, gifts, grants and donations. Income from investment of the fund shall be credited to the fund. The health care authority department shall administer the fund. Money in the fund is subject to appropriation by the legislature to support the state medicaid program and to match federal funds for the state medicaid program. Expenditures from the fund shall be by warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of health care authority or the secretary's authorized representative.
SECTION 3. TRANSFER.--One billion dollars ($1,000,000,000) is transferred from the general fund to the medicaid trust fund.
SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2024.
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