0001| SENATE PUBLIC AFFAIRS COMMITTEE SUBSTITUTE FOR | 0002| SENATE BILL 918 | 0003| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO HEALTH; ENACTING THE COUNTY HEALTH COMMISSION ACT; | 0013| ENACTING A NEW SECTION OF THE HOSPITAL FUNDING ACT; AMENDING | 0014| CERTAIN SECTIONS OF THE NMSA 1978 PERTAINING TO OPEN MEETINGS, | 0015| PROCUREMENT AND PUBLIC RECORDS; DECLARING AN EMERGENCY. | 0016| | 0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0018| Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 | 0019| through 8 of this act may be cited as the "County Health | 0020| Commission Act". | 0021| Section 2. [NEW MATERIAL] PURPOSE.--The purpose of the | 0022| County Health Commission Act is to permit the transfer of | 0023| ownership of a county hospital to a county health commission, | 0024| thereby enhancing the ability of the hospital to compete in the | 0025| competitive and rapidly changing health care marketplace, while | 0001| ensuring that the hospital maintains its primary purpose of | 0002| providing health care for the benefit of the citizens of the | 0003| county through the requirement of a publicly elected | 0004| commission. | 0005| Section 3. [NEW MATERIAL] DEFINITIONS.--As used in the | 0006| County Health Commission Act: | 0007| A. "commission" means a county health commission | 0008| created pursuant to the County Health Commission Act; | 0009| B. "county" means a class B county having a | 0010| population of more than fifty thousand but less than fifty-five | 0011| thousand according to the 1990 federal decennial census and | 0012| having a net taxable value for rate-setting purposes for the | 0013| 1996 property tax year of more than four hundred fifty million | 0014| dollars ($450,000,000) but less than five hundred million | 0015| dollars ($500,000,000); | 0016| C. "county hospital" means a hospital owned by a | 0017| county; and | 0018| D. "county health commission hospital" means a | 0019| public hospital, the ownership and responsibility for operation | 0020| of which have been transferred from a county to a county health | 0021| commission. | 0022| Section 4. [NEW MATERIAL] CREATION OF COMMISSION.--The | 0023| board of county commissioners of a county in which there is a | 0024| county hospital: | 0025| A. may create a county health commission by the | 0001| adoption of a resolution creating the commission; or | 0002| B. may call for an election on the question of | 0003| creating a county health commission. Such an election shall be | 0004| required upon presentation to the board of county commissioners of | 0005| a petition signed by registered electors of the county requesting | 0006| an election on the question. The number of signatures required on | 0007| the petition shall be at least five percent of the number of votes | 0008| cast for governor in the county in the last preceding | 0009| gubernatorial election. An election pursuant to this subsection | 0010| shall be conducted in the manner provided in the Election Code for | 0011| the conduct of special elections. If the election is held as the | 0012| result of presentation of a petition to the board of county | 0013| commissioners, the election shall be held within forty-five days | 0014| of the receipt of the petition. | 0015| Section 5. [NEW MATERIAL] MEMBERSHIP OF COMMISSION-- | 0016| ELECTION OF MEMBERS--TRANSFER OF HOSPITAL.-- | 0017| A. The initial election of the county health | 0018| commission shall be held within sixty days of the adoption by the | 0019| board of county commissioners of a resolution creating a county | 0020| health commission, or of an election pursuant to Section 4 of the | 0021| County Health Commission Act in which a majority of the voters | 0022| voted in favor of creating a county health commission. The | 0023| election shall be conducted in the manner provided in the Election | 0024| Code for the conduct of special elections. | 0025| B. Election districts for the commission shall be | 0001| identical to those districts designated for elections of the board | 0002| of county commissioners. Two county health commissioners shall be | 0003| elected from each district by the voters of the district. A | 0004| commissioner shall be a resident of the district from which he is | 0005| elected. Commissioners elected in the initial election shall | 0006| serve until the next general election. Thereafter, elections for | 0007| the commission shall be conducted at general elections. | 0008| C. At the first general election in which there is an | 0009| election for the county health commission, commissioners shall be | 0010| elected for staggered terms. One commissioner from each district | 0011| shall be elected to a term of four years, and the other | 0012| commissioner from the district shall be elected to a term of two | 0013| years. The commissioner receiving the highest vote total shall | 0014| have the four-year term. Thereafter, commissioners shall be | 0015| elected for terms of four years. A vacancy on the commission | 0016| shall be filled by appointment by the board of county | 0017| commissioners for the remainder of the unexpired term. | 0018| D. Within ten days after the results of the election | 0019| are certified, the newly elected commission shall meet and | 0020| organize itself. | 0021| E. Within thirty days after the results of the | 0022| election are certified, the county shall transfer ownership of the | 0023| county hospital to the commission. The commission shall | 0024| thereafter own the hospital, which shall remain a public hospital. | 0025| The county health commission shall be responsible for the | 0001| operations of the hospital; provided that a county health | 0002| commission hospital may be operated by another party pursuant to a | 0003| lease or management contract with the commission. | 0004| Section 6. [NEW MATERIAL] POWERS AND DUTIES OF | 0005| COMMISSION.-- | 0006| A. A county health commission shall operate the | 0007| hospital that has been transferred to its control as a public | 0008| hospital for the benefit of the residents of the county in which | 0009| it is located. | 0010| B. A commission shall have all powers necessary and | 0011| appropriate to carry out and effectuate its public purposes, | 0012| including the following powers: | 0013| (1) to adopt, amend and repeal bylaws for the | 0014| administration and regulation of the affairs of the commission; | 0015| (2) to sue and be sued; | 0016| (3) to purchase, lease, receive, acquire, own, | 0017| hold, use and otherwise deal in and with real property or personal | 0018| property; | 0019| (4) to sell, convey, lease, pledge, exchange, | 0020| transfer and otherwise dispose of all or any part of any of its | 0021| assets and properties for such consideration upon such terms and | 0022| conditions as the commission shall determine; | 0023| (5) to make contracts, incur liabilities and | 0024| borrow money at such rates of interest as the commission may | 0025| determine; | 0001| (6) to make and execute contracts and all other | 0002| instruments necessary or convenient in the exercise of its powers | 0003| and functions; | 0004| (7) to receive, administer, hold and use all | 0005| funds made available to it from any source; | 0006| (8) to apply for and accept gifts or grants of | 0007| property, funds, services or aid in any form from the United | 0008| States, a unit of government or a person; | 0009| (9) to invest and reinvest its funds; | 0010| (10) to conduct its activities, carry out its | 0011| operations, have offices and facilities and exercise the powers | 0012| granted by the County Health Commission Act; | 0013| (11) to employ such officers and employees as it | 0014| deems necessary, set their compensation and describe their duties; | 0015| (12) to procure insurance against any loss in | 0016| connection with its operations, property and other assets; | 0017| (13) to employ advisors, consultants, agents and | 0018| employees as may be required in its judgment and to fix and pay | 0019| compensation; and | 0020| (14) to do all things authorized by law not | 0021| inconsistent with the provisions of the County Health Commission | 0022| Act. | 0023| Section 7. [NEW MATERIAL] HOSPITAL REVENUE BONDS.-- | 0024| A. A county health commission may issue hospital | 0025| revenue bonds pursuant to the County Health Commission Act for the | 0001| purpose of constructing, purchasing, remodeling, equipping or re- | 0002| equipping a county health commission hospital. | 0003| B. The county health commission issuing the hospital | 0004| revenue bonds pursuant to the County Health Commission Act may | 0005| pledge irrevocably all or a portion of the revenues derived from | 0006| the operation of the county health commission hospital and | 0007| revenues derived from the leasing or other contractual arrangement | 0008| for the operation of a county health commission hospital for the | 0009| payment of principal and interest on the revenue bonds. | 0010| C. At a regular or special meeting called for the | 0011| purpose of issuing revenue bonds as authorized pursuant to the | 0012| County Health Commission Act the county health commission may | 0013| adopt a resolution that: | 0014| (1) declares the necessity for issuing revenue | 0015| bonds; | 0016| (2) authorizes the issuance of revenue bonds by | 0017| an affirmative vote of a majority of the county health commission; | 0018| and | 0019| (3) designates the source of the pledged | 0020| revenues. | 0021| D. Hospital revenue bonds: | 0022| (1) may have interest, appreciated principal | 0023| value or any part thereof payable at intervals or at maturity as | 0024| may be determined by the county health commission; | 0025| (2) may be subject to a prior redemption at the | 0001| option of the county health commission at such time and upon such | 0002| terms and conditions, with or without the payment of a premium, as | 0003| may be provided by resolution of the county health commission; | 0004| (3) may mature at any time not exceeding thirty | 0005| years after the date of issuance; | 0006| (4) may be serial in form and maturity or may | 0007| consist of one bond payable at one time or in installments or may | 0008| be in any other form as may be provided in the resolution | 0009| authorizing the bonds; | 0010| (5) shall be sold for cash at above or below par | 0011| and at a price that results in a net effective interest rate which | 0012| does not exceed the maximum permitted by the Public Securities | 0013| Act; and | 0014| (6) may be sold at a public or private sale. | 0015| E. Hospital revenue bonds issued under the authority | 0016| of the County Health Commission Act shall not be the general | 0017| obligations of the county and shall be payable only from the | 0018| proper pledged revenues, and each bond shall state that it is | 0019| payable solely from the proper pledged revenues and that the | 0020| bondholders may not look to any other fund for the payment of the | 0021| principal and interest on the bonds. | 0022| F. Hospital revenue bonds issued under authority of | 0023| the County Health Commission Act and the income from the bonds | 0024| shall be exempt from all taxation by the state or any political | 0025| subdivision of the state. | 0001| G. It is unlawful to divert, use or expend any money | 0002| received from the issuance of hospital revenue bonds for any | 0003| purpose other than the purpose for which the bonds were issued. | 0004| Section 8. [NEW MATERIAL] SALE OR DISSOLUTION.--In the | 0005| event of sale of a county health commission hospital, all proceeds | 0006| from the sale of the hospital shall be transferred to the board of | 0007| county commissioners subject to the rights of any bondholders, | 0008| lienholders or creditors of the commission. In the event of | 0009| dissolution of a county health commission, all rights and | 0010| properties of the commission shall be transferred by action of the | 0011| commission, or in the absence of that action, automatically by | 0012| operation of law, to the board of county commissioners, subject to | 0013| the rights of any bondholders, lienholders or creditors of the | 0014| commission. | 0015| Section 9. A new section of the Hospital Funding Act, | 0016| Section 4-48B-7.1 NMSA 1978, is enacted to read: | 0017| "4-48B-7.1. [NEW MATERIAL] POWER TO TRANSFER HOSPITAL TO | 0018| COUNTY HEALTH COMMISSION.--All counties shall have the power to | 0019| transfer a county hospital to a commission created pursuant to the | 0020| County Health Commission Act." | 0021| Section 10. Section 10-15-1 NMSA 1978 (being Laws 1974, | 0022| Chapter 91, Section 1, as amended) is amended to read: | 0023| "10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN | 0024| MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.-- | 0025| A. In recognition of the fact that a representative | 0001| government is dependent upon an informed electorate, it is | 0002| declared to be public policy of this state that all persons are | 0003| entitled to the greatest possible information regarding the | 0004| affairs of government and the official acts of those officers and | 0005| employees who represent them. The formation of public policy or | 0006| the conduct of business by vote shall not be conducted in closed | 0007| meeting. All meetings of any public body except the legislature | 0008| and the courts shall be public meetings, and all persons so | 0009| desiring shall be permitted to attend and listen to the | 0010| deliberations and proceedings. Reasonable efforts shall be made | 0011| to accommodate the use of audio and video recording devices. | 0012| B. All meetings of a quorum of members of any board, | 0013| commission, administrative adjudicatory body or other policymaking | 0014| body of any state agency, any agency or authority of any county, | 0015| municipality, district or any political subdivision, held for the | 0016| purpose of formulating public policy, including the development of | 0017| personnel policy, rules, regulations or ordinances, discussing | 0018| public business or for the purpose of taking any action within the | 0019| authority of or the delegated authority of any board, commission | 0020| or other policymaking body are declared to be public meetings open | 0021| to the public at all times, except as otherwise provided in the | 0022| constitution of New Mexico or the Open Meetings Act. No public | 0023| meeting once convened that is otherwise required to be open | 0024| pursuant to the Open Meetings Act shall be closed or dissolved | 0025| into small groups or committees for the purpose of permitting the | 0001| closing of the meeting. | 0002| C. If otherwise allowed by law or rule of the public | 0003| body, a member of a public body may participate in a meeting of | 0004| the public body by means of a conference telephone or other | 0005| similar communications equipment when it is otherwise difficult or | 0006| impossible for the member to attend the meeting in person, | 0007| provided that each member participating by conference telephone | 0008| can be identified when speaking, all participants are able to hear | 0009| each other at the same time and members of the public attending | 0010| the meeting are able to hear any member of the public body who | 0011| speaks during the meeting. | 0012| D. Any meetings at which the discussion or adoption of | 0013| any proposed resolution, rule, regulation or formal action occurs | 0014| and at which a majority or quorum of the body is in attendance, | 0015| and any closed meetings, shall be held only after reasonable | 0016| notice to the public. The affected body shall determine at least | 0017| annually in a public meeting what notice for a public meeting is | 0018| reasonable when applied to that body. That notice shall include | 0019| broadcast stations licensed by the federal communications | 0020| commission and newspapers of general circulation that have | 0021| provided a written request for such notice. | 0022| E. A public body may recess and reconvene a meeting to | 0023| a day subsequent to that stated in the meeting notice if, prior to | 0024| recessing, the public body specifies the date, time and place for | 0025| continuation of the meeting, and, immediately following the | 0001| recessed meeting, posts notice of the date, time and place for the | 0002| reconvened meeting on or near the door of the place where the | 0003| original meeting was held and in at least one other location | 0004| appropriate to provide public notice of the continuation of the | 0005| meeting. Only matters appearing on the agenda of the original | 0006| meeting may be discussed at the reconvened meeting. | 0007| F. Meeting notices shall include an agenda containing | 0008| a list of specific items of business to be discussed or transacted | 0009| at the meeting or information on how the public may obtain a copy | 0010| of such an agenda. Except in the case of an emergency, the agenda | 0011| shall be available to the public at least twenty-four hours prior | 0012| to the meeting. Except for emergency matters, a public body shall | 0013| take action only on items appearing on the agenda. For purposes | 0014| of this subsection, an "emergency" refers to unforeseen | 0015| circumstances that, if not addressed immediately by the public | 0016| body, will likely result in injury or damage to persons or | 0017| property or substantial financial loss to the public body. | 0018| G. The board, commission or other policymaking body | 0019| shall keep written minutes of all its meetings. The minutes shall | 0020| include at a minimum the date, time and place of the meeting, the | 0021| names of members in attendance and those absent, the substance of | 0022| the proposals considered and a record of any decisions and votes | 0023| taken that show how each member voted. All minutes are open to | 0024| public inspection. Draft minutes shall be prepared within ten | 0025| working days after the meeting and shall be approved, amended or | 0001| disapproved at the next meeting where a quorum is present. | 0002| Minutes shall not become official until approved by the | 0003| policymaking body. | 0004| H. The provisions of Subsections A, B and G of this | 0005| section do not apply to: | 0006| (1) meetings pertaining to issuance, suspension, | 0007| renewal or revocation of a license, except that a hearing at which | 0008| evidence is offered or rebutted shall be open. All final actions | 0009| on the issuance, suspension, renewal or revocation of a license | 0010| shall be taken at an open meeting; | 0011| (2) limited personnel matters; provided that for | 0012| purposes of the Open Meetings Act, "limited personnel matters" | 0013| means the discussion of hiring, promotion, demotion, dismissal, | 0014| assignment or resignation of or the investigation or consideration | 0015| of complaints or charges against any individual public employee; | 0016| provided further that this subsection is not to be construed as to | 0017| exempt final actions on personnel from being taken at open public | 0018| meetings, nor does it preclude an aggrieved public employee from | 0019| demanding a public hearing. Judicial candidates interviewed by | 0020| any commission shall have the right to demand an open interview; | 0021| (3) deliberations by a public body in connection | 0022| with an administrative adjudicatory proceeding. For purposes of | 0023| this paragraph, an "administrative adjudicatory proceeding" means | 0024| a proceeding brought by or against a person before a public body | 0025| in which individual legal rights, duties or privileges are | 0001| required by law to be determined by the public body after an | 0002| opportunity for a trial-type hearing. Except as otherwise | 0003| provided in this section, the actual administrative adjudicatory | 0004| proceeding at which evidence is offered or rebutted and any final | 0005| action taken as a result of the proceeding shall occur in an open | 0006| meeting; | 0007| (4) the discussion of personally identifiable | 0008| information about any individual student, unless the student, his | 0009| parent or guardian requests otherwise; | 0010| (5) meetings for the discussion of bargaining | 0011| strategy preliminary to collective bargaining negotiations between | 0012| the policymaking body and a bargaining unit representing the | 0013| employees of that policymaking body and collective bargaining | 0014| sessions at which the policymaking body and the representatives of | 0015| the collective bargaining unit are present; | 0016| (6) that portion of meetings at which a decision | 0017| concerning purchases in an amount exceeding two thousand five | 0018| hundred dollars ($2,500) that can be made only from one source and | 0019| that portion of meetings at which the contents of competitive | 0020| sealed proposals solicited pursuant to the Procurement Code are | 0021| discussed during the contract negotiation process. The actual | 0022| approval of purchase of the item or final action regarding the | 0023| selection of a contractor shall be made in an open meeting; | 0024| (7) meetings subject to the attorney-client | 0025| privilege pertaining to threatened or pending litigation in which | 0001| the public body is or may become a participant; | 0002| (8) meetings for the discussion of the purchase, | 0003| acquisition or disposal of real property or water rights by the | 0004| public body; and | 0005| (9) those portions of meetings of committees or | 0006| boards of public hospitals [that receive less than fifty percent | 0007| of their operating budget from direct public funds and | 0008| appropriations] or county health commissions where strategic and | 0009| long-range business plans are discussed. For purposes of this | 0010| paragraph, "strategic and long-range business plans" includes all | 0011| matters involving proprietary information the disclosure of which | 0012| would be likely to impede the ability of the hospital to compete | 0013| in the health care market; provided that discussion of possible | 0014| sale of a public hospital or county health commission hospital or | 0015| its assets to another entity is not within the exception provided | 0016| by this paragraph. | 0017| I. If any meeting is closed pursuant to the exclusions | 0018| contained in Subsection H of this section, the closure: | 0019| (1) if made in an open meeting, shall be | 0020| approved by a majority vote of a quorum of the policymaking body; | 0021| the authority for the closure and the subject to be discussed | 0022| shall be stated with reasonable specificity in the motion calling | 0023| for the vote on a closed meeting; the vote shall be taken in an | 0024| open meeting; and the vote of each individual member shall be | 0025| recorded in the minutes. Only those subjects announced or voted | 0001| upon prior to closure by the policymaking body may be discussed in | 0002| a closed meeting; and | 0003| (2) if called for when the policymaking body is | 0004| not in an open meeting, shall not be held until public notice, | 0005| appropriate under the circumstances, stating the specific | 0006| provision of the law authorizing the closed meeting and stating | 0007| with reasonable specificity the subject to be discussed is given | 0008| to the members and to the general public. | 0009| J. Following completion of any closed meeting, the | 0010| minutes of the open meeting that was closed or the minutes of the | 0011| next open meeting if the closed meeting was separately scheduled | 0012| shall state that the matters discussed in the closed meeting were | 0013| limited only to those specified in the motion for closure or in | 0014| the notice of the separate closed meeting. This statement shall | 0015| be approved by the public body under Subsection G of this section | 0016| as part of the minutes." | 0017| Section 11. Section 13-1-98 NMSA 1978 (being Laws 1984, | 0018| Chapter 65, Section 71, as amended) is amended to read: | 0019| "13-1-98. EXEMPTIONS FROM THE PROCUREMENT CODE.--The | 0020| provisions of the Procurement Code shall not apply to: | 0021| A. procurement of items of tangible personal property | 0022| or services by a state agency or a local public body from a state | 0023| agency, a local public body or external procurement unit except as | 0024| otherwise provided in Sections 13-1-135 through 13-1-137 NMSA | 0025| 1978; | 0001| B. procurement of tangible personal property or | 0002| services for the governor's mansion and grounds; | 0003| C. printing and duplicating contracts involving | 0004| materials which are required to be filed in connection with | 0005| proceedings before administrative agencies or state or federal | 0006| courts; | 0007| D. purchases of publicly provided or publicly | 0008| regulated gas, electricity, water, sewer and refuse collection | 0009| services; | 0010| E. purchases of books and periodicals from the | 0011| publishers or copyright holders thereof; | 0012| F. travel or shipping by common carrier or by private | 0013| conveyance or to meals and lodging; | 0014| G. purchase of livestock at auction rings or to the | 0015| procurement of animals to be used for research and experimentation | 0016| or exhibit; | 0017| H. contracts with businesses for public school | 0018| transportation services; | 0019| I. procurement of tangible personal property or | 0020| services, as defined by Sections 13-l-87 and 13-l-93 NMSA 1978, by | 0021| the corrections industries division of the corrections department | 0022| pursuant to regulations adopted by the corrections [industries] | 0023| commission, which shall be reviewed by the purchasing division of | 0024| the general services department prior to adoption; | 0025| J. minor purchases consisting of magazine | 0001| subscriptions, conference registration fees and other similar | 0002| purchases where prepayments are required; | 0003| K. municipalities having adopted home rule charters | 0004| and having enacted their own purchasing ordinances; | 0005| L. the issuance, sale and delivery of public | 0006| securities pursuant to the applicable authorizing statute, with | 0007| the exception of bond attorneys and general financial consultants; | 0008| M. contracts entered into by a local public body with | 0009| a private independent contractor for the operation, or provision | 0010| and operation, of a jail pursuant to Sections 33-3-26 and 33-3-27 | 0011| NMSA 1978; | 0012| N. contracts for maintenance of grounds and facilities | 0013| at highway rest stops and other employment opportunities, | 0014| excluding those intended for the direct care and support of | 0015| persons with handicaps, entered into by state agencies with | 0016| private, nonprofit, independent contractors who provide services | 0017| to persons with handicaps; | 0018| O. contracts and expenditures for services to be paid | 0019| or compensated by money or other property transferred to New | 0020| Mexico law enforcement agencies by the United States department of | 0021| justice drug enforcement administration; | 0022| P. contracts for retirement and other benefits | 0023| pursuant to Sections 22-11-47 through 22-11-52 NMSA 1978; [and] | 0024| Q. contracts with professional entertainers; and | 0025| R. procurement of items of tangible personal property | 0001| or services by a hospital owned and operated by a county health | 0002| commission pursuant to purchasing regulations adopted by that | 0003| commission." | 0004| Section 12. Section 14-2-1 NMSA 1978 (being Laws 1947, | 0005| Chapter 130, Section 1, as amended) is amended to read: | 0006| "14-2-1. RIGHT TO INSPECT PUBLIC RECORDS--EXCEPTIONS.-- | 0007| Every person has a right to inspect any public records of this | 0008| state except: | 0009| A. records pertaining to physical or mental | 0010| examinations and medical treatment of persons confined to any | 0011| institution; | 0012| B. letters of reference concerning employment, | 0013| licensing or permits; | 0014| C. letters or memorandums which are matters of opinion | 0015| in personnel files or students' cumulative files; | 0016| D. law enforcement records that reveal confidential | 0017| sources, methods, information or individuals accused but not | 0018| charged with a crime. Law enforcement records include evidence in | 0019| any form received or compiled in connection with any criminal | 0020| investigation or prosecution by any law enforcement or prosecuting | 0021| agency, including inactive matters or closed investigations to the | 0022| extent that they contain the information listed above; | 0023| E. as provided by the Confidential Materials Act; | 0024| [and] | 0025| F. records of a county health commission or a county | 0001| health commission hospital if the records include proprietary | 0002| information, the disclosure of which would be likely to impede the | 0003| ability of the hospital to compete in the health care market; and | 0004| [F.] G. as otherwise provided by law." | 0005| Section 13. EMERGENCY.--It is necessary for the public | 0006| peace, health and safety that this act take effect immediately. | 0007|  |