0001|                            HOUSE BILL 436
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                             LISA L. LUTZ
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO STATE EMPLOYEES; REQUIRING DEPARTMENT OF HEALTH
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0012|     EMPLOYEES TO MEET THE STANDARD OF CONDUCT APPLICABLE TO HUMAN
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0013|     SERVICES DEPARTMENT EMPLOYEES FOR MEDICAID-FUNDED PROGRAMS.
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0014|     
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0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016|          Section 1.  Section 27-2-12.7 NMSA 1978 (being Laws 1980,
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0017|     Chapter 86, Section 1) is amended to read:
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0018|          "27-2-12.7.  MEDICAID--HUMAN SERVICES DEPARTMENT
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0019|     EMPLOYEES--STANDARDS OF CONDUCT--ENFORCEMENT.--
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0020|               A.  As used in this section:
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0021|                    (1)  "business" means a corporation,
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0022|     partnership, sole proprietorship, firm, organization or
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0023|     individual carrying on a business;
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0024|                    (2)  "department" means the human services
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0025|     department;
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<center>- 1 -</center>

0001|                    (3)  "employee" means <s>[any]</s> <u>a</u> person who
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0002|     has been appointed to or hired for <s>[any]</s> <u>a</u> department
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0003|     office connected with the administration of medicaid funds <u>or
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<u></u>0004| <u>    a department of health office connected with the
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<u></u>0005| <u>    administration of medicaid waiver funds</u> and who receives
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0006|     compensation in the form of <u>a</u> salary;
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0007|                    (4)  "employee with responsibility" means an
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0008|     employee who is directly involved in or has a significant part
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0009|     in the medicaid decision-making, regulatory, procurement or
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0010|     contracting process; and
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0011|                    (5)  "financial interest" means an interest
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0012|     held by an individual, his spouse or minor child <s>[which]</s>
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0013|     <u>that</u> is:
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0014|                         (a)  an ownership interest in business;
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0015|     or
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0016|                         (b)  <s>[any]</s> <u>an</u> employment or
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0017|     prospective employment for which negotiations have already
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0018|     begun.
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0019|               B.  No employee with responsibility shall, for
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0020|     twenty-four months following the date on which he ceases to be
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0021|     an employee, act as agent or attorney for <s>[any other]</s>
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0022|     <u>another</u> person or business in connection with a judicial or
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0023|     administrative proceeding, application, ruling, contract,
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0024|     claim or other matter relating to the medicaid program with
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0025|     respect to which the employee made an investigation, rendered
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<center>- 2 -</center>

0001|     <s>[any]</s> <u>a</u> ruling or was otherwise substantially and directly
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0002|     involved during the last year he was an employee and which was
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0003|     actually pending under his responsibility within that period.
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0004|               C.  No <s>[department]</s> secretary <u>of human
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<u></u>0005| <u>    services</u>, income support division director or medical
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0006|     assistance bureau chief or their deputies shall, for twelve
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0007|     months following the date on which he ceases to be an
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0008|     employee, participate <s>[in any manner]</s> with respect to a
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0009|     judicial or administrative proceeding, application, ruling,
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0010|     contract, claim or other matter relating to the medicaid
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0011|     program and pending before the department.
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0012|               D.  No employee with responsibility shall
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0013|     participate <s>[in any manner]</s> with respect to a judicial or
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0014|     administrative proceeding, application, ruling, contract,
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0015|     claim or other matter relating to the medicaid program and
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0016|     involving his spouse, minor child or <s>[any]</s> <u>a</u> business in
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0017|     which he has a financial interest unless prior to <s>[such]</s>
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0018|     <u>the</u> participation:
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0019|                    (1)  full disclosure of his relationship or
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0020|     financial interest is made in writing to the secretary of
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0021|     <s>[the department]</s> <u>human services</u>; and
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0022|                    (2)  a written determination is made by the
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0023|     secretary <u>of human services</u> that the disclosed relationship
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0024|     or financial interest is too remote or inconsequential to
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0025|     affect the integrity of the services of the employee.
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<center>- 3 -</center>

0001|               E.  Violation of any of the provisions of this
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0002|     section by an employee is grounds for dismissal, demotion or
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0003|     suspension.  A former employee who violates <s>[any of the
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<s></s>0004| <s>    provisions]</s> <u>a provision</u> of this section <s>[shall be]</s> <u>is</u>
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0005|     subject to assessment by the department of a civil money
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0006|     penalty of two hundred fifty dollars ($250) for each
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0007|     violation.  The department shall promulgate <s>[regulations]</s>
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0008|     <u>rules</u> to provide for an administrative appeal of any
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0009|     assessment imposed."
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0010|                                  
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