NMSA 1978, § 4-48B-1 Short title
4-48B-1. Short title
Chapter 4, Article 48B NMSA 1978 may be cited as the "Hospital Funding Act".
1978 Comp., § 4-48B-1, enacted by Laws 1981, ch. 83, § 1; 1982, ch. 11, § 1.
Hospital Funding
NMSA 1978 ch. 4, art. 48B
in effectNMSA 1978, § 4-48B-2 Purpose of act
4-48B-2. Purpose of act
The purpose of the Hospital Funding Act is:
A. to encourage and enable counties and other political subdivisions to provide appropriate and adequate hospital facilities for the sick of the counties;
B. to provide flexibility in financing construction, operation and maintenance of necessary hospital facilities; and
C. to minimize the cost of constructing new hospital facilities and maintaining adequate hospital facilities in all geographic areas of the state.
Laws 1980, ch. 46, § 1; 1978 Comp., § 4-48-11.2, recompiled as § 4-48B-2 by Laws 1981, ch. 83, § 2.
NMSA 1978, § 4-48B-3 Definitions
4-48B-3. Definitions
As used in the Hospital Funding Act:
A. "another political subdivision" means a political subdivision of New Mexico, including a municipality and a special hospital district organized under the Special Hospital District Act [Chapter 4, Article 48A NMSA 1978], but not including a county;
B. "class A county" means a county having a population of more than two hundred thousand persons according to the last federal decennial census;
C. "contracting hospital" means a hospital located in New Mexico that enters into a health care facilities contract with a county or counties or another political subdivision;
D. "county" means any county of the state;
E. "county commissioners" means the board of county commissioners of a county;
F. "county hospital" means a hospital owned by a county;
G. "health care facilities contract" means an agreement between a hospital and a county or counties, or between a hospital and a county or counties and another political subdivision, that provides for the payment by the county or counties of all or a portion of the proceeds of a mill levy to the hospital in exchange for the agreement by the hospital to use the funds only for nonsectarian purposes and to make available the following for the sick of the county or counties:
(1) hospital facilities that admit and treat patients without regard to race, sex, religion or national origin;
(2) hospital facilities that include x-ray, laboratory services and a pharmacy or drug room;
(3) adequate emergency equipment, personnel and procedures, including:
(a) a standby emergency power system;
(b) at least one person capable and authorized to initiate immediate lifesaving measures;
(c) facilities for emergency laboratory work, including, as a minimum, urinalysis, complete blood count, blood type and cross match; and
(d) diagnostic radiographic facilities;
(4) facilities, procedures and policies for prevention, control and reporting of communicable diseases, including one or more rooms for isolation of patients having or suspected of having communicable diseases;
(5) adequate records, including, as a minimum, a daily census and a register of all births, deliveries, deaths, admissions, emergency room admissions, discharges, operations, outpatients, inpatients and narcotics; and
(6) physical facilities, personnel, equipment and procedures that comply with the regulations promulgated by the public health division of the department of health;
H. "hospital governing board" means the board that governs a county hospital or the board of directors or trustees of a contracting hospital;
I. "mill levy" means the rate of the tax, at a rate specified in the Hospital Funding Act, in terms of dollars per thousand dollars of net taxable value of property subject to taxation within the county;
J. "municipality" means any city, town or village incorporated under a general act, special act or special charter; and
K. "equipping" or "re-equipping" means purchase or lease of property of a character subject to the allowance for depreciation under Section 167 of the Internal Revenue Code of, as amended or renumbered, and regulations promulgated in accordance with that section.
1978 Comp., § 4-48B-3, enacted by Laws 1981, ch. 83, § 3; 1991, ch. 212, § 12; 2003, ch. 285, § 1.
NMSA 1978, § 4-48B-4 Annual report
4-48B-4. Annual report
Each contracting hospital shall prepare an annual accounting and report to the county or counties, or county or counties and another political subdivision with which the contracting hospital contracts, accounting for the expenditure of mill levy funds for the past year, an annual plan explaining the planned use of such funds for the succeeding year and other reports as the county or counties, or county or counties and another political subdivision, from time to time shall reasonably require.
1978 Comp., § 4-48B-4, enacted by Laws 1981, ch. 83, § 4; 2001, ch. 291, § 6.
NMSA 1978, § 4-48B-5 Power of counties
4-48B-5. Power of counties
All counties shall have the following powers:
A. to purchase, own, maintain and operate hospitals;
B. to purchase the land necessary to construct hospitals;
C. to control and regulate county hospitals;
D. to construct county hospitals;
E. to issue general obligation bonds and revenue bonds in the manner provided in the Hospital Funding Act for the construction, purchase, renovation, remodeling, equipping or re-equipping of a county hospital or a jointly owned county-municipal hospital and purchasing the land necessary therefor or for any combination of the foregoing purposes;
F. to charge for hospital services rendered and to reduce any charge made for care of a patient in whole or part when the charges are determined to be disputed in good faith or uncollectible;
G. to lease a hospital to any person, corporation or association for the operation and maintenance of the hospital upon terms and conditions as the county commissioners may determine;
H. to contract with the state, another county or counties, the federal government or its agencies, another political subdivision or a public or private corporation, organization or association for the care of the sick of the county;
I. to receive all funds appropriated from whatever source or paid by or on behalf of any patient of the hospital;
J. notwithstanding any other provision of law, to enter into leases, management or operating contracts, health care facilities contracts and other agreements authorized by the Hospital Funding Act for periods in excess of one year; provided that:
(1) the contract, lease or agreement may be terminated by the county without cause upon one hundred eighty days' notice after the first three years of the contract; and
(2) Paragraph (1) of this subsection shall not apply during the portion of a lease term in which a lessee is obligated under the lease to make debt service payments on revenue bonds that finance all or part of the hospital or equipment for the hospital;
K. to authorize the hospital governing board of a county hospital to exercise all powers that the county is granted by the Hospital Funding Act except the powers to issue bonds, call a mill levy election and levy the annual assessments for the mill levy authorized by the Hospital Funding Act;
L. to enter into a health care facilities contract with one or more hospitals that agree to provide facilities to the sick of the county;
M. to call a mill levy election as authorized by the Hospital Funding Act and to collect and distribute the proceeds of the mill levy pursuant to that act;
N. to distribute the proceeds of the mill levy authorized by the Hospital Funding Act to one or more county hospitals and one or more contracting hospitals or any combination thereof that provide facilities for the sick of the county, whether located within or without the county wherein the mill levy is collected;
O. to accept grants for constructing, equipping, operating and maintaining a county hospital;
P. to enter into an agreement with a municipality for constructing, equipping, operating and maintaining a jointly owned county-municipal hospital;
Q. to enter into an agreement with another county or counties, another county or counties and another political subdivision, an agency of the federal government or any other person, corporation, organization or association that provides that the parties to the agreement shall join together or form a legal entity for the purpose of making some or all purchases necessary for the operation of public hospitals or public and private hospitals subject to provisions of or exemptions from the Procurement Code [13-1-28 to 13-1-199 NMSA 1978];
R. to enter into an agreement with another county or counties, another political subdivision, an agency of the federal government or any other person, corporation, organization or association that provides that parties to the agreement shall join together or form a legal entity for the purpose of creating a network of health care providers or jointly operating a common health care service, subject to provisions of or exemptions from the Procurement Code;
S. to expend public money to recruit health care personnel to serve the sick of the county; and
T. to perform any other act or adopt any regulation necessary or expedient to carry out the provisions of the Hospital Funding Act.
1941 Comp., § 15-5001, enacted by Laws 1947, ch. 148, § 1; 1953 Comp., § 15-48-1; 1978 Comp., § 4-48-1, recompiled as § 4-48B-5 by Laws 1981, ch. 83, § 5; 1993, ch. 355, § 1; 1998, ch. 69, § 2; 2001, ch. 291, § 7.
NMSA 1978, § 4-48B-6 Election on bond question; petition; notice; limitation on holding; election without petition
4-48B-6. Election on bond question; petition; notice; limitation on holding; election without petition
Whenever a petition signed by not fewer than two hundred qualified electors of any county in this state shall be presented to the county commissioners of the particular county asking that a vote be taken on the question or proposition of constructing, purchasing, renovating, remodeling, equipping or re-equipping a county hospital or a county-municipal hospital and acquiring the land necessary therefor, setting forth in general terms the object of the petition and the amount of bonds asked to be voted for, it shall be the duty of the county commissioners of that county to which the petition may be presented, within ten days after the presentation, to call an election to be held within sixty days thereafter in that county, and to give notice of such election by publication once a week for at least three consecutive weeks in any newspaper published or of general circulation in the county, which notices shall set forth the time and place of holding the election, the hospital proposed to be purchased, constructed, renovated, remodeled, equipped or re-equipped and the land necessary to be acquired, and which bonds are to be voted for. After the defeat of any proposition once voted for, a second special election upon any question or proposition under the provisions of the Hospital Funding Act shall not be held for a term of two years, unless a petition requesting another election, containing the names of qualified electors of the county equal to ten percent of the vote cast for governor in the last preceding election and otherwise conforming to the requirements of this section, shall be presented to the county commissioners; provided, however, that in no event shall more than two elections upon any proposition or question under the Hospital Funding Act be held in any two-year period. A bond election as provided in this section also may be called by the county commissioners without any petition, after the county commissioners have adopted a resolution calling for such an election, which resolution shall set forth the object of the election and the amount of bonds to be issued.
1941 Comp., § 15-5004, enacted by Laws 1947, ch. 148, § 4; 1953 Comp., § 15-48-4; 1978 Comp., § 4-48-3, recompiled as § 4-48B-6 by Laws 1981, ch. 83, § 6.
NMSA 1978, § 4-48B-7 Power to lease hospitals
4-48B-7. Power to lease hospitals
A. All counties shall have the power to authorize the leasing or operating of county hospitals to persons, firms, organizations, corporations or a state educational institution named in Article 12, Section 11 of the constitution of New Mexico upon such terms and conditions as the county commissioners may determine. If the lease is to a state educational institution named in Article 12, Section 11 of the constitution of New Mexico, the payment for the lease shall not exceed one dollar ($1.00) per year. The lease may be for any length of time deemed appropriate by the parties involved, provided that the lease shall contain a cancellation clause.
B. In the event of a lease to or an agreement to operate with a state educational institution named in Article 12, Section 11 of the constitution of New Mexico, the county may delegate its authority to operate and maintain the hospital to that institution.
C. In the event of a lease to or an agreement to operate with a state educational institution named in Article 12, Section 11 of the constitution of New Mexico, the public character of the hospital shall continue, and county funds for the hospital shall be paid by the county to that institution for the operation and maintenance of the hospital. Any county hospital, or outpatient clinics thereof, leased to or operated under an agreement with a state educational institution named in Article 12, Section 11 of the constitution of New Mexico shall continue, during the state educational institution's operation and maintenance of the hospital, to be a local public body for purposes of the Unemployment Compensation Law [Chapter 51 NMSA 1978].
1941 Comp., § 15-5005, enacted by Laws 1947, ch. 148, § 5; 1953 Comp., § 15-48-5; Laws 1978, ch. 168, § 1; 1978 Comp., § 4-48-4, recompiled as § 4-48B-7 by Laws 1981, ch. 83, § 7.
NMSA 1978, § 4-48B-8 Sick and indigent persons; agreements for care with state and county agencies
4-48B-8. Sick and indigent persons; agreements for care with state and county agencies
Counties, by their county commissioners, are authorized to make agreements with state or county agencies or other agencies for the care of sick and indigent persons. Such care shall be provided to all non-citizens, regardless of immigration status, if they meet all other qualifying criteria for such care.
1941 Comp., § 15-5006, enacted by Laws 1947, ch. 148, § 6; 1953 Comp., § 15-48-6; 1978 Comp., § 4-48-5, recompiled as § 4-48B-8 by Laws 1981, ch. 83, § 8; 2021, ch. 127, § 2.
NMSA 1978, § 4-48B-9 Joint construction and operation of hospitals by counties; municipal participation; indebtedness authorized
4-48B-9. Joint construction and operation of hospitals by counties; municipal participation; indebtedness authorized
A. If two or more counties shall, through their respective county commissioners, deem it advisable to construct, purchase, renovate, remodel, equip, re-equip, maintain or operate a hospital and to acquire the land necessary therefor for the benefit jointly of such counties, the counties jointly shall have the powers and authorities in the Hospital Funding Act granted to any individual county and may issue general obligation bonds in the manner provided in Chapter 4, Article 49 NMSA 1978, and revenue bonds issued pursuant to the Hospital Funding Act shall be bonds of the respective counties issued according to the proportions of their populations as shown in the last census, and such hospital may be located at any point in any of the counties as may be determined by agreement of the county commissioners of the respective counties.
B. One or more counties may enter into an agreement with a municipality located in a county entering into an agreement for the construction, purchase, renovation, remodeling, equipping, re-equipping, maintenance or operation of a jointly owned county-municipal hospital and the acquisition of land necessary therefor or any combination of the foregoing purposes, and such hospital may be located at any point in any of the counties or within the participating municipality as may be determined by agreement of the county commissioners of the respective counties and the governing body of the participating municipality.
C. The county or counties entering into an agreement with a municipality are authorized to issue, separately, general obligation bonds in the manner provided in Chapter 4, Article 49 NMSA 1978 for the purpose of constructing, purchasing, renovating, remodeling, equipping or re-equipping a jointly owned county-municipal hospital and for the acquisition of land necessary therefor, or any combination of the foregoing purposes. The municipality entering into an agreement with one or more counties is authorized to issue, separately, for such purposes, in the manner provided by law, general obligation bonds or revenue bonds as provided under Section 3-44-2 NMSA 1978.
D. Any general obligation bonds or revenue bonds issued pursuant to the Hospital Funding Act shall be bonds of the respective counties and the participating municipality issued according to the proportions of their populations as shown in the last census; provided, however, that the population of the county in which the participating municipality is located shall be reduced for the purpose of determining the amount of bonds to be issued by the county and municipality by the population of the participating municipality or a percentage thereof as determined by agreement of the county commissioners of the county and the governing body of the municipality.
1941 Comp., § 15-5007, enacted by Laws 1947, ch. 148, § 7; 1953 Comp., § 15-48-7; 1978 Comp., § 4-48-6, recompiled as § 4-48B-9 by Laws 1981, ch. 83, § 9.
NMSA 1978, § 4-48B-10 Hospital governing boards for county hospitals; members; appointment; terms; powers; bonds
4-48B-10. Hospital governing boards for county hospitals; members; appointment; terms; powers; bonds
A. The county commissioners of a county or counties maintaining or operating a county hospital are authorized to appoint a hospital governing board to be composed of either five, seven or nine members. The hospital governing board so appointed shall have the authority to exercise all powers that the county is granted by the Hospital Funding Act for the operation of such hospitals except the powers to issue bonds, call a mill levy election, levy the annual assessments for the mill levy authorized by the Hospital Funding Act and to dispose of real property of the hospital acquired with the proceeds of any bond issue.
B. Members of the hospital governing board shall be appointed by the board of county commissioners for staggered terms of three years or less. Appointments shall be made in such a manner that the terms of not more than one-third of the members, or as near thereto as possible, expire on June 30 of each year. Vacancies shall be filled for the unexpired term by appointment by the board of county commissioners.
C. The hospital governing board shall select from its membership a president and a secretary. After their appointment, none of the members of the hospital governing board shall be removed except for cause specified in a written charge and after full public hearing on the charge.
D. The hospital governing board shall account annually for the receipt and expenditures of funds received for the operation of the hospital.
E. The county commissioners, by an agreement for the maintenance and operation of a county hospital with another county or counties, another political subdivision, person, association or corporation, may permit the selection of a hospital governing board by the other party to the agreement subject to approval by the county commissioners.
F. All actions taken or purportedly taken or proceedings had or purportedly had by or on behalf of county commissioners with respect to the appointment of or delegation of authority to a hospital governing board, notwithstanding any lack of power, authority or otherwise and notwithstanding any defects and irregularities in the actions or proceedings, are hereby validated, ratified, approved and confirmed. This section shall operate to supply such legislative authority as may be necessary to validate any actions or proceedings by any group acting as a hospital governing board which would have been valid had the provisions of this section been in effect at the time the action or proceedings were taken. This section shall not operate to validate, ratify, approve, confirm or legalize any action or proceeding which has previously been determined in any legal proceeding to be illegal, void or ineffective.
1978 Comp., § 4-48B-10, enacted by Laws 1981, ch. 83, § 10; 1982, ch. 11, § 2.
NMSA 1978, § 4-48B-11 Federal aid
4-48B-11. Federal aid
The county commissioners and the hospital governing board shall have full power and authority to accept federal funds for the erection or enlargement of county hospitals and the maintenance and operation thereof, and to contract as a condition to the acceptance of such funds for the perpetual care in such hospitals of Indian patients at a per diem cost to be set out in the contracts between the appropriate agency of the federal government and the hospital governing boards or county commissioners.
1941 Comp., § 15-5011, enacted by Laws 1949, ch. 95, § 2; 1953 Comp., § 15-48-11; 1978 Comp., § 4-48-10, recompiled as § 4-48B-11 by Laws 1981, ch. 83, § 11.
NMSA 1978, § 4-48B-12 Tax levies authorized
4-48B-12. Tax levies authorized
A. The county commissioners are authorized to impose a mill levy and collect annual assessments against the net taxable value of the property in a county to pay the cost of operating and maintaining county hospitals or to pay to contracting hospitals in accordance with a health care facilities contract and in class A counties to pay for the county's transfer to the county-supported medicaid fund pursuant to Section 27-10-4 NMSA 1978 as follows:
(1) in class A counties as defined in Section 4-44-1 NMSA 1978, the mill levy shall not exceed a rate of six dollars fifty cents ($6.50), or any lower maximum amount required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978 upon a mill levy imposed pursuant to this paragraph, on each one thousand dollars ($1,000) of net taxable value of property allocated to the county; however, if the county uses any portion, not to exceed one dollar fifty cents ($1.50), of the rate authorized by this paragraph to meet the requirement of Section 27-10-4 NMSA 1978, the provisions of Section 7-37-7.1 NMSA 1978 do not apply to the portion of the rate necessary to produce the revenues required, provided that the portion of the rate does not exceed one dollar fifty cents ($1.50); and
(2) in other counties, the mill levy shall not exceed four dollars twenty-five cents ($4.25), or any lower maximum amount required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978 upon a mill levy imposed pursuant to this paragraph, on each one thousand dollars ($1,000) of net taxable value of property allocated to the county.
B. The mill levies provided in Paragraphs (1) and (2) of Subsection A of this section shall be made at the direction of the county commissioners, but only to the extent that the county commissioners deem it necessary to operate and maintain county hospitals, to pay the amounts required in the performance of any health care facilities contracts made pursuant to the Hospital Funding Act and to provide for a class A county's transfer to the county-supported medicaid fund pursuant to Section 27-10-4 NMSA 1978.
C. In the event that the mill levy provided for in Paragraph (1) of Subsection A of this section is not authorized by the electorate or the resulting mill levy proceeds are not remitted to the entity operating the hospital within a reasonable time period, any lease for operation of the hospital between a county and a state educational institution named in Article 12, Section 11 of the constitution of New Mexico may, at the option of the state educational institution, be terminated immediately. Except as provided in Subsection D of this section, in the event that the mill levy provided for in Paragraph (1) of Subsection A of this section is authorized, an amount not less than the amount that would be produced by a mill levy at the rate of four dollars ($4.00), or any lower amount that would be required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978 upon this rate, on each one thousand dollars ($1,000) of net taxable value of property allocated to the county shall be provided from the proceeds of the mill levy to the state educational institution operating the hospital for hospital purposes unless the institution determines that the amount is not necessary.
D. A class A county imposing the mill levy provided for in Paragraph (1) of Subsection A of this section may enter into a mutual agreement with a state educational institution named in Article 12, Section 11 of the constitution of New Mexico operating the hospital permitting the transfer to the county-supported medicaid fund by the county pursuant to Section 27-10-4 NMSA 1978 of not to exceed the amount that would be produced by a mill levy at a rate of one dollar fifty cents ($1.50) applied to the net taxable value of property allocated to the county for the prior property tax year and also not to exceed the amount that would be produced by imposition of the county health care gross receipts tax.
E. The distribution of the mill levy authorized at the rates specified in Subsection A of this section shall be made to county and contracting hospitals as authorized in the Hospital Funding Act.
1978 Comp., § 4-48B-12, enacted by Laws 1981, ch. 83, § 12; 1986, ch. 3, § 1; 1991, ch. 212, § 13; 2003, ch. 285, § 2.
NMSA 1978, § 4-48B-13 County hospital; power to lease; expenditure of proceeds from tax levy
4-48B-13. County hospital; power to lease; expenditure of proceeds from tax levy
Any county hospital operated and maintained pursuant to a lease as authorized by the Hospital Funding Act which has mill levies levied and collected for its maintenance and operation pursuant to that act may expend those funds for the operation and maintenance of the hospital and the use of the funds is declared to be an incidental benefit to the lessee which is far outweighed by the greater benefits to the public as a whole. The operation and maintenance of a county hospital under lease to the extent of and the use of the funds levied pursuant to that act is deemed to be funding to the hospital as a public institution, and the hospital facility and lessee thereof are subject to the laws of this state regarding the expenditures of public money and the auditing requirements of same and to the provisions of any rules or regulations as are required.
1978 Comp., § 4-48-11.1, enacted by Laws 1980, ch. 46, § 3; recompiled as § 4-48B-13 by Laws 1981, ch. 83, § 13.
NMSA 1978, § 4-48B-14 Payment of charges; persons committed by district court
4-48B-14. Payment of charges; persons committed by district court
A. Charges for care, treatment and services for any person sent by order of a district court to any county hospital or municipally owned hospital serving as a county hospital which is located outside the county of commitment shall be paid:
(1) by the patient, if he is able to pay; or
(2) by the county from which the patient was committed.
B. When a county is required by this section to pay such charges to another county, it shall levy and collect assessments as provided in the Hospital Funding Act.
1953 Comp., § 15-48-12.2, enacted by Laws 1966, ch. 6, § 5; 1978 Comp., § 4-48-13, amended and recompiled as § 4-48B-14 by Laws 1981, ch. 83, § 14.
NMSA 1978, § 4-48B-15 Election on special levy
4-48B-15. Election on special levy
A. In the event the county commissioners of a county, other than a class A county, desire to provide the mill levy authorized in Paragraph (2) of Subsection A of Section 4-48B-12 NMSA 1978, the county commissioners shall submit to the qualified electors of the county the question of levying those taxes not to exceed four dollars twenty-five cents ($4.25) on each one thousand dollars ($1,000) of net taxable value of property allocated to the county for a period of time not less than four years nor more than eight years.
B. In the event the county commissioners of a class A county desire to provide the mill levy authorized in Paragraph (1) of Subsection A of Section 4-48B-12 NMSA 1978, the county commissioners shall submit to the qualified electors of the county the question of levying those taxes not to exceed six dollars fifty cents ($6.50) on each one thousand dollars ($1,000) of net taxable value of property allocated to the county for a period of time of not less than four years nor more than eight years.
C. The question may be submitted to the electors and voted upon as a separate question at any general election or at any special election called for that purpose by the county commissioners. The election upon the question of a mill levy shall be called, held, conducted and canvassed in substantially the same manner as now or hereafter may be provided by law for general elections.
D. In the event the mill levy submitted under Subsection A or B of this section is voted upon favorably by the electors of the county, the mill levy shall become effective and be made for the ensuing fiscal year and those future years, not less than three nor more than seven, as stated in the question voted upon; provided that the question of continuing the mill levy shall thereafter be submitted to the electors at the general election immediately prior to the expiration of the period of assessment previously approved. The county commissioners shall decrease the rate of any mill levy imposed under the Hospital Funding Act if required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978. Subject to the provisions of Subsection D of Section 4-48B-12 NMSA 1978, the county commissioners may direct that the mill levy be decreased or not be made for any year if, in their judgment, sufficient funds for operation and maintenance of the hospital and transfer to the county-supported medicaid fund, if applicable, are available or will be obtained from other sources and if, relative to a county hospital operated by a state educational institution named in Article 12, Section 11 of the constitution of New Mexico, a decision to decrease the mill levy is agreed to by the state educational institution.
E. In the event that the mill levy approved by the electors is less than the maximum mill levy authorized for the county by Subsection A of Section 4-48B-12 NMSA 1978 and the county commissioners desire to increase the amount of the approved mill levy, the county commissioners shall submit, in accordance with Subsection C of this section, to the qualified electors of the county the questions of levying those additional taxes for a period of time consistent with the expiration of the mill levy previously approved; provided that the additional taxes, when added to the mill levy previously approved, may not exceed the mill levy maximum for the county provided in Subsection A of Section 4-48B-12 NMSA 1978. In the event that the mill levy increase is voted upon favorably by the electors of the county, the increase shall become effective for the years stated in the question voted upon. Nothing in this subsection shall be construed as requiring an election to restore the mill levy to an amount no higher than the mill levy approved by the electors after a reduction in the mill levy made pursuant to Subsection D of this section.
1941 Comp., § 15-5013, enacted by Laws 1953, ch. 174, § 2; 1953 Comp., § 15-48-13; Laws 1955, ch. 224, § 2; 1959, ch. 307, § 2; 1966, ch. 6, § 3; 1967, ch. 129, § 1; 1969, ch. 87, § 2; 1978, ch. 168, § 3; 1981, ch. 37, § 57; 1978 Comp., § 4-48-14, recompiled as § 4-48B-15 by Laws 1981, ch. 83, § 15; 1986, ch. 3, § 2; 1991, ch. 212, § 14.
NMSA 1978, § 4-48B-16 Validation of earlier elections
4-48B-16. Validation of earlier elections
All elections authorizing a mill levy assessment for hospital use which were held prior to the effective date of the Hospital Funding Act are declared valid for the use and purposes of that act, and such mill levy may be imposed and collected during the period of the authorization or any continuation thereof, and the funds may be expended in accordance with the provisions of that act. Any institution specifically named in any election is hereby deemed qualified as a county hospital or contracting hospital, as the case may be, and any authorization of the expenditure of public funds by a county hospital in any previous election is declared by the legislature to be authorization of expenditure of mill levy funds for a county hospital or contracting hospital under the provisions of the Hospital Funding Act.
1978 Comp., § 4-48B-16, enacted by Laws 1981, ch. 83, § 16.
NMSA 1978, § 4-48B-17 Governing boards of county hospitals authorized to establish retirement plans and programs for employees of county hospitals
4-48B-17. Governing boards of county hospitals authorized to establish retirement plans and programs for employees of county hospitals
The hospital governing board of a county hospital and regents of a state educational institution operating a county hospital under a contract approved by the state board of finance may establish retirement plans and programs for employees of a county hospital under their control. In establishing a retirement plan or program for county hospital employees, the governing board of the hospital may contract with private insurance companies. Any retirement benefits payable or paid to a county hospital employee resulting from a retirement plan or program authorized under this section are employee benefits and part of consideration for services rendered and are not donations to the employee.
1953 Comp., § 15-48-15, enacted by Laws 1973, ch. 343, § 1; 1978 Comp., § 4-48-16, recompiled as § 4-48B-17 by Laws 1981, ch. 83, § 17; 1982, ch. 11, § 3.
NMSA 1978, § 4-48B-18 Hospital revenue bonds; authority to issue; pledge of revenues
4-48B-18. Hospital revenue bonds; authority to issue; pledge of revenues
A. The counties agreeing jointly under Section 8 [9] [4-48B-9 NMSA 1978] of the Hospital Funding Act and the county or counties entering into an agreement with a municipality under Section 9 of the Hospital Funding Act may issue, separately, revenue bonds pursuant to that act for the purpose of constructing, purchasing, renovating, remodeling, equipping or re-equipping a county hospital and a jointly owned county-municipal hospital and the acquisition of land necessary therefor or any combination of the foregoing purposes.
B. The county or counties issuing revenue bonds pursuant to the Hospital Funding Act may pledge irrevocably all or a portion of the revenues derived from the operation of the county hospital or jointly owned county-municipal hospital and revenues derived from the leasing of or other contractual arrangement for the operation of a county hospital or jointly owned county-municipal hospital for the payment of principal and interest on the revenue bonds.
1978 Comp., § 4-48B-18, enacted by Laws 1981, ch. 83, § 18.
NMSA 1978, § 4-48B-19 Use of proceeds of bond issue
4-48B-19. Use of proceeds of bond issue
It is unlawful to divert, use or expend any money received from the issuance of bonds for any purpose other than the purpose for which the bonds were issued.
1978 Comp., § 4-48B-19, enacted by Laws 1981, ch. 83, § 19.
NMSA 1978, § 4-48B-20 Revenue bonds; terms
4-48B-20. Revenue bonds; terms
Hospital revenue bonds:
A. shall bear interest payable annually or semiannually and may or may not be evidenced by coupons; provided the first interest payment date may be for interest accruing for any period not exceeding one year;
B. may be subject to a prior redemption at the option of the county at such time or times and upon such terms and conditions, with or without the payment of such premium or premiums, as may be provided by resolution;
C. may mature at any time not exceeding thirty years after the date of issuance;
D. may be serial in form and maturity or may consist of one bond payable at one time or in installments or may be in any other form as may be provided in the resolution authorizing the bonds;
E. shall be sold for cash at above or below par and at a price which results in a net effective interest rate which does not exceed the maximum permitted by the Public Securities Act [6-14-1 to 6-14-3 NMSA 1978]; and
F. may be sold at a public or private sale.
1978 Comp., § 4-48B-20, enacted by Laws 1981, ch. 83, § 20; 1983, ch. 265, § 18.
NMSA 1978, § 4-48B-21 Ordinance authorizing revenue bonds
4-48B-21. Ordinance authorizing revenue bonds
At a regular or special meeting called for the purpose of issuing revenue bonds as authorized pursuant to the Hospital Funding Act, the county commissioners may adopt an ordinance that:
A. declares the necessity for issuing revenue bonds;
B. authorizes the issuance of revenue bonds by an affirmative vote of a majority of the county commissioners of the county; and
C. designates the source of the pledge [pledged] revenues.
1978 Comp., § 4-48B-21, enacted by Laws 1981, ch. 83, § 21.
NMSA 1978, § 4-48B-22 Hospital revenue bonds not general county obligations
4-48B-22. Hospital revenue bonds not general county obligations
Revenue bonds issued by a county under the authority of the Hospital Funding Act shall not be the general obligation of the county within the meaning of Article 9, Sections 10 and 13 of the constitution of New Mexico. The bonds shall be payable solely out of all or a portion of the net revenues derived from the operation of the county hospital or jointly owned county-municipal hospital and revenues derived from the leasing of or other contractual arrangement for the operation of a county hospital or jointly owned county-municipal hospital for which the bonds are issued. Revenue bonds and interest coupons issued under authority of that act shall never constitute an indebtedness of the county within the meaning of any state constitutional provision or statutory limitation and shall never constitute nor give rise to a pecuniary liability of the county or a charge against its general credit or taxing powers, and this fact shall be plainly stated on the face of each bond.
1978 Comp., § 4-48B-22, enacted by Laws 1981, ch. 83, § 22.
NMSA 1978, § 4-48B-23 Revenue bonds; security; restrictions and limitations
4-48B-23. Revenue bonds; security; restrictions and limitations
A. The principal of and interest on any revenue bonds issued under the authority of the Hospital Funding Act shall be secured by a pledge of the revenues out of which such bonds shall be payable and may be secured by a mortgage covering all or any part of the county hospital or jointly owned county-municipal hospital from which the revenues so pledged may be derived.
B. The ordinance and proceedings under which revenue bonds are authorized to be issued or any such mortgage may contain any agreement and provisions customarily contained in instruments securing bonds, including, without limiting the generality of the foregoing, provisions respecting the designation and collection of revenues from the county hospital or jointly owned county-municipal hospital covered by such proceedings or mortgage, the maintenance and insurance of these hospitals, the creation and maintenance of special funds derived from the revenues relating to such hospital, and the rights and remedies available in the event of default to the bondholders or to the trustee under a mortgage, all as the county commissioners shall deem advisable and as shall not be in conflict with the provisions of the Hospital Funding Act; provided, however, that in making any such agreements or provisions a county shall not have the power to obligate itself except with respect to the purposes for which the revenue bonds are issued and application of the revenues pledged from the operation of a county hospital or jointly owned county-municipal hospital and shall not have the power to incur a pecuniary liability or charge upon its general credit or against its taxing powers. The proceedings authorizing any revenue bonds and any mortgage securing those bonds may provide the procedure and remedies in the event of default in payment of the principal of or the interest on the bonds or in the performance of any agreement. No breach of any agreement shall impose any pecuniary liability upon a county or any charge upon its general credit or against its taxing powers.
1978 Comp., § 4-48B-23, enacted by Laws 1981, ch. 83, § 23.
NMSA 1978, § 4-48B-24 Revenue bonds; exemption from taxation
4-48B-24. Revenue bonds; exemption from taxation
The revenue bonds issued under authority of the Hospital Funding Act and the income from the bonds, all mortgages or other security instruments executed as security for the bonds, all agreement [agreements] made pursuant to the provisions of that act and the revenues derived therefrom by a county shall be exempt from all taxation by the state or any political subdivision thereof.
1978 Comp., § 4-48B-24, enacted by Laws 1981, ch. 83, § 24.
NMSA 1978, § 4-48B-25 Election not required
4-48B-25. Election not required
The Hospital Funding Act shall not be construed as requiring an election by the voters of a county prior to the issuance of revenue bonds under that act by a county.
1978 Comp., § 4-48B-25, enacted by Laws 1981, ch. 83, § 25.
NMSA 1978, § 4-48B-26 No notice or publication required
4-48B-26. No notice or publication required
No notice, consent or approval by any governmental body, commission or public officer shall be required as a prerequisite to the sale or issuance of any revenue bonds or the making of a mortgage under the authority of the Hospital Funding Act, except as provided in that act.
1978 Comp., § 4-48B-26, enacted by Laws 1981, ch. 83, § 26.
NMSA 1978, § 4-48B-27 Hospitals declared necessary public buildings
4-48B-27. Hospitals declared necessary public buildings
The legislature declares that hospitals are necessary public buildings with respect to which counties may borrow money for construction, purchase, renovation, remodeling, equipping or re-equipping and acquisition of necessary land.
1978 Comp., § 4-48B-27, enacted by Laws 1981, ch. 83, § 27.
NMSA 1978, § 4-48B-28 Agreements with the New Mexico hospital equipment loan council; authority; security; restrictions and limitations and other details
4-48B-28. Agreements with the New Mexico hospital equipment loan council; authority; security; restrictions and limitations and other details
A. A county or counties agreeing jointly under Section 4-48B-9 NMSA 1978 and a county or counties entering into an agreement with a municipality under Section 4-48B-9 NMSA 1978 may enter into a lease, loan or other financing agreement, with a term not exceeding thirty years from the date of execution, with the New Mexico hospital equipment loan council created under the Hospital Equipment Loan Act [Chapter 58, Article 23 NMSA 1978] to acquire funds for the construction, purchase, renovation, remodeling, equipping, reequipping or refinancing of a county hospital or a jointly owned county-municipal hospital, for purchasing the land necessary therefor and for refunding revenue bonds previously issued for any of the foregoing purposes or for any combination thereof.
B. The county or counties entering into an agreement with the New Mexico hospital equipment loan council may pledge irrevocably all or a portion of the revenues derived from the operation of the county hospital or jointly owned county-municipal hospital and revenues derived from the leasing of or other contractual arrangement for the operation of the county hospital or jointly owned county-municipal hospital for the payment of rentals, principal and interest and any other amount or obligation required under the lease, loan or other financing agreement with the New Mexico hospital equipment loan council.
C. At a regular or special meeting called for the purpose of approving the execution and delivery of a lease, loan or other financing agreement with the New Mexico hospital equipment loan council as authorized in this section, the hospital governing board may adopt a resolution or other proceedings declaring the necessity for entering into the lease, loan or other financing agreement with the New Mexico hospital equipment loan council; authorizing the entering into of the lease, loan or other financing agreement with the New Mexico hospital equipment loan council; and designating the source of the pledged revenues for the payment or repayment of rentals, principal and interest and any other amounts and obligations required under the lease, loan or other financing agreement with the New Mexico hospital equipment loan council.
D. The rentals, principal and interest and any other amounts and obligations owed under a lease, loan or other financing agreement with the New Mexico hospital equipment loan council shall be payable solely out of all or a portion of the revenues derived from the ownership and operation of a county hospital or jointly owned county-municipal hospital and revenues derived from the leasing of or other contractual arrangement for the operation of a county hospital or jointly owned county-municipal hospital for which the lease, loan or other financing agreement with the New Mexico hospital equipment loan council is entered into. The amount and obligations under a lease, loan or other financing agreement with the New Mexico hospital equipment loan council entered into under the authority of the Hospital Funding Act shall never constitute an indebtedness of a county or municipality within the meaning of any state constitutional provision or statutory limitation and shall never constitute or give rise to a pecuniary liability of the county or charge against its general credit or taxing power.
E. The rentals, principal and interest and any other amounts and obligations owed under a lease, loan or other financing agreement with the New Mexico hospital equipment loan council shall be secured by the pledge of the revenues out of which such rentals, principal and interest and any other amounts and obligations shall be payable and may be secured by a mortgage covering all or any part of the county hospital or jointly owned county-municipal hospital from which the revenues so pledged may be derived.
F. The resolution or proceedings under which the lease, loan or other financing agreement are authorized to be entered into or any mortgage relating thereto may contain any agreement and provisions customarily contained in instruments securing leases, loans or other financing arrangements including, without limiting the generality of the foregoing, provisions respecting the designation and collection of the revenues from the county hospital or jointly owned county-municipal hospital covered by such proceedings or mortgage, the maintenance and insurance of those hospitals, the creation and maintenance of special funds derived from the revenues relating to such hospital and the rights and remedies available in event of default to the New Mexico hospital equipment loan council under a mortgage, all as the hospital governing board may deem advisable. The resolution or proceedings authorizing any lease, loan or other financing agreement and any mortgage securing those obligations may provide the procedure and remedies in the event of default and the payment of the rentals, principal and interest or other amounts and obligations thereunder or in the performance of any agreement. No breach of any agreement shall impose any pecuniary liability upon a county or charge against its general credit or taxing power.
G. No notice, consent or approval by any governmental body, commission or public officer shall be required as a prerequisite to the entering into of a lease, loan or other financing agreement with the New Mexico hospital equipment loan council or the making of a mortgage under the authority of the Hospital Funding Act, except as provided in this section.
1978 Comp., § 4-48B-26.1, enacted by Laws 1987, ch. 49, § 9; 1992, ch. 41, § 4.
NMSA 1978, § 4-48B-29 Refunding revenue bonds
4-48B-29. Refunding revenue bonds
The county commissioners may issue refunding bonds for the purpose of refunding any of the revenue bonds issued under the Hospital Funding Act. The board shall adopt an ordinance or resolution stating the facts making the issuance of the refunding bonds necessary or advisable, the determination of the necessity or advisability by the county commissioners and the amount of refunding bonds that the county commissioners conclude as necessary and advisable to issue. The ordinance or resolution shall establish the form of the bonds; the rate or rates of interest of the bonds, provided the net effective interest rate of the bonds shall not exceed the maximum net effective interest rate permitted by the Public Securities Act [6-14-1 to 6-14-3 NMSA 1978]; the date of the refunding bonds; the denominations of the refunding bonds; the maturity dates, the last of which shall not be more than thirty years from the date of the refunding bonds; and the place or places of payment of both principal and interest either within or outside of the state. Refunding bonds when issued, except for bonds issued in book entry or similar form without the delivery of physical securities, shall be negotiable in form, bear the signature or the facsimile signature of the chairman of the board of county commissioners, bear the seal of the county and be attested by the clerk of the county. All refunding bonds may be exchanged dollar for dollar for the bonds to be refunded or they may be sold at a public or private sale as directed by the county commissioners. The proceeds of the sale shall be applied only to the purpose for which the refunding bonds were issued, including but not limited to establishment and funding of an escrow with a bank or trust company from which the refunded bonds may be paid and the payment of any expenses incidental thereto.
1978 Comp., § 4-48B-29, enacted by Laws 1992, ch. 41, § 5.
Source: New Mexico Compilation Commission (nmonesource.com)URL: https://nmonesource.com/nmos/nmsa-unanno/en/item/18505/index.doFetched: 10/20/2026