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HOUSE BILL 46
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Eleanor Chávez
AN ACT
RELATING TO FINANCIAL INSTITUTIONS; AMENDING THE DEFINITION OF
"HEALTH-RELATED EQUIPMENT" BY REMOVING REAL PROPERTY;
CLARIFYING THE APPLICATION OF THE TAX EXEMPTION FOR REAL
PROPERTY FIRST PURCHASED, ACQUIRED, LEASED, FINANCED OR
REFINANCED PRIOR TO JULY 1, 2025 WITH THE PROCEEDS OF BONDS
ISSUED PURSUANT TO THE HOSPITAL EQUIPMENT LOAN ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 58-23-3 NMSA 1978 (being Laws 1983,
Chapter 290, Section 3, as amended) is amended to read:
"58-23-3. DEFINITIONS.--As used in the Hospital Equipment
Loan Act:
A. "board" means the board of directors of the
council;
B. "bonds" means bonds, notes, interim
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certificates, bond anticipation notes or other evidences of
indebtedness of the council issued pursuant to the Hospital
Equipment Loan Act, including refunding bonds;
C. "cost" as applied to health-related equipment
means any and all costs of equipment, including but not limited
to the following:
(1) all direct or indirect costs of the
acquisition, including repair, restoration, reconditioning,
financing and refinancing or installation of the health-related
equipment;
(2) the cost of any property interest in the
health-related equipment, including an option to purchase or a
lease-hold interest;
(3) the cost of architectural, engineering,
planning, drafting, legal and any incidental or related
services necessary for acquisition of the health-related
equipment;
(4) the cost of all financing charges and
interest accrued prior to the acquisition or refinancing of the
health-related equipment for a maximum of two years after or
prior to such acquisition or refinancing;
(5) all direct and indirect costs incurred in
connection with the financing of the health-related equipment,
including out-of-pocket expenses; the cost of financing; legal,
accounting, financial, advisory and consulting expenses; the
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cost of [any] a policy of insurance; the cost of printing,
engraving and reproduction services; and costs associated with
[any] trust indenture; and
(6) [any] the costs incurred by the council
for the administration of [any ] a program for the purchase,
sale or lease of or the making of loans for health-related
equipment to [any] a participating health-care provider;
D. "council" means the New Mexico hospital
equipment loan council;
E. "health facility" means [any ] a person that:
(1) is licensed by the [department of ] health
care authority to provide health-related services, assisted
living support or long-term care;
(2) provides health-related research; or
(3) is properly accredited or certified and
eligible to receive medicare or medicaid reimbursement for all
or part of its activities [providing ] that provide mental
health services, developmental disabilities services or related
specialized support to or on behalf of persons or a defined
group of persons;
F. "health-related equipment" means [any real or ]
personal property, an instrument, a service or an operational
necessity that is found and determined by the council to be
needed, directly or indirectly, for medical care, treatment or
research or other equipment as [otherwise ] might be needed to
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operate the health facility;
G. "participating health facility" means a public
or private nonprofit or for-profit corporation, association,
foundation, trust, cooperative, agency or other person or
organization that operates or proposes to operate a health
facility in New Mexico and contracts with the council for the
financing or refinancing of the lease or acquisition of health-
related equipment. Public, district, county, city, county-
municipal or other municipal hospitals and hospitals affiliated
with an institution of higher education in New Mexico are
participating [health-care ] health care facilities; and
H. "program" means the New Mexico hospital
equipment loan program created by the Hospital Equipment Loan
Act and administered by the council."
SECTION 2. Section 58-23-29 NMSA 1978 (being Laws 1983,
Chapter 290, Section 29, as amended by Laws 2006, Chapter 90,
Section 3 and by Laws 2006, Chapter 92, Section 3) is amended
to read:
"58-23-29. EXEMPTION FROM TAXATION--ASSETS TO STATE UPON
DISSOLUTION.--
A. All property acquired or held by the council
under the Hospital Equipment Loan Act, income therefrom and
bonds issued under the Hospital Equipment Loan Act, plus the
interest payable and income derived from the bonds, shall be
exempt from taxation by the state or any subdivision thereof.
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Upon dissolution of the council, its assets, after payment of
its indebtedness, shall inure to the benefit of the state.
B. All health-related equipment purchased,
acquired, leased, financed or refinanced with the proceeds of
bonds issued under the Hospital Equipment Loan Act is exempt
from property taxation for as long as the participating health
facility remains liable for any amount under any lease, loan or
other agreement securing the bonds, but not to exceed thirty
years from the date the bonds were issued for the health-
related equipment. Real property that was first purchased,
acquired, leased, financed or refinanced prior to July 1, 2025
with the proceeds of bonds issued pursuant to the Hospital
Equipment Loan Act that is then purchased, acquired, leased,
financed or refinanced on or after July 1, 2025 shall no longer
be exempt from property taxation pursuant to this subsection. "
SECTION 3. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
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