CHILDREN'S BEHAVIORAL HEALTH DIVISION

SB0184

SENATE BILL 184

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Linda M. López
and
Shannon D. Pinto

and
Antoinette Sedillo Lopez
and
Angel M. Charley

and
Harold Pope

AN ACT

RELATING TO CHILDREN; CREATING THE CHILDREN'S BEHAVIORAL HEALTH
SERVICES DIVISION OF THE HEALTH CARE AUTHORITY; TRANSFERRING
THE OPERATIONS OF THE BEHAVIORAL HEALTH SERVICES DIVISION OF
THE CHILDREN, YOUTH AND FAMILIES DEPARTMENT TO THE CHILDREN'S
BEHAVIORAL HEALTH SERVICES DIVISION OF THE HEALTH CARE
AUTHORITY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
Section 9-2A-8 NMSA 1978 (being Laws 1992,
Chapter 57, Section 8, as amended) is amended to read:

"9-2A-8. DEPARTMENT--ADDITIONAL DUTIES.--In addition to
other duties provided by law or assigned to the department by
the governor, the department shall:

A. develop priorities for department services and
resources based on state policy and national best-practice
standards and local considerations and priorities;

B. strengthen collaboration and coordination in
state and local services for children, youth and families by
integrating critical functions as appropriate, including
service delivery, and contracting for services across divisions
and related agencies;

C. develop and maintain a statewide database,
including client tracking of services for children, youth and
families;

D. develop standards of service within the
department that focus on prevention, monitoring and outcomes;

E. analyze policies of other departments that
affect children, youth and families to encourage common
contracting procedures, common service definitions and a
uniform system of access;

F. adopt rules to control disposition and placement
of children under the Children's Code, including rules to limit
or prohibit the out-of-state placement of children, including
those who have developmental disabilities or emotional,
neurobiological or behavioral disorders, when in-state
alternatives are available;

G. develop reimbursement criteria for licensed
child care centers and licensed home providers establishing
that accreditation by a department-approved national
accrediting body is sufficient qualification for the child care
center or home provider to receive the highest reimbursement
rate paid by the department;

H. assume and implement responsibility for
[
children's
] mental health and substance abuse services [
in the
state
]
for children in department custody
, coordinating with
the health care authority,
the public education department, the
early childhood education and care department
and the
department of health;

I. assume and implement the lead responsibility
among all departments for domestic violence services;

J. implement prevention and early intervention as a
departmental focus;

K. conduct biennial assessments of service gaps and
needs and establish outcome measurements to address those
service gaps and needs, including recommendations from the
governor's children's cabinet and the children, youth and
families advisory committee;

[
L. ensure that behavioral health services
provided, including mental health and substance abuse services
for children, adolescents and their families, shall be in
compliance with requirements of Section 24A-3-1 NMSA 1978 and
any rules adopted pursuant to that section;

M.
]
L.
develop and implement the families first
strategic plan for the delivery of services and access to
programs as required pursuant to the Families First Act; and

[
N.
]
M.
fingerprint and conduct nationwide criminal
history record searches on all department employees, staff
members and volunteers whose jobs involve direct contact with
department clients, including prospective employees and
employees who are promoted, transferred or hired into new
positions, and the superiors of all department employees, staff
members and volunteers who have direct unsupervised contact
with department clients."

SECTION 2.
Section 9-8-4 NMSA 1978 (being Laws 1977,
Chapter 252, Section 4, as amended) is amended to read:

"9-8-4. AUTHORITY ESTABLISHED.--The "health care
authority" is created in the executive branch. The authority
is a cabinet department and consists of:

A. the office of the secretary of health care
authority;

B. the administrative services division;

C. the information technology division;

D. the behavioral health services division;

E. the children's behavioral health services
division;

[
E.
]
F.
the developmental disabilities division;

[
F.
]
G.
the health improvement division;

[
G.
]
H.
the medical assistance division;

[
H.
]
I.
the state health benefits division;

[
I.
]
J.
the child support enforcement division; and

[
J.
]
K.
the income support division."

SECTION 3.
Section 9-8-6 NMSA 1978 (being Laws 1977,
Chapter 252, Section 7, as amended) is amended to read:

"9-8-6. SECRETARY--DUTIES AND GENERAL POWERS.--

A. The secretary is responsible to the governor for
the operation of the authority. It is the secretary's duty to
manage all operations of the authority and to administer and
enforce the laws with which the secretary or the authority is
charged.

B. To perform duties of office, the secretary has
every power expressly enumerated in the laws, whether granted
to the secretary or the authority or any division of the
authority, except where authority conferred upon any division
is explicitly exempted from the secretary's authority by
statute. In accordance with these provisions, the secretary
shall:

(1) except as otherwise provided in the Health
Care Authority Act, exercise general supervisory and appointing
authority over all authority employees, subject to any
applicable personnel laws and rules;

(2) delegate authority to subordinates as the
secretary deems necessary and appropriate, clearly delineating
such delegated authority and the limitations thereto;

(3) organize the authority into those
organizational units the secretary deems will enable it to
function most efficiently, subject to any provisions of law
requiring or establishing specific organizational units;

(4) within the limitations of available
appropriations and applicable laws, employ and fix the
compensation of those persons necessary to discharge the
secretary's duties;

(5) conduct background checks on authority
employees and prospective authority employees that have or will
have access to federal tax information; provided that:

(a) local law enforcement agency
criminal history record checks shall be conducted on all
employees, prospective employees, contractors, prospective
contractors, subcontractors and prospective subcontractors with
access to federal tax information;

(b) record checks for any identified
arrests shall be conducted through local law enforcement
agencies in jurisdictions where the subject has lived, worked
or attended school within the last five years preceding the
record check;

(c) federal bureau of investigation
fingerprinting shall be conducted on all employees, prospective
employees, contractors, prospective contractors, subcontractors
and prospective subcontractors with access to federal tax
information;

(d) for the purpose of conducting a
national agency background check, the authority shall submit to
the department of public safety and the federal bureau of
investigation a fingerprint card for each of the following
personnel who have or will have access to federal tax
information: 1) employees; 2) prospective employees; 3)
contractors; 4) prospective contractors; 5) subcontractors; and
6) prospective subcontractors;

(e) the authority shall conduct a check
for eligibility to legally work as a citizen or legal resident
of the United States on all employees, prospective employees,
contractors, prospective contractors, subcontractors and
prospective subcontractors with access to federal tax
information. The authority shall complete a citizenship or
residency check for each new employee and any employee with
expiring employment eligibility and shall document and monitor
the employee's citizenship or residency status for continued
compliance;

(f) criminal history records obtained by
the authority pursuant to the provisions of this paragraph and
the information contained in those records are confidential,
shall not be used for any purpose other than conducting
background checks for the purpose of determining eligibility
for employment and shall not be released or disclosed to any
other person or agency except pursuant to a court order or with
the written consent of the person who is the subject of the
records;

(g) a person who releases or discloses
criminal history records or information contained in those
records in violation of the provisions of this paragraph is
guilty of a misdemeanor and shall be sentenced pursuant to the
provisions of Section 31-19-1 NMSA 1978;

(h) the secretary shall adopt and
promulgate rules to establish procedures to provide for
background checks; provided that background checks shall

not be evaluated for any purpose other than a person's
authority-related activities, and criteria according to which
background checks are evaluated, for all present and
prospective personnel identified in the provisions of this
paragraph;

(i) contractors, prospective
contractors, subcontractors and prospective subcontractors
shall bear any costs associated with ordering or conducting
background checks pursuant to this paragraph; and

(j) an authority employee or prospective
authority employee who is denied employment or whose employment
is terminated based on information obtained in a background
check shall be entitled to review the information obtained
pursuant to this paragraph and to appeal the decision;

(6) take administrative action by issuing
orders and instructions, not inconsistent with the law, to
assure implementation of and compliance with the provisions of
law for whose administration or execution the secretary is
responsible and to enforce those orders and instructions by
appropriate administrative action in the courts;

(7) conduct research and studies that will
improve the operations of the authority and the provision of
services to the citizens of the state;

(8) provide courses of instruction and
practical training for employees of the authority and other
persons involved in the administration of programs with the
objective of improving the operations and efficiency of
administration;

(9) prepare an annual budget of the authority;

(10) provide cooperation, at the request of
heads of administratively attached agencies, in order to:

(a) minimize or eliminate duplication of
services and jurisdictional conflicts;

(b) coordinate activities and resolve
problems of mutual concern; and

(c) resolve by agreement the manner and
extent to which the authority shall provide budgeting,
recordkeeping and related clerical assistance to
administratively attached agencies; and

(11) appoint, with the governor's consent, a
"director" for each division. These appointed positions are
exempt from the provisions of the Personnel Act. Persons
appointed to these positions shall serve at the pleasure of the
secretary, except as provided in Section 9-8-9 NMSA 1978.

C. The secretary may apply for and receive, with
the governor's approval, in the name of the authority, any
public or private funds, including United States government
funds, available to the authority to carry out its programs,
duties or services.

D. Where functions of departments overlap or a
function assigned to one department could better be performed
by another department, the secretary may recommend appropriate
legislation to the next session of the legislature for its
approval.

E. The secretary may make and adopt such reasonable
procedural rules as may be necessary to carry out the duties of
the authority and its divisions. No rule promulgated by the
director of any division in carrying out the functions and
duties of the division shall be effective until approved by the
secretary unless otherwise provided by statute. Unless
otherwise provided by statute, no rule affecting any person or
agency outside the authority shall be adopted, amended or
repealed without a public hearing on the proposed action before
the secretary or a hearing officer designated by the secretary.
The public hearing shall be held in Santa Fe unless otherwise
permitted by statute. Notice of the subject matter of the
rule, the action proposed to be taken, the time and place of
the hearing, the manner in which interested persons may present
their views and the method by which copies of the proposed rule
or proposed amendment or repeal of an existing rule may be
obtained shall be published once at least thirty days prior to
the hearing date in a newspaper of general circulation and
mailed at least thirty days prior to the hearing date to all
persons who have made a written request for advance notice of
hearing.

F. In the event the secretary anticipates that
adoption, amendment or repeal of a rule will be required by a
cancellation, reduction or suspension of federal funds or order
by a court of competent jurisdiction:

(1) if the secretary is notified by
appropriate federal authorities at least sixty days prior to
the effective date of such cancellation, reduction or
termination of federal funds, the authority is required to
promulgate rules through the public hearing process to be
effective on the date mandated by the appropriate federal
authority; or

(2) if the secretary is notified by
appropriate federal authorities or court less than sixty days
prior to the effective date of such cancellation, reduction or
suspension of federal funds or court order, the authority is
authorized without a public hearing to promulgate interim rules
effective for a period not to exceed ninety days. Interim
rules shall not be promulgated without first providing a
written notice twenty days in advance to providers of medical
or behavioral health services and beneficiaries of authority
programs. At the time of the promulgation of the interim
rules, the authority shall give notice of the public hearing on
the final rules in accordance with Subsection E of this
section.

G. If the secretary certifies to the secretary of
finance and administration and gives contemporaneous notice of
such certification through the human services register that the
authority has insufficient state funds to operate any of the
programs it administers and that reductions in services or
benefit levels are necessary, the secretary may engage in
interim rulemaking. Notwithstanding any provision to the
contrary in the State Rules Act, interim rulemaking shall be
conducted pursuant to Subsection E of this section, except:

(1) the period of notice of public hearing
shall be fifteen days;

(2) the authority shall also send individual
notices of the interim rulemaking and of the public hearing to
affected providers and beneficiaries;

(3) rules promulgated pursuant to the
provisions of this subsection shall be in effect not less than
five days after the public hearing;

(4) rules promulgated pursuant to the
provisions of this subsection shall not be in effect for more
than ninety days; and

(5) if final rules are necessary to replace
the interim rules, the authority shall give notice of intent to
promulgate final rules at the time of notice. The final rules
shall be promulgated not more than forty-five days after the
public hearing and filed in accordance with the State Rules
Act.

H. At the time of the promulgation of the interim
rules, the authority shall give notice of the public hearing on
the final rules in accordance with Subsection E of this
section.

I. The [
secretary shall ensure that any behavioral
health services, including mental health and substance abuse
services, provided, contracted for or approved are in
compliance with the requirements of Section 24A-3-1 NMSA 1978
]

authority shall assume and implement responsibility for
children's mental health and substance abuse services in the
state, coordinating with the children, youth and families
department, the public education department, the early
childhood education and care department and the department of
health
.

J. All rules shall be filed in accordance with the
State Rules Act."

SECTION 4.
A new section of the Health Care Authority
Act, Section 9-8-7.5 NMSA 1978, is enacted to read:

"9-8-7.5. [
NEW MATERIAL
] CHILDREN'S BEHAVIORAL HEALTH
SERVICES DIVISION CREATED--DIRECTOR DUTIES.--

A. The "children's behavioral health services
division" is created in the authority. The division shall be
responsible for planning, overseeing and providing behavioral
health services for children across the state.

B. The children's behavioral health services
division shall be led by a director, who shall be appointed by
the secretary and shall:

(1) oversee operations of the division;

(2) have the power to hire and fire staff,
with approval of the secretary, as necessary to carry out the
division's duties;

(3) coordinate with the behavioral health
services division of the authority, the children, youth and
families department, the public education department, the early
childhood education and care department and the department of
health on developing and implementing a comprehensive statewide
children's behavioral health services plan;

(4) contract for and partner with children's
behavioral health service providers across the state to expand
the availability of children's behavioral health services; and

(5) prepare an annual report for the
legislature that:

(a) identifies the behavioral health
service needs for children in the state, the gaps in behavioral
health services for children and the funding needed to fill
those gaps;

(b) summarizes the behavioral health
services provided to children by the authority and the
authority's contractors; and

(c) provides an overview of the
activities of the division."

SECTION 5.
TEMPORARY PROVISION--TRANSFER.--On July 1,
2026, the secretary of children, youth and families and the
secretary of health care authority shall jointly identify the
following to be transferred:

A. up to ninety percent of the personnel of the
behavioral health services division of the children, youth and
families department are transferred to the children's
behavioral health services division of the health care
authority;

B. all functions, appropriations, money, records,
furniture, equipment, supplies and other property belonging to
the behavioral health services division of the children, youth
and families department that are primarily associated with the
personnel transferred pursuant to Subsection A of this section
are transferred to the children's behavioral health services
division of the health care authority; and

C. all contracts and agreements of the behavioral
health services division of the children, youth and families
department relating to the activities of the personnel
transferred pursuant to Subsection A of this section are
transferred to and are binding on the children's behavioral
health services division of the health care authority.

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