46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO INSURANCE; DEDICATING CERTAIN REVENUES UNDER THE NEW MEXICO INSURANCE CODE TO PAY THE OPERATIONS EXPENSES OF THE INSURANCE DIVISION OF THE PUBLIC REGULATION COMMISSION; CREATING THE INSURANCE OPERATIONS FUND.

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

Section 1. Section 59A-6-5 NMSA 1978 (being Laws 1984, Chapter 127, Section 105, as amended) is amended to read:

"59A-6-5. DISTRIBUTION OF [INSURANCE DEPARTMENT] DIVISION

COLLECTIONS.--

A. All money received by the [insurance department] division for fees, licenses, penalties and taxes shall be paid daily by the superintendent to the state treasurer and by him credited to the "insurance department suspense fund" except as provided by:

(1) the Law Enforcement Protection Fund Act; and

(2) Section 59A-6-1.1 NMSA 1978.

B. The superintendent may authorize refund of money erroneously paid as fees, licenses, penalties or taxes from the insurance department suspense fund under request for refund made within three years after the erroneous payment.

C. The "insurance operations fund" is created in the state treasury. The fund shall consist of the distributions made to it pursuant to Subsection D of this section. The legislature shall annually appropriate from the fund to the division those amounts necessary for the division to carry out its responsibilities pursuant to the Insurance Code and other laws. The balance in the fund at the end of a fiscal year shall not revert to the general fund.

[C.] D. At the end of every month, after applicable refunds are made pursuant to Subsection B of this section, the state treasurer shall [transfer to the "fire protection fund"] make the following transfers from the balance remaining in the insurance department suspense fund [after applicable refunds made pursuant to Subsection B of this section, and]: (1) to the "fire protection fund", that part of the balance derived from property and vehicle insurance business;

(2) to the insurance operations fund, that part of the balance derived from the fees imposed pursuant to Subsections A and E of Section 59A-6-1 NMSA 1978; and

(3) [transfer] to the general fund, the balance remaining in the insurance department suspense fund derived from all other kinds of insurance business."

Section 2. TEMPORARY PROVISION--FUNDS TRANSFER.--During fiscal year 2004, expenditures from the general fund for the operations of the insurance division of the public regulation commission shall be reimbursed each quarter from the insurance operations fund to the extent funds are available."