AN ACT

RELATING TO PUBLIC FUNDS; PROVIDING STANDARDS FOR ASSESSING CONTRIBUTIONS AGAINST STATE AGENCIES AND LOCAL PUBLIC BODIES.

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

     Section 1. Section 15-7-2 NMSA 1978 (being Laws 1978, Chapter 166, Section 7, as amended) is amended to read:

     "15-7-2. RISK MANAGEMENT DIVISION.--

          A. There is established a "risk management division" of the general services department. The director of the risk management division shall be appointed by the secretary of general services. The director shall be knowledgeable and experienced in general insurance practices. The director shall be responsible for the acquisition and administration of all insurance purchased by the state. Except as provided by this section, no state agency may procure any kind of insurance other than through the risk management division.

          B. The risk management division shall apportion to each state agency its contributions toward the purchase of insurance or for the providing of coverage for any risk not insured. The amount of contribution by each agency shall be determined by the risk management division and shall reflect the respective risks of each agency. All contributions toward the purchase of insurance or for the coverage of any risk not insured shall be paid into the public liability fund, the workers' compensation retention fund, the public property reserve fund or the group self-insurance fund, as appropriate. The department of finance and administration may collect or transfer funds from each agency to cover insurance or other costs, pursuant to the risk management division's instructions.

          C. If, at the beginning of a fiscal year, a fund administered by the risk management division is not actuarially sound, the total amount of contributions to be assessed state agencies and participating local public bodies for that fund during that fiscal year shall equal not less than one hundred ten percent of the total incurred claims against that fund in the fiscal year before the preceding fiscal year.

          D. The director, upon a finding that efficiency and economy so require, may authorize any state agency to purchase insurance for, or otherwise cover, vision, dental, any group or individual health, life, accidental death and dismemberment or disability coverage. Any authorization granted shall be conditioned upon the prior approval by the director of any policy to be purchased and the premium to be paid by the agency."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2006.