2005 Senate Bill text for SB0008

SENATE BILL 8

47th legislature - STATE OF NEW MEXICO - first special session, 2005

INTRODUCED BY

Rod Adair

AN ACT

RELATING TO PUBLICLY FUNDED BENEFITS; PROVIDING FOR THE REVOCATION OF MEMBERSHIP AND PENSIONS FOR MEMBERS OF THE STATE RETIREMENT SYSTEM ACTS AND THE EDUCATIONAL RETIREMENT SYSTEM UPON CONVICTION OF A FELONY ARISING OUT OF SERVICE.

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

Section 1. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] PENSION CONDITIONAL--EFFECT OF FELONY CONVICTION.--

A. As used in this section:

(1) "conviction" means a judgment of guilty or acceptance of a plea of nolo contendere by a state or federal court of competent jurisdiction for a felony arising out of service as a public employee;

(2) "felony arising out of service as a public employee" means conviction of one or more of the following related to the public employee's powers and duties:

(a) fraud;

(b) embezzlement;

(d) soliciting or receiving bribes, kickbacks or rebates;

(e) forgery;

(f) tampering with public records;

(g) fraudulent securities practices;

(h) any other felony whereby the public employee realizes or attempts to realize a gain or advantage for the employee or another person through use of power, rights, privilege, duties or position; and

(i) any other felony that is otherwise related to the employee's service as a public employee;

(3) "member" means a member or retired member of a retirement system administered by the public employees retirement association, including the Public Employees Retirement Act, the Judicial Retirement Act, the Magistrate Retirement Act and the Volunteer Firefighters Retirement Act;

(4) "public employee" means a member who is elected or appointed to public office or employed by or retired from an affiliated public employer; and

(5) "publicly funded pension" means a pension administered by the public retirement association that is funded in whole or in part by an affiliated public employer.

B. The receipt of a publicly funded pension is expressly conditioned on the rendering of honorable service by a public employee. Conviction of a felony arising out of service as a public employee is prima facie evidence of dishonorable service and the public employee's membership in a retirement system administered by the association and any pension benefit shall be revoked.

C. Upon the initial conviction in a state or federal court of competent jurisdiction of a member for a felony that appears to be a felony arising out of service as a public employee, the attorney general or a district attorney shall initiate the revocation of a publicly funded pension by filing for an order of revocation of pension and other retirement benefits with the first judicial district court or the district court in the district in which the member resides or was employed by an affiliated public employer.

D. After hearing and upon the issuance of the order of revocation of pension and other retirement benefits, the association shall refund the accumulated member contributions to the member who has not retired. If the member retired after the commission of a felony arising out of service as a public employee, the association shall cease paying a pension to the revoked member and shall refund any remaining portion of the accumulated member contributions.

E. If the conviction is overturned on appeal, the revocation order is voided and the person may rejoin the association upon payment of the amount of the refund payment."

Section 2. A new section of the Educational Retirement Act is enacted to read:

"[NEW MATERIAL] RETIREMENT BENEFIT CONDITIONAL--EFFECT OF FELONY CONVICTION.--

A. As used in this section:

(1) "conviction" means a judgment of guilty or acceptance of a plea of nolo contendere by a state or federal court of competent jurisdiction for a felony arising out of service as an educational employee;

(2) "educational employee" means a member who is elected or appointed to public office or employed by or retired from a local administrative unit;

(3) "felony arising out of service as an educational employee" means conviction of one or more of the following related to the educational employee's powers and duties:

(a) fraud;

(b) embezzlement;

(d) soliciting or receiving bribes, kickbacks or rebates;

(e) forgery;

(f) tampering with public records;

(g) fraudulent securities practices;

(i) any other felony that is otherwise related to the employee's service as an educational employee;

(4) "member" means a member, retired member or participant of the educational retirement system administered by the board; and

(5) "publicly funded retirement benefit" means a retirement benefit administered by the board that is funded in whole or in part by a local administrative unit.

B. The receipt of a publicly funded retirement benefit is expressly conditioned on the rendering of honorable service by an educational employee. Conviction of a felony arising out of service as an educational employee is prima facie evidence of dishonorable service and the educational employee's membership in the retirement system administered by the board and any retirement benefit shall be revoked.

C. Upon the initial conviction in a state or federal court of competent jurisdiction of a member for a felony that appears to be a felony arising out of service as an educational employee, the attorney general or a district attorney may initiate the revocation of a publicly funded retirement benefit by filing for an order of revocation of retirement benefits with the first judicial district court or the district court in the district in which the member resides or was employed by a local administrative unit.

D. After hearing and upon the issuance of the order of revocation of retirement benefits, the board shall refund the member's contributions plus interest to the member who has not retired. If the member retired after the commission of a felony arising out of service as an educational employee, the board shall cease paying a retirement benefit to the revoked member and shall refund any remaining portion of the member's contributions plus interest.

E. If the conviction is overturned on appeal, the revocation order is voided and the person may rejoin the retirement system upon payment of the amount of the refund payment."

Section 3. APPLICABILITY.--This act applies to crimes committed on or after the effective date of this act.

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