SB 613
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AN ACT
RELATING TO SOIL AND WATER CONSERVATION DISTRICTS; ALLOWING
ELECTED OR APPOINTED SUPERVISORS TO OPT INTO THE STATE GROUP
INSURANCE BENEFITS; AMENDING SECTIONS OF THE NMSA 1978.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 10-7B-2 NMSA 1978 (being Laws 1989,
Chapter 231, Section 2, as amended by Laws 2005, Chapter 301,
Section 2 and by Laws 2005, Chapter 305, Section 2) is
amended to read:
"10-7B-2. DEFINITIONS.--As used in the Group Benefits
Act:
A. "committee" means the group benefits committee;
B. "director" means the director of the risk
management division of the general services department;
C. "employee" means a salaried officer, employee
or legislator of the state; a salaried officer or an employee
of a local public body; or an elected or appointed supervisor
of a soil and water conservation district;
D. "local public body" means any New Mexico
incorporated municipality, county or school district;
E. "professional claims administrator" means any
person or legal entity that has at least five years of
experience handling group benefits claims, as well as such
other qualifications as the director may determine from time
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to time with the committee's advice;
F. "small employer" means a person having
for-profit or nonprofit status that employs an average of
fifty or fewer persons over a twelve-month period; and
G. "state" or "state agency" means the state of
New Mexico or any of its branches, agencies, departments,
boards, instrumentalities or institutions."
Section 2. Section 10-7B-5 NMSA 1978 (being Laws 1989,
Chapter 231, Section 5, as amended by Laws 2005, Chapter 301,
Section 3 and by Laws 2005, Chapter 305, Section 3) is
amended to read:
"10-7B-5. ADMINISTRATIVE COSTS.--The director, with the
prior approval of the committee, may apportion the costs of
employee benefits administration and other employee benefit
costs to all participating state agencies and their
employees, participating local public bodies and their
employees, participating small employers and persons and
dependents eligible through the small employer and
participating soil and water conservation district
supervisors and their covered dependents, whether the plan is
insured or self-insured."
Section 3. Section 10-7B-6 NMSA 1978 (being Laws 1989,
Chapter 231, Section 6, as amended) is amended to read:
"10-7B-6. STATE EMPLOYEES GROUP BENEFITS SELF-INSURANCE
PLAN--AUTHORIZATION--LOCAL PUBLIC BODY PARTICIPATION.--
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A. The risk management division of the general
services department may, with the prior advice of the
committee, establish and administer a group benefits
self-insurance plan, providing life, vision, health, dental
and disability coverages, or any combination of such
coverages, for employees of the state and of participating
local public bodies. Any such group benefits self-insurance
plan shall afford coverage for employees' dependents at each
employee's option. Any such group benefits self-insurance
plan may consist of self-insurance or a combination of
self-insurance and insurance; provided that particular
coverages or risks may be fully insured, fully self-insured
or partially insured and partially self-insured.
B. The director, with the advice of the committee,
shall establish by regulation or letter of administration the
types, extent, nature and description of coverages, the
eligibility rules for participation, the deductibles, rates
and all other matters reasonably necessary to carry on or
administer a group benefits self-insurance plan established
pursuant to Subsection A of this section.
C. The contribution of each participating state
agency to the cost of any such group benefits self-insurance
plan shall not exceed that percentage provided for state
group benefits insurance plans as provided by law. The
contribution of a participating local public body to the cost
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of any such group benefits self-insurance plan shall not
exceed that percentage provided for local public body group
benefits insurance plans as provided by law.
D. Except as provided in Subsection E of this
section, public employees' contributions to the cost of any
group benefits self-insurance plan may be deducted from their
salaries and paid directly to the group self-insurance fund;
provided that where risks are insured or reinsured, the
director may authorize payment of the costs of such insurance
or reinsurance directly to the insurer or reinsurer.
E. A legislator and the legislator's covered
dependents and a soil and water conservation district
supervisor or the supervisor's covered dependents are
eligible to participate in and receive benefits from the
group benefits self-insurance plan if the legislator or
supervisor pays monthly premiums in amounts that equal one
hundred percent of the cost of the insurance. The premiums
shall be paid directly to the group self-insurance fund;
provided that where risks are insured or reinsured, the
director may authorize payment of the premiums directly to
the insurer or reinsurer.
F. Local public bodies and state agencies that are
not participating in the state group benefits insurance plan
or self-insurance plan may elect to participate in any group
benefits self-insurance plan established pursuant to
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Subsection A of this section by giving written notice to the
director on a date set by the director, which date shall not
be later than ninety days prior to the date participation is
to begin. The director shall determine an initial rate for
the electing entity in accordance with a letter of
administration setting forth written guidelines established
by the director with the committee's advice. The initial
rate shall be based on the claims experience of the electing
entity's group for the three immediately preceding continuous
years. If three years of continuous experience is not
available, a rate fixed for the entity by the director with
the committee's advice shall apply, and the electing entity's
group shall be rerated on the first premium anniversary
following the date one full year of experience for the group
becomes available. Any such election may be terminated
effective not earlier than June 30 of the third calendar year
succeeding the year in which the election became effective or
on any June 30 thereafter. Notice of termination shall be
made in writing to the director not later than April 1
immediately preceding the June 30 on which participation will
terminate. A reelection to participate in the plan following
a termination may not be made effective for at least three
full years following the effective date of termination.
G. As soon as practicable, the director with the
committee's advice shall establish an experience rating plan
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for state agencies and local public bodies participating in
any group benefits self-insurance plan created pursuant to
Subsection A of this section. Rates applicable to state
agencies and participating local public bodies shall be based
on such experience rating plan. Any such experience rating
plan may provide separate rates for individual state agencies
and individual local public bodies or for such other
experience centers as the director may determine."
Section 4. Section 73-20-40 NMSA 1978 (being Laws 1965,
Chapter 137, Section 14, as amended) is amended to read:
"73-20-40. SELECTION OF SUPERVISOR CHAIRMAN--QUORUM--
COMPENSATION.--Within a reasonable time after each district
election and after newly elected supervisors have completed
the oath of office, the supervisors of a district shall
organize and shall designate a chairman who shall be a
supervisor and who shall serve at the pleasure of the
supervisors. In the performance of district functions, a
majority of supervisors shall constitute a quorum; the
concurrence of the quorum majority shall be required to carry
or to determine any matter of district business. Supervisors
shall not receive compensation for their services but shall
be entitled to be reimbursed in accordance with the
provisions of the Per Diem and Mileage Act. Supervisors may
purchase group health insurance benefits for themselves and
their dependents pursuant to the Group Benefits Act and
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pursuant to the rules and procedures set forth by that act
and the risk management division of the general services
department."
Section 5. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2006.