SENATE BILL 473

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Leonard Lee Rawson

AN ACT

RELATING TO WORKERS' COMPENSATION; REVISING INVESTMENT GUIDELINES FOR SELF-INSURED GROUPS; AMENDING A SECTION OF THE GROUP SELF-INSURANCE ACT.

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

     Section 1. Section 52-6-16 NMSA 1978 (being Laws 1986, Chapter 22, Section 90) is amended to read:

     "52-6-16. INVESTMENTS.--

          A. Funds not needed for current obligations may be invested by the board of trustees in accordance with the provisions of Chapter 59A, Article 9 [of the Insurance Code] NMSA 1978 applicable to investments, except that an insurer may invest in asset-backed securities an aggregate amount that does not exceed twenty percent of the insurer's assets.

          B. As used in this section, "asset-backed security" means a security or other instrument that evidences an undivided interest in, or the right to receive payments from or primarily from, distributions on a pool of financial assets held by an unaffiliated business entity that meets the following conditions:

                (1) the business entity is not a sole proprietorship and is established solely for the purpose of acquiring specific types of financial assets issuing securities representing an undivided interest in or right to receive cash flows from those assets, and engaging in activities required to service those assets or rights; and

                (2) the pool of financial assets consists of interest-bearing obligations or other contractual obligations representing the right to receive payment from the assets."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.

- 2 -