SENATE FLOOR SUBSTITUTE FOR

SENATE JUDICIARY COMMITTEE SUBSTITUTE FOR

SENATE BILL 473

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

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.--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, notwithstanding the provisions of Section 59A-9-18 NMSA 1978:

          A. the board of trustees may make loans or investments not otherwise expressly permitted under Chapter 59A, Article 9 NMSA 1978, in an aggregate amount not exceeding ten percent of the group's assets and not exceeding two percent of such assets as to any one such loan or investment, provided that such loans and investments do not constitute an amount that is greater than total surplus, if the loan or investment meets the requirements of Section 59A-9-3 NMSA 1978 and by reason of safety of principal and yield otherwise qualifies as a sound investment; and

          B. the calculation of the group's other loans and investments described in Subsection A of this section shall not include the fair market value of any real property occupied by the group."

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

- 2 -