SB 797

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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

SB 797

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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."