SENATE BILL 145

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Cynthia Nava

FOR THE LEGISLATIVE EDUCATION STUDY COMMITTEE

AN ACT

RELATING TO EDUCATION; CHANGING THE CAP ON DUE PROCESS REIMBURSEMENTS; MAKING AN APPROPRIATION.

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

     Section 1. Section 22-29-2 NMSA 1978 (being Laws 1986, Chapter 94, Section 2) is amended to read:

     "22-29-2. PURPOSE OF ACT.--The purpose of the Public School Insurance Authority Act is to provide comprehensive core insurance programs, including reimbursement coverage for the costs of providing due process to students with disabilities, for all participating public schools, school board members, school board retirees and public school employees and retirees by expanding the pool of subscribers to maximize cost containment opportunities for required insurance coverage."

     Section 2. Section 22-29-12 NMSA 1978 (being Laws 2007, Chapter 236, Section 3) is amended to read:

     "22-29-12. DUE PROCESS REIMBURSEMENT.--The authority shall include due process reimbursement in its self-insured retention risk pool. Each year, the legislature shall authorize the board to collect the due process reimbursement premium from member districts and charter schools to cover the cost of due process reimbursement. From the authorization, the board shall allocate due process reimbursement premiums based on a school district's or charter school's claims experience and other criteria determined by the board. A single due process reimbursement shall not exceed [three hundred thousand dollars ($300,000)] one hundred thousand dollars ($100,000)."

     Section 3. APPROPRIATION.--One million five hundred thousand dollars ($1,500,000) is appropriated from the general fund to the state equalization guarantee distribution for expenditure in fiscal year 2009 to fund the cost of due process reimbursement insurance coverage. Any unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall not revert to the general fund.

     Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2008.

- 2 -