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F I S C A L I M P A C T R E P O R T
SPONSOR Leavell
ORIGINAL DATE
LAST UPDATED
1/18/08
1/21/08 HB
SHORT TITLE False Insurance Claims as Racketeering
SB 151
ANALYST Ortiz
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Public Defender Department (PDD)
No Responses Received From
Administrative Office of the Courts (AOC)
Administrative Office of the District Attorneys (AODA)
Attorney General’s Office (AGO)
Department of Public Safety (DPS)
SUMMARY
Synopsis of Bill
Senate Bill 151 expands the crime of racketeering to include false application, claim or proof of
loss with respect to insurance. As explained by the Public Defender Department, it amends
NMSA 1978, § 30-41-1, et seq., the “Racketeering Act" to include within the definition
provided in § 30-42-3, an additional method by which racketeering may be committed. The bill
includes within this list “false application, claim or proof of loss" as provided in NMSA 1978, §
59A-16-23, which prohibits knowingly or willfully making a false or fraudulent statement or
representation as to a material fact in application for insurance for the purpose of obtaining
money or some benefit, or presenting a fraudulent claim in support for payment of loss under an
insurance policy.
pg_0002
Senate Bill 151 – Page
2
Currently, the statute defines “racketeering" as any act chargeable or indictable under the law of
New Mexico and punishable by imprisonment of over one year and involving number specific
offenses, including but not limited a number of crimes of dishonesty such as forgery, fraud,
embezzlement, illegal kickbacks and extortion. Violation of the insurance fraud statute is
punishable as a petty misdemeanor, misdemeanor, fourth, third or second degree felony
depending on the amount of the purported loss or potential loss to the victim insurer. A violation
of the racketeering statute itself is punishable as a second degree felony.
EO/nt