SENATE BILL

55th legislature - STATE OF NEW MEXICO - second session, 2022

INTRODUCED BY

Harold Pope, Jr.

 

 

 

FOR THE LEGISLATIVE EDUCATION STUDY COMMITTEE

 

AN ACT

RELATING TO INSURANCE; AMENDING THE GROUP INSURANCE CONTRIBUTIONS FOR SCHOOL DISTRICTS, CHARTER SCHOOLS AND PARTICIPATING ENTITIES IN THE PUBLIC SCHOOL INSURANCE AUTHORITY; MAKING AN APPROPRIATION.

 

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

     SECTION 1. Section 22-29-10 NMSA 1978 (being Laws 1989, Chapter 373, Section 5, as amended) is amended to read:

     "22-29-10. GROUP INSURANCE CONTRIBUTIONS.--

          A. Group insurance contributions for school districts, charter schools and participating entities in the authority shall be made as follows:

                (1) at least eighty percent of the cost of the insurance of an employee whose annual salary is less than twenty-five thousand dollars ($25,000);

                [(1)] (2) at least seventy-five percent of the cost of the insurance of an employee whose annual salary is [less than fifteen thousand dollars ($15,000)] twenty-five thousand dollars ($25,000) or more but less than thirty thousand dollars ($30,000);

                [(2)] (3) at least seventy percent of the cost of the insurance of an employee whose annual salary is [fifteen thousand dollars ($15,000)] thirty thousand dollars ($30,000) or more but less than [twenty thousand dollars ($20,000)] thirty-five thousand dollars ($35,000);

                [(3)] (4) at least sixty-five percent of the cost of the insurance of an employee whose annual salary is [twenty thousand dollars ($20,000)] thirty-five thousand dollars ($35,000) or more but less than [twenty-five thousand dollars ($25,000); or] forty thousand dollars ($40,000); and

                [(4)] (5) at least sixty percent of the cost of the insurance of an employee whose annual salary is [twenty-five thousand dollars ($25,000)] forty thousand dollars ($40,000) or more.

          B. Within available revenue, school districts, charter schools and participating entities in the authority may contribute up to eighty percent of the cost of the insurance of all employees.

          C. Whenever a school district, charter school or participating entity in the authority offers to its employees alternative health plan benefit options, including health maintenance organizations, preferred provider organizations or panel doctor plans, the school district, charter school or participating entity may pay an amount on behalf of the employee and family member for the indemnity health insurance plan sufficient to result in equal employee monthly costs to the cost of the health maintenance organization plans, preferred provider organization plans or panel doctor plans, regardless of the percentage limitations in the Public School Insurance Authority Act. School districts, charter schools and participating entities in the authority may pay up to one hundred percent of the first fifty thousand dollars ($50,000) of term life insurance."

     SECTION 2. APPROPRIATION.--Ten million five hundred ninety-one thousand dollars ($10,591,000) is appropriated from the general fund to the state equalization guarantee distribution of the public school fund for expenditure in fiscal year 2023 to assist school districts, charter schools and participating entities in the public school insurance authority with their group insurance contributions. Any unexpended or unencumbered balance remaining at the end of fiscal year 2023 shall revert to the general fund.

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is October 1, 2022.

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