0001| HOUSE BILL 396
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| EDDIE CORLEY
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO WORKERS' COMPENSATION; AMENDING THE GROUP SELF-
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0012| INSURANCE ACT TO PERMIT PAYMENT OF INCOME TAXES FROM CLAIMS
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0013| FUND ACCOUNT; DECLARING AN EMERGENCY.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 52-6-8 NMSA 1978 (being Laws 1986,
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0017| Chapter 22, Section 82, as amended) is amended to read:
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0018| "52-6-8. BOARD OF TRUSTEES--MEMBERSHIP, POWERS, DUTIES
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0019| AND PROHIBITIONS.--Each group shall be operated by a board of
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0020| trustees that shall consist of not less than five persons whom
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0021| the members of a group elect for stated terms of office. At
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0022| least two-thirds of the trustees shall be employees, officers
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0023| or directors of members of the group. The group's administra-
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0024|
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0025| tor or service company, or any owner, officer or employee
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0001| of, or any other person affiliated with, [such] the
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0002| administrator or service company shall not serve on the board
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0003| of trustees of the group. All trustees shall be residents of
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0004| this state or officers of corporations authorized to do
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0005| business in this state. The board of trustees of each group
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0006| shall ensure that all claims are paid promptly and take all
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0007| necessary precautions to safeguard the assets of the group,
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0008| including all of the following:
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0009| A. the board of trustees shall:
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0010| (1) maintain responsibility for all money
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0011| collected or disbursed from the group and segregate all money
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0012| into a claims fund account and an administrative fund account.
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0013| At least seventy percent of the net premium shall be placed
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0014| into a designated depository, to be called the "claims fund
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0015| account", for the sole purpose of paying claims, allocated
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0016| claims expenses, reinsurance or excess insurance and special
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0017| fund contributions, including second-injury and other loss-
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0018| related funds; [This shall be called the claims fund account]
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0019| provided that income taxes may be paid from the claims fund
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0020| account at the discretion of the board of trustees. The
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0021| remaining net premium shall be placed into a designated
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0022| depository, to be called the "administrative fund account",
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0023| for the payment of taxes, general regulatory fees and
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0024| assessments and administrative costs. [This shall be called
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the administrative fund account.] The director may approve an
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0001| administrative fund account of more than thirty percent and a
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0002| claims fund account of less than seventy percent only if the
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0003| group shows to the director's satisfaction that:
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0004| (a) more than thirty percent is needed
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0005| for an effective safety and loss-control program; or
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0006| (b) the group's aggregate excess
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0007| insurance attaches at less than seventy percent;
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0008| (2) maintain minutes of its meetings and make
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0009| [such] the minutes available to the director;
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0010| (3) designate an administrator to carry out
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0011| the policies established by the board of trustees and to
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0012| provide day-to-day management of the group and delineate in the
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0013| written minutes of its meetings the areas of authority it
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0014| delegates to the administrator; and
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0015| (4) retain an independent certified public
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0016| accountant to prepare the statement of financial condition
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0017| required by Subsection A of Section 52-6-l2 NMSA l978; and
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0018| B. the board of trustees shall not:
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0019| (1) extend credit to individual members for
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0020| payment of a premium except pursuant to payment plans approved
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0021| by the director; or
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0022| (2) borrow any money from the group or in the
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0023| name of the group except in the ordinary course of business,
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0024| without first advising the director of the nature and purpose
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0025| of the loan and obtaining prior approval from the director."
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0001| Section 2. EMERGENCY.--It is necessary for the public
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0002| peace, health and safety that this act take effect immediately.
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0003| State of New Mexico
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0004| House of Representatives
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0005|
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0006| FORTY-THIRD LEGISLATURE
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0007| FIRST SESSION, 1997
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0008|
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0009|
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0010| February 12, 1997
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0011|
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0012|
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0013| Mr. Speaker:
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0014|
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0015| Your JUDICIARY COMMITTEE, to whom has been referred
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0016|
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0017| HOUSE BILL 396
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0018|
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0019| has had it under consideration and reports same with
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0020| recommendation that it DO PASS, amended as follows:
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0021|
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0022| 1. On page 2, line 18, after "the" insert "actuarially
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0023| determined surplus portion of the".,
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0024|
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0025| and thence referred to the APPROPRIATIONS AND FINANCE
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0001| COMMITTEE.
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0002|
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0003| Respectfully submitted,
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0004|
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0005|
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0006|
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0007|
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0008|
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0009| Thomas P. Foy, Chairman
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0010|
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0011|
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0012| Adopted Not Adopted
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0013|
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0014| (Chief Clerk) (Chief Clerk)
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0015|
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0016| Date
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0017|
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0018| The roll call vote was 10 For 0 Against
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0019| Yes: 10
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0020| Excused: King, Rios, Sanchez
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0021| Absent: None
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0022|
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0023|
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0024| .116577.1
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0025| G:\BILLTEXT\BILLW_97\H0396
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0001| State of New Mexico
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0002| House of Representatives
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0003|
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0004| FORTY-THIRD LEGISLATURE
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0005| FIRST SESSION, 1997
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0006|
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0007|
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0008| February 27, 1997
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0009|
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0010|
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0011| Mr. Speaker:
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0012|
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0013| Your APPROPRIATIONS AND FINANCE COMMITTEE, to
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0014| whom has been referred
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0015|
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0016| HOUSE BILL 396, as amended
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0017|
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0018| has had it under consideration and reports same with
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0019| recommendation that it DO PASS.
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0020|
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0021| Respectfully submitted,
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0022|
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0023|
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0024|
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0025|
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0001|
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0002| Max Coll, Chairman
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0003|
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0004|
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0005| Adopted Not Adopted
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0006|
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0007| (Chief Clerk) (Chief Clerk)
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0008|
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0009| Date
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0010|
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0011| The roll call vote was 12 For 0 Against
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0012| Yes: 12
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0013| Excused: Abeyta, Buffett, Marquardt, Saavedra, Taylor, J.P.
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0014| Absent: None
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0015|
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0016|
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0017| G:\BILLTEXT\BILLW_97\H0396
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0018|
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0019| FORTY-THIRD LEGISLATURE
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0020| FIRST SESSION, 1997
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0021|
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0022|
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0023| March 17, 1997
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0024|
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0025| Mr. President:
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0001|
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0002| Your PUBLIC AFFAIRS COMMITTEE, to whom has been
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0003| referred
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0004|
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0005| HOUSE BILL 396, as amended
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0006|
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0007| has had it under consideration and reports same with
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0008| recommendation that it DO PASS, and thence referred to the
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0009| WAYS & MEANS COMMITTEE.
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0010|
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0011| Respectfully submitted,
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0012|
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0013|
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0014|
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0015|
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0016| __________________________________
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0017| Shannon Robinson, Chairman
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0018|
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0019|
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0020|
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0021| Adopted_______________________ Not
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0022| Adopted_______________________
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0023| (Chief Clerk) (Chief Clerk)
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0024|
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0025|
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0001| Date ________________________
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0002|
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0003|
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0004| The roll call vote was 5 For 0 Against
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0005| Yes: 5
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0006| No: 0
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0007| Excused: Adair, Boitano, Ingle, Rodarte
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0008| Absent: 0
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0009|
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0010|
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0011| H0396PA1
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0012|
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0013|
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0014|
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0015| FORTY-THIRD LEGISLATURE
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0016| FIRST SESSION, 1997
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0017|
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0018|
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0019| March 19, 1997
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0020|
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0021| Mr. President:
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0022|
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0023| Your WAYS AND MEANS COMMITTEE, to whom has been
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0024| referred
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0025|
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0001| HOUSE BILL 396, as amended
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0002|
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0003| has had it under consideration and reports same with
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0004| recommendation that it DO PASS.
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0005|
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0006| Respectfully submitted,
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0007|
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0008|
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0009|
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0010|
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0011| __________________________________
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0012| Carlos R. Cisneros, Chairman
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0013|
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0014|
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0015|
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0016| Adopted_______________________ Not
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0017| Adopted_______________________
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0018| (Chief Clerk) (Chief Clerk)
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0019|
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0020|
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0021|
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0022| Date ________________________
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0023|
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0024|
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0025| The roll call vote was 7 For 0 Against
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0001| Yes: 7
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0002| No: 0
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0003| Excused: Duran, McSorley
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0004| Absent: None
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0005|
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0006|
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0007| H0396WM1
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