New Mexico 2025 Regular Session

New Mexico House Bill HB575 Compare Versions

Only one version of the bill is available at this time.

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28	28	HOUSE BILL 575
29	29	57
30	30	TH LEGISLATURE
31	31	-
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33	33	STATE
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35	35	OF
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39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Linda Serrato
48	48	AN ACT
49	49	RELATING TO STATE EMPLOYEE BENEFITS; AMENDING THE CONTRIBUTION
50	50	PERCENTAGES FOR STATE EMPLOYEE HEALTH BENEFITS; AMENDING THE
51	51	GROUP INSURANCE CONTRIBUTIONS FOR SCHOOL DISTRICTS, CHARTER
52	52	SCHOOLS AND PARTICIPATING ENTITIES IN THE PUBLIC SCHOOL
53	53	INSURANCE AUTHORITY.
54	54	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
55	55	SECTION 1. Section 10-7-4 NMSA 1978 (being Laws 1941,
56	56	Chapter 188, Section 1, as amended) is amended to read:
57	57	"10-7-4. GROUP INSURANCE--CAFETERIA PLAN--CONTRIBUTIONS
58	58	FROM PUBLIC FUNDS.--
59	59	A. All state departments and institutions and all
60	60	political subdivisions of the state, excluding municipalities,
61	61	counties and political subdivisions of the state with twenty-
62	62	five employees or fewer, shall cooperate in providing group
63	63	.230286.1 underscored material = new
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90	90	term life, medical or disability income insurance for the
91	91	benefit of eligible employees or salaried officers of the
92	92	respective departments, institutions and political
93	93	subdivisions.
94	94	B. The group insurance contributions of the state
95	95	or any of its departments or institutions, including
96	96	institutions of higher education, shall be made as follows:
97	97	(1) at least seventy-five percent of the cost
98	98	of the insurance of an employee whose annual salary is less
99	99	than fifteen thousand dollars ($15,000);
100	100	(2) at least seventy percent of the cost of
101	101	the insurance of an employee whose annual salary is fifteen
102	102	thousand dollars ($15,000) or more but less than twenty
103	103	thousand dollars ($20,000);
104	104	(3) at least sixty-five percent of the cost of
105	105	the insurance of an employee whose annual salary is twenty
106	106	thousand dollars ($20,000) or more but less than twenty-five
107	107	thousand dollars ($25,000); and
108	108	(4) at least sixty percent of the cost of the
109	109	insurance of an employee whose annual salary is twenty-five
110	110	thousand dollars ($25,000) or more.
111	111	C. The group insurance contributions of school
112	112	districts and charter schools shall be made as follows:
113	113	(1) at least eighty percent of the cost of the
114	114	insurance of an employee whose annual salary is less than fifty
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143	143	thousand dollars ($50,000);
144	144	(2) at least seventy percent of the cost of
145	145	the insurance of an employee whose annual salary is fifty
146	146	thousand dollars ($50,000) or more but less than sixty thousand
147	147	dollars ($60,000); and
148	148	(3) at least sixty percent of the cost of the
149	149	insurance of an employee whose annual salary is sixty thousand
150	150	dollars ($60,000) or more.
151	151	D. Effective July 1, 2004, the group insurance
152	152	contributions of the state or any of its executive, judicial or
153	153	legislative departments, including agencies, boards or
154	154	commissions, shall be made as follows; provided that the
155	155	contribution percentage shall be the same for all affected
156	156	public employees in a given salary bracket:
157	157	(1) up to eighty percent of the cost of the
158	158	insurance of an employee whose annual salary is less than
159	159	thirty thousand dollars ($30,000);
160	160	(2) up to seventy percent of the cost of the
161	161	insurance of an employee whose annual salary is thirty thousand
162	162	dollars ($30,000) or more but less than forty thousand dollars
163	163	($40,000); and
164	164	(3) up to sixty percent of the cost of the
165	165	insurance of an employee whose annual salary is forty thousand
166	166	dollars ($40,000) or more.
167	167	E. [Except as provided in Subsection H of this
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196	196	section] Effective July 1, [2005 ] 2025, the group insurance
197	197	contributions of the state or any of its executive, judicial or
198	198	legislative departments, including agencies, boards or
199	199	commissions, shall be [made as follows; provided that the
200	200	contribution percentage shall be the same for all affected
201	201	public employees in a given salary bracket;
202	202	(1) up to eighty percent of the cost of the
203	203	insurance of an employee whose annual salary is less than fifty
204	204	thousand dollars ($50,000);
205	205	(2) up to seventy percent of the cost of the
206	206	insurance of an employee whose annual salary is fifty thousand
207	207	dollars ($50,000) or more but less than sixty thousand dollars
208	208	($60,000); and
209	209	(3) up to sixty percent of the cost of the
210	210	insurance of an employee whose annual salary is sixty thousand
211	211	dollars ($60,000) or more
212	212	F. Effective July 1, 2013, the employer shall pay
213	213	one hundred percent of basic life insurance premiums for
214	214	employees, and employees who choose to carry disability
215	215	insurance shall pay one hundred percent of the premium.
216	216	G. The state shall not make any group insurance
217	217	contributions for legislators. A legislator shall be eligible
218	218	for group benefits only if the legislator contributes one
219	219	hundred percent of the cost of the insurance.
220	220	H. An employer shall pay one hundred percent of the
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249	249	employee group insurance contributions due and payable on or
250	250	after July 1, 2016 for an employee who is injured while
251	251	performing a public safety function or duty and, as a result of
252	252	the injury, is placed on approved workers' compensation leave.
253	253	I. As used in this section, "cost of the insurance"
254	254	means the premium required to be paid to provide coverages.
255	255	Any contributions of the political subdivisions of the state,
256	256	except the public schools and political subdivisions of the
257	257	state with twenty-five employees or fewer, shall not exceed
258	258	sixty percent of the cost of the insurance.
259	259	J. When a public employee elects to participate in
260	260	a cafeteria plan as authorized by the Cafeteria Plan Act and
261	261	enters into a salary reduction agreement with the governmental
262	262	employer, the provisions of Subsections B through G of this
263	263	section with respect to the maximum contributions that can be
264	264	made by the employer are not violated and will still apply.
265	265	The employer percentage or dollar contributions as provided in
266	266	Subsections B through E of this section shall be determined by
267	267	the employee's gross salary prior to any salary reduction
268	268	agreement.
269	269	K. Any group medical insurance plan offered
270	270	pursuant to this section shall include effective cost-
271	271	containment measures to control the growth of health care
272	272	costs. The responsible public body that administers a plan
273	273	offered pursuant to this section shall report annually by
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302	302	September 1 to appropriate interim legislative committees on
303	303	the effectiveness of the cost-containment measures required by
304	304	this subsection.
305	305	L. Within available revenue, school districts,
306	306	charter schools and participating entities pursuant to the
307	307	Public School Insurance Authority Act may contribute up to one
308	308	hundred percent of the cost of the insurance of all employees
309	309	and institutions of higher education may contribute up to
310	310	eighty percent of the cost of the insurance of all employees ]
311	311	eighty percent of the cost of insurance ."
312	312	SECTION 2. Section 22-29-10 NMSA 1978 (being Laws 1989,
313	313	Chapter 373, Section 5, as amended) is amended to read:
314	314	"22-29-10. GROUP INSURANCE CONTRIBUTIONS.--
315	315	A. Group insurance contributions for school
316	316	districts, charter schools and participating entities in the
317	317	authority shall be [made as follows:
318	318	(1) at least eighty percent of the cost of the
319	319	insurance of an employee whose annual salary is less than fifty
320	320	thousand dollars ($50,000);
321	321	(2) at least seventy percent of the cost of
322	322	the insurance of an employee whose annual salary is fifty
323	323	thousand dollars ($50,000) or more but less than sixty thousand
324	324	dollars ($60,000); and
325	325	(3) at least sixty percent of the cost of the
326	326	insurance of an employee whose annual salary is sixty thousand
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355	355	dollars ($60,000) or more ] eighty percent of the cost of
356	356	insurance.
357	357	B. Within available revenue, school districts,
358	358	charter schools and participating entities in the authority may
359	359	contribute up to one hundred percent of the cost of the
360	360	insurance of all employees.
361	361	C. Whenever a school district, charter school or
362	362	participating entity in the authority offers to its employees
363	363	alternative health plan benefit options, including health
364	364	maintenance organizations, preferred provider organizations or
365	365	panel doctor plans, the school district, charter school or
366	366	participating entity may pay an amount on behalf of the
367	367	employee and family member for the indemnity health insurance
368	368	plan sufficient to result in equal employee monthly costs to
369	369	the cost of the health maintenance organization plans,
370	370	preferred provider organization plans or panel doctor plans,
371	371	regardless of the percentage limitations in the Public School
372	372	Insurance Authority Act. School districts, charter schools and
373	373	participating entities in the authority may pay up to one
374	374	hundred percent of the first fifty thousand dollars ($50,000)
375	375	of term life insurance."
376	376	SECTION 3. EFFECTIVE DATE.--The effective date of the
377	377	provisions of this act is July 1, 2025.
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