Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Duhigg
LAST UPDATED
ORIGINAL DATE 1/30/2025
SHORT TITLE Superintendent of Insurance Subpoenas
BILL
NUMBER Senate Bill 124
ANALYST Rodriguez
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
OSI No fiscal impact $49.3 to $74.0 $49.3 to $74.0
$98.6 to
$148.0
Recurring
Other state
funds
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Office of Superintendent of Insurance (OSI) Agency Analysis was Solicited but Not Received From
Administrative Office of the Courts (AOC) New Mexico Attorney General (NMAG)
SUMMARY
Synopsis of Senate Bill 124
Senate Bill 124 (SB124) amends Section 2 of the New Mexico Insurance Code (Chapter 59A
NMSA 1978) to provide authority for the superintendent of insurance to issue civil investigative
subpoenas prior to the issuance of a notice to show cause or notice of contemplated action. If
someone fails to comply with a subpoena without a valid reason and after giving reasonable
notice, the superintendent may go to the district court to request an order compelling compliance.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
FISCAL IMPLICATIONS
SB124 could increase administrative costs for the Office of the Superintendent of Insurance
(OSI) due to the increase of civil investigative subpoenas issued by the agency. The bill does
allow for delegation of the authority to issue subpoenas to staff members. The projected fiscal
impact is based on the partial costs of an attorney for increased workload associated with the
issuance, management, and enforcement of subpoenas. Additional costs to the agency could
include training or new technology to manage the subpoena process effectively.
Senate Bill 124 – Page 2
SIGNIFICANT ISSUES
Currently, the superintendent can request information voluntarily from insurance providers
through data calls or informal requests, but there is no formal mechanism to compel providers to
submit data. This bill seeks to address that gap, which could improve the agency’s ability to
investigate and enforce insurance regulations effectively. OSI notes:
An increasing number of companies are refusing to respond to OSI data calls and other
requests for information. Failure to voluntarily provide the requested information limits
the ability of OSI to determine whether the insurers are providing the mandated insurance
coverages to the residents of New Mexico or are engaging in conduct that is contrary to
the Insurance Code. In addition, OSI occasionally finds it necessary to investigate entities
that are engaging in the business of insurance without a certificate of authority or are
selling an unapproved product or obtain information from third parties that is necessary
to review the actions of regulated entities. SB124 will greatly enhance OSI’s ability to
obtain this crucial information from regulated entities, those entities that are acting
outside of the regulatory scheme, and third parties to allow the OSI to adequately perform
its regulatory functions.
Through SB124, the Superintendent will have identical powers granted to similar
agencies, boards and commissions. The language of the bill mirrors the powers already
granted to other agencies in the New Mexico Uniform Licensing Act.
Insurance companies often have confidentiality agreements with third parties, such as
reinsurance providers. SB124 could lead to legal disputes on behalf of providers on the possible
request for proprietary or sensitive information.
JR/hj/SL2