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28 | 28 | | SENATE BILL 182 |
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29 | 29 | | 57 |
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30 | 30 | | TH LEGISLATURE |
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31 | 31 | | - |
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32 | 32 | | |
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33 | 33 | | STATE |
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34 | 34 | | |
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35 | 35 | | OF |
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36 | 36 | | |
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37 | 37 | | NEW |
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38 | 38 | | |
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39 | 39 | | MEXICO |
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40 | 40 | | |
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41 | 41 | | - |
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42 | 42 | | FIRST SESSION |
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43 | 43 | | , |
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44 | 44 | | |
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45 | 45 | | 2025 |
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46 | 46 | | INTRODUCED BY |
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47 | 47 | | Pat Woods |
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48 | 48 | | FOR THE LEGISLATIVE FINANCE COMMITTEE |
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49 | 49 | | AN ACT |
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50 | 50 | | RELATING TO PUBLIC LIABILITY; ESTABLISHING COVERAGE LIMITS ON |
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51 | 51 | | INSURANCE COVERAGE OFFERED BY THE RISK MANAGEMENT DIVISION OF |
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52 | 52 | | THE GENERAL SERVICES DEPARTMENT; AMENDING SECTION 15-7-3 NMSA |
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53 | 53 | | 1978 (BEING LAWS 1978, CHAPTER 166, SECTION 8, AS AMENDED). |
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54 | 54 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: |
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55 | 55 | | SECTION 1. Section 15-7-3 NMSA 1978 (being Laws 1978, |
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56 | 56 | | Chapter 166, Section 8, as amended) is amended to read: |
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57 | 57 | | "15-7-3. ADDITIONAL POWERS AND DUTIES OF THE RISK |
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58 | 58 | | MANAGEMENT DIVISION.-- |
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59 | 59 | | A. The risk management division of the general |
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60 | 60 | | services department may: |
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61 | 61 | | (1) enter into contracts; |
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62 | 62 | | (2) procure insurance, reinsurance or employee |
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63 | 63 | | group benefits; provided that: |
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64 | 64 | | .229278.1 underscored material = new |
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91 | 91 | | (a) coverage shall not exceed: 1) five |
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92 | 92 | | hundred thousand dollars ($500,000) for insurance for property |
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93 | 93 | | damages; 2) one million fifty thousand dollars ($1,050,000) for |
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94 | 94 | | general liability insurance; and 3) the limits established in |
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95 | 95 | | Section 41-4A-6 NMSA 1978 for civil rights liability; |
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96 | 96 | | (b) any proposal or contract for the |
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97 | 97 | | procurement of any group health care benefits shall be subject |
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98 | 98 | | to the provisions of the Health Care Purchasing Act; and |
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99 | 99 | | [provided further that ] |
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100 | 100 | | (c) reinsurance or excess coverage |
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101 | 101 | | insurance may be placed by private negotiation, notwithstanding |
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102 | 102 | | the provisions of the Procurement Code, if the insurance or |
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103 | 103 | | reinsurance has a restricted number of interested carriers, the |
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104 | 104 | | board determines that the coverage is in the interest of the |
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105 | 105 | | state and cannot otherwise be procured for a reasonable cost |
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106 | 106 | | and the director seeks the advice and review of the board in |
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107 | 107 | | the placement and in designing private negotiation procedures; |
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108 | 108 | | (3) in the manner prescribed by Subsection E |
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109 | 109 | | of Section 9-17-5 NMSA 1978, after a notice and a public |
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110 | 110 | | hearing, prescribe by rule reasonable and objective |
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111 | 111 | | underwriting and safety standards for governmental entities and |
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112 | 112 | | reasonable standards for municipal self-insurance pooling |
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113 | 113 | | agreements covering liability under the Tort Claims Act and |
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114 | 114 | | adopt such other [regulations ] rules as may be deemed |
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115 | 115 | | necessary; |
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116 | 116 | | .229278.1 |
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144 | 144 | | (4) compromise, adjust, settle and pay claims; |
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145 | 145 | | (5) pay expenses and costs; |
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146 | 146 | | (6) in the manner prescribed by Subsection E |
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147 | 147 | | of Section 9-17-5 NMSA 1978, prescribe by rule the rating |
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148 | 148 | | bases, assessments, penalties and risks to be covered by the |
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149 | 149 | | public liability fund, the workers' compensation retention fund |
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150 | 150 | | and the public property reserve fund and the extent such risks |
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151 | 151 | | are to be covered; |
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152 | 152 | | (7) issue certificates of coverage in |
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153 | 153 | | accordance with Paragraph (6) of this subsection: |
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154 | 154 | | (a) to any governmental entity for any |
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155 | 155 | | tort liability risk covered by the public liability fund; |
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156 | 156 | | (b) to any governmental entity for any |
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157 | 157 | | personal injury liability risk or for the defense of any errors |
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158 | 158 | | or act or omission or neglect or breach of duty, including the |
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159 | 159 | | risks set forth in Paragraph (2) of Subsection B and Paragraph |
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160 | 160 | | (2) of Subsection D of Section 41-4-4 NMSA 1978; and |
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161 | 161 | | (c) to any governmental entity for any |
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162 | 162 | | part of risk covered by the workers' compensation retention |
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163 | 163 | | fund, the surety bond fund or the public property reserve fund; |
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164 | 164 | | (8) study the risks of all governmental |
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165 | 165 | | entities; |
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166 | 166 | | (9) initiate the establishment of safety |
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167 | 167 | | programs and adopt rules to carry out such programs in the |
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168 | 168 | | manner prescribed by Subsection E of Section 9-17-5 NMSA 1978; |
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169 | 169 | | .229278.1 |
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170 | 170 | | - 3 - underscored material = new |
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197 | 197 | | (10) hire a safety program director who shall |
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198 | 198 | | coordinate all safety programs of all state agencies; |
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199 | 199 | | (11) consult with and advise local public |
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200 | 200 | | bodies on their risk management problems; and |
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201 | 201 | | (12) employ full-time legal counsel who shall |
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202 | 202 | | be under the exclusive control and supervision of the director |
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203 | 203 | | and the secretary of general services. |
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204 | 204 | | B. The risk management division of the general |
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205 | 205 | | services department shall provide liability coverage for the |
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206 | 206 | | following risks: |
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207 | 207 | | (1) a claim made pursuant to the provisions of |
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208 | 208 | | 42 USC Section 1983 against a nonprofit corporation, members of |
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209 | 209 | | its board of directors or its employees when the claim is based |
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210 | 210 | | upon action taken pursuant to the provisions of a contract |
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211 | 211 | | between the corporation and the [department of ] health care |
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212 | 212 | | authority under which the corporation provides developmental or |
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213 | 213 | | intellectual disability services to clients of the [department ] |
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214 | 214 | | authority and the claim is made by or on behalf of a client; |
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215 | 215 | | and |
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216 | 216 | | (2) a claim made pursuant to the provisions of |
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217 | 217 | | 42 USC Section 1983 against a nonprofit corporation, members of |
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218 | 218 | | its board of directors or its employees when the corporation |
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219 | 219 | | operates a health facility licensed by the [department of ] |
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220 | 220 | | health care authority as an intermediate care facility for |
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221 | 221 | | [individuals] persons with developmental or intellectual |
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222 | 222 | | .229278.1 |
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250 | 250 | | disabilities and the claim is based upon action taken pursuant |
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251 | 251 | | to the provisions of the license and is made by or on behalf of |
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252 | 252 | | a resident of the licensed facility. |
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253 | 253 | | C. The director shall report findings and |
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254 | 254 | | recommendations, if any, for the consideration of each |
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255 | 255 | | legislature. The report shall include the amount and name of |
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256 | 256 | | any person receiving payment from the public liability fund of |
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257 | 257 | | any claim paid during the previous fiscal year exceeding one |
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258 | 258 | | thousand dollars ($1,000). The report shall be made available |
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259 | 259 | | to the legislature on or before December 15 preceding each |
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260 | 260 | | regular legislative session." |
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261 | 261 | | - 5 - |
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262 | 262 | | .229278.1 |
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