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SENATE BILL 182
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Pat Woods
FOR THE LEGISLATIVE FINANCE COMMITTEE
AN ACT
RELATING TO PUBLIC LIABILITY; ESTABLISHING COVERAGE LIMITS ON
INSURANCE COVERAGE OFFERED BY THE RISK MANAGEMENT DIVISION OF
THE GENERAL SERVICES DEPARTMENT; AMENDING SECTION 15-7-3 NMSA
1978 (BEING LAWS 1978, CHAPTER 166, SECTION 8, AS AMENDED).
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 15-7-3 NMSA 1978 (being Laws 1978,
Chapter 166, Section 8, as amended) is amended to read:
"15-7-3. ADDITIONAL POWERS AND DUTIES OF THE RISK
MANAGEMENT DIVISION.--
A. The risk management division of the general
services department may:
(1) enter into contracts;
(2) procure insurance, reinsurance or employee
group benefits; provided that:
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(a) coverage shall not exceed: 1) five
hundred thousand dollars ($500,000) for insurance for property
damages; 2) one million fifty thousand dollars ($1,050,000) for
general liability insurance; and 3) the limits established in
Section 41-4A-6 NMSA 1978 for civil rights liability;
(b) any proposal or contract for the
procurement of any group health care benefits shall be subject
to the provisions of the Health Care Purchasing Act; and
[provided further that ]
(c) reinsurance or excess coverage
insurance may be placed by private negotiation, notwithstanding
the provisions of the Procurement Code, if the insurance or
reinsurance has a restricted number of interested carriers, the
board determines that the coverage is in the interest of the
state and cannot otherwise be procured for a reasonable cost
and the director seeks the advice and review of the board in
the placement and in designing private negotiation procedures;
(3) in the manner prescribed by Subsection E
of Section 9-17-5 NMSA 1978, after a notice and a public
hearing, prescribe by rule reasonable and objective
underwriting and safety standards for governmental entities and
reasonable standards for municipal self-insurance pooling
agreements covering liability under the Tort Claims Act and
adopt such other [regulations ] rules as may be deemed
necessary;
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(4) compromise, adjust, settle and pay claims;
(5) pay expenses and costs;
(6) in the manner prescribed by Subsection E
of Section 9-17-5 NMSA 1978, prescribe by rule the rating
bases, assessments, penalties and risks to be covered by the
public liability fund, the workers' compensation retention fund
and the public property reserve fund and the extent such risks
are to be covered;
(7) issue certificates of coverage in
accordance with Paragraph (6) of this subsection:
(a) to any governmental entity for any
tort liability risk covered by the public liability fund;
(b) to any governmental entity for any
personal injury liability risk or for the defense of any errors
or act or omission or neglect or breach of duty, including the
risks set forth in Paragraph (2) of Subsection B and Paragraph
(2) of Subsection D of Section 41-4-4 NMSA 1978; and
(c) to any governmental entity for any
part of risk covered by the workers' compensation retention
fund, the surety bond fund or the public property reserve fund;
(8) study the risks of all governmental
entities;
(9) initiate the establishment of safety
programs and adopt rules to carry out such programs in the
manner prescribed by Subsection E of Section 9-17-5 NMSA 1978;
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(10) hire a safety program director who shall
coordinate all safety programs of all state agencies;
(11) consult with and advise local public
bodies on their risk management problems; and
(12) employ full-time legal counsel who shall
be under the exclusive control and supervision of the director
and the secretary of general services.
B. The risk management division of the general
services department shall provide liability coverage for the
following risks:
(1) a claim made pursuant to the provisions of
42 USC Section 1983 against a nonprofit corporation, members of
its board of directors or its employees when the claim is based
upon action taken pursuant to the provisions of a contract
between the corporation and the [department of ] health care
authority under which the corporation provides developmental or
intellectual disability services to clients of the [department ]
authority and the claim is made by or on behalf of a client;
and
(2) a claim made pursuant to the provisions of
42 USC Section 1983 against a nonprofit corporation, members of
its board of directors or its employees when the corporation
operates a health facility licensed by the [department of ]
health care authority as an intermediate care facility for
[individuals] persons with developmental or intellectual
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disabilities and the claim is based upon action taken pursuant
to the provisions of the license and is made by or on behalf of
a resident of the licensed facility.
C. The director shall report findings and
recommendations, if any, for the consideration of each
legislature. The report shall include the amount and name of
any person receiving payment from the public liability fund of
any claim paid during the previous fiscal year exceeding one
thousand dollars ($1,000). The report shall be made available
to the legislature on or before December 15 preceding each
regular legislative session."
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