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SENATE BILL 220
57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
INTRODUCED BY
Pat Woods and Gabriel Ramos
FOR THE LEGISLATIVE FINANCE COMMITTEE
AN ACT
RELATING TO RISK MANAGEMENT; REQUIRING THE PUBLICATION OF TERMS
OF LEGAL SETTLEMENT AGREEMENTS; PROVIDING FOR LOSS PREVENTION
REVIEW TEAMS; REQUIRING REPORTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Sunshine Portal
Transparency Act is enacted to read:
"[NEW MATERIAL] PUBLICATION OF LEGAL SETTLEMENT
AGREEMENTS.--State agencies that enter into an agreement to
settle a potential legal or other claim against a state agency
without the assistance of the risk management division of the
general services department shall, within thirty days of
entering into a settlement agreement, provide the terms of the
settlement agreements for publication on the sunshine portal,
in a downloadable format, for free public access."
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SECTION 2. Section 15-7-1 NMSA 1978 (being Laws 1977,
Chapter 385, Section 4, as amended) is amended to read:
"15-7-1. DEFINITIONS.--As used in Chapter 15, Article 7
NMSA 1978:
A. "board" means the risk management advisory
board;
B. "director" means the director of the [risk
management] division [of the general services department ];
C. "division" means the risk management division of
the general services department;
[C.] D. "local public body" means all political
subdivisions of the state and their agencies, instrumentalities
and institutions;
[D.] E. "public employee" means any officer,
employee or servant of a governmental entity, including elected
or appointed officials, law enforcement officers and persons
acting on behalf or in service of a governmental entity in any
official capacity, whether with or without compensation, but
the term does not include an independent contractor; and
[E.] F. "state" or "state agency" means the state
of New Mexico or any of its branches, agencies, departments,
boards, instrumentalities or institutions, including regional
housing authorities."
SECTION 3. A new section of Chapter 15, Article 7 NMSA
1978 is enacted to read:
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"[NEW MATERIAL] LOSS PREVENTION REVIEW TEAMS--MEMBERSHIP--
DUTIES--REPORTING.--
A. State agencies shall notify the division
immediately upon becoming aware of an individual's death or
serious injury or other substantial loss that is alleged or
suspected to be caused at least in part by the actions of a
state agency.
B. The director shall appoint a loss prevention
review team when the occurrence of an individual's death or
serious injury or other substantial loss is alleged or
suspected to be caused at least in part by the actions of a
state agency. The review team shall be appointed in
conjunction with the defense counsel of the division within
thirty days of the division becoming aware of such an
occurrence.
C. A loss prevention review team shall be led by an
attorney appointed by the director and additional persons
identified by the loss prevention review team lead, who may
include independent consultants, contractors, experts or state
employees, but shall not include a person directly involved in
the loss or risk of loss giving rise to a loss prevention
review or a person with testimonial knowledge of the incident
to be reviewed.
D. The loss prevention review team shall review the
death, serious injury or substantial loss and the circumstances
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surrounding it, evaluate its causes and recommend steps to
reduce the risk of such incidents occurring in the future. The
review team shall accomplish those tasks by reviewing relevant
documents and interviewing persons with relevant knowledge.
After the final judgment resolving any claims related to the
loss and rights to appeal have been exhausted or any settlement
agreements have been signed by the state and parties related to
the loss, the review team shall submit a report in writing to
the director and the head of the state agency involved in the
loss or risk of loss. The report shall include the team's
findings, an analysis of the causes, contributing factors and
future risk and an exploration of methods that the state agency
may use to address and mitigate the risks identified, including
changes to policies or procedures, any legislative
recommendation necessary to address and carry out the risk
treatment strategies identified in the report and the manner in
which the agency will measure the effectiveness of its changes.
The report shall include a written response to the findings,
conclusions and recommendations from the head of the state
agency involved in the loss.
E. A state agency shall provide loss prevention
review teams ready access to relevant documents in the agency's
possession and ready access to the agency's employees. Any
interviews, transcripts, reports, recommendations,
communications or other documents adduced or created in
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connection with a loss review investigation shall remain
confidential until after final disposition of any related
claims pursuant to Section 15-7-9 NMSA 1978.
F. The director may promulgate rules to implement
the provisions of this section.
G. On or before October 1 of each year, the
director shall submit a report to the legislature identifying
the loss prevention reviews conducted in the past fiscal year,
providing appropriate metrics on effectiveness and efficiency
of loss prevention review team programs and summarizing any
determinations of trends in incidents, including reductions or
increases in the frequency or magnitude of losses and
innovative approaches to mitigating the risks identified.
H. As used in this section:
(1) "serious injury" means an injury that
involves a substantial risk of death, protracted and obvious
disfigurement or protracted loss or impairment of the function
of a bodily member, organ or mental faculty; and
(2) "substantial loss" means a loss in a
possible amount greater than two hundred fifty thousand dollars
($250,000) or a lesser amount as determined by the director."
SECTION 4. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
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