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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Office of the Attorney General

Public Regulation Commission

SUMMARY

Synopsis of Bill

House Joint Resolution 9 amends Article XI, Section 2 of the New Mexico Constitution to clarify that the Public Regulation Commission (PRC) has responsibility for regulating the businesses listed in the section "in such manner as the legislature shall provide" and repeals the PRC's regulatory authority with respect to insurance companies and other public service companies.

The Joint Resolution states that the proposed amendment would be submitted to the people of New Mexico for their approval at the next general or special election.⁽¹⁾ The Joint Resolution does not specify who would regulate insurance companies in New Mexico, or how the Legislature will provide for the regulation of insurance companies.

Significant Issues

The proposed amendment also eliminates the legislature's authority to identify public service companies that are not specifically listed in Art. XI, Section 2 and require that they be regulated by the PRC. The title of the proposed amendment now refers only to removing insurance companies from the purview of the PRC. The title should be more broadly written so that it also encompasses the removal of "other public service companies" from PRC's regulatory authority. Otherwise, the proposal may be vulnerable to challenge under Article XIX, Section 1 on the grounds of "logrolling," i.e., that the proposal is actually two amendments that should be submitted to voters separately, or that the proposal's description does not fairly apprise the voters of the nature and scope of the proposed amendment [State ex rel. Clark v. State Canvassing Bd., 119 N.M. 12 (1995)].

FISCAL IMPLICATIONS

The Joint Resolution will not impact any agency programs until first passed by New Mexican voters. Should the constitution be amended, the Public Regulation Commission would no longer have the constitutional mandate to regulate insurance companies. The Legislature then would need to designate how the regulation of insurance companies would be accomplished, either by placing this function in the same or other agency or otherwise providing for the regulation of insurance companies. The fiscal implications of House Joint Resolution 9 therefore depend on how the Legislature structures the regulation of insurance companies in New Mexico and cannot be determined at this time.

ADMINISTRATIVE IMPLICATIONS

The administrative implications of House Joint Resolution 9 therefore depend on how the Legislature structures the regulation of insurance companies in New Mexico and cannot be determined at this time.

MFV/ar

1. ¹ Pursuant to Article XIX, § 1 of the New Mexico Constitution, a state constitutional amendment proposed by the Legislature requires ratification by a majority of electors before the amendment can become a part of the constitution.