SENATE BILL 3

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

Carrol H. Leavell and Larry A. Larrañaga

AN ACT

RELATING TO THE INSURANCE NOMINATING COMMITTEE; AMENDING CERTAIN PROVISIONS REGARDING THE COMMITTEE AND SUPERINTENDENT OF INSURANCE; PROVIDING THAT THE OFFICE OF SUPERINTENDENT OF INSURANCE WILL ADMINISTRATIVELY SUPPORT THE INSURANCE NOMINATING COMMITTEE; MAKING THE INSURANCE NOMINATING COMMITTEE AND ITS MEMBERS SUBJECT TO THE PROVISIONS OF CERTAIN LAWS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 41-4-3 NMSA 1978 (being Laws 1976, Chapter 58, Section 3, as amended) is amended to read:

     "41-4-3. DEFINITIONS.--As used in the Tort Claims Act:

          A. "board" means the risk management advisory board;

          B. "governmental entity" means the state or any local public body as defined in Subsections C and H of this section;

          C. "local public body" means all political subdivisions of the state and their agencies, instrumentalities and institutions and all water and natural gas associations organized pursuant to Chapter 3, Article 28 NMSA 1978;

          D. "law enforcement officer" means a full-time salaried public employee of a governmental entity, or a certified part-time salaried police officer employed by a governmental entity, whose principal duties under law are to hold in custody any person accused of a criminal offense, to maintain public order or to make arrests for crimes, or members of the national guard when called to active duty by the governor;

          E. "maintenance" does not include:

                (1) conduct involved in the issuance of a permit, driver's license or other official authorization to use the roads or highways of the state in a particular manner; or

                (2) an activity or event relating to a public building or public housing project that was not foreseeable;

          F. "public employee" means an officer, employee or servant of a governmental entity, excluding independent contractors except for individuals defined in Paragraphs (7), (8), (10), (14) and (17) of this subsection, or of a corporation organized pursuant to the Educational Assistance Act, the Small Business Investment Act or the Mortgage Finance Authority Act or a licensed health care provider, who has no medical liability insurance, providing voluntary services as defined in Paragraph (16) of this subsection and including:

                (1) elected or appointed officials;

                (2) law enforcement officers;

                (3) persons acting on behalf or in service of a governmental entity in any official capacity, whether with or without compensation;

                (4) licensed foster parents providing care for children in the custody of the human services department, corrections department or department of health, but not including foster parents certified by a licensed child placement agency;

                (5) members of state or local selection panels established pursuant to the Adult Community Corrections Act;

                (6) members of state or local selection panels established pursuant to the Juvenile Community Corrections Act;

                (7) licensed medical, psychological or dental arts practitioners providing services to the corrections department pursuant to contract;

                (8) members of the board of directors of the New Mexico medical insurance pool;

                (9) individuals who are members of medical review boards, committees or panels established by the educational retirement board or the retirement board of the public employees retirement association;

                (10) licensed medical, psychological or dental arts practitioners providing services to the children, youth and families department pursuant to contract;

                (11) members of the board of directors of the New Mexico educational assistance foundation;

                (12) members of the board of directors of the New Mexico student loan guarantee corporation;

                (13) members of the New Mexico mortgage finance authority;

                (14) volunteers, employees and board members of court-appointed special advocate programs;

                (15) members of the board of directors of the small business investment corporation;

                (16) health care providers licensed in New Mexico who render voluntary health care services without compensation in accordance with rules promulgated by the secretary of health. The rules shall include requirements for the types of locations at which the services are rendered, the allowed scope of practice and measures to ensure quality of care;

                (17) an individual while participating in the state's adaptive driving program and only while using a special-use state vehicle for evaluation and training purposes in that program; [and]

                (18) the staff and members of the board of directors of the New Mexico health insurance exchange established pursuant to the New Mexico Health Insurance Exchange Act; and

                (19) members of the insurance nominating committee;

          G. "scope of duty" means performing any duties that a public employee is requested, required or authorized to perform by the governmental entity, regardless of the time and place of performance; and

          H. "state" or "state agency" means the state of New Mexico or any of its branches, agencies, departments, boards, instrumentalities or institutions."

     SECTION 2. Section 59A-2-2 NMSA 1978 (being Laws 1984, Chapter 127, Section 20, as amended) is amended to read:

     "59A-2-2. SUPERINTENDENT--APPOINTMENT--TERM--COMPENSATION--REMOVAL.--

          A. The position of superintendent of insurance shall be the chief officer of the office of superintendent of insurance.

          B. The superintendent shall be appointed by the insurance nominating committee.

          C. The superintendent shall serve for a term of four years, except that the initial term beginning July 1, 2013 shall end on December 31, 2015. If the position of superintendent becomes vacant, the successor shall serve for the remainder of the term [vacated]. An incumbent superintendent may apply to the insurance nominating committee for appointment to additional terms.

          D. The superintendent's annual compensation shall be established by the [legislature in an appropriations act and] insurance nominating committee at the start of each term and annually thereafter. The superintendent's annual compensation shall be no lower than that of the lowest-compensated cabinet secretary and no higher than that of the highest-compensated cabinet secretary.

          E. The superintendent shall not be removed except for incompetence, willful neglect of duty or malfeasance in office. The insurance nominating committee may remove the superintendent after [first] providing the superintendent with notice and a hearing."

     SECTION 3. Section 59A-2-2.1 NMSA 1978 (being Laws 2013, Chapter 74, Section 15) is amended to read:

     "59A-2-2.1. INSURANCE NOMINATING COMMITTEE--DUTIES--ADMINISTRATIVE ATTACHMENT.--

          A. The "insurance nominating committee" is created and consists of nine members, including:

                (1) four members who are selected by the New Mexico legislative council as follows:

                     (a) two members who shall represent the interests of the insurance industry;

                     (b) two members who shall represent the interests of insurance consumers and who have experience advocating on behalf of consumers or the public interest on insurance issues. These consumer members shall not be employed by or on behalf of or have a contract with an employer that is regulated by the office of superintendent of insurance; and

                     (c) no more than two of the four members shall be from the same political party;

                (2) four members who are selected by the governor as follows:

                     (a) two members who shall represent the interests of the insurance industry;

                     (b) two members who shall represent the interests of insurance consumers and who have experience advocating on behalf of consumers or the public interest on insurance issues. These consumer members shall not be employed by or on behalf of or have a contract with an employer that is regulated by the office of superintendent of insurance; and

                     (c) no more than two of the four members shall be from the same political party; and

                (3) a ninth member who shall be chair of the committee and who shall be selected by a majority [vote] of the other eight members; provided that the member shall:

                     (a) not be a candidate for the position of superintendent of insurance; and

                     (b) be either a former New Mexico superintendent of insurance or another person with extensive knowledge of insurance regulation in New Mexico, but does not have, nor have a spouse or child who has, any direct financial interest in an insurer, insurance agency or insurance transaction except as a policyholder or a claimant under a policy or as an owner of less than one percent of the shares of an insurer that is a publicly traded corporation.

          B. A vacancy on the committee shall be filled by the original appointing authority for the remainder of the term.

          [B.] C. A committee member shall:

                (1) be a resident of New Mexico;

                (2) serve a four-year term; except that a member of the first committee appointed shall serve for a term that ends on June 30, 2015; and

                (3) serve without compensation, but shall be [reimbursed for expenses incurred in pursuit of the member's duties on the committee] eligible to receive per diem and mileage pursuant to the Per Diem and Mileage Act.

          [C.] D. The committee [and individual members shall be] is subject to [the Governmental Conduct Act] the Inspection of Public Records Act [the Financial Disclosure Act] and the Open Meetings Act. Individual members of the committee are subject to the Governmental Conduct Act.

          [D. A regular session of] E. The committee shall convene [ninety days prior to the date of the initial term of the superintendent and thereafter] within ninety days prior to the date on which the term of a superintendent ends and shall [conclude on the date that the initial superintendent or next superintendent takes office. The committee shall select] appoint a superintendent within sixty days of convening.

          [E.] F. Upon the occurrence of a vacancy in the superintendent position, the committee shall convene within thirty days of the date of [the beginning of] the vacancy [for a special session] and shall appoint a successor to fill the remainder of the superintendent's term within sixty days of convening.

          [F. If a position on the committee becomes vacant during a term, a successor shall be selected in the same manner as the original appointment for that position and shall serve for the remainder of the term of the position vacated.]

          G. The committee shall actively solicit, accept and evaluate applications from qualified individuals for the position of superintendent and may require an applicant to submit any information it deems relevant to the consideration of the individual's application.

          [H. The committee shall select the applicant that, in the committee's judgment, is best qualified to serve as superintendent.

          I. A majority vote of all members of the committee in favor of an applicant is required for that applicant to be appointed superintendent.]

          H. The committee shall appoint the superintendent by a vote of a majority of all members of the committee.

          I. The committee shall meet no less often than annually.

          J. The committee is administratively attached to the office of superintendent of insurance. The office of superintendent of insurance shall provide staff for the committee.

          K. An employee of the office of superintendent of insurance who serves as staff for the committee shall not reveal to any person, except another committee staff person, any requests or statements disclosed in confidence by a committee member."

     SECTION 4. Section 59A-2-3 NMSA 1978 (being Laws 1984, Chapter 127, Section 21, as amended) is amended to read:

     "59A-2-3. SUPERINTENDENT--QUALIFICATIONS AND BOND.--The superintendent shall:

          A. [have been] be a resident of New Mexico [for at least one year before] at the time of appointment;

          B. be bonded as provided in the Surety Bond Act; and

          C. not have [nor have a spouse or child who has, any] a direct financial interest in an insurer, insurance agency or insurance transaction except as a policyholder or a claimant under a policy or as an owner of less than one percent of the shares of an insurer that is a publicly traded corporation."

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