0001|                         HOUSE BILL 154
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0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003|     1996
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0004|                         INTRODUCED BY
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0005|                       DANICE R. PICRAUX
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0006|     
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0007|                                
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0008|     
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0009|     
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0010|     
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0011|                             AN ACT
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0012|     CREATING A JOINT INTERIM AUTOMOBILE INSURANCE TASK FORCE; MAKING
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0013|     AN APPROPRIATION; DECLARING AN EMERGENCY.
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0014|     
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0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016|       Section 1.  AUTOMOBILE INSURANCE TASK FORCE CREATED--TERMINATION.--There is created a joint interim legislative,
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0017|     executive, judicial and public member task force which shall be
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0018|     known as the "automobile insurance task force".  The task force
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0019|     shall function from the date of its appointment until the first
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0020|     day of December prior to the first session of the forty-third
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0021|     legislature.
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0022|       Section 2.  MEMBERSHIP--APPOINTMENT--VACANCIES.--
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0023|            A.  The automobile insurance task force shall be
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0024|     composed of seventeen voting members, including eight
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0025|     legislative members.  Four members of the house of
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0001|     representatives shall be appointed by the speaker of the house
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0002|     of representatives, and four members of the senate shall be
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0003|     appointed by the committees' committee of the senate or, if the
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0004|     senate appointments are made in the interim, by the president
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0005|     pro tempore of the senate after consultation with and agreement
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0006|     of a majority of the members of the committees' committee.
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0007|                 B.  Members shall be appointed from each house so as
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0008|     to give the two major political parties in each house the same
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0009|     proportional representation on the task force as prevails in
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0010|     each house; however, in no event shall either party have less
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0011|     than one member from each house on the task force.  Vacancies on
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0012|     the task force shall be filled by appointment in the same manner
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0013|     as the original appointments.  The chairman and vice chairman of
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0014|     the task force shall be appointed by the speaker of the house of
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0015|     representatives and the president pro tempore of the senate.
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0016|            C.  No action shall be taken by the task force if a
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0017|     majority of the total legislative membership from either house
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0018|     on the task force rejects the action.
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0019|            D.  The additional nine voting members shall be:
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0020|                 (1)  the three state corporation commissioners
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0021|     or their designees;
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0022|                 (2)  the director of the motor vehicle division
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0023|     of the taxation and revenue department;
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0024|                 (3)  a metropolitan or magistrate court judge
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0025|     appointed by the chief justice of the supreme court;
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0001|                 (4)  the secretary of public safety or his
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0002|     designee;
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0003|                 (5)  the attorney general or his designee; and
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0004|                 (6)  two public members to represent consumer
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0005|     interests, one appointed by the speaker of the house of
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0006|     representatives and one appointed by the president pro tempore
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0007|     of the senate.
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0008|            E.  The public members shall be paid per diem and
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0009|     mileage in accordance with the provisions of the Per Diem and
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0010|     Mileage Act.
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0011|            F.  The speaker of the house of representatives and
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0012|     the president pro tempore of the senate may appoint an advisory
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0013|     group to the task force of nonvoting persons that includes
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0014|     representatives of interests and organizations concerned about
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0015|     automobile insurance, including trial lawyers and the automobile
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0016|     insurance industry.
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0017|       Section 3.  DUTIES.--
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0018|            A.  After its appointment, the automobile insurance
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0019|     task force shall hold one organizational meeting to develop a
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0020|     work plan and budget for the ensuing interim.  The work plan and
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0021|     budget shall be submitted to the New Mexico legislative council
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0022|     for approval.
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0023|            B.  Upon approval of the work plan and budget by the
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0024|     legislative council, the task force shall examine the statutes,
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0025|     constitutional provisions, regulations, court decisions and
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0001|     practices governing automobile insurance in New Mexico and
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0002|     elsewhere and recommend legislation or changes if any are found
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0003|     to be necessary to the first session of the forty-third
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0004|     legislature.  The task force shall seek in its study to
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0005|     determine why automobile insurance rates are at the level they
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0006|     are in New Mexico; investigate whether, and if so, why those
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0007|     rates are disproportionately high; assess what options are
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0008|     reasonably available to lower the rates; determine what
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0009|     percentage of New Mexicans are uninsured, and what options may
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0010|     be pursued to decrease that percentage; consider what options
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0011|     are in general available to address automobile insurance
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0012|     problems in New Mexico, including the advantages and
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0013|     disadvantages of each; address concerns about competition in the
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0014|     marketplace, fraudulent practices and their impact on rates; and
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0015|     review how enforcement of effective automobile insurance laws
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0016|     can be achieved, including consideration of effective methods
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0017|     working in other states.
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0018|       Section 4.  SUBCOMMITTEES.--Subcommittees shall be created
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0019|     only by majority vote of all members appointed to the automobile
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0020|     insurance task force and with the prior approval of the New
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0021|     Mexico legislative council.  A subcommittee shall be composed of
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0022|     at least one member from the senate and one member from the
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0023|     house of representatives, and at least one member of the
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0024|     minority party shall be a member of the subcommittee.  All
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0025|     meetings and expenditures of a subcommittee shall be approved by
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0001|     the full task force in advance of the meeting or expenditure,
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0002|     and the approval shall be shown in the minutes of the task
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0003|     force.
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0004|       Section 5.  REPORT.--The automobile insurance task force 
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0005|     shall make a report of its findings and recommendations for the
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0006|     consideration of the first session of the forty-third
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0007|     legislature.  The report and suggested legislation shall be made
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0008|     available to the New Mexico legislative council on or before
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0009|     December 15 preceding that session.
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0010|       Section 6.  STAFF.--The staff for the automobile insurance
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0011|     task force shall be provided by the legislative council service,
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0012|     and the staff of the department of insurance and other state
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0013|     agencies shall provide assistance as requested.  The legislative
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0014|     council service, at the direction of the task force, may hire
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0015|     additional staff as necessary and contract with experts to
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0016|     assist the task force in carrying out its tasks.
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0017|       Section 7.  APPROPRIATION.--For the purpose of paying the
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0018|     salaries and expenses of the technical, professional, legal,
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0019|     clerical and stenographic assistants; for necessary equipment
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0020|     and supplies used in carrying out the provisions of this act;
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0021|     and for reimbursing the per diem and mileage expenses of the
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0022|     automobile insurance task force, there is appropriated to the
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0023|     legislative council service from the general fund the sum of one
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0024|     hundred thousand dollars ($100,000).  All or any part of this
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0025|     appropriation may be expended in fiscal years 1996 and 1997, and
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0001|     any unexpended or unencumbered balance remaining at the end of
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0002|     fiscal year 1997 shall revert to the general fund.  Payments
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0003|     from the appropriation shall be made upon vouchers signed by the
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0004|     director of the legislative council service or his authorized
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0005|     representative.
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0006|       Section 8.  EMERGENCY.--It is necessary for the public
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0007|     peace, health and safety that this act take effect immediately.
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0008|                                                       State of New Mexico
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0009|                    House of Representatives
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0010|   
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0011|                    FORTY-SECOND LEGISLATURE
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0012|                      SECOND SESSION, 1996
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0013|   
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0014|                                              January 25, l996
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0015|   
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0016|   
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0017|   Mr. Speaker:
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0018|   
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0019|       Your RULES AND ORDER OF BUSINESS COMMITTEE, to
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0020|   whom has been referred
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0021|   
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0022|                         HOUSE BILL 154
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0023|                                 
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0024|   has had it under consideration and finds same to be
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0025|   GERMANE in accordance with constitutional provisions.
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0001|   
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0002|                                Respectfully submitted,
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0003|   
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0004|   
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0005|                                                                 
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0006|    
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0007|                               Barbara A. Perea Casey,
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0008|   Chairperson
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0009|   
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0010|   
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0011|   Adopted                         Not Adopted                      
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0012|   
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0013|            (Chief Clerk)                       (Chief Clerk)
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0014|   
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0015|                      Date             
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0016|   
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0017|   The roll call vote was 10   For 0  Against
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0018|   Yes:          10
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0019|   Excused: Luna, Pederson, Rodella, R.G. Sanchez, J. G. Taylor
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0020|   Absent:  None
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0021|   
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0022|     H0154RC1                     State of New Mexico
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0023|                    House of Representatives
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0024|   
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0025|                    FORTY-SECOND LEGISLATURE
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0001|                      SECOND SESSION, 1996
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0002|   
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0003|   
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0004|                                              February 6, 1996
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0005|   
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0006|   
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0007|   Mr. Speaker:
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0008|   
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0009|       Your BUSINESS AND INDUSTRY COMMITTEE, to whom has
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0010|   been referred
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0011|   
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0012|                    HOUSE BILLS 154 AND 674
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0013|                                 
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0014|   has had them under consideration and reports same with
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0015|   recommendation that they DO NOT PASS, but that
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0016|   
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0017|        HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE
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0018|                  FOR HOUSE BILLS 154 AND 674
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0019|                                 
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0020|   DO PASS, and thence referred to the JUDICIARY
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0021|   COMMITTEE.
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0022|                                Respectfully submitted,
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0023|   
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0024|   
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0025|   
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0001|                                                                 
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0002|                               Fred Luna, Chairman
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0003|   
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0004|   
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0005|   Adopted                         Not Adopted                      
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0006|   
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0007|            (Chief Clerk)                       (Chief Clerk)
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0008|   
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0009|                      Date             
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0010|   
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0011|   The roll call vote was 11  For 0  Against
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0012|   Yes:          11
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0013|   Excused: None
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0014|   Absent:  Varela
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0015|   
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0016|   
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0017|                                                              
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0018|     H0154BI1    HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR
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0019|                     HOUSE BILLS 154 & 674
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0020|     42nd legislature - STATE OF NEW MEXICO - second session, 1996
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0021|                                
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0022|     
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0023|     
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0024|                                
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0025|     
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0001|     
    |
0002|     
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0003|                             AN ACT
    |
0004|     CREATING A JOINT INTERIM AUTOMOBILE INSURANCE TASK FORCE; MAKING
    |
0005|     AN APPROPRIATION; DECLARING AN EMERGENCY.
    |
0006|     
    |
0007|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
    |
0008|       Section 1.  AUTOMOBILE INSURANCE TASK FORCE CREATED--
    |
0009|     TERMINATION.--There is created a joint interim legislative,
    |
0010|     executive, judicial and public member task force which shall be
    |
0011|     known as the "automobile insurance task force".  The task force
    |
0012|     shall function from the date of its appointment until the first
    |
0013|     day of December prior to the first session of the forty-third
    |
0014|     legislature.
    |
0015|       Section 2.  MEMBERSHIP--APPOINTMENT--VACANCIES.--
    |
0016|            A.  The automobile insurance task force shall be
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0017|     composed of sixteen members, including eight voting legislative
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0018|     members.  Four members of the house of representatives and four
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0019|     members of the senate shall be appointed by the New Mexico
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0020|     legislative council.  No legislator appointed may be employed by
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0021|     or be an agent of an automobile insurance company.
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0022|            B.  Members shall be appointed from each house so as
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0023|     to give the two major political parties in each house the same
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0024|     proportional representation on the task force as prevails in
    |
0025|     each house; however, in no event shall either party have less
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0001|     than one member from each house on the task force.  Vacancies on
    |
0002|     the task force shall be filled by appointment in the same manner
    |
0003|     as the original appointments.  The chairman and vice chairman of
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0004|     the task force shall be appointed by the New Mexico legislative
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0005|     council.
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0006|            C.  No action shall be taken by the task force if a
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0007|     majority of the total legislative membership from either house
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0008|     on the task force rejects the action.
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0009|            D.  Six additional voting members shall be the
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0010|     following public members:
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0011|                 (1)  two individuals to represent consumer
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0012|     interests who are not affiliated with the automobile insurance
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0013|     industry and who are knowledgeable about or interested in
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0014|     automobile insurance matters, both of whom shall be appointed by
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0015|     the legislative council;
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0016|                 (2)  an attorney who regularly represents
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0017|     injured plaintiffs in automobile insurance cases, who shall be
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0018|     appointed by the governor;
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0019|                 (3)  an attorney who regularly represents
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0020|     defendant insurance companies in automobile insurance cases, who
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0021|     shall be appointed by the governor; and
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0022|                 (4)  two individuals who shall be representatives
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0023|     of the automobile insurance industry, one of whom shall be an
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0024|     automobile insurance agent and both of whom shall be appointed by
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0025|     the governor.
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0001|            E.  Two additional nonvoting members of the task force
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0002|     shall be:
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0003|                 (1)  the chairman of the state corporation
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0004|     commission, or the chairman's designee; and
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0005|                 (2)  a retired judge appointed by the chief
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0006|     justice of the supreme court.
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0007|            F.  The public members shall be paid per diem and
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0008|     mileage in accordance with the provisions of the Per Diem and
    |
0009|     Mileage Act.
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0010|       Section 3.  DUTIES.--
    |
0011|            A.  After its appointment, the automobile insurance task
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0012|     force shall hold one organizational meeting to develop a work plan
    |
0013|     and budget for the ensuing interim.  The work plan and budget shall
    |
0014|     be submitted to the New Mexico legislative council for approval.
    |
0015|            B.  Upon approval of the work plan and budget by the New
    |
0016|     Mexico legislative council, the task force shall examine the
    |
0017|     statutes, constitutional provisions, regulations, court decisions
    |
0018|     and underwriting and other practices governing automobile insurance
    |
0019|     in New Mexico and elsewhere and recommend legislation or changes if
    |
0020|     any are found to be necessary to the first session of the forty-third legislature.  The task force shall seek in its study to
    |
0021|     determine why automobile insurance rates are at the level they are
    |
0022|     in New Mexico; investigate whether, and if so, why those rates are
    |
0023|     disproportionately high; assess what options are reasonably
    |
0024|     available to lower the rates; determine what percentage of New
    |
0025|     Mexicans are uninsured, and what options may be pursued to decrease
    |
0001|     that percentage; consider what options are in general available to
    |
0002|     address automobile insurance problems in New Mexico, including the
    |
0003|     advantages and disadvantages of each; address concerns about
    |
0004|     competition in the marketplace, fraudulent practices and their
    |
0005|     impact on rates; and review how enforcement of effective automobile
    |
0006|     insurance laws can be achieved, including consideration of
    |
0007|     effective methods working in other states.
    |
0008|       Section 4.  SUBCOMMITTEES.--Subcommittees shall be created
    |
0009|     only by majority vote of all voting members appointed to the
    |
0010|     automobile insurance task force and with the prior approval of the
    |
0011|     New Mexico legislative council.  A subcommittee shall be composed
    |
0012|     of at least one member from the senate and one member from the
    |
0013|     house of representatives, and at least one member of the minority
    |
0014|     party shall be a member of the subcommittee.  All meetings and
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0015|     expenditures of a subcommittee shall be approved by the full task
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0016|     force in advance of the meeting or expenditure, and the approval
    |
0017|     shall be shown in the minutes of the task force.
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0018|       Section 5.  REPORT.--The automobile insurance task force 
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0019|     shall make a report of its findings and recommendations for the
    |
0020|     consideration of the first session of the forty-third legislature. 
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0021|     The report and suggested legislation shall be made available to the
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0022|     New Mexico legislative council on or before December 15 preceding
    |
0023|     that session.
    |
0024|       Section 6.  STAFF.--The staff for the automobile insurance
    |
0025|     task force shall be provided by the legislative council service,
    |
0001|     and the staff of the department of insurance and other state
    |
0002|     agencies shall provide assistance as requested.  The legislative
    |
0003|     council service, at the direction of the task force, may hire
    |
0004|     additional staff as necessary and contract with experts, including
    |
0005|     an actuary, to assist the task force in carrying out its tasks.
    |
0006|       Section 7.  APPROPRIATION.--For the purpose of paying the
    |
0007|     salaries and expenses of the technical, professional, legal,
    |
0008|     clerical and stenographic assistants; for necessary equipment and
    |
0009|     supplies used in carrying out the provisions of this act; and for
    |
0010|     reimbursing the per diem and mileage expenses of the automobile
    |
0011|     insurance task force, there is appropriated to the legislative
    |
0012|     council service from the general fund the sum of one hundred
    |
0013|     thousand dollars ($100,000).  All or any part of this appropriation
    |
0014|     may be expended in fiscal years 1996 and 1997, and any unexpended
    |
0015|     or unencumbered balance remaining at the end of fiscal year 1997
    |
0016|     shall revert to the general fund.  Payments from the appropriation
    |
0017|     shall be made upon vouchers signed by the director of the
    |
0018|     legislative council service or his authorized representative.
    |
0019|       Section 8.  EMERGENCY.--It is necessary for the public peace,
    |
0020|     health and safety that this act take effect immediately.
    |
0021|                             - 6 -
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