46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO PUBLIC EMPLOYEES; PROVIDING THAT CERTAIN EMPLOYEES OF THE LEGISLATIVE BRANCH MAY BE ELIGIBLE TO PARTICIPATE IN GROUP INSURANCE PLANS.

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

Section 1. Section 10-7-4 NMSA 1978 (being Laws 1941, Chapter 188, Section 1, as amended) is amended to read:

"10-7-4. GROUP INSURANCE--CAFETERIA PLAN--CONTRIBUTIONS FROM PUBLIC FUNDS.--

A. All state departments and institutions and all political subdivisions of the state, excluding municipalities, counties and political subdivisions of the state with twenty-five employees or fewer, shall cooperate in providing group term life, medical or disability income insurance for the benefit of eligible employees or salaried officers of the respective departments, institutions and subdivisions.

B. A person who is a seasonal employee of the legislative branch during a session of the legislature is eligible for group insurance pursuant to the provisions of this section and, after the adjournment of the legislative session and termination of the seasonal employment, shall continue to be eligible until the first day of the next regular session of the legislature if the person makes contributions pursuant to Paragraph (5) of Subsection C of this section.

[B.] C. The group insurance contributions of the state or any of its departments or institutions, including institutions of higher education and the public schools, shall be made as follows:

(1) seventy-five percent of the cost of the insurance of an employee whose annual salary is less than fifteen thousand dollars ($15,000);

(2) seventy percent of the cost of the insurance of an employee whose annual salary is fifteen thousand dollars ($15,000) or more but less than twenty thousand dollars ($20,000);

(3) sixty-five percent of the cost of the insurance of an employee whose annual salary is twenty thousand dollars ($20,000) or more but less than twenty-five thousand dollars ($25,000); [or]

(4) sixty percent of the cost of the insurance of an employee whose annual salary is twenty-five thousand dollars ($25,000) or more; or

(5) for a person who is a seasonal employee of the legislative branch during a session of the legislature, the applicable percentage from Paragraphs (1) through (4) of this subsection determined as if the salary rate earned during the legislative session was earned by the person for a full year; provided that, after adjournment of the legislative session and termination of the seasonal employment, the state shall not make any group contribution for the person and the person shall be eligible for group benefits only if the person contributes one hundred percent of the cost of the insurance.

As used in this subsection, "cost of the insurance" means the premium required to be paid to provide coverages. Any contributions of the political subdivisions of the state, except the public schools and political subdivisions of the state with twenty-five employees or fewer, shall not exceed sixty percent of the cost of the insurance.

[C.] D. When a public employee elects to participate in a cafeteria plan as authorized by the Cafeteria Plan Act and enters into a salary reduction agreement with the governmental employer, the provision of Subsection [B] C of this section with respect to the maximum contributions that can be made by the employer are not violated and will still apply. The employer percentage or dollar contributions as provided in Subsection [B] C of this section shall be determined by the employee's gross salary prior to any salary reduction agreement.

[D.] E. Any group medical insurance plan offered pursuant to this section shall include effective cost-containment measures to control the growth of health care costs. The responsible public body that administers a plan offered pursuant to this section shall report annually by September 1 to appropriate interim legislative committees on the effectiveness of the cost-containment measures required by this subsection."

Section 2. Section 10-7B-2 NMSA 1978 (being Laws 1989, Chapter 231, Section 2) is amended to read:

"10-7B-2. DEFINITIONS.--As used in the Group Benefits Act:

A. "committee" means the group benefits committee;

B. "director" means the director of the risk management division of the general services department;

C. "employee" means any salaried officer or employee of the state or a local public body [or both, as the context requires]. "Employee" includes a person who was a seasonal employee of the legislative branch during a session of the legislature and who continues to be eligible for group insurance pursuant to Section 10-7-4 NMSA 1978;

D. "local public body" means any New Mexico incorporated municipality, county or school district;

E. "professional claims administrator" means any person or legal entity which has at least five years of experience handling group benefits claims, as well as such other qualifications as the director may determine from time to time with the committee's advice; and

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

Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2004.