0001|                          HOUSE BILL 4
    |
0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - FIRST SPECIAL
    |
0003|     SESSION, 1996
    |
0004|                         INTRODUCED BY
    |
0005|                       RAYMOND G. SANCHEZ
    |
0006|     
    |
0007|                                
    |
0008|     
    |
0009|     
    |
0010|     
    |
0011|                             AN ACT
    |
0012|     AMENDING AND REPEALING SECTIONS OF THE SUBSEQUENT INJURY ACT;
    |
0013|     DECLARING AN EMERGENCY. 
    |
0014|     
    |
0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
    |
0016|       Section 1.  Section 52-2-4 NMSA 1978 (being Laws 1961,
    |
0017|     Chapter 134, Section 4, as amended) is amended to read:
    |
0018|       "52-2-4.  SUBSEQUENT INJURY FUND.--A special fund to be
    |
0019|     known as the "subsequent injury fund" is established for the
    |
0020|     purpose of carrying out the provisions of the Subsequent Injury
    |
0021|     Act. <s>[The fund shall be derived from the following sources:
</s>    |
<s></s>0022| <s>           A.  the employer or his insurance carrier shall pay
</s>    |
<s></s>0023| <s>    to the superintendent of insurance the sum of one thousand
</s>    |
<s></s>0024| <s>    dollars ($l,000) as indemnity benefits for the death of an
</s>    |
<s></s>0025| <s>    employee when a final determination is made that there is no
</s>    |
<s></s>0001| <s>    beneficiary entitled to death benefits under the Workers'
</s>    |
<s></s>0002| <s>    Compensation Act;
</s>    |
<s></s>0003| <s>           B.  each employer or his insurance carrier shall
</s>    |
<s></s>0004| <s>    quarterly, under regulations prescribed by the superintendent of
</s>    |
<s></s>0005| <s>    insurance, pay to the superintendent of insurance a percentage
</s>    |
<s></s>0006| <s>    not to exceed three percent of the money paid out during such
</s>    |
<s></s>0007| <s>    quarter as compensation benefits and medical benefits, exclusive
</s>    |
<s></s>0008| <s>    of attorneys' fees and related benefits.  The above percentage
</s>    |
<s></s>0009| <s>    shall be determined once before the end of each fiscal year by
</s>    |
<s></s>0010| <s>    the superintendent of insurance so as to provide a sufficient
</s>    |
<s></s>0011| <s>    income to meet payments from the fund for the next fiscal year;
</s>    |
<s></s>0012| <s>    provided that for the first fiscal year, the percentage shall be
</s>    |
<s></s>0013| <s>    one-half of one percent; and
</s>    |
<s></s>0014| <s>           C.  the superintendent of insurance shall deposit all
</s>    |
<s></s>0015| <s>    such money collected by him with the state treasurer who shall
</s>    |
<s></s>0016| <s>    credit such deposits and accrued interest thereon to the
</s>    |
<s></s>0017| <s>    subsequent injury fund. The deposits made shall be a separate
</s>    |
<s></s>0018| <s>    fund for payments authorized under the provisions of the 
</s>    |
<s></s>0019| <s>    Subsequent Injury Act.]</s>"
    |
0020|       Section 2.  Section 52-2-5 NMSA 1978 (being Laws 1986,
    |
0021|     Chapter 22, Section 47, as amended) is amended to read:
    |
0022|       "52-2-5.  PAYMENTS FROM FUND--CLAIMS AGAINST FUND.--
    |
0023|            A.  The superintendent of insurance may authorize
    |
0024|     payments from the subsequent injury fund for the following
    |
0025|     purposes, whether or not a compensation order has been entered:
    |
0001|                 (1)  the reimbursement to the employer or its
    |
0002|     insurance carrier of the fund's portion of benefits payable to
    |
0003|     an injured worker under the Workers' Compensation Act as
    |
0004|     apportioned under the Subsequent Injury Act;
    |
0005|                 <s>[(2)  the payment to the worker of the fund's
</s>    |
<s></s>0006| <s>    portion of benefits payable to the injured worker if a worker
</s>    |
<s></s>0007| <s>    brings an action under Subsection D of this section;
</s>    |
<s></s>0008| <s>                (3)]</s> <u>(2)</u>  the payment of fees to attorneys
    |
0009|     who represent the superintendent of insurance and the subsequent
    |
0010|     injury fund and of fees to other professional advisers to the
    |
0011|     superintendent of insurance in connection with the
    |
0012|     superintendent's administration of the subsequent injury fund;
    |
0013|     and
    |
0014|                 <s>[(4)]</s> <u>(3)</u>  the payment of any other expenses
    |
0015|     ancillary to the superintendent's administration of the
    |
0016|     subsequent injury fund.
    |
0017|            <s>[B.  Subject to the requirements of Section 52-2-14
</s>    |
<s></s>0018| <s>    NMSA 1978, an employer or its insurance carrier may assert a
</s>    |
<s></s>0019| <s>    claim against the subsequent injury fund under the following
</s>    |
<s></s>0020| <s>    circumstances only:
</s>    |
<s></s>0021| <s>                (1)  if a worker asserts a claim against the
</s>    |
<s></s>0022| <s>    employer under the Workers' Compensation Act, the employer or
</s>    |
<s></s>0023| <s>    its insurance carrier may join the subsequent injury fund as an
</s>    |
<s></s>0024| <s>    additional party and assert a right to reimbursement from the
</s>    |
<s></s>0025| <s>    subsequent injury fund; and
</s>    |
<s></s>0001| <s>                (2)  if the worker is receiving compensation
</s>    |
<s></s>0002| <s>    benefits from the employer, the employer or its insurance
</s>    |
<s></s>0003| <s>    carrier may continue to make the payments and file a claim
</s>    |
<s></s>0004| <s>    pursuant to the Subsequent Injury Act against the subsequent
</s>    |
<s></s>0005| <s>    injury fund for apportionment of compensation benefits between
</s>    |
<s></s>0006| <s>    the employer or its insurance carrier and the subsequent injury
</s>    |
<s></s>0007| <s>    fund.
</s>    |
<s></s>0008| <s>           C.]</s> <u>B.</u>  The superintendent of insurance shall be a
    |
0009|     party to all proceedings wherein a compensation order is sought
    |
0010|     against the superintendent of insurance and the fund.
    |
0011|            <s>[D.  A worker may assert a claim against the fund
</s>    |
<s></s>0012| <s>    only when the worker's employer is no longer doing business in
</s>    |
<s></s>0013| <s>    New Mexico or is bankrupt and the employer or its insurance
</s>    |
<s></s>0014| <s>    carrier cannot for reason of the cessation of business or
</s>    |
<s></s>0015| <s>    bankruptcy assert a claim against the fund.  The worker's claim
</s>    |
<s></s>0016| <s>    is limited to apportionment of benefits under the Subsequent
</s>    |
<s></s>0017| <s>    Injury Act to recover amounts that the fund would have paid the
</s>    |
<s></s>0018| <s>    employer or its insurance carrier as reimbursement.  The fund
</s>    |
<s></s>0019| <s>    shall not be liable to the worker for any amounts for which the
</s>    |
<s></s>0020| <s>    employer or its insurance carrier would be liable to the worker
</s>    |
<s></s>0021| <s>    under the Workers' Compensation Act.  The worker takes the place
</s>    |
<s></s>0022| <s>    of and assumes the status of the worker's employer on the claim
</s>    |
<s></s>0023| <s>    against the fund.  The fund shall be liable only to the worker,
</s>    |
<s></s>0024| <s>    and not the employer or its insurance carrier, for any portion
</s>    |
<s></s>0025| <s>    of benefits which the fund would have paid to the employer or
</s>    |
<s></s>0001| <s>    its insurance carrier.
</s>    |
<s></s>0002| <s>           E.  A worker shall not assert a claim against the
</s>    |
<s></s>0003| <s>    fund except as provided in Subsection D of this section.]</s>"
    |
0004|       Section 3.  TEMPORARY PROVISION--SUBSEQUENT INJURY FUND--TRANSFER OF FUNDS.--On the effective date of Section 5 of this
    |
0005|     act, any unexpended or unencumbered balance remaining in the
    |
0006|     subsequent injury fund shall be transferred to the general fund.
    |
0007|       Section 4.  REPEAL.--Sections 52-2-2, 52-2-3, 52-2-6
    |
0008|     through 52-2-9, 52-2-11, 52-2-12 and 52-2-14 NMSA 1978 (being
    |
0009|     Laws 1961, Chapter 134, Section 2, Laws 1986, Chapter 22,
    |
0010|     Section 46, Laws 1975, Chapter 298, Section 2, Laws 1961,
    |
0011|     Chapter 134, Sections 6, 7 and 9, Laws 1986, Chapter 22, Section
    |
0012|     50, Laws 1961, Chapter 134, Section 12 and Laws 1988, Chapter
    |
0013|     109, Section 7, as amended) are repealed.
    |
0014|       Section 5.  DELAYED REPEAL.--Sections 52-2-1, 52-2-4 and 
    |
0015|     52-2-5 NMSA 1978 (being Laws 1961, Chapter 134, Sections 1 and 4
    |
0016|     and Laws 1986, Chapter 22, Section 47, as amended) are repealed
    |
0017|     effective July 1, 1999.
    |
0018|       Section 6.  EMERGENCY.--It is necessary for the public
    |
0019|     peace, health and safety that this act take effect immediately.
    |
0020|                                                       State of New Mexico
    |
0021|                    House of Representatives
    |
0022|   
    |
0023|                    FORTY-SECOND LEGISLATURE
    |
0024|                  FIRST SPECIAL SESSION, 1996
    |
0025|   
    |
0001|   
    |
0002|                                                March 20, 1996
    |
0003|   
    |
0004|   
    |
0005|   Mr. Speaker:
    |
0006|   
    |
0007|       Your APPROPRIATIONS AND FINANCE COMMITTEE, to
    |
0008|   whom has been referred
    |
0009|   
    |
0010|                         HOUSE BILL 4
    |
0011|                                
    |
0012|                                 has had it under consideration and reports same with
    |
0013|   recommendation that it DO PASS.
    |
0014|   
    |
0015|                                Respectfully submitted,
    |
0016|   
    |
0017|   
    |
0018|   
    |
0019|                                <u>                                 
</u>    |
<u></u>0020| <u>  </u>                            Max Coll, Chairman
    |
0021|   
    |
0022|   
    |
0023|   Adopted <u>                    </u>    Not Adopted <u>                     
</u>    |
<u></u>0024| <u>  </u>
    |
0025|            (Chief Clerk)                       (Chief Clerk)
    |
0001|   
    |
0002|                      Date <u>            </u>
    |
0003|   
    |
0004|   The roll call vote was <u> 14 </u> For <u> 0 </u> Against
    |
0005|   Yes:          14
    |
0006|   Excused: Abeyta, Light, Salazar, Varela
    |
0007|   Absent:  None
    |
0008|   
    |
0009|   
    |
0010|                                                              
    |
0011|     H0004AF1
    |
0012|   
    |
0013|                    FORTY-SECOND LEGISLATURE
    |
0014|                  FIRST SPECIAL SESSION, 1996
    |
0015|   
    |
0016|   
    |
0017|                                                March 21, 1996
    |
0018|   
    |
0019|   Mr. President:
    |
0020|   
    |
0021|     Your FINANCE COMMITTEE, to whom has been referred
    |
0022|   
    |
0023|                          HOUSE BILL 4
    |
0024|   
    |
0025|   has had it under consideration and reports same with
    |
0001|   recommendation that it DO PASS.
    |
0002|   
    |
0003|   
    |
0004|                              Respectfully submitted,
    |
0005| 
    |
0006| 
    |
0007| 
    |
0008|                              __________________________________
    |
0009|                              Ben D. Altamirano, Chairman 
    |
0010| 
    |
0011| 
    |
0012| Adopted_______________________   Not Adopted_______________________
    |
0013|           (Chief Clerk)                          (Chief Clerk)
    |
0014| 
    |
0015| 
    |
0016|                   Date ________________________
    |
0017| 
    |
0018| 
    |
0019| The roll call vote was <u> 10 </u> For <u> 0 </u> Against
    |
0020| Yes:    10
    |
0021| No:     0
    |
0022| Excused:     Jennings, T., Macias, Sanchez
    |
0023| Absent: None
    |
0024| 
    |
0025| 
    |
0001| H0004FC1
    |