0001| HOUSE BILL 531 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| RICHARD T. KNOWLES | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO PUBLIC EMPLOYEES; CHANGING GROUP INSURANCE | 0012| PROVISIONS FOR POLITICAL SUBDIVISIONS WITH TWENTY-FIVE | 0013| EMPLOYEES OR LESS. | 0014| | 0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0016| Section 1. Section 10-7-4 NMSA 1978 (being Laws 1941, | 0017| Chapter 188, Section 1, as amended) is amended to read: | 0018| "10-7-4. GROUP INSURANCE--CAFETERIA PLAN--CONTRIBUTIONS | 0019| FROM PUBLIC FUNDS.-- | 0020| A. All state departments and institutions and all | 0021| political subdivisions of the state, excluding municipalities, | 0022| [and] counties and political subdivisions with twenty-five | 0023| employees or less, shall cooperate in providing group term | 0024| life, medical or disability income insurance for the benefit of | 0025| eligible employees or salaried officers of the respective | 0001| departments, institutions and subdivisions. | 0002| B. The group insurance contributions of the state | 0003| or any of its departments or institutions, including | 0004| institutions of higher education and the public schools, shall | 0005| be made as follows: | 0006| (l) seventy-five percent of the cost of the | 0007| insurance of an employee whose annual salary is less than | 0008| fifteen thousand dollars ($15,000); | 0009| (2) seventy percent of the cost of the | 0010| insurance of an employee whose annual salary is fifteen | 0011| thousand dollars ($15,000) or more but less than twenty | 0012| thousand dollars ($20,000); | 0013| (3) sixty-five percent of the cost of the | 0014| insurance of an employee whose annual salary is twenty thousand | 0015| dollars ($20,000) or more but less than twenty-five thousand | 0016| dollars ($25,000); or | 0017| (4) sixty percent of the cost of the insurance | 0018| of an employee whose annual salary is twenty-five thousand | 0019| dollars ($25,000) or more. | 0020| As used in this subsection, "cost of the insurance" means | 0021| the premium required to be paid to provide coverages. Any | 0022| contributions of the political subdivisions of the state, | 0023| except the public schools and political subdivisions with | 0024| twenty-five employees or less, shall not exceed sixty percent | 0025| of the cost of the insurance. | 0001| C. When a public employee elects to participate in | 0002| a cafeteria plan as authorized by the Cafeteria Plan Act and | 0003| enters into a salary reduction agreement with the governmental | 0004| employer, the provision of Subsection B of this section with | 0005| respect to the maximum contributions that can be made by the | 0006| employer are not violated and will still apply. The employer | 0007| percentage or dollar contributions as provided in Subsection B | 0008| of this section shall be determined by the employee's gross | 0009| salary prior to any salary reduction agreement. | 0010| D. Any group medical insurance plan offered | 0011| pursuant to this section shall include effective | 0012| cost-containment measures to control the growth of health care | 0013| costs. The responsible public body that administers a plan | 0014| offered pursuant to this section shall report annually by | 0015| September 1 to appropriate interim legislative committees on | 0016| the effectiveness of the cost-containment measures required by | 0017| this subsection." | 0018| Section 2. Section 10-7-4.2 NMSA 1978 (being Laws 1991, | 0019| Chapter 191, Section 1, as amended) is amended to read: | 0020| "10-7-4.2. GROUP INSURANCE--COUNTIES, [AND] | 0021| MUNICIPALITIES AND SMALL POLITICAL SUBDIVISIONS-- | 0022| CONTRIBUTIONS--DEFINITION--EXEMPTION FROM STATE PLAN.-- | 0023| A. All municipalities, [and] counties and | 0024| political subdivisions with twenty-five employees or less | 0025| shall cooperate in providing group term life, medical or | 0001| disability income insurance for the benefit of eligible | 0002| employees or salaried officers of the respective departments, | 0003| institutions and subdivisions. | 0004| B. Municipalities, [and] counties and political | 0005| subdivisions with twenty-five employees or less may contribute | 0006| any amount up to one hundred percent of the cost of the | 0007| insurance. As used in this section, "cost of the insurance" | 0008| means the premium required to be paid to provide coverages. | 0009| C. When a public employee elects to participate in | 0010| a cafeteria plan as authorized by the Cafeteria Plan Act and | 0011| enters into a salary reduction agreement with a municipal or | 0012| county employer, the provisions of Subsection B of this section | 0013| with respect to the maximum contributions that can be made by | 0014| the employer are not violated and will still apply. The | 0015| employer contributions as provided in Subsection B of this | 0016| section shall be determined by the employee's gross salary | 0017| prior to any salary reduction agreement. | 0018| D. Any group medical insurance plan offered | 0019| pursuant to this section shall include effective | 0020| cost-containment measures to control the growth of health care | 0021| costs. The responsible public body that administers a plan | 0022| offered pursuant to this section shall report annually by | 0023| September 1 to appropriate interim legislative committees on | 0024| the effectiveness of the cost-containment measures required by | 0025| this subsection. | 0001| E. Exempt from the provisions of Section | 0002| 10-7-4 NMSA 1978 are all municipalities, [and] counties and | 0003| political subdivisions with twenty-five employees or less." | 0004| Section 3. EFFECTIVE DATE.--The effective date of the | 0005| provisions of this act is July 1, 1997. | 0006|  | 0007| State of New Mexico | 0008| House of Representatives | 0009| | 0010| FORTY-THIRD LEGISLATURE | 0011| FIRST SESSION, 1997 | 0012| | 0013| | 0014| February 20, 1997 | 0015| | 0016| | 0017| Mr. Speaker: | 0018| | 0019| Your GOVERNMENT AND URBAN AFFAIRS COMMITTEE, to | 0020| whom has been referred | 0021| | 0022| HOUSE BILL 531 | 0023| | 0024| has had it under consideration and reports same with | 0025| recommendation that it DO PASS, and thence referred to the | 0001| APPROPRIATIONS AND FINANCE COMMITTEE. | 0002| | 0003| Respectfully submitted, | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| Lynda M. Lovejoy, Chairwoman | 0010| | 0011| | 0012| Adopted Not Adopted | 0013| | 0014| (Chief Clerk) (Chief Clerk) | 0015| | 0016| Date | 0017| | 0018| The roll call vote was 5 For 0 Against | 0019| Yes: 5 | 0020| Excused: Pederson, Saavedra, Taylor, JG | 0021| Absent: None | 0022| | 0023| | 0024| G:\BILLTEXT\BILLW_97\H0531 State of New Mexico | 0025| House of Representatives | 0001| | 0002| FORTY-THIRD LEGISLATURE | 0003| FIRST SESSION, 1997 | 0004| | 0005| | 0006| March 5, 1997 | 0007| | 0008| | 0009| Mr. Speaker: | 0010| | 0011| Your APPROPRIATIONS AND FINANCE COMMITTEE, to | 0012| whom has been referred | 0013| | 0014| HOUSE BILL 531 | 0015| | 0016| has had it under consideration and reports same with | 0017| recommendation that it DO PASS. | 0018| | 0019| Respectfully submitted, | 0020| | 0021| | 0022| | 0023| | 0024| | 0025| Max Coll, Chairman | 0001| | 0002| | 0003| Adopted Not Adopted | 0004| | 0005| (Chief Clerk) (Chief Clerk) | 0006| | 0007| Date | 0008| | 0009| The roll call vote was 14 For 0 Against | 0010| Yes: 14 | 0011| Excused: Saavedra, Salazar, Wallace | 0012| Absent: None | 0013| | 0014| | 0015| G:\BILLTEXT\BILLW_97\H0531 FORTY-THIRD LEGISLATURE | 0016| FIRST SESSION, 1997 | 0017| | 0018| | 0019| March 17, 1997 | 0020| Mr. President: | 0021| | 0022| Your PUBLIC AFFAIRS COMMITTEE, to whom has been | 0023| referred | 0024| | 0025| HOUSE BILL 531 | 0001| | 0002| has had it under consideration and reports same with | 0003| recommendation that it DO PASS. | 0004| | 0005| Respectfully submitted, | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| __________________________________ | 0012| Shannon Robinson, Chairman | 0013| | 0014| | 0015| Adopted_______________________ Not | 0016| Adopted_______________________ | 0017| (Chief Clerk) (Chief Clerk) | 0018| | 0019| | 0020| Date ________________________ | 0021| | 0022| | 0023| | 0024| The roll call vote was 5 For 0 Against | 0025| Yes: 5 | 0001| No: 0 | 0002| Excused: Garcia, Ingle, Vernon, Rodarte | 0003| Absent: None | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| H0531PA1 | 0010| | 0011| | 0012| | 0013| FORTY-THIRD LEGISLATURE | 0014| FIRST SESSION, 1997 | 0015| | 0016| | 0017| March 17, 1997 | 0018| Mr. President: | 0019| | 0020| Your PUBLIC AFFAIRS COMMITTEE, to whom has been | 0021| referred | 0022| | 0023| HOUSE BILL 531 | 0024| | 0025| has had it under consideration and reports same with | 0001| recommendation that it DO PASS. | 0002| | 0003| Respectfully submitted, | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| __________________________________ | 0010| Shannon Robinson, Chairman | 0011| | 0012| | 0013| Adopted_______________________ Not | 0014| Adopted_______________________ | 0015| (Chief Clerk) (Chief Clerk) | 0016| | 0017| | 0018| Date ________________________ | 0019| | 0020| | 0021| | 0022| The roll call vote was 5 For 0 Against | 0023| Yes: 5 | 0024| No: 0 | 0025| Excused: Garcia, Ingle, Vernon, Rodarte | 0001| Absent: None | 0002| | 0003| | 0004| | 0005| | 0006| | 0007| H0531PA1 | 0008| | 0009| | 0010| |