0001| SENATE BILL 364 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| SHANNON ROBINSON | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO RETIREE HEALTH CARE; AMENDING THE RETIREE HEALTH | 0012| CARE ACT TO CHANGE CERTAIN DEFINITIONS, GIVE THE RETIREE HEALTH | 0013| CARE BOARD MORE DISCRETION IN SETTING CONTRIBUTION LEVELS AND | 0014| CHANGE CERTAIN PROVISIONS PERTAINING TO INSTITUTIONS OF HIGHER | 0015| EDUCATION, MUNICIPALITIES AND COUNTIES; AMENDING SECTIONS OF | 0016| THE NMSA 1978. | 0017| | 0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0019| Section 1. Section 10-7C-4 NMSA 1978 (being Laws 1990, | 0020| Chapter 6, Section 4, as amended) is amended to read: | 0021| "10-7C-4. DEFINITIONS.--As used in the Retiree Health | 0022| Care Act: | 0023| A. "active employee" means an employee of a public | 0024| institution or any other public employer participating in | 0025| either the Educational Retirement Act, the Public Employees | 0001| Retirement Act, the Judicial Retirement Act, [or] the | 0002| Magistrate Retirement Act or the Public Employees Retirement | 0003| Reciprocity Act or the employee of an independent public | 0004| employer; | 0005| B. "authority" means the retiree health care | 0006| authority created pursuant to the Retiree Health Care Act; | 0007| C. "basic plan of benefits" means only those | 0008| coverages generally associated with a medical plan of benefits; | 0009| D. "board" means the [governing] board of the | 0010| retiree health care authority; | 0011| E. "current retiree" means an eligible retiree who | 0012| is receiving a disability or normal retirement benefit under | 0013| the Educational Retirement Act, the Public Employees Retirement | 0014| Act, the Judicial Retirement Act, the Magistrate Retirement Act | 0015| [the Retirement Reciprocity Act, the Judicial Retirement | 0016| Reciprocity Act] or the Public Employees Retirement | 0017| Reciprocity Act or the retirement program of an independent | 0018| public employer on or before July 1, 1990; | 0019| F. "eligible dependent" means a person obtaining | 0020| retiree health care coverage based upon that person's | 0021| relationship to an eligible retiree as follows: | 0022| (1) a spouse; | 0023| (2) an unmarried child under the age of | 0024| nineteen who is: | 0025| (a) a natural child; | 0001| (b) a legally adopted child; | 0002| (c) a stepchild living in the same | 0003| household who is primarily dependent on the eligible retiree | 0004| for maintenance and support; | 0005| (d) a child for whom the eligible | 0006| retiree is the legal guardian and who is primarily dependent on | 0007| the eligible retiree for maintenance and support, as long as | 0008| evidence of the guardianship is evidenced in a court order or | 0009| decree; or | 0010| (e) a foster child living in the same | 0011| household; | 0012| (3) a child described in Subparagraphs (a) | 0013| through (e) of Paragraph (2) of this subsection who is between | 0014| the ages of nineteen and twenty-five and is a full-time student | 0015| at an accredited educational institution, provided that "full- | 0016| time student" shall be a student enrolled in and taking twelve | 0017| or more semester hours or its equivalent contact hours in | 0018| primary, secondary, undergraduate or vocational school or a | 0019| student enrolled in and taking nine or more semester hours or | 0020| its equivalent contact hours in graduate school; | 0021| (4) a dependent child over nineteen who is | 0022| wholly dependent on the eligible retiree for maintenance and | 0023| support and who is incapable of self-sustaining employment by | 0024| reason of mental retardation or physical handicap, provided | 0025| that proof of incapacity and dependency shall be provided | 0001| within thirty-one days after the child reaches the limiting age | 0002| and at such times thereafter as may be required by the board; | 0003| (5) a surviving spouse defined as follows: | 0004| (a) "surviving spouse" means the spouse | 0005| to whom a retiree was married at the time of death; or | 0006| (b) "surviving spouse" means the spouse | 0007| to whom a deceased vested active employee was married at the | 0008| time of death; or | 0009| (6) a surviving dependent child who is the | 0010| dependent child of a deceased eligible retiree whose other | 0011| parent is also deceased; | 0012| G. "eligible employer" means either: | 0013| (1) a "retirement system employer", which | 0014| means an institution of higher education, a school district or | 0015| other entity participating in the public school insurance | 0016| authority, a state agency, state court, magistrate court, | 0017| municipality or county, each of which is affiliated under or | 0018| covered by the Educational Retirement Act, the Public Employees | 0019| Retirement Act, the Judicial Retirement Act, [or] the | 0020| Magistrate Retirement Act or the Public Employees Retirement | 0021| Reciprocity Act; or | 0022| (2) an "independent public employer", which | 0023| means a municipality or county which is not a retirement system | 0024| employer; | 0025| H. "eligible retiree" means: | 0001| (1) a "nonsalaried eligible participating | 0002| entity governing authority member" who is a person who is not a | 0003| retiree and who: | 0004| (a) has served without salary as a | 0005| member of the governing authority of an employer eligible to | 0006| participate in the benefits of the Retiree Health Care Act and | 0007| is certified to be such by the executive director of the public | 0008| school insurance authority; | 0009| (b) has maintained group health | 0010| insurance coverage through that member's governing authority if | 0011| such group health insurance coverage was available and offered | 0012| to the member during the member's service as a member of the | 0013| governing authority; and | 0014| (c) was participating in the group | 0015| health insurance program under the Retiree Health Care Act | 0016| prior to July 1, 1993; or | 0017| (d) if a person eligible under | 0018| Subparagraph (a) of this paragraph applies before August 1, | 0019| 1993 to the authority to participate in the program, then he | 0020| will be eligible to participate notwithstanding the provisions | 0021| of Subparagraphs (b) and (c) of this paragraph; | 0022| (2) a "salaried eligible participating entity | 0023| governing authority member" who is a person who is not a | 0024| retiree and who: | 0025| (a) has served with salary as a member | 0001| of the governing authority of an employer eligible to | 0002| participate in the benefits of the Retiree Health Care Act; | 0003| (b) has maintained group health | 0004| insurance through that member's governing authority, if such | 0005| group health insurance was available and offered to the member | 0006| during the member's service as a member of the governing | 0007| authority; and | 0008| (c) was participating in the group | 0009| health insurance program under the Retiree Health Care Act | 0010| prior to July 1, 1993; or | 0011| (d) if a person eligible under | 0012| Subparagraph (a) of this paragraph applies before August 1, | 0013| 1993 to the authority to participate in the program, then he | 0014| will be eligible to participate notwithstanding the provisions | 0015| of Subparagraphs (b) and (c) of this paragraph; | 0016| (3) an "eligible participating retiree" who is | 0017| a person who: | 0018| (a) falls within the definition of a | 0019| retiree, has made contributions to the fund for at least five | 0020| years prior to retirement and whose eligible employer during | 0021| that period of time made contributions as a participant in the | 0022| Retiree Health Care Act on the person's behalf, unless that | 0023| person retires on or before July 1, 1995, in which event the | 0024| time period required for employee and employer contributions | 0025| shall become the period of time between July 1, 1990 and the | 0001| date of retirement, and who is certified to be a retiree by the | 0002| educational retirement director, the executive secretary of the | 0003| public employees retirement board or the governing authority of | 0004| an independent public employer; | 0005| (b) falls within the definition of a | 0006| retiree, retired prior to July 1, 1990 and is certified to be a | 0007| retiree by the educational retirement director, the executive | 0008| secretary of the public employees retirement association or the | 0009| governing authority or of an independent public employer; but | 0010| this paragraph does not include a retiree who was an employee | 0011| of an eligible employer who exercised the option not to be a | 0012| participating employer pursuant to the Retiree Health Care Act | 0013| and did not after January 1, 1993 elect to become a | 0014| participating employer; unless the retiree: 1) retired on or | 0015| before June 30, 1990; and 2) at the time of retirement did not | 0016| have a retirement health plan or retirement health insurance | 0017| coverage available from his employer; or | 0018| (c) is a retiree who: 1) was at the time | 0019| of retirement an employee of an eligible employer who exercised | 0020| the option not to be a participating employer pursuant to the | 0021| Retiree Health Care Act, but which eligible employer | 0022| subsequently elected after January 1, 1993 to become a | 0023| participating employer; 2) has made contributions to the fund | 0024| for at least five years prior to retirement and whose eligible | 0025| employer during that period of time made contributions as a | 0001| participant in the Retiree Health Care Act on the person's | 0002| behalf, unless that person retires less than five years after | 0003| the date participation begins, in which event the time period | 0004| required for employee and employer contributions shall become | 0005| the period of time between the date participation begins and | 0006| the date of retirement; and 3) is certified to be a retiree by | 0007| the educational retirement director, the executive secretary of | 0008| the public employees retirement board or the governing | 0009| authority of an independent public employer; | 0010| I. "fund" means the retiree health care fund; | 0011| J. "group health insurance" means coverage that | 0012| includes but is not limited to life insurance, accidental death | 0013| and dismemberment, hospital care and benefits, surgical care | 0014| and treatment, medical care and treatment, dental care, eye | 0015| care, obstetrical benefits, prescribed drugs, medicines and | 0016| prosthetic devices, medicare supplement, medicare carveout, | 0017| medicare coordination and other benefits, supplies and services | 0018| through the vehicles of indemnity coverages, health maintenance | 0019| organizations, preferred provider organizations and other | 0020| health care delivery systems as provided by the Retiree Health | 0021| Care Act and other coverages considered by the board to be | 0022| advisable; | 0023| K. "ineligible dependents" include but are not | 0024| limited to: | 0025| (1) those dependents created by common law | 0001| relationships; | 0002| (2) dependents while in active military | 0003| service; | 0004| (3) parents, aunts, uncles, brothers, sisters, | 0005| grandchildren and other family members left in the care of an | 0006| eligible retiree without evidence of legal guardianship; and | 0007| (4) anyone not specifically referred to as an | 0008| eligible dependent pursuant to the rules and regulations | 0009| adopted by the board; | 0010| L. "participating employee" means an employee of a | 0011| participating employer, which employee has not been excluded | 0012| from participation in the Retiree Health Care Act pursuant to | 0013| [Subsection F of Section 10-7C-9 NMSA 1978 or] Section | 0014| 10-7C-10 NMSA 1978; | 0015| M. "participating employer" means an eligible | 0016| employer who has satisfied the conditions for participating in | 0017| the benefits of the Retiree Health Care Act, including the | 0018| requirements of Subsection M of Section 10-7C-7 NMSA 1978 and | 0019| Subsection D, [or] E or G of Section 10-7C-9 NMSA 1978, as | 0020| applicable; and | 0021| N. "retiree" means a person who: | 0022| (1) is receiving: | 0023| (a) a disability or normal retirement | 0024| benefit or survivor's benefit under the Educational Retirement | 0025| Act; | 0001| (b) a disability or normal retirement | 0002| benefit or survivor's benefit pursuant to the Public Employees | 0003| Retirement Act, the Judicial Retirement Act, the Magistrate | 0004| Retirement Act or the [Retirement Reciprocity Act or the | 0005| Judicial Retirement Reciprocity Act] Public Employees | 0006| Retirement Reciprocity Act; or | 0007| (c) a disability or normal retirement | 0008| benefit or survivor's benefit pursuant to the retirement | 0009| program of an independent public employer to which that | 0010| employer has made periodic contributions; or | 0011| (2) is not receiving a survivor's benefit but | 0012| is the eligible dependent of a person who received a disability | 0013| or normal retirement benefit pursuant to the Educational | 0014| Retirement Act, [or] the Public Employees Retirement Act, | 0015| the Judicial Retirement Act, the Magistrate Retirement Act or | 0016| the Public Employees Retirement Reciprocity Act." | 0017| Section 2. Section 10-7C-7 NMSA 1978 (being Laws 1990, | 0018| Chapter 6, Section 7) is amended to read: | 0019| "10-7C-7. BOARD--DUTIES.--In order to achieve the | 0020| purposes of the Retiree Health Care Act, the board may take all | 0021| actions reasonably necessary to implement that act, including | 0022| but not limited to the following: | 0023| A. employ or contract for the services of the state | 0024| fiscal agent or select its own fiscal agent in accordance with | 0025| the Procurement Code; | 0001| B. employ or contract for persons to assist it in | 0002| carrying out the Retiree Health Care Act and determine the | 0003| duties and compensation of these employees; | 0004| C. collect and disburse funds; | 0005| D. collect all current and historical claims and | 0006| financial information necessary for effective procurement of | 0007| lines of insurance coverage; | 0008| E. promulgate and adopt necessary rules, | 0009| regulations and procedures for implementation of the Retiree | 0010| Health Care Act; | 0011| F. negotiate insurance policies covering additional | 0012| or lesser benefits as determined appropriate by the board, and | 0013| at the board's discretion determine various benefit levels | 0014| based on retirees' accumulated years of credited service, but | 0015| the board shall maintain all coverage as required by federal or | 0016| state law for each eligible retiree. In the event it is | 0017| practical to wholly self-insure part or all of the retiree | 0018| health care coverages, the board may do so; | 0019| G. procure group health care and other coverages | 0020| authorized by the Retiree Health Care Act in accordance with | 0021| the Procurement Code; | 0022| H. establish the procedures for contributions and | 0023| deductions; | 0024| I. determine methods and procedures for claims | 0025| administration; | 0001| J. administer the fund; | 0002| K. contract for and make available to all eligible | 0003| retirees and eligible dependents basic and optional group | 0004| health insurance plans. The optional coverage may include a | 0005| lower deductible, lower coinsurance or additional categories of | 0006| benefits permitted under this section and all other applicable | 0007| sections of the Retiree Health Care Act to provide additional | 0008| levels of coverages and benefits. Any additional contributions | 0009| for these optional plans shall be paid for by the eligible | 0010| retiree or eligible dependent. The coverage provided by the | 0011| plan or plans shall be secondary to all other benefit coverages | 0012| to which the eligible retiree or eligible dependent is | 0013| entitled. In the event a covered eligible retiree becomes | 0014| employed by an employer offering its employees a basic plan of | 0015| benefits, the coverage provided by the plan under the Retiree | 0016| Health Care Act shall be secondary to such coverage regardless | 0017| of whether the employee enrolls in that employer's plan. In | 0018| the event the eligible retiree or eligible dependent is en- | 0019| | 0020| titled to receive medicare hospital insurance benefits at no | 0021| charge, then the coverage provided by the plan under the | 0022| Retiree Health Care Act shall be secondary to medicare hospital | 0023| and medical insurance to the extent permitted by federal law; | 0024| L. provide, at its discretion, different plans for | 0025| eligible retirees and eligible dependents covered by medicare | 0001| than the plans provided for eligible retirees and eligible | 0002| dependents who are not covered by medicare; and | 0003| M. promulgate and adopt rules and regulations | 0004| governing eligibility, participation, enrollment, length of | 0005| service and any other conditions or requirements for providing | 0006| substantially equal treatment to participating employers [who | 0007| are independent public employers and their retirees and | 0008| participating employees]." | 0009| Section 3. Section 10-7C-9 NMSA 1978 (being Laws 1990, | 0010| Chapter 6, Section 9, as amended) is amended to read: | 0011| "10-7C-9. PARTICIPATION.-- | 0012| A. All eligible employers shall participate in the | 0013| Retiree Health Care Act except as provided in Subsection D or | 0014| [Subsection] E of this section. Participating employers are | 0015| required to continue existing group health insurance coverages | 0016| until such time as similar coverages are offered by the board | 0017| under the Retiree Health Care Act. | 0018| B. Participation in the basic health insurance | 0019| coverages provided by the authority shall be conditioned upon | 0020| receipt by the board of a certificate of eligibility from the | 0021| educational retirement director, the executive secretary of the | 0022| public employees retirement association, the [executive] | 0023| director of the public school insurance authority or the | 0024| governing body of an independent public employer. Once | 0025| eligibility is established, for each eligible retiree who | 0001| retires on or after [the effective date of the Retiree Health | 0002| Care Act] February 13, 1990, the board shall contribute from | 0003| money in the fund the authority's portion of the premium for | 0004| the basic plan of benefits commencing no earlier than January | 0005| 1, 1991, plus the balance of the premium which shall be | 0006| collected from the retiree. | 0007| C. Each eligible retiree shall accept or reject | 0008| enrollment in the basic plan of benefits on an enrollment form | 0009| provided by the board. An eligible retiree who rejects | 0010| enrollment or fails to return a properly executed enrollment | 0011| form within the open enrollment period as established by the | 0012| board forfeits all entitlement and eligibility for benefits | 0013| under the Retiree Health Care Act until the next open | 0014| enrollment period as established by the board. | 0015| D. On or before January 1, 1991, municipalities, | 0016| counties and institutions of higher education that are | 0017| retirement system employers may at their option determine by | 0018| ordinance, or for institutions of higher education, by | 0019| resolution, to be excluded from coverage under the Retiree | 0020| Health Care Act; that determination shall be subject to the | 0021| following conditions: | 0022| (1) any contributions paid into the fund by a | 0023| municipality, county or institution of higher education that | 0024| exercises timely an irrevocable option not to participate in | 0025| the Retiree Health Care Act under this subsection shall be | 0001| returned without interest to that municipality, county or | 0002| institution of higher education for return of the employee | 0003| contributions to the employees and for crediting of the | 0004| employer contributions to the appropriate fund of the | 0005| municipality, county or institution of higher education. If | 0006| the determination to be excluded from coverage is exercised by | 0007| a municipality, county or institution of higher education prior | 0008| to July 1, 1990, then that municipality, county or institution | 0009| of higher education shall not be required to make the | 0010| contributions that would otherwise be required by Section 10- | 0011| 7C-15 NMSA 1978; | 0012| (2) any municipality, county or institution of | 0013| higher education, in addition to complying with all other | 0014| required notice and public hearing or meeting requirements, | 0015| shall, no less than thirty days prior to the public hearing or | 0016| public meeting on a proposed ordinance or proposed resolution, | 0017| notify the authority of the public hearing or public meeting by | 0018| certified mail; and | 0019| (3) in the event that: | 0020| (a) the number of active employees | 0021| employed by municipalities contributing to the fund reaches a | 0022| number equaling sixty percent or more of all active employees | 0023| employed by all municipalities that are retirement system | 0024| employers, the municipal position on the board of the authority | 0025| shall be restored within sixty days of the date that percentage | 0001| is reached; provided, however, that if a municipality with a | 0002| population greater than one hundred thousand that is located in | 0003| a class "A" county exercises this option, then the sixty- | 0004| percent requirement shall be applied to the remaining | 0005| municipalities only; | 0006| (b) the number of active employees | 0007| employed by counties contributing to the fund reaches a number | 0008| equaling sixty percent or more of all active employees employed | 0009| by all counties that are retirement system employers, the | 0010| county position on the board of the authority shall be restored | 0011| within sixty days of the date that percentage is reached; | 0012| provided, however, that if a class "A" county exercises this | 0013| option, then the eighty-percent requirement shall be applied to | 0014| the remaining counties only; or | 0015| (c) the number of active employees | 0016| employed by institutions of higher learning contributing to the | 0017| fund reaches a number equaling seventy percent or more of all | 0018| active employees employed by an institution of higher education | 0019| contributing to the educational retirement fund, the | 0020| institution of higher education position on the board shall be | 0021| restored within sixty days of the date that percentage is | 0022| reached. | 0023| E. An independent public employer may become a | 0024| participating employer if that employer satisfies the | 0025| requirements imposed pursuant to Subsection M of Section | 0001| 10-7C-7 NMSA 1978 and if that employer also files with the | 0002| authority on or prior to January 1, 1991 or prior to July 1, | 0003| 1993 or July 1 of any year a written irrevocable election by | 0004| the governing body of that employer to participate in the | 0005| Retiree Health Care Act. Any such independent public employer | 0006| that chooses to become a participating employer after January | 0007| 1, 1993 shall begin making the appropriate preliminary | 0008| employer and employee contributions to the fund on the July 1 | 0009| immediately following the adoption of the ordinance or | 0010| resolution. On the following January 1, eligible retirees of | 0011| those participating employers and their eligible dependents | 0012| shall be eligible to receive group health insurance coverage | 0013| pursuant to the provisions of the Retiree Health Care Act. | 0014| F. Any other provisions of the Retiree Health Care | 0015| Act notwithstanding, retirees [or active employees] of | 0016| institutions of higher education participating in the Retiree | 0017| Health Care Act for whom those institutions of higher education | 0018| have existing plans, programs, policies or contracts for health | 0019| care benefits shall not be required to participate in the | 0020| Retiree Health Care Act [nor shall employer or employee | 0021| contributions be made to the authority on their behalf]. | 0022| G. A municipality or county that enacted an | 0023| ordinance or an institution of higher education that enacted a | 0024| resolution prior to January 1, 1991 pursuant to Subsection D of | 0025| this section to be excluded from coverage under the Retiree | 0001| Health Care Act may [enact] become a participating employer | 0002| if that employer satisfies the requirements imposed pursuant to | 0003| Subsection M of Section 10-7C-7 NMSA 1978 and if that employer | 0004| also enacts an ordinance or resolution, as applicable, after a | 0005| public hearing and published notice of the hearing, prior to | 0006| July 1, 1993 or July 1 of any year to choose to become a | 0007| participating employer under the Retiree Health Care Act. Any | 0008| such municipality, county or institution of higher education | 0009| that chooses to become a participating employer after January | 0010| 1, 1993 shall begin making the appropriate preliminary | 0011| employer and employee contributions to the fund on the July 1 | 0012| immediately following the adoption of the ordinance or | 0013| resolution. On the following January 1, eligible retirees of | 0014| those participating employers and their eligible dependents | 0015| shall be eligible to receive group health insurance coverage | 0016| pursuant to the provisions of the Retiree Health Care Act." | 0017| Section 4. Section 10-7C-13 NMSA 1978 (being Laws 1990, | 0018| Chapter 6, Section 13, as amended) is amended to read: | 0019| "10-7C-13. PAYMENT OF PREMIUMS ON HEALTH CARE PLANS.-- | 0020| A. Each eligible retiree shall pay a monthly | 0021| premium for the basic plan in an amount set by the board not to | 0022| exceed the sum of fifty dollars ($50.00) plus the amount, if | 0023| any, of the compounded annual increases authorized by the board | 0024| [which increases shall not exceed three percent in any fiscal | 0025| year]. In addition to the monthly premium for the basic plan, | 0001| each current retiree and nonsalaried eligible participating | 0002| entity governing authority member who becomes an eligible | 0003| retiree shall also pay monthly an additional participation fee | 0004| set by the board. That fee shall be five dollars ($5.00) plus | 0005| the amount, if any, of the compounded annual increases | 0006| authorized by the board [which increases shall not exceed | 0007| three percent in any fiscal year]. The additional monthly | 0008| participation fee paid by the current retirees and nonsalaried | 0009| eligible participating entity governing authority members who | 0010| become eligible retirees shall be a consideration and a | 0011| condition for being permitted to participate in the Retiree | 0012| Health Care Act. Eligible dependents shall pay monthly | 0013| premiums in amounts that with other money appropriated to the | 0014| fund shall cover the cost of the basic plan for the eligible | 0015| dependents. | 0016| B. Eligible retirees and eligible dependents shall | 0017| pay monthly premiums to cover the cost of the optional plans | 0018| that they elect to receive, and the board shall adopt rules for | 0019| the collection of additional premiums from eligible retirees | 0020| and eligible dependents participating in the optional plans. | 0021| An eligible retiree or eligible dependent may authorize the | 0022| authority in writing to deduct the amount of these premiums | 0023| from the monthly annuity payments, if applicable. | 0024| C. The participating employers, active employees | 0025| and retirees are responsible for the financial viability of the | 0001| program. The overall financial viability is not an additional | 0002| financial obligation of the state." | 0003| Section 5. Section 10-7C-15 NMSA 1978 (being Laws 1990, | 0004| Chapter 6, Section 15) is amended to read: | 0005| "10-7C-15. RETIREE HEALTH CARE FUND CONTRIBUTIONS.-- | 0006| A. Following completion of the preliminary | 0007| contribution period, each participating employer for the | 0008| fiscal year beginning July 1, 1990 and thereafter shall make | 0009| contributions to the fund in the amount of one percent of each | 0010| participating employee's annual salary. | 0011| B. Following completion of the preliminary | 0012| contribution period, each participating employee as a | 0013| condition of employment for the fiscal year commencing July 1, | 0014| 1990 and thereafter shall contribute to the fund an employee | 0015| contribution in an amount equal to one-half of one percent of | 0016| the employee's salary. Each month, participating employers | 0017| shall deduct the contribution from the participating employee's | 0018| salary and shall remit it to the board as provided by any | 0019| procedures that the board may require. | 0020| C. A participating employer that fails to remit | 0021| before the tenth day after the last day of the month all | 0022| employer and employee deposits required by the Retiree Health | 0023| Care Act to be remitted by the employer for the month shall pay | 0024| to the fund, in addition to the deposits, interest on the | 0025| unpaid amounts at the rate of six percent per [annum] year | 0001| compounded monthly. | 0002| D. The employer and employee contributions shall be | 0003| paid in monthly installments based on the percent of payroll | 0004| certified by the employer. | 0005| E. Except in the case of erroneously made | 0006| contributions or as may be otherwise provided in Subsection D | 0007| of Section [9 of the Retiree Health Care Act] 10-7C-9 NMSA | 0008| 1978, contributions from participating employers and | 0009| participating employees shall become the property of the fund | 0010| on receipt by the board and shall not be refunded under any | 0011| circumstances, including termination of employment or | 0012| termination of the participating employer's operation or | 0013| participation in the Retiree Health Care Act. | 0014| F. Notwithstanding any other provision in the | 0015| Retiree Health Care Act and at the first session of the | 0016| legislature following July 1, 1995, the legislature shall | 0017| review and adjust the distribution pursuant to Section 7-1-6.1 | 0018| NMSA 1978 and the employer and employee contributions to the | 0019| authority in order to [insure] ensure the actuarial sound- | 0020| | 0021| ness of the benefits provided under the Retiree Health Care | 0022| Act." | 0023| Section 6. Section 10-7C-16 NMSA 1978 (being Laws 1990, | 0024| Chapter 6, Section 16, as amended) is amended to read: | 0025| "10-7C-16. RETIREE HEALTH CARE FUND--BUDGET.-- | 0001| Expenditures for the administration of the Retiree Health Care | 0002| Act shall be made as provided by an operating budget adopted by | 0003| the board and approved by the state budget division of the | 0004| department of finance and administration as provided by law and | 0005| pursuant to appropriation by the legislature. [For the | 0006| development and administration of the program, up to ten full- | 0007| time equivalents are hereby authorized by the legislature.]" | 0008|  | 0009| | 0010| FORTY-THIRD LEGISLATURE | 0011| FIRST SESSION, 1997 SB 364/a | 0012| | 0013| | 0014| March 5, 1997 | 0015| | 0016| Mr. President: | 0017| | 0018| Your PUBLIC AFFAIRS COMMITTEE, to whom has been | 0019| referred | 0020| | 0021| SENATE BILL 364 | 0022| | 0023| has had it under consideration and reports same with | 0024| recommendation that it DO PASS, amended as follows: | 0025| | 0001| 1. On page 1, line 15, after the semicolon insert | 0002| "PROVIDING FOR HEALTH CARE COVERAGE FOR DELAYED RETIREES;". | 0003| | 0004| 2. On page 2, between lines 17 and 18, insert the following | 0005| new subsection: | 0006| | 0007| "F. "delayed retiree" means a retiree who is receiving | 0008| a disability or normal retirement benefit from an eligible | 0009| participating employer and who, at the time of leaving the | 0010| employment of the eligible employer, was fully vested in that | 0011| employer's retirement program but was not yet eligible to receive | 0012| retirement benefits from that program;". | 0013| | 0014| 3. Reletter the succeeding subsections accordingly. | 0015| | 0016| 4. On page 7, line 7, strike "paragraph" and insert in lieu | 0017| thereof "subparagraph". | 0018| | 0019| 5. On page 7, line 14, strike "or". | 0020| | 0021| 6. On page 8, line 6, after the semicolon insert "or". | 0022| | 0023| 7. On page 8, between lines 6 and 7, insert the following | 0024| new subparagraph: | 0025| | 0001| "(d) is a delayed retiree;". | 0002| | 0003| | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| 8. On page 11, line 10, before the comma, insert "for | 0011| delayed retirees effective July 1, 1997 and for eligible retirees | 0012| retiring on or after July 1, 1998"., | 0013| | 0014| and thence referred to the FINANCE COMMITTEE. | 0015| | 0016| Respectfully submitted, | 0017| | 0018| | 0019| | 0020| | 0021| __________________________________ | 0022| Shannon Robinson, Chairman | 0023| | 0024| | 0025| | 0001| Adopted_______________________ Not | 0002| Adopted_______________________ | 0003| (Chief Clerk) (Chief Clerk) | 0004| | 0005| | 0006| Date ________________________ | 0007| | 0008| | 0009| The roll call vote was 4 For 1 Against | 0010| Yes: 4 | 0011| No: Smith | 0012| Excused: Adair, Garcia, Ingle, Vernon | 0013| Absent: None | 0014| | 0015| | 0016| | 0017| | 0018| | 0019| S0364PA1 .118041.1 | 0020| | 0021| FORTY-THIRD LEGISLATURE | 0022| FIRST SESSION, 1997 | 0023| | 0024| | 0025| March 12, 1997 | 0001| | 0002| Mr. President: | 0003| | 0004| Your FINANCE COMMITTEE, to whom has been referred | 0005| | 0006| SENATE BILL 364, as amended | 0007| | 0008| has had it under consideration and reports same with | 0009| recommendation that it DO PASS. | 0010| | 0011| Respectfully submitted, | 0012| | 0013| | 0014| | 0015| | 0016| __________________________________ | 0017| Ben D. Altamirano, Chairman | 0018| | 0019| | 0020| | 0021| Adopted_______________________ Not | 0022| Adopted_______________________ | 0023| (Chief Clerk) (Chief Clerk) | 0024| | 0025| | 0001| | 0002| Date ________________________ | 0003| | 0004| | 0005| The roll call vote was 6 For 0 Against | 0006| Yes: 6 | 0007| No: None | 0008| Excused: Carraro, Ingle, Lyons, McKibben, Fidel | 0009| Absent: None | 0010| | 0011| | 0012| S0364FC1 | 0013| FORTY-THIRD LEGISLATURE | 0014| FIRST SESSION | 0015| | 0016| | 0017| March 13, 1997 | 0018| | 0019| | 0020| SENATE FLOOR AMENDMENT number _______ to SENATE BILL 364, as | 0021| amended | 0022| | 0023| Amendment sponsored by Senator Shannon Robinson | 0024| | 0025| | 0001| 1. On page 18, line 17, before the period insert ", which | 0002| increases shall not exceed the group's projected medical trend | 0003| for the fiscal year". | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| __________________________ | 0011| Shannon Robinson | 0012| | 0013| | 0014| | 0015| Adopted ___________________ Not Adopted _______________________ | 0016| (Chief Clerk) (Chief Clerk) | 0017| | 0018| | 0019| Date _________________ | 0020| FORTY-THIRD LEGISLATURE | 0021| FIRST SESSION | 0022| | 0023| | 0024| March 13, 1997 | 0025| | 0001| | 0002| SENATE FLOOR AMENDMENT number _______ to SENATE BILL 364, as | 0003| amended | 0004| | 0005| Amendment sponsored by Senator Shannon Robinson | 0006| | 0007| | 0008| 1. On page 18, line 17, before the period insert ", which | 0009| increases shall not exceed the group's projected medical trend | 0010| for the fiscal year". | 0011| | 0012| | 0013| | 0014| | 0015| | 0016| | 0017| __________________________ | 0018| Shannon Robinson | 0019| | 0020| | 0021| | 0022| Adopted ___________________ Not Adopted _______________________ | 0023| (Chief Clerk) (Chief Clerk) | 0024| | 0025| | 0001| Date _________________ | 0002| State of New Mexico | 0003| House of Representatives | 0004| | 0005| FORTY-THIRD LEGISLATURE | 0006| FIRST SESSION, 1997 | 0007| | 0008| | 0009| March 18, 1997 | 0010| | 0011| | 0012| Mr. Speaker: | 0013| | 0014| Your GOVERNMENT AND URBAN AFFAIRS COMMITTEE, to | 0015| whom has been referred | 0016| | 0017| SENATE BILL 364, as amended | 0018| | 0019| has had it under consideration and reports same with | 0020| recommendation that it DO PASS, and thence referred to the | 0021| APPROPRIATIONS AND FINANCE COMMITTEE. | 0022| | 0023| Respectfully submitted, | 0024| | 0025| | 0001| | 0002| | 0003| Lynda M. Lovejoy, Chairwoman | 0004| | 0005| | 0006| Adopted Not Adopted | 0007| | 0008| (Chief Clerk) | 0009| (Chief Clerk) | 0010| | 0011| Date | 0012| | 0013| The roll call vote was 5 For 0 Against | 0014| Yes: 5 | 0015| Excused: Hobbs, Pederson, Taylor, JG | 0016| Absent: None | 0017| | 0018| | 0019| G:\BILLTEXT\BILLW_97\S0364 |