0001| SENATE BILL 992
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| ROMAN M. MAES III
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0005|
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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| AN ACT
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0011| RELATING TO INSURANCE; AMENDING THE RETIREE HEALTH CARE ACT TO
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0012| INCLUDE FORMER LEGISLATORS AND FORMER MEMBERS OF CERTAIN
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0013| BOARDS; AMENDING THE PUBLIC SCHOOL INSURANCE AUTHORITY ACT TO
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0014| INCLUDE LEGISLATORS AND PRIVATE SCHOOLS AND TO CHANGE
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0015| PROVISIONS REGARDING SCHOOL BOARD MEMBERS; AMENDING SECTIONS OF
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0016| THE NMSA 1978.
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0017|
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0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019| Section 1. Section 10-7C-4 NMSA 1978 (being Laws 1990,
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0020| Chapter 6, Section 4, as amended) is amended to read:
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0021| "10-7C-4. DEFINITIONS.--As used in the Retiree Health
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0022| Care Act:
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0023| A. "active employee" means an employee of a public
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0024| institution or any other public employer participating in
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0025| either the Educational Retirement Act, the Public Employees
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0001| Retirement Act, the Judicial Retirement Act or the Magistrate
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0002| Retirement Act;
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0003| B. "authority" means the retiree health care
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0004| authority created pursuant to the Retiree Health Care Act;
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0005| C. "basic plan of benefits" means only those
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0006| coverages generally associated with a medical plan of benefits;
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0007| D. "board" means the [governing] board of the
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0008| retiree health care authority;
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0009| E. "current retiree" means an eligible retiree who
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0010| is receiving a disability or normal retirement benefit under
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0011| the Educational Retirement Act, the Public Employees Retirement
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0012| Act, the Judicial Retirement Act, the Magistrate Retirement
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0013| Act, the Retirement Reciprocity Act, the Judicial Retirement
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0014| Reciprocity Act or the retirement program of an independent
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0015| public employer on or before July 1, 1990;
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0016| F. "eligible dependent" means a person obtaining
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0017| retiree health care coverage based upon that person's
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0018| relationship to an eligible retiree as follows:
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0019| (1) a spouse;
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0020| (2) an unmarried child under the age of
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0021| nineteen who is:
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0022| (a) a natural child;
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0023| (b) a legally adopted child;
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0024| (c) a stepchild living in the same
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0025| household who is primarily dependent on the eligible retiree
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0001| for maintenance and support;
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0002| (d) a child for whom the eligible
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0003| retiree is the legal guardian and who is primarily dependent on
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0004| the eligible retiree for maintenance and support, as long as
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0005| evidence of the guardianship is evidenced in a court order or
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0006| decree; or
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0007| (e) a foster child living in the same
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0008| household;
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0009| (3) a child described in Subparagraphs (a)
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0010| through (e) of Paragraph (2) of this subsection who is between
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0011| the ages of nineteen and twenty-five and is a full-time student
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0012| at an accredited educational institution, provided that "full-
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0013| time student" shall be a student enrolled in and taking twelve
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0014| or more semester hours or its equivalent contact hours in
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0015| primary, secondary, undergraduate or vocational school or a
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0016| student enrolled in and taking nine or more semester hours or
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0017| its equivalent contact hours in graduate school;
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0018| (4) a dependent child over nineteen who is
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0019| wholly dependent on the eligible retiree for maintenance and
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0020| support and who is incapable of self-sustaining employment by
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0021| reason of mental retardation or physical handicap, provided
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0022| that proof of incapacity and dependency shall be provided
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0023| within thirty-one days after the child reaches the limiting age
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0024| and at such times thereafter as may be required by the board;
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0025| (5) a surviving spouse defined as follows:
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0001| (a) "surviving spouse" means the spouse
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0002| to whom a retiree was married at the time of death; or
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0003| (b) "surviving spouse" means the spouse
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0004| to whom a deceased vested active employee was married at the
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0005| time of death; or
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0006| (6) a surviving dependent child who is the
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0007| dependent child of a deceased eligible retiree whose other
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0008| parent is also deceased;
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0009| G. "eligible employer" means either:
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0010| (1) a "retirement system employer", which
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0011| means an institution of higher education, a school district or
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0012| other entity participating in the public school insurance
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0013| authority, a state agency, state court, magistrate court,
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0014| municipality or county, each of which is affiliated under or
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0015| covered by the Educational Retirement Act, the Public Employees
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0016| Retirement Act, the Judicial Retirement Act or the Magistrate
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0017| Retirement Act; or
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0018| (2) an "independent public employer", which
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0019| means a municipality or county which is not a retirement system
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0020| employer;
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0021| H. "eligible retiree" means:
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0022| (1) a "nonsalaried eligible participating
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0023| entity governing authority member", [who is] which means a
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0024| person who is not a retiree and who:
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0025| (a) has served without salary as a
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0001| member of the governing authority of an employer eligible to
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0002| participate in the benefits of the Retiree Health Care Act and
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0003| is certified to be such by the executive director of the public
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0004| school insurance authority;
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0005| (b) has maintained group health
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0006| insurance coverage through that member's governing authority if
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0007| such group health insurance coverage was available and offered
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0008| to the member during the member's service as a member of the
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0009| governing authority; and
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0010| (c) was participating in the group
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0011| health insurance program under the Retiree Health Care Act
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0012| prior to July 1, 1993; or
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0013| (d) if a person eligible under
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0014| Subparagraph (a) of this paragraph applies before August 1,
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0015| 1993 to the authority to participate in the program, then he
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0016| will be eligible to participate notwithstanding the provisions
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0017| of Subparagraphs (b) and (c) of this paragraph;
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0018| (2) a "salaried eligible participating entity
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0019| governing authority member", [who is] which means a person
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0020| who is not a retiree and who:
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0021| (a) has served with salary as a member
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0022| of the governing authority of an employer eligible to
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0023| participate in the benefits of the Retiree Health Care Act;
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0024| (b) has maintained group health
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0025| insurance through that member's governing authority, if such
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0001| group health insurance was available and offered to the member
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0002| during the member's service as a member of the governing
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0003| authority; and
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0004| (c) was participating in the group
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0005| health insurance program under the Retiree Health Care Act
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0006| prior to July 1, 1993; or
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0007| (d) if a person eligible under
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0008| Subparagraph (a) of this paragraph applies before August 1,
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0009| 1993 to the authority to participate in the program, then he
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0010| will be eligible to participate notwithstanding the provisions
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0011| of Subparagraphs (b) and (c) of this paragraph;
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0012| (3) an "eligible participating retiree", [who
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is] which means a person who:
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0014| (a) falls within the definition of a
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0015| retiree, has made contributions to the fund for at least five
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0016| years prior to retirement and whose eligible employer during
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0017| that period of time made contributions as a participant in the
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0018| Retiree Health Care Act on the person's behalf, unless that
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0019| person retires on or before July 1, 1995, in which event the
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0020| time period required for employee and employer contributions
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0021| shall become the period of time between July 1, 1990 and the
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0022| date of retirement, and who is certified to be a retiree by the
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0023| educational retirement director, the executive secretary of the
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0024| public employees retirement board or the governing authority of
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0025| an independent public employer;
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0001| (b) falls within the definition of a
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0002| retiree, retired prior to July 1, 1990 and is certified to be a
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0003| retiree by the educational retirement director, the executive
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0004| secretary of the public employees retirement association or the
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0005| governing authority or of an independent public employer; but
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0006| this paragraph does not include a retiree who was an employee
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0007| of an eligible employer who exercised the option not to be a
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0008| participating employer pursuant to the Retiree Health Care Act
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0009| and did not after January 1, 1993 elect to become a
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0010| participating employer; unless the retiree: 1) retired on or
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0011| before June 30, 1990; and 2) at the time of retirement did not
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0012| have a retirement health plan or retirement health insurance
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0013| coverage available from his employer; or
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0014| (c) is a retiree who: 1) was at the
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0015| time of retirement an employee of an eligible employer who
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0016| exercised the option not to be a participating employer
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0017| pursuant to the Retiree Health Care Act, but which eligible
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0018| employer subsequently elected after January 1, 1993 to become a
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0019| participating employer; 2) has made contributions to the fund
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0020| for at least five years prior to retirement and whose eligible
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0021| employer during that period of time made contributions as a
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0022| participant in the Retiree Health Care Act on the person's
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0023| behalf, unless that person retires less than five years after
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0024| the date participation begins, in which event the time period
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0025| required for employee and employer contributions shall become
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0001| the period of time between the date participation begins and
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0002| the date of retirement; and 3) is certified to be a retiree by
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0003| the educational retirement director, the executive secretary of
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0004| the public employees retirement board or the governing
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0005| authority of an independent public employer;
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0006| (4) a "legislative member", which means a
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0007| person who is not a retiree and who served as a member of the
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0008| New Mexico legislature for at least four years but is no longer
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0009| a member of the legislature and is certified to be such by the
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0010| legislative council service; or
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0011| (5) a "former nonsalaried eligible
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0012| participating entity governing authority member", which means a
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0013| person who is not a retiree and who served without salary as a
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0014| member of the governing authority of an eligible participating
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0015| entity for at least four years but is no longer a member of the
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0016| governing authority and is certified to be such by the chief
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0017| executive officer of the eligible participating entity;
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0018| I. "fund" means the retiree health care fund;
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0019| J. "group health insurance" means coverage that
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0020| includes but is not limited to life insurance, accidental death
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0021| and dismemberment, hospital care and benefits, surgical care
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0022| and treatment, medical care and treatment, dental care, eye
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0023| care, obstetrical benefits, prescribed drugs, medicines and
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0024| prosthetic devices, medicare supplement, medicare carveout,
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0025| medicare coordination and other benefits, supplies and services
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0001| through the vehicles of indemnity coverages, health maintenance
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0002| organizations, preferred provider organizations and other
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0003| health care delivery systems as provided by the Retiree Health
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0004| Care Act and other coverages considered by the board to be
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0005| advisable;
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0006| K. "ineligible dependents" include but are not
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0007| limited to:
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0008| (1) those dependents created by common law
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0009| relationships;
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0010| (2) dependents while in active military
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0011| service;
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0012| (3) parents, aunts, uncles, brothers, sisters,
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0013| grandchildren and other family members left in the care of an
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0014| eligible retiree without evidence of legal guardianship; and
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0015| (4) anyone not specifically referred to as an
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0016| eligible dependent pursuant to the rules and regulations
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0017| adopted by the board;
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0018| L. "participating employee" means an employee of a
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0019| participating employer, which employee has not been excluded
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0020| from participation in the Retiree Health Care Act pursuant to
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0021| Subsection F of Section 10-7C-9 NMSA 1978 or Section
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0022| 10-7C-10 NMSA 1978;
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0023| M. "participating employer" means an eligible
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0024| employer who has satisfied the conditions for participating in
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0025| the benefits of the Retiree Health Care Act, including the
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0001| requirements of Subsection M of Section 10-7C-7 NMSA 1978 and
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0002| Subsection D or E of Section 10-7C-9 NMSA 1978, as applicable;
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0003| and
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0004| N. "retiree" means a person who:
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0005| (1) is receiving:
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0006| (a) a disability or normal retirement
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0007| benefit or survivor's benefit under the Educational Retirement
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0008| Act;
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0009| (b) a disability or normal retirement
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0010| benefit or survivor's benefit pursuant to the Public Employees
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0011| Retirement Act, the Judicial Retirement Act, the Magistrate
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0012| Retirement Act, the Retirement Reciprocity Act or the Judicial
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0013| Retirement Reciprocity Act; or
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0014| (c) a disability or normal retirement
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0015| benefit or survivor's benefit pursuant to the retirement
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0016| program of an independent public employer to which that
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0017| employer has made periodic contributions; or
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0018| (2) is not receiving a survivor's benefit but
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0019| is the eligible dependent of a person who received a disability
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0020| or normal retirement benefit pursuant to the Educational
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0021| Retirement Act or the Public Employees Retirement Act."
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0022| Section 2. Section 10-7C-13 NMSA 1978 (being Laws 1990,
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0023| Chapter 6, Section 13, as amended) is amended to read:
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0024| "10-7C-13. PAYMENT OF PREMIUMS ON HEALTH CARE PLANS.--
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0025| A. Each eligible retiree shall pay a monthly
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0001| premium for the basic plan in an amount set by the board not to
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0002| exceed the sum of fifty dollars ($50.00) plus the amount, if
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0003| any, of the compounded annual increases authorized by the
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0004| board, which increases shall not exceed three percent in any
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0005| fiscal year. In addition to the monthly premium for the basic
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0006| plan, each current retiree and nonsalaried eligible
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0007| participating entity governing authority member who becomes an
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0008| eligible retiree shall also pay monthly an additional
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0009| participation fee set by the board. That fee shall be five
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0010| dollars ($5.00) plus the amount, if any, of the compounded
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0011| annual increases authorized by the board, which increases shall
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0012| not exceed three percent in any fiscal year. A legislative
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0013| member or former nonsalaried eligible participating entity
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0014| governing authority member shall pay monthly an amount equal to
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0015| one-twelfth of the cost allocated to the member of the claims
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0016| and administrative costs of the selected plan. The additional
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0017| monthly participation fee paid by the current retirees,
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0018| legislative members and nonsalaried eligible participating
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0019| entity governing authority members who become eligible retirees
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0020| shall be a consideration and a condition for being permitted to
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0021| participate in the Retiree Health Care Act. Eligible
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0022| dependents shall pay monthly premiums in amounts that with
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0023| other money appropriated to the fund shall cover the cost of
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0024| the basic plan for the eligible dependents.
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0025| B. Eligible retirees and eligible dependents shall
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0001| pay monthly premiums to cover the cost of the optional plans
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0002| that they elect to receive, and the board shall adopt rules for
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0003| the collection of additional premiums from eligible retirees
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0004| and eligible dependents participating in the optional plans.
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0005| An eligible retiree or eligible dependent may authorize the
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0006| authority in writing to deduct the amount of these premiums
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0007| from the monthly annuity payments, if applicable.
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0008| C. The participating employers, active employees
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0009| and retirees are responsible for the financial viability of the
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0010| program. The overall financial viability is not an additional
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0011| financial obligation of the state."
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0012| Section 3. Section 22-2-6.2 NMSA 1978 (being Laws 1986,
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0013| Chapter 94, Section 2) is amended to read:
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0014| "22-2-6.2. PURPOSE OF ACT.--The purpose of the Public
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0015| School Insurance Authority Act is to provide comprehensive core
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0016| insurance programs for all participating private or public
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0017| schools, school board members, [school board retirees]
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0018| legislators and public school employees and retirees by
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0019| expanding the pool of subscribers to maximize cost containment
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0020| opportunities for required insurance coverage."
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0021| Section 4. Section 22-2-6.3 NMSA 1978 (being Laws 1986,
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0022| Chapter 94, Section 3, as amended) is amended to read:
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0023| "22-2-6.3. DEFINITIONS.--As used in the Public School
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0024| Insurance Authority Act:
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0025| A. "authority" means the public school insurance
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0001| authority;
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0002| B. "board" means the board of directors of the
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0003| public school insurance authority;
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0004| C. "director" means the director of the public
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0005| school insurance authority;
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0006| D. "educational entities" means state educational
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0007| institutions as enumerated in Article 12, Section 11 of the
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0008| constitution of New Mexico and other [state diploma]
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0009| diploma-granting, degree-granting and certificate-granting
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0010| elementary, secondary and post-secondary educational
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0011| institutions;
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0012| E. "fund" means the public school insurance fund;
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0013| F. "group health insurance" means coverage which
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0014| includes but is not limited to life insurance, accidental death
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0015| and dismemberment, medical care and treatment, dental care, eye
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0016| care and other coverages as determined by the authority;
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0017| G. "legislator" means a person serving as a member
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0018| of the New Mexico legislature and certified to be such by the
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0019| legislative council service;
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0020| [G.] H. "risk-related coverage" means coverage
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0021| which includes but is not limited to property and casualty,
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0022| general liability, auto and fleet, [workmen's] workers'
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0023| compensation and other casualty insurance; [and]
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0024| I. "school board member" means a person serving as
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0025| a member of the governing board of a school district and
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0001| certified to be such by the chief executive officer of that
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0002| school district; and
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0003| [H.] J. "school district" means a school
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0004| district as defined in Subsection [J] K of Section 22-1-2
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0005| NMSA 1978, excluding any school district with a student
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0006| enrollment in excess of sixty thousand students."
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0007| Section 5. Section 22-2-6.7 NMSA 1978 (being Laws 1986,
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0008| Chapter 94, Section 7, as amended) is amended to read:
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0009| "22-2-6.7. AUTHORITY--DUTIES.--In order to effectuate the
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0010| purposes of the Public School Insurance Authority Act, the
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0011| authority has the power to:
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0012| A. employ the services of the state fiscal agent or
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0013| select its own fiscal agent pursuant to regulations adopted by
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0014| the board; provided that for the purposes of disbursing all
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0015| money other than that in the fund, the secretary of finance and
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0016| administration shall be the fiscal agent for the authority;
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0017| B. enter into professional services and consulting
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0018| contracts or agreements as necessary;
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0019| C. collect, provide for the investment of and
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0020| disburse money in the fund;
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0021| D. collect all current and historical claims and
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0022| financial information necessary for effective procurement of
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0023| lines of insurance coverage;
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0024| E. promulgate necessary rules, regulations and
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0025| procedures for implementation of the Public School Insurance
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0001| Authority Act;
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0002| F. negotiate new insurance policies covering
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0003| additional or lesser benefits as determined appropriate by the
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0004| authority, but the authority shall maintain all coverage levels
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0005| required by federal and state law for each participating
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0006| member. In the event it is practical to wholly self-insure a
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0007| particular line of coverage, the authority may do so;
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0008| G. procure lines of insurance coverage in
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0009| compliance with the competitive sealed proposal process of the
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0010| Procurement Code; provided that any group medical insurance
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0011| plan offered pursuant to this section shall include effective
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0012| cost-containment measures to control the growth of health care
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0013| costs. The board shall report annually by September 1 to
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0014| appropriate interim legislative committees on the effectiveness
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0015| of the cost-containment measures required by this subsection;
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0016| H. purchase, renovate, equip and furnish a building
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0017| for the board; [The board shall consider purchasing a building
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in a community with a population of forty thousand or less; and
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I. loan from its seventy-eighth fiscal year budget
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to the retiree health care authority an amount not exceeding
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five hundred thousand dollars ($500,000) to be used for retiree
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health care authority start-up costs. The loan shall bear
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interest at a rate equal to the rate of return or yield for
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ten-year United States treasury bonds existing on the date of
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the loan closing. Principal and interest shall be paid back
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before the end of the seventy-ninth fiscal year;]
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0002| I. determine annually the monthly premiums for
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0003| health care benefits coverages for legislators and school board
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0004| members that shall be an amount equal to one-twelfth of the
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0005| annual prevailing employer and employee contribution
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0006| percentage; and
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0007| J. establish a central purchasing office to
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0008| perform all procurement of goods and services."
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0009|
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0010|
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0011| FORTY-THIRD LEGISLATURE SB 992/a
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0012| FIRST SESSION, 1997
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0013|
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0014|
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0015| February 28, 1997
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0016|
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0017| Mr. President:
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0018|
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0019| Your FINANCE COMMITTEE, to whom has been referred
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0020|
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0021| SENATE BILL 992
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0022|
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0023| has had it under consideration and reports same with
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0024| recommendation that it DO PASS, amended as follows:
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0025|
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0001|
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0002| 1. On page 11, line 9, after the word "former" insert
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0003| "salaried or".
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0004|
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0005| 2. On page 11, line 11, after the word "allocated" insert
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0006| "by the Board".
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0007|
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0008| Respectfully submitted,
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0009|
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0010|
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0011|
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0012|
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0013| __________________________________
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0014| Ben D. Altamirano, Chairman
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0015|
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0016|
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0017|
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0018| Adopted_______________________ Not
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0019| Adopted_______________________
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0020| (Chief Clerk) (Chief Clerk)
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0021|
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0022|
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0023| Date ________________________
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0024|
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0025|
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0001| The roll call vote was 6 For 1 Against
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0002| Yes: 6
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0003| No: Eisenstadt
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0004| Excused: Carraro, Ingle, McKibben, Smith
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0005| Absent: None
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0006|
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0007|
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0008| S0992FC1
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0009|
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0010| FORTY-THIRD LEGISLATURE
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0011| FIRST SESSION
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0012|
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0013|
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0014| March 3, 1997
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0015|
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0016|
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0017| SENATE FLOOR AMENDMENT number _______ to SENATE BILL 992, as
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0018| amended
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0019|
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0020| Amendment sponsored by Senator Fernando R. Macias
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0021|
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0022|
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0023| 1. On page 16, line 3, strike the quotation mark and insert
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0024| the following new section:
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0025|
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0001| "Section 6. SEVERABILITY.--If any part or application of
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0002| this act is held invalid the remainder or its application to
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0003| other situations or persons shall not be affected.".
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0004|
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0005|
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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| Fernando R. Macias
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0011|
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0012|
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0013|
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0014| Adopted ___________________ Not Adopted _______________________
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0015| (Chief Clerk) (Chief Clerk)
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0016|
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0017|
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0018| Date _________________
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0019| State of New Mexico
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0020| House of Representatives
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0021|
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0022| FORTY-THIRD LEGISLATURE
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0023| FIRST SESSION, 1997
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0024|
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0025|
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0001| March 15, 1997
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0002|
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0003|
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0004| Mr. Speaker:
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0005|
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0006| Your BUSINESS AND INDUSTRY COMMITTEE, to whom has
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0007| been referred
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0008|
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0009| SENATE BILL 992, as amended
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0010|
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0011| has had it under consideration and reports same with
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0012| recommendation that it DO PASS, and thence referred to the
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0013| APPROPRIATIONS AND FINANCE COMMITTEE.
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0014|
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0015| Respectfully submitted,
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0016|
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0017|
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0018|
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0019|
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0020| Fred Luna, Chairman
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0021|
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0022|
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0023| Adopted Not Adopted
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0024|
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0025| (Chief Clerk)
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0001| (Chief Clerk)
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0002|
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0003| Date
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0004|
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0005| The roll call vote was 7 For 0 Against
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0006| Yes: 7
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0007| Excused: Alwin, Getty, Gubbels, Rodella, J.G. Taylor, Varela
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0008| Absent: None
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0009|
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0010|
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0011| G:\BILLTEXT\BILLW_97\S0992
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