0001|                            HOUSE BILL 297
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                          RICHARD T. KNOWLES
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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 LIMITED LIABILITY PARTNERSHIPS; AMENDING SECTION
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0012|     54-1-47 NMSA 1978 (BEING LAWS 1995, CHAPTER 185, SECTION 12).
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0013|     
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0014|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0015|          Section 1.  Section 54-1-47 NMSA 1978 (being Laws 1995,
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0016|     Chapter 185, Section 12) is amended to read:
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0017|          "54-1-47.  INSURANCE OR FINANCIAL RESPONSIBILITY OF
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0018|     REGISTERED LIMITED LIABILITY PARTNERSHIPS.--
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0019|               A.  A registered limited liability partnership
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0020|     shall carry at least five hundred thousand dollars ($500,000)
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0021|     per occurrence <u>and one million dollars ($1,000,000) in the
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<u></u>0022| <u>    aggregate per year</u> of liability insurance, beyond the amount
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0023|     of any applicable deductible, covering the partnership for
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0024|     errors, omissions, negligence, wrongful acts, misconduct and
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0025|     malpractice for which the liability of partners is limited by
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0001|     Section <s>[54-1-15]</s> <u>54-1A-306</u> NMSA 1978.  Such an insurance
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0002|     policy may contain reasonable provisions with respect to
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0003|     policy periods, deductibles, territory, claims, conditions,
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0004|     exclusions and other usual matters.
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0005|               B.  If a registered limited liability partnership
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0006|     is in substantial compliance with the requirements of
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0007|     Subsection A of this section, the requirements of this section
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0008|     shall not be admissible or in any way be made known to a jury
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0009|     in determining an issue of liability for or extent of the debt
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0010|     or obligation or damages in question.
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0011|               C.  A registered limited liability partnership is
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0012|     considered to be in substantial compliance with Subsection A
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0013|     of this section if the partnership provides an amount of funds
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0014|     equal to the amount of insurance required by that subsection
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0015|     specifically designated and segregated for the satisfaction of
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0016|     judgments against the partnership or its partners based on
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0017|     errors, omissions, negligence, wrongful acts, misconduct and
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0018|     malpractice for which liability is limited by Section
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0019|     <s>[54-1-15]</s> <u>54-1A-306</u> NMSA 1978 as follows:
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0020|                    (1)  a deposit in trust or bank escrow or
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0021|     cash, bank certificates of deposit or United States treasury
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0022|     obligations; or
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0023|                    (2)  a bank letter of credit or insurance
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0024|     company surety bond.
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0025|               D.  The amount of liability insurance described in
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0001|     Subsection A of this section or the amount described in
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0002|     Subsection C of this section shall be adjusted as follows:
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0003|                    (1)  <s>[on January 1 of the second year
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<s></s>0004| <s>    following enactment of this section, and]</s> on January 1 of
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0005|     each year, <s>[thereafter]</s> the amounts specified in Subsections
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0006|     A and C of this section shall be multiplied by an inflation
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0007|     factor, which shall be a number determined by dividing the
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0008|     June 30 consumer price index immediately preceding the
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0009|     calendar year in which the adjustment shall take effect by the
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0010|     December 31 consumer price index for 1995.  The secretary of
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0011|     state shall round the adjusted amount to the nearest one
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0012|     hundred thousand dollars ($100,000) and publish a notice
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0013|     setting forth this adjustment on February 1 of each year in
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0014|     which the adjustment is required to be made.  A registered
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0015|     limited liability partnership shall adjust the amount of
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0016|     liability insurance described in Subsection A of this section
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0017|     or the amount described in Subsection C of this section no
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0018|     later than April 1 of the year in which the adjustment is
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0019|     required to be made; and
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0020|                    (2)  as used in this subsection, "consumer
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0021|     price index" means the Albuquerque consumer price index for
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0022|     all urban consumers, all items, using the 1982-1984 base of
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0023|     one hundred, as published by the bureau of labor statistics of
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0024|     the United States department of labor."
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0025|                              
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