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(Parenthesis ( ) Indicate Expenditure Decreases)

Conflicts with HB 674

SOURCES OF INFORMATION

General Services Department, Risk Management Division

Department of Public Safety, Office of Legal Affairs

New Mexico Public Schools Insurance Authority (NMPSIA)

Department of Health

SUMMARY

Synopsis of Bill

House Bill 594 requires the Risk Management Division (RMD) to purchase liability and civil rights coverage for foster parents if available. If the coverage is unavailable, the foster parents may purchase their own insurance and the agencies utilizing their services will reimburse the foster parents. Finally, foster parents will be eliminated from the Tort Claims Act of public employees and will no longer be covered under the Public Liability Fund.

Significant Issues

Currently there is not separate coverage for the foster parents and the state agency employees, which causes some conflict when dealing with claims. In addition, the agency indicates that RMD has had to hire multiple attorneys for sexual misconduct claims. The Children, Youth, and Families Department (CYFD) civil rights premiums have escalated from an average of $475.7 in FY95 and FY96 to an average of $2,012.0 in FY97, FY98, FY99, and FY00 primarily due to sexual misconduct cases.

The agency indicates that there may be a need to amend House Bill 594 in order to ensure that the current coverage of foster parents remains in effect until new coverage is available. This may be done by changing the effective date for Section 1 to be on or before July 1, 1999 and the effective date for Section 2 to be January 1, 2000.

FISCAL IMPLICATIONS

The General Services Department indicates that CYFD would save about $1,200.0 a year.

ADMINISTRATIVE IMPLICATIONS

The General Services Department indicates that RMD's need for contract attorneys would decrease.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

House Bill 594 conflicts with House Bill 674, "Repeal Liability Coverage," which amends the same statute to remove provisions that give staff of community-based providers of developmental disabilities services liability coverage for civil rights actions.

MW/gm