SB 115 RISK MANAGEMENT INSURANCE COVERAGE LIMITS

Sen Bill Tallman

Actions: [1] SCC/SJC/SFC-SCC

Scheduled: Not Scheduled

 Senate Bill 115 (SB 115) This legislative act is related to public liability in the state of New Mexico. The act outlines amendments to Section 15-7-3 of the NMSA 1978, which pertains to the powers and duties of the Risk Management Division of the General Services Department.  

 Senate Bill 115 (SB 115):  Coverage Limits: The act establishes coverage limits on insurance offered by the Risk Management Division. It specifies different coverage limits for various types of insurance, such as property damages, general liability insurance, and civil rights liability.

Approval for Settlements: The act requires the approval of the Secretary of Finance and Administration for settlements of claims above specified amounts. 
•	Settlements from the public property reserve fund exceeding $250,000 or from the public liability fund exceeding $500,000 need written approval.

Notification to Legislative Finance Committee: The director is required to notify the Legislative Finance Committee within thirty days of receiving approval from the Secretary of Finance and Administration for settlement payments.

Liability Coverage for Specific Risks: The Risk Management Division is mandated to provide liability coverage for specific risks, including claims made under 42 USC Section 1983 against nonprofit corporations, their board members, or employees.

Reporting Requirements: The director is required to report findings and recommendations to each legislature, including details of claims paid from the public liability fund exceeding $1,000 during the previous fiscal year. This report is to be made available to the legislature before each regular legislative session.  The effective date of the provisions of this act is specified as July 1, 2024.