Sections 121 through 144 [52-9-1 to 52-9-24 NMSA 1978] of this act may be cited as the "Employers Mutual Company Act".
History: Laws 1990 (2nd S.S.), ch. 2, § 121.
Effective dates. — Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 121 effective January 1, 1991.
Compiler's notes. — The phrase "this act" means Laws 1990 (2nd S.S.), ch. 2, §§ 121 to 144 which appear as 52-9-1 to 52-9-24 NMSA 1978.
Constitutionality. — Under existing New Mexico case law, the legislation creating the employers mutual company appears to be an unconstitutional special law chartering or licensing an insurance company. Because the company is intended to be operated as a private entity, it is not clear that the exemption from the prohibition against special laws created by other states' courts for public corporations would save the legislation. 1990 Op. Att'y Gen. No. 90-25.
The latest pronouncements of the New Mexico supreme court indicate that a loan of state funds to the employers mutual company, as authorized by the workers' compensation law, violates the antidonation clause of Article IX, Section 14 of the New Mexico Constitution. 1990 Op. Att'y Gen. No. 90-25.
The 1990 workers' compensation legislation is constitutionally infirm under N.M. Const., Art. VIII, § 10 to the extent the legislature intends to supplant its judgment for that of the state investment council and the state investment officer in determining whether to invest the severance tax permanent fund in bonds issued by the employers mutual company and to direct that the severance tax permanent fund purchase those bonds. To that extent also, the legislation may constitute a prohibited loan guaranty arrangement under N.M. Const., Art. IX, § 14. However, the legislature has not clearly and unequivocally mandated the purchase. Consequently, it may not be concluded that the legislation is patently unconstitutional on those grounds. 1990 Op. Att'y Gen. No. 90-25.
Law reviews. — For survey of 1990-91 workers' compensation law, see 22 N.M.L. Rev. 845 (1992).
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