I am writing today to announce the closure of the New Mexico Independent. After three and a half years of operation in New Mexico, the board of the American Independent News Network, has decided to shift publication of its news…
While environmental activists played their part yesterday during demonstrations at the capitol building, going so far as to dress up as solar panels and to sing the tune of “You Are My Sunshine,” their counterparts, the anti-cap-and-trade contingency who has…
Roughly one quarter of University of New Mexico students are unimpressed with the state’s flagship public school, according to a survey that questioned college students about their higher education experiences.
The Public Regulatory Commission (PRC) rebuffed proposals from legislators that would dismember the controversy-plagued agency, moving its Division of Insurance, Transportation Bureau and other regulatory programs to other agencies.
“We’re a young agency and we’re sorting out some problems,” Commissioner Sandy Jones said. “Everybody needs to relax and give us some time to work it out.”
The resolution was the Commission’s formal response to proposals from the Government Restructuring Task Force. Commissioner Jason Marks, who had voiced cautious support for moving some PRC programs to other agencies, was out of the country and did not vote on the resolution.
Denish supports restructuring
Democratic candidate for governor Diane Denish supports broad restructuring of the PRC, including moving the Division of Insurance.
But the PRC was created through a 1996 constitutional amendment merging an elected State Corporation Commission and the appointed Public Utility Commission, so removing PRC divisions or programs will in many cases require another constitutional amendment, the resolution notes — and that cannot occur for at least another two years.
“The PRC has the constitutional and statutory responsibility of a complex mix of policy-making, regulatory, judicial and administrative responsibilities for diverse industries that are essential to the economic health, safety and future of New Mexico,” the PRC resolution states. “Having voters amend the New Mexico Constitution … could involve a process spanning three to four years.”
‘Not a money saver’
Moving PRC programs and divisions to other executive agencies would not save the state money, Jones and PRC chairman David King said.
“The whole point of restructuring is to save money,” Jones said. “Just because you move the insurance division to another agency isn’t going to reduce the mission. It will have the same mission and staffing. Moving to another agency that doesn’t have (regulatory) hearing officers doesn’t make sense.”
If anything, some programs at other agencies — like the Secretary of State’s registration of limited liability partnership businesses — should be moved to the PRC, they suggested.
“Absorbing the relevant business-related functions of the Secretary of State’s commercial filings is more effectual and efficient,” the resolution states. “The PRC is moving to streamline and improve our corporate filings by providing online customer service for the public.”
Commission wants more control over insurance regulation
Granting the Commission more control over its semi-autonomous Insurance Division makes more sense than moving the troubled division elsewhere, commissioners argued.
“It’s clear something has to happen on insurance,” PRC chairman David King told The Independent. “There’s strong pressure from the public, Sen. (Dede) Feldman and others to fix this now. We have tremendous support in the Legislature to make the changes we’ve recommended.”
Those changes include allowing the insurance division to use hearing examiners who are experts in rate regulation from other PRC divisions, such as utilities, and making the Commission — rather than district court — the venue for consumers’ insurance rate appeals.
Most commissioners also want to see the Legislature kill the “for cause” clause in the insurance superintendent’s contract. Instead, the Commission should be free to fire the insurance superintendent at will, King and Marks have argued.
But the superintendent needs to have a modicum of independence from the Commission, Jones suggested.
“I think it should stay for-cause, but I’m probably the only one on the Commission who thinks that,” Jones told The Independent. “It gives ‘em just a little more authority.”
Moving PRC regulatory programs to other agencies would reduce accountability, Jones added.
“We have the most stringent campaign finance rules in the state,” Jones said. “If the Superintendent of Insurance is moved, does that mean senators or the governor will be prohibited from taking contributions from regulated industry?”
