WeVote
Log In

Bill

Bill

SB 124

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for classes of income.

2025-2026 Regular Session Introduced by Rosemary Brown and 10 co-sponsors

Empowers the Superintendent of Insurance to issue civil investigative subpoenas in exams/investigations, with court enforcement for noncompliance to boost oversight.

Referred to Finance
0
WeVote Research Nonpartisan
Bill Summary · SB 124

SB 124 — Superintendent of Insurance Subpoenas (Summary)

Status: Signed into law (Chapter 14, Statutes of 2025)
Introduced: January 23, 2025
Primary subject: Insurance; State agencies & departments
Statutory citation amended: Section 59A‑2‑8 NMSA 1978

Main purpose

To strengthen the Office of the Superintendent of Insurance’s (OSI) investigatory and enforcement tools by authorizing the Superintendent to issue civil investigative subpoenas in the course of insurance examinations and investigations, and to create a clear judicial enforcement route if a subpoena is not complied with.

Key provisions

  • Adds express authority for the Superintendent to issue civil investigative subpoenas when conducting examinations or investigations to determine whether a person has violated the Insurance Code or to obtain information needed to enforce or administer the Code.
  • Allows subpoenas to be issued prior to the issuance of a notice of contemplated action (i.e., earlier in the investigative process).
  • Provides an enforcement mechanism: if a person fails to comply with a subpoena (and has no lawful excuse) the Superintendent may apply to district court for an order compelling compliance after reasonable notice.
  • The enacted language removed an explicit grant in committee versions that would have allowed the Superintendent to delegate the authority to issue specific civil investigative subpoenas to staff (a Senate Rules Committee amendment struck that delegation language).
  • The statutory change is integrated into the Superintendent’s general powers and duties (amending 59A‑2‑8).

Who is affected

  • Office of the Superintendent of Insurance (OSI): gains a formal, statutory subpoena power to compel documents and testimony.
  • Insurers, insurance intermediaries, third‑party vendors (including reinsurance counterparties), and any entities or individuals subject to OSI jurisdiction: may be required to respond to subpoenas during investigations.
  • Potentially affected third parties may raise confidentiality or proprietary‑information objections, leading to judicial resolution.

Fiscal and operational impact

  • Legislative Finance Committee analysis (New Mexico) estimated increased recurring administrative costs for OSI of roughly $49.3K to $74.0K annually (FY26–FY27), driven by higher workload to issue/manage/enforce subpoenas and possible needs for training or technology to manage subpoena processes.
  • The bill is expected to improve OSI’s ability to obtain critical information when voluntary data calls are refused, improving oversight and enforcement capacity, but may produce legal disputes over proprietary/confidential materials.

Timeline / effective date

  • The measure was enacted and chaptered in 2025 (Chapter 14). Implementation requires OSI to develop procedures consistent with the amended statute; agencies typically follow standard administrative processes thereafter.

Notes / considerations

  • The new subpoena authority aligns OSI with other state agencies that already possess civil investigative subpoena power.
  • Use of subpoenas may raise legal questions (e.g., scope, confidentiality, privilege, third‑party contracts), so expect litigation risk and potential need for OSI procedures and staff training to manage enforcement and protective‑order issues.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.