Section 7. Definitions

A. "Act" means the Retiree Health Care Act (Sections 10-7C-1 et seq. NMSA 1978). B. "Independent public employer" means a municipality, county, or public entity which is not a retirement system employer (Section 10-7C-4(G)(2) NMSA 1978). C. "Public entity" means a flood control authority, economic development district, council of governments, regional housing authority, conservancy district or other special district or special purpose government (Section 10-7C-4(N) NMSA 1978). D. "Retirement system employer" means an institution of higher education, a school district or other entity participating in the public school insurance authority, a state agency, state court, magistrate court, municipality, county or public entity, each of which is affiliated under or covered by the Educational Retirement Act, the Public Employees Retirement Act, the Judicial Retirement Act, the Magistrate Retirement Act or the Public Employees Retirement Reciprocity Act (Section 10-7C-4(G)(1) NMSA 1978). [6/15/98; 2.81.9.7 NMAC - Rn, 2 NMAC 81.9.7, 1-1-2010] 2.81.9.8 EXERCISE OF OPTION OUT/ MUNICIPALITIES AND COUNTIES WHICH ARE RETIREMENT SYSTEM EMPLOYERS AS DEFINED IN SECTION 4. G. OF THE ACT: Any municipality or county who has some (it need not be all) of its workforce affiliated with the Public Employee Retirement Act system as of February 14, 1990 shall be considered to be mandated into the coverage of the Act with the option pursuant to this rule to choose not to be a participating employer under the act. [6/5/90, 12/31/96; Rn 2 NMAC 81.10.8, 6/15/98; 6/15/98; 2.81.9.8 NMAC - Rn, 2 NMAC 81.9.8, 1-1-2010] 2.81.9.9 EXERCISE OF OPTION IN/ MUNICIPALITIES, COUNTIES, INSTITUTIONS OF HIGHER EDUCATION AND PUBLIC ENTITIES WHICH ARE RETIREMENT SYSTEM EMPLOYERS AS DEFINED IN SECTION 4. G. OF THE ACT: Municipalities, counties, institutions of higher education and public entities who are retirement system employers may at their option irrevocably determine by ordinance or resolution to be included as participating employers under the act IN/ MUNICIPALITIES, COUNTIES, INSTITUTIONS OF HIGHER EDUCATION AND PUBLIC ENTITIES WHICH ARE RETIREMENT SYSTEM EMPLOYERS AS DEFINED IN SECTION 4. G. OF THE ACT: Municipalities, counties, institutions of higher education and public entities who are retirement system employers may at their option irrevocably determine by ordinance or resolution to be included as participating employers under the act. In addition to complying with all other required 2.81.9 NMAC 2 notice and public hearing or meeting requirements, any such retirement system employer seeking to become a NMRHCA participating employer shall be subject to the following conditions: A. Thirty days prior to the public hearing or public meeting on the proposed ordinance or resolution, the employer shall notify the NMRHCA of the date, time and place of the public hearing or public meeting. If the notice is by means other than certified mail, the notice is not deemed to have been given until receipt is acknowledged in writing by the NMRHCA. The NMRHCA executive director has the authority, on a case-by-case basis, to waive the thirty-day notice requirement if he/she determine: (1) there is good cause to waive the requirement; and (2) if he/she determines that the NMRHCA has received sufficient actual notice. Notice to the NMRHCA must be in the following form: FORM NOTICE LETTER Executive Director Retiree Health Care Authority 625 Don Gaspar (or current address) Santa Fe, NM 87503 Dear Executive Director: The (INSERT NAME OF APPLICANT EMPLOYER) hereby gives notice that on the ______ day of __________________,_____ at _________________________ the governing body will conduct a public hearing on the question of including the (INSERT NAME OF APPLICANT EMPLOYER) in coverage by the Retiree Health Care Act. This notice was authorized to be provided by a formal vote of the governing body of the (INSERT NAME OF APPLICANT EMPLOYER) held on the _______ day of _____________________,______ y of __________________,_____ at _________________________ the governing body will conduct a public hearing on the question of including the (INSERT NAME OF APPLICANT EMPLOYER) in coverage by the Retiree Health Care Act. This notice was authorized to be provided by a formal vote of the governing body of the (INSERT NAME OF APPLICANT EMPLOYER) held on the _______ day of _____________________,______. (INSERT NAME OF APPLICANT EMPLOYER, ) By: ________________________ Its: ____________________ B. The employer may validly exercise the option to be included in the coverage only if it does so by adoption of an ordinance or resolution, in the form required by the NMRHCA. The form may be updated by the NMRHCA as necessary without revision of this rule. As of the effective date of this rule, the NMRHCA required ordinance/resolution form is as follows: ORDINANCE/RESOLUTION NO. AN ORDINANCE/RESOLUTION ADOPTED PURSUANT TO THE RETIREE HEALTH CARE ACT, SECTIONS 10-7C-1 ET SEQ. NMSA 1978 EXERCISING THE IRREVOCABLE OPTION TO DETERMINE TO BE INCLUDED IN COVERAGE UNDER THE RETIREE HEALTH CARE ACT WHEREAS, the governing body has considered the issue of retiree health care for its employees, retirees, their spouses and dependents; WHEREAS, the governing body has considered the opportunity afforded by the Retiree Health Care Act ("Act"), Sections 10-7C-1 et seq. NMSA 1978 to provide basic and optional retiree health coverages. The single basic plan of benefits rate may be adjusted from time to time pursuant to the act y has considered the issue of retiree health care for its employees, retirees, their spouses and dependents; WHEREAS, the governing body has considered the opportunity afforded by the Retiree Health Care Act ("Act"), Sections 10-7C-1 et seq. NMSA 1978 to provide basic and optional retiree health coverages. The single basic plan of benefits rate may be adjusted from time to time pursuant to the act. The current single basic plan of benefits rate is______________________ (AMOUNT TO BE OBTAINED FROM THE NMRHCA); and WHEREAS, the governing body has considered that pursuant to the act, retiree health care authority participation requires participating employer and/or employee contributions to the retiree health care authority fund in the amount determined appropriate by the NMRHCA board and which may be adjusted from time to time: and (INCLUDE THIS PARAGRAPH ONLY IF APPLICABLE TO THE ENTITY) WHEREAS, the governing body revokes its previous decision to be excluded from coverage by the act. WHEREAS, the governing body determines to irrevocably include________________________________, its employees and retirees in the requirements of the employer/employee contributions and retiree benefits under the act. NOW, THEREFORE, BE IT ORDAINED by the governing body of the____________________________ Section 1. Thirty days prior to public hearing on this ordinance the retiree health care authority was notified by certified mail of the public hearing on this ordinance. Section 2. Pursuant to the terms of the act the _____________________________________ determines to be included in coverage under the Retiree Health Care Act. Section 3. Passed, adopted and approved this________ day of ______________ ion 1. Thirty days prior to public hearing on this ordinance the retiree health care authority was notified by certified mail of the public hearing on this ordinance. Section 2. Pursuant to the terms of the act the _____________________________________ determines to be included in coverage under the Retiree Health Care Act. Section 3. Passed, adopted and approved this________ day of ______________. 2.81.9 NMAC 3 ________________________________ Mayor or Chairperson __________________ Attest by: ___________ its: _____________ On this ____ day of _________________________ before me appeared ___________________________________ known to me as a duly-authorized representative of the ___________________________________ and having been first sworn on his/her oath deposed and stated that the hereinbefore recited ordinance was adopted by a vote of __________ in favor and _________ opposed and that the governing body of the ____________________________ consists of ____________ members plus a mayor or including a chairperson and that a sufficient number of them voted in favor of passage of the ordinance or resolution that it is in effect. __________________________________ Notary Public My Commission Expires __________________________________ [6/5/90, 12/31/96; Rn, 2 NMAC 81.10.9, 6/15/98; 6/15/98; 2.81.9.9 NMAC - Rn, 2 NMAC 81.9.9, 1-1-2010] 2.81.9.10 RETIREES, SPOUSES, DOMESTIC PARTNERS OR DEPENDENTS OF RETIREES OF AFFILIATED MUNICIPALITIES, COUNTIES, INSTITUTIONS OF HIGHER EDUCATION OR PUBLIC ENTITIES FAILING TO OPT INTO THE NMRHCA NOT ELIGIBLE FOR BENEFITS: Those retirees, their spouses, domestic partners or dependents who are current retirees, their spouses, domestic partners or dependents as defined in the act or who retire from service with an eligible municipality, county, institution of higher education or public entity which fails to opt-in to the NMRHCA shall not be eligible for the benefits of the act and shall not be allowed to purchase coverages offered under the act es, domestic partners or dependents who are current retirees, their spouses, domestic partners or dependents as defined in the act or who retire from service with an eligible municipality, county, institution of higher education or public entity which fails to opt-in to the NMRHCA shall not be eligible for the benefits of the act and shall not be allowed to purchase coverages offered under the act. [6/5/90, 12/31/96; Rn, 2 NMAC 81.10.10, 6/15/98; 6/15/98; 2.81.9.10 NMAC - Rn & A, 2 NMAC 81.9.10, 1-1- 2010] 2.81.9.11 AFFILIATED MUNICIPALITIES, COUNTIES, INSTITUTIONS OF HIGHER EDUCATION AND PUBLIC ENTITIES OPTING TO BE INCLUDED IN NMRHCA COVERAGE AFTER DECEMBER 31, 1997 REQUIRED TO MAKE SIX MONTHS OF APPROPRIATE EMPLOYER/EMPLOYEE CONTRIBUTIONS BEFORE BECOMING ELIGIBLE FOR NMRHCA PARTICIPATION: Any municipality, county, institution of higher education or public entity that enacts an ordinance or resolution to become a participating employer after December 31, 1997, shall submit their opt-in ordinance or opt-in resolution to the NMRHCA board prior to the board's annual review meeting. Following acceptance by the NMRHCA board, the employer shall begin making the appropriate employer and employee contributions to the fund as determined by the NMRHCA board on the July 1, immediately following the adoption of the ordinance or resolution. On the following January 1, eligible retirees of those participating employers and their eligible dependents shall be eligible to receive group health insurance coverage pursuant to the provisions of the Retiree Health Care Act.