Panel advances bill requiring state settlement terms be posted to Sunshine portal and adds loss-prevention reviews

Senate Bill 220, presented to the Senate Judiciary Committee as an LFC-endorsed measure, would require posting terms of state settlement agreements on the Sunshine portal and create an after-action requirement when large losses, deaths or serious injuries are alleged.

The sponsor described two primary goals: (1) require posting of settlement terms to the Sunshine portal whether the settlement used the Risk Management Division (RMD) or not; and (2) require RMD to convene a loss-prevention review team when deaths, serious injury, or substantial losses (defined as over $250,000 or as identified by the RMD director) are alleged or suspected.

Chris Papaleo, an attorney and a board member of the New Mexico Trial Lawyers, supported the bill, saying it would identify causes of harm and recommend fixes to keep New Mexicans safer and to help the state mitigate liability. "Putting this in front so that everybody understands what's happening, who's doing what, where the harm is occurring, why it's occurring, and what we can do to prevent it are ... steps to help keep New Mexicans safe," Papaleo said.

Committee members considered amendments to clarify that posting requirements apply both when RMD assists and when it does not; the sponsor accepted a technical amendment inserting the words "with or" at the relevant line to make that explicit. The committee adopted the amendment and later gave SB 220 a do-pass recommendation as amended.

The bill requires agencies to post settlement information within 30 days and to report RMD loss-prevention activities annually to the Legislature. Supporters said the measure would increase transparency and could reduce future liability by surfacing systemic problems and recommendations.

The committee recorded a do-pass recommendation for SB 220 as amended; the bill will proceed in the Senate process for further consideration.