Payment for a claim under property insurance coverage for property damage to public school facilities may be paid directly to the school district, or, pursuant to the Procurement Code [13-1-28 to 13-1-199 NMSA 1978], the insurance proceeds may be expended by the insurer to repair the damage. If the payment is made directly to the school district, without further approval of the authority or any insurance carrier, the proceeds of the insurance payment may be expended by the school district to repair or replace the damaged facility if:
A. the school district complies with the Procurement Code; and
B. contracts for the repair or replacement are approved by the public school facilities authority pursuant to Section 22-20-1 NMSA 1978, provided that:
(1) the cost of settlement of the insurance claim shall not be increased by inclusion of the insurance proceeds in the construction contracts; and
(2) insurance claims settlements shall continue to be governed by insurance policies, memoranda of coverage and rules related to them.
History: Laws 2005, ch. 274, § 18.
ANNOTATIONSEffective dates. — Laws 2005, ch. 274, § 20 made Laws 2005, ch. 274, § 18 effective April 6, 2005.