A. The risk management division of the general services department shall provide workers’ compensation coverage for all public employees, as defined in the Workers’ Compensation Act, of all state agencies regardless of the hazards of their employment.

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B. The director of the risk management division shall ascertain the most economical means of providing such coverage and may secure a policy or policies of insurance to provide the coverage required. The director of the risk management division shall collect or transfer funds from each agency to cover the agency’s respective share of the cost of the coverage.

C. The director of the risk management division shall determine the possibilities for including school districts under uniform coverage and the methods of administration therefor.

D. For purposes of this section, “state” or “state agency” means the state of New Mexico or any of its branches, agencies, departments, boards, instrumentalities or institutions.