HOUSE BILL 44

50th legislature - STATE OF NEW MEXICO - first special session, 2011

INTRODUCED BY

Mimi Stewart

AN ACT

RELATING TO THE UNEMPLOYMENT COMPENSATION STATE ADVISORY COUNCIL; PROVIDING FOR APPOINTMENT OF COUNCIL MEMBERS; DIRECTING THE COUNCIL TO MAKE RECOMMENDATIONS TO THE LEGISLATURE AND THE GOVERNOR; PROVIDING FOR PER DIEM AND MILEAGE FOR COUNCIL MEMBERS; PROVIDING FOR A TRANSITION OF COUNCIL MEMBERSHIP; DECLARING AN EMERGENCY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 51-1-25 NMSA 1978 (being Laws 1959, Chapter 321, Section 5, as amended) is amended to read:

     "51-1-25. [ADVISORY COUNCILS.--The secretary shall appoint a state advisory council composed in each case of men and women and including an equal number of employer and employee representatives who are representative because of their vocation, employment or affiliations and such members representing the general public as the secretary designates.] STATE UNEMPLOYMENT ADVISORY COUNCIL.--

          A. There is created a "state unemployment advisory council" consisting of nine members. The secretary or the secretary's designee shall serve as an ex-officio voting member. The remaining eight members shall be appointed so as to ensure representation of the state's demographics, including geographic distribution, gender and ethnic diversity, and as follows:

                (1) two members appointed by the president pro tempore of the senate;

                (2) two members appointed by the minority leader of the senate;

                (3) two members appointed by the speaker of the house of representatives; and

                (4) two members appointed by the minority leader of the house of representatives.

          B. Initially, appointing entities shall choose one member for a two-year term and one member for a four-year term. After the initial appointments, all appointed members shall serve four-year terms. Terms shall expire on January 1. Appointed members shall serve until their successors are appointed. A vacancy occurring other than by expiration of term shall be filled in the same manner as the original appointment, but only for the unexpired term. 

          C. Members of the council shall elect a chair from among the membership of the council. The council shall meet at the call of the chair at least four times per year.

          D. A majority of the members currently serving constitutes a quorum of the council.

          E. Staff for the council shall be provided by the department.

          F. The council shall aid the department in formulating policies and discussing problems relating to the administration of the Unemployment Compensation Law and in assuring impartiality and freedom from political influence in the solution of such problems. [The secretary may also appoint industry or other special councils to perform appropriate services. Council members shall serve without compensation other than for wage loss sustained for attendance at formal meetings of the council or duly constituted committees. Members shall be reimbursed for any travel expense incurred in the same manner as employees of the department.]

          G. On or before November 1 of each year, the council shall present recommendations to the legislature and the governor for the furtherance of the purposes of the Unemployment Compensation Law and for any changes necessary to maintain the soundness of the unemployment compensation fund. In preparing the recommendations, the council shall consider the following objectives:

                (1) refining the formula for determining contribution rate schedules that determine an employer's contribution to the unemployment compensation fund each calendar year;

                (2) reevaluating and restructuring the contribution rate schedules and the employer experience rating banding within each contribution rate schedule;

                (3) adding a ceiling and floor mechanism that adjusts if the unemployment compensation fund reaches a high balance or is near insolvency; and

                (4) determining a target unemployment compensation fund balance or ratio.

          H. Members of the council shall receive per diem and mileage as provided for nonsalaried public officers in the Per Diem and Mileage Act and shall receive no other compensation, perquisite or allowance.

          I. Members of the council are public employees within the meaning of the Tort Claims Act and are entitled to all immunity and indemnification provided under that act."

     SECTION 2. TEMPORARY PROVISION--TRANSITION MEMBERSHIP OF ADVISORY COUNCIL.--

          A. On January 1, 2012, any state unemployment advisory council members who did not become members pursuant to Section 1 of this act shall no longer be a member of the state advisory council or the state unemployment advisory council.

          B. Within thirty days of January 1, 2012, members of the state unemployment advisory council shall be appointed pursuant to Section 51-1-25 NMSA 1978.

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2012.

     SECTION 4. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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