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SPONSOR: |
Harden |
DATE TYPED: |
|
HB |
|
||
SHORT TITLE: |
Unemployment Comp Contribution Rate |
SB |
142/aSCORC/aSPAC |
||||
|
ANALYST: |
Collard |
|||||
APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
FY03 |
FY04 |
FY03 |
FY04 |
|
|
$122.0 |
|
|
$123.0 |
Non-Recurring |
Federal |
(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to a portion of House Bill 261
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
($15,000.0) |
|
Recurring |
UI
Trust Fund |
|
|
|
|
|
(Parenthesis ( ) Indicate Revenue Decreases)
Responses
Received From
New
Mexico Labor Department
Synopsis of SPAC Amendment
The Senate Public Affairs Committee adds
language declaring an emergency and making an appropriation. The appropriation of
$122.0 contained in this bill is a non-recurring expense to the from the Reed
Act distribution for implementation costs. Any unexpended or unencumbered balance
remaining at the end of FY07 shall revert to the general fund.
Synopsis
of SCORC Amendment
The Senate Corporations and Transportation Committee
adds language which allows an out-of-state employer to receive its actual
experience rate, even if that rate is less than one percent. The committee amendment also deletes the
requirement that businesses be engaged in the same type of business in
SUMMARY
Synopsis
of Original Bill
Senate Bill 142 amends
the unemployment compensation law to allow a new employer moving into
Significant
Issues
The department
estimates $123 thousand will have to be appropriated from the Reed Act distribution
one time only to administratively implement the changes in the bill. The department also estimates the revenue
decrease to the Unemployment Insurance Trust Fund to be $15 million annually.
FISCAL IMPLICATIONS
The New Mexico Labor
Department indicates some taxpayers may be required to pay a higher tax
rate.
ADMINISTRATIVE IMPLICATIONS
The department notes
that minor changes will have to be made to current tax software.
RELATIONSHIP
This concept related
to a concept in House Bill 261, which includes favorable out-of-state history
transfer and other reforms to the Unemployment Insurance Trust Fund.
TECHNICAL ISSUES
The department
indicates the bill should be amended to include a non-recurring appropriation
of $123 thousand in Reed Act distribution monies for administrative
implementation costs.
OTHER SUSBSTANTIVE ISSUES
The New Mexico Labor Department notes that the
bill limits new employers transferring history from another state to one
percent at the lowest. The department
recommends that employers with qualifying history transfers be eligible to receive
the lowest rate available under the current tax schedule and not be limited to
one percent.