Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may also be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

F I S C A L    I M P A C T    R E P O R T

 

 

 

SPONSOR

SFC

DATE TYPED

02/10/04

HB

 

 

SHORT TITLE

Relating to the Public Peace, Health,

Safety and Welfare

SB

585/SFCS

 

 

ANALYST

Gilbert

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

 

See Narrative

See Narrative

Recurring

Employment Security Department Fund

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

LFC Files

 

SUMMARY

 

Synopsis of Bill

 

The Senate Finance Committee Substitute for Senate Bill 585 amends §51-1-12 NMSA 1978 (Laws 1965, Chapter 192, Section 1) to increase the penalty for filing of late wage reports with the Department of Labor (DOL) from the current fifty dollars to seventy-five dollars.

 

The bill also amends §51-1-36 NMSA 1978 (Laws 1936, Chapter 1, Section 14) to change the interest rate charged for delayed employment security department fund contributions from the current one-percent per month to an annual rate of fifteen-percent, compounded quarterly.

 

SB 585/SFCS also adds restrictive language to specify that all revenue deposited to the employment security department fund shall be expended solely for employment services administration by the DOL.

 

The bill also makes several minor technical corrections.

 

FISCAL IMPLICATIONS

 

The increased penalties and interest payments for late filing of wage reports and overdue payment of contributions will increase revenue to the employment security department fund.

 

 

ADMINISTRATIVE IMPLICATIONS

 

If adopted, SB 585/SFCS will call for the DOL to revise its accounting systems, update department policies and procedures and notify employers of the changes included in this bill.

 

 

RLG/yr