SENATE BILL 596

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

John T. L. Grubesic

AN ACT

RELATING TO LICENSING; REVISING BONDING REQUIREMENTS FOR EMPLOYEE LEASING CONTRACTORS; ESTABLISHING THE EMPLOYEE LEASING ACT FUND; MAKING AN APPROPRIATION.

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

     Section 1. Section 60-13A-7 NMSA 1978 (being Laws 1993, Chapter 162, Section 7, as amended) is amended to read:

     "60-13A-7. SURETY REQUIREMENTS FOR EMPLOYEE LEASING CONTRACTORS.--

          A. [An employee leasing contractor domiciled and registered in New Mexico as of September 30, 1993 shall file and maintain with the department a surety bond in the amount of twenty-five thousand dollars ($25,000) issued by an insurance company authorized to do business in this state.] An employee leasing contractor [domiciled and] registered in New Mexico [after September 30, 1993] shall file and maintain with the department a surety bond in the amount of one hundred thousand dollars ($100,000) issued by an insurance company authorized to do business in this state. Interest accrued on such liquid securities shall be paid to the employee leasing contractor providing the liquid security. The bond shall be conditioned upon the prompt payment of wages for which the employee leasing contractor becomes liable. The employee leasing contractor's liability for these wages shall terminate six months after the employee leasing contractor terminates his employee leasing business.

          B. In lieu of the surety bond required under Subsection A of this section, the employee leasing contractor may deposit with a depository designated by the department liquid securities with a market value equal to the amount required for a surety bond. The deposit contract shall authorize the department to liquidate the securities to the extent necessary to pay any obligations that the employee

leasing contractor fails to pay promptly when due."

     Section 2. A new section of the Employee Leasing Act is enacted to read:

     "[NEW MATERIAL] EMPLOYEE LEASING ACT FUND CREATED--PURPOSE--APPROPRIATION.--

          A. The "Employee Leasing Act fund" is created in the state treasury. The fund shall consist of legislative appropriations to the fund; fees charged by the department pursuant to the Employee Leasing Act; gifts, grants, donations and bequests to the fund; and income from investment of the fund. Money in the fund shall not revert to any other fund at the end of a fiscal year. Expenditures from the fund shall be made on warrants drawn by the secretary of finance and administration pursuant to vouchers signed by the superintendent of regulation and licensing or the superintendent's authorized representative.

          B. The fund shall be administered by the department, and money in the fund is appropriated to the department for the purpose of carrying out the provisions of the Employee Leasing Act."

     Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2005.

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