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 a vailable 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 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

Rawson

DATE TYPED 3/1/2005 HB

SHORT TITLE Unemployment Insurance Task Force

SB 846

ANALYST Dunbar

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

See Narrative

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates HB858

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Labor (DOL)

SUMMARY

Synopsis of Bill

Senate Bill 846 creates the Unemployment Insurance Task Force which includes members from

the labor and finance and administration departments, legislators, and public members. The pur-

pose of the task force is to study various elements of the unemployment insurance program, in-

cluding benefit levels, tax rates and soundness of the unemployment insurance trust fund and to

report its findings to the legislature by December 31, 2005. The task force will terminate Janu-

ary 1, 2006. The bill contains an emergency provision.

Significant Issues

House Bill 9 recently passed by the legislature and signed into law by the governor provides for

increased benefits to the unemployed and decreased unemployment taxes for employers. Spe-

cifically, the legislation eliminated the benefit denial for claimants attending school full-time,

included a dependents’ allowance of $15, added eligibility for victims of domestic violence, al-

lowed for benefits to workers seeking part-time work, reduced the new employer tax rate to 2

percent, allowed for the transfer of favorable employment history from other states, and provided

Senate Bill 846--Page 2

a zero tax rate for employers with experience. These same amendments were in effect in calendar

year 2004 but were terminated December 2004 because of the unemployment rate trigger.

The Unemployment Trust Fund balance remains healthy at approximately $570 million after a

year of program implementation.

Some members of the legislative body recommended the creation of the task force in order to

appropriately address the issue described above and formulate a comprehensive plan on unem-

ployment policy.

FISCAL IMPLICATIONS

The legislation calls for public members to receive mileage and per diem, but the bill does not

make an appropriation and does not indicate from what funding source the mileage and per diem

will be paid.

ADMINISTRATIVE IMPLICATIONS

The legislative council service with assistance from DOL and LFC shall provide staff for the task

force.

BD/lg