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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 Benefits for Military Relocation

SB 920

ANALYST Dunbar

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

Minimal

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue

FY05

FY06

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

($416.0)

Recurring

UI Trust Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Military Affairs (DMA)

Department of Labor (DOL)

Department of Veterans Services (DVS)

New Mexico Department of Corrections (NMDC)

SUMMARY

Synopsis of Bill

Senate Bill 920 amends section 51-1-7 NMSA 1978 to prohibit denial of Unemployment Insur-

ance Benefits for a person who voluntarily left work because a spouse who is in the United

States Military or New Mexico National Guard received permanent change of station orders, ac-

tivation orders, or unit deployment orders.

Senate Bill No. 920 Page 2

Significant Issues

This legislation would modify the current Unemployment Insurance (UI) structure and would

increase the availability of benefits to those individuals who are not currently eligible for bene-

fits. The proposed bill would make eligible for UI benefits certain workers who voluntarily quit

their employment to follow a military spouse who has been transferred to a new location.

DVS notes that if a member of the military receives orders to transfer, the spouse has to quit, not

by choice of their own. This sometimes causes undue hardship with the loss of income until

such time as the spouse can find employment at a new location. This bill would allow for an in-

come stream until the spouse is re-employed.

FISCAL IMPLICATIONS

The DOL projects the additional costs to the UI Trust fund will be approximately $400 thousand

per year. The fund currently has a balance of $572 million dollars.

The DOL estimates that the implementation costs for voluntary quit due to the relocation of a

military spouse will be minimal:

Required Modification to UI System and Call Center $2,256.00

Training Expenses $1,000.00

TOTAL $3,256.00

OTHER SUBSTANTIVE ISSUES

NMCD is concerned that some military personnel are relocated to places where a spouse may not

join them, ie; a combat area. In that case, a spouse would not need to relocate.

The NMCD indicates that because this bill does not make the distinction, a military member

could be sent to a combat theater and the spouse may simply voluntarily terminate employment,

move to another state, and continue to receive unemployment insurance benefits.

BD/lg