SB 1065

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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

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these wages shall terminate six months after the employee

leasing contractor terminates the employee leasing

contractor's 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 obligations that the employee

leasing contractor fails to pay promptly when due.

C. In lieu of the surety requirements of this

section, the department may by rule provide that it will

accept an affidavit or certification of a bonded, independent

and qualified assurance organization, approved by the

department, that certifies the qualification of an employee

leasing contractor."

Section 2. A new section of the Employee Leasing Act is

enacted to read:

"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,

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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, 2007.