HOUSE BILL 30

50th legislature - STATE OF NEW MEXICO - second session, 2012

INTRODUCED BY

William "Bill" R. Rehm

AN ACT

RELATING TO PUBLIC EMPLOYERS; PROHIBITING THE AWARD OF A "GOLDEN PARACHUTE" OR OTHER EXTRAORDINARY BENEFIT TO A PUBLIC EMPLOYEE WHO RESIGNS OR IS TERMINATED FOR CAUSE.

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

     SECTION 1. Section 10-9-21 NMSA 1978 (being Laws 1961, Chapter 240, Section 15, as amended) is amended to read:

     "10-9-21. PROHIBITED ACTS.--

          A. No employer shall dismiss an employee for failure or refusal to pay or promise to pay any assessment, subscription or contribution to any political organization or candidate; however, nothing contained in this section shall prevent voluntary contributions to political organizations.

          B. No person in the state personnel office or employee in the service shall hold political office except for a nonpartisan county or municipal office or be an officer of a political organization during [his] employment. For the purposes of the Personnel Act, being a local school board member or an elected board member of any post-secondary educational institution shall not be construed to be holding political office and being an election official shall not be construed to be either holding political office or being an officer of a political organization. Nothing in the Personnel Act shall deny employees the right to vote as they choose or to express their opinions on political subjects and candidates.

          C. Any employee who becomes a candidate for public office shall, upon filing or accepting the nomination and during the campaign, take a leave of absence. This subsection does not apply to those employees of a grant-in-aid agency whose political activities are governed by federal statute.

          D. The director shall investigate any written charge by any person that this section has been violated and take whatever steps deemed necessary.

          E. No person shall be refused the right of taking an examination, from appointment to a position, from promotion or from holding a position because of political or religious opinions or affiliation or because of race or color.

          F. No employee or probationer shall engage in partisan political activity while on duty.

          G. With respect to employees of federal grant-in-aid agencies, the applicable personnel standards, regulations and federal laws limiting activities shall apply and shall be set forth in rules promulgated by the board.

          H. An employer shall not pay unearned compensation, severance allowance or other remuneration to an employee who earns more than two hundred thousand dollars ($200,000) annually and who resigns or is terminated, unless such compensation or remuneration is required by the terms of the employee's employment agreement in force at least one hundred eighty days prior to the employee's resignation or termination."

     SECTION 2. A new section of Chapter 21, Article 1 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] EXTRAORDINARY BENEFITS RESTRICTED.--A state educational institution shall not pay unearned compensation, severance allowance or other remuneration to an employee who earns more than two hundred thousand dollars ($200,000) annually and who resigns or is terminated, unless such compensation or remuneration is required by the terms of the employee's employment agreement in force at least one hundred eighty days prior to the employee's resignation or termination. Nothing in this section shall be construed to prohibit a private individual or entity from paying unearned compensation, severance allowance or other remuneration to an employee who resigned or was terminated for any reason."

     SECTION 3. A new section of Chapter 22, Article 1 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] EXTRAORDINARY BENEFITS RESTRICTED.--A state agency shall not pay unearned compensation, severance allowance or other remuneration to an employee who earns more than two hundred thousand dollars ($200,000) annually and who resigns or is terminated for cause, unless such compensation or remuneration is required by the terms of the employee's employment agreement in force at least one hundred eighty days prior to the employee's resignation or termination. Nothing in this section shall be construed to prohibit a private individual or entity from paying unearned compensation, severance allowance or other remuneration to an employee who resigned or was terminated for any reason."

     SECTION 4. APPLICABILITY.--The provisions of this act apply to employment agreements entered into, extended or renewed after July 1, 2012.

     SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2012.

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