44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO INSURANCE; SEPARATING THE EXPERIENCE MODIFICATION FACTOR FOR PARTICIPANTS OF THE NEW MEXICO WORKS ACT; CLARIFYING THE EMPLOYMENT STATUS OF PARTICIPANTS OF THE NEW MEXICO WORKS ACT.

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

Section 1. A new section of the New Mexico Insurance Code is enacted to read:

"[NEW MATERIAL] EXPERIENCE MODIFICATION FACTOR--WORKERS' COMPENSATION CLAIMS--NEW MEXICO WORKS ACT.--

A. Workers' compensation claims by participants as defined in the New Mexico Works Act shall be separately recorded and maintained in the calculation of the experience modification factor used to calculate premiums for the participating employer so that the experience modification factor attributable to claims by participants can be separated from the remainder of the employer's experience modification factor.

B. The separately calculated experience modification factor for participants shall not be considered as part of the experience modification factor of any employers who cease to employ participants in their work force. The superintendent of insurance shall promulgate rules to implement this section.

C. For the purpose of this section, "participants" means participants as defined in the New Mexico Works Act."

Section 2. A new section of the New Mexico Works Act is enacted to read:

"[NEW MATERIAL] WORK ACTIVITIES--INSURANCE.--

A. Participants engaged in any work activity described in Section 27-2B-5 NMSA 1978 shall not be considered employees of the state. Participants engaged in an unpaid work activity described in Section 27-2B-5 NMSA 1978 shall be considered trainees.

B. Workers' compensation claims by participants shall be separately recorded and maintained in the calculation of the experience modification factor used to calculate premiums for the participating employer so that the experience modification factor attributable to claims by participants can be separated from the remainder of the employer's experience modification factor.

C. The separately calculated experience modification factor for participants shall not be considered as part of the experience modification factor of any employers who cease to employ participants in their work force. The superintendent of insurance shall promulgate rules to implement this section."