March 5, 1999

Mr. President:

Your PUBLIC AFFAIRS COMMITTEE, to whom has been referred

has had it under consideration and reports same with recommendation that it DO PASS, amended as follows:

1. On page 2, line 5, strike "participants" and insert in lieu thereof "the first year of employment of each participant".

2. On page 2, lines 6, strike "employers" and strike line 7 up to the period and insert in lieu thereof "employer".

3. On page 2, line 14, strike "INSURANCE" and insert in lieu thereof "WORKERS' COMPENSATION COVERAGE".

4. On page 2, strike Subsection A in its entirety and insert in lieu thereof the following new Subsection A:

"A. For the purposes of the Workers' Compensation Act:

(1) cash assistance and services paid to participants engaged in any work activity described in Section 27-2B-5 NMSA 1978 shall not be considered wages and shall not be deemed to create an employer-employee or co-employer-employee relationship between the participant and the state; and

(2) payment of a wage subsidy to an employer of a participant shall not be deemed to be payment of wages by the state and shall not be deemed to create an employer-employee or co-employer-employee relationship between the participant and the state.".

5. On page 3, line 3, strike "participants" and insert in lieu thereof "the first year of employment of each participant".

6. On page 3, line 4, strike "employers" and strike line 5 up to the period and insert in lieu thereof "employer".

7. On page 3, between lines 7 and 8, insert the following subsection:

"D. The department shall ensure that participants undergo safety training prior to employment.".,

and thence referred to the CORPORATIONS & TRANSPORTATION COMMITTEE.

Respectfully submitted,

__________________________________

Shannon Robinson, Chairman

Adopted_______________________ Not Adopted_______________________

(Chief Clerk) (Chief Clerk)

Date ________________________

The roll call vote was 5 For 0 Against

Yes: 5

No: 0

Excused: Boitano, Garcia, Stockard, Smith

Absent: None

S0442PA1 .127387.1/a

.128273.1