NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Internet/Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

The bill proposes changes to the group insurance section of New Mexico statutes to exclude political subdivisions of the state with twenty-five employees or fewer.

Significant Issues

The bill would allow political subdivisions of the state to pay up to 100 percent of employees' insurance benefits. Political subdivisions with 25 or fewer employees will have greater flexibility in designing compensation packages for their employees.

FISCAL IMPLICATIONS

The CHE indicates if political subdivisions of the state with 25 or fewer employees begin paying a greater share of insurance premiums, the benefit costs of the political subdivisions of the state could increase and necessitate additional funding.

TECHNICAL ISSUES

The bill does not define "political subdivisions of the state" nor "political subdivisions" which appear to be used interchangeably.

RAE/gm