SENATE BILL 3

56th legislature - STATE OF NEW MEXICO - second session, 2024

INTRODUCED BY

Mimi Stewart and Christine Chandler and Linda Serrato

and Patricia Roybal Caballero

 

 

 

 

AN ACT

RELATING TO EMPLOYMENT; ENACTING THE PAID FAMILY AND MEDICAL LEAVE ACT; CREATING THE PAID FAMILY AND MEDICAL LEAVE FUND; PROVIDING FOR THE PAID FAMILY AND MEDICAL LEAVE PROGRAM TO PAY AN ELIGIBLE EMPLOYEE A PERCENTAGE OF THE EMPLOYEE'S WAGES TO ALLOW THE EMPLOYEE TO BOND WITH A NEW CHILD OR TO CARE FOR A FAMILY MEMBER; LIMITING THE TIME ALLOWED FOR PAID FAMILY AND MEDICAL LEAVE; EXCEPTING CERTAIN EMPLOYEES; PROVIDING FOR ADMINISTRATION OF THE PROGRAM BY THE WORKFORCE SOLUTIONS DEPARTMENT; PREEMPTING SIMILAR PROGRAMS; CREATING A TEMPORARY ADVISORY COMMITTEE.

 

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

     SECTION 1. [NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Paid Family and Medical Leave Act".

     SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Paid Family and Medical Leave Act:

          A. "claim for leave" means an application for leave compensation that an employee makes to the department pursuant to the Paid Family and Medical Leave Act in accordance with department rules;

          B. "department" means the workforce solutions department, the secretary or an employee of the department exercising authority lawfully delegated to that employee by the secretary;

          C. "domestic partner" means a person with whom another person maintains a household and a mutual committed relationship without a legally recognized marriage;

          D. "employee" means a person working within the state who performs a service for wages or other remuneration under a contract of hire, written or oral, express or implied, and includes a person employed by the state or a political subdivision of the state. "Employee" does not mean an employee of an employer subject to the provisions of Title II of the federal Railway Labor Act or an employee as defined in the federal Railroad Unemployment Insurance Act;

          E. "employer" means a person that has one or more employees within the state and includes an agent of an employer and the state or a political subdivision of the state;

          F. "family leave" means leave for which an employee can apply for leave compensation pursuant to the Paid Family and Medical Leave Act and that is granted to the employee to allow the employee to bond with a child of the employee within twelve months of the birth or adoption of a child or placement of a foster child with the employee, to care for a family member if the family member has a serious health condition or following the death of a child under eighteen years of age for whom the employee would have otherwise qualified for family leave;

          G. "family member" means a person who is:

                (1) regardless of age, a biological, adopted or foster child, stepchild or legal ward, a child of a domestic partner, a child to whom an employee stands in loco parentis or a person to whom the employee stood in loco parentis when the person was a minor;

                (2) a biological, adoptive or foster parent, stepparent or legal guardian of an employee or the employee's spouse or domestic partner or a person who stood in loco parentis when the employee or the employee's spouse or domestic partner was a minor;

                (3) a person to whom an employee is legally married under the laws of any state or a domestic partner of the employee;

                (4) a grandparent, great-grandparent, grandchild or sibling, whether a biological, foster, adoptive or step relationship, of an employee or an employee's spouse or domestic partner; or

                (5) any other individual related by blood or affinity whose close association with the employee or employee's spouse or domestic partner is the equivalent of a family relationship;

          H. "fund" means the paid family and medical leave fund;

          I. "health care provider" means an individual licensed or certified to provide health care in the ordinary course of business;

          J. "Indian tribe" means a federally recognized Indian nation, tribe or pueblo, wholly or partially located in New Mexico, a governmental unit, subdivision, agency, department or instrumentality thereof or a business enterprise wholly owned by such an Indian nation, tribe or pueblo;

          K. "leave" means family leave, qualifying exigency leave, safe leave or medical leave for which an employee can apply for leave compensation pursuant to the Paid Family and Medical Leave Act;

          L. "leave compensation" means income that the department pays from the fund to an employee who takes family leave, qualifying exigency leave, safe leave or medical leave;

          M. "medical leave" means leave for which an employee can apply for leave compensation pursuant to the Paid Family and Medical Leave Act to allow the employee to provide care for the employee's own serious health condition;

          N. "qualifying exigency leave" means leave for which an employee can apply for leave compensation pursuant to the Paid Family and Medical Leave Act when a family member:

                (1) is on active military duty; or

                (2) has been notified of an impending call to order to active military duty;

          O. "safe leave" means leave for which an employee can apply for leave compensation pursuant to the Paid Family and Medical Leave Act that is granted to an employee who is the victim or whose family member is the victim of domestic violence, stalking, sexual assault or abuse. "Safe leave" applies if the covered employee is using the leave from work to protect the employee or the employee's family member by:

                (1) seeking a civil protection order against a perpetrator;

                (2) obtaining medical care or mental health counseling for the employee or for the employee's children to address physical or psychological injuries;

                (3) seeking new housing, relocating or making the employee's home secure from a perpetrator; or

                (4) attending or preparing for court-related proceedings or seeking legal assistance to address issues related to the act of domestic violence, stalking, sexual assault or abuse;

          P. "secretary" means the secretary of workforce solutions;

          Q. "serious health condition" means an illness, injury, impairment or physical or mental condition that involves:

                (1) inpatient care in a hospital, hospice or residential medical facility; or

                (2) continuing treatment by a health care provider;

          R. "spouse" means a partner to a lawful marriage; and

          S. "wages" means all remuneration for services, including commissions, bonuses or unpaid loans to employees and the cash value of all remuneration in any medium other than cash.

     SECTION 3. [NEW MATERIAL] PAID FAMILY AND MEDICAL LEAVE FUND--CREATION.--

          A. The "paid family and medical leave fund" is created in the state treasury and shall be administered by the department. The fund shall be held for the benefit of the employees who paid into the fund and shall consist of all revenue, including any fees collected pursuant to the Paid Family and Medical Leave Act in accordance with department rules. Money in the fund shall be invested by the state investment officer. Income from investment of the fund shall be credited to the fund.

          B. Money in the fund is appropriated to the department to distribute leave compensation pursuant to the Paid Family and Medical Leave Act and to cover the costs of administration and outreach for the paid family and medical leave program pursuant to that act.

          C. Money shall be disbursed from the fund only on warrant issued by the department of finance and administration pursuant to vouchers signed by the secretary or the secretary's authorized representative. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert or be transferred to any other fund.

          D. To determine an actuarially sound premium rate and a future premium rate-setting mechanism for the program created pursuant to the Paid Family and Medical Leave Act, by January 1, 2025, the department shall contract with a qualified independent actuarial consultant who is a member of a leading actuarial professional association and has the relevant experience to analyze the following:

                (1) the family and medical leave premium rate;

                (2) the premium rate structure;

                (3) the weekly benefit formula;

                (4) the duration of benefits fund reserve; and

                (5) other necessary components.

          E. Beginning January 1, 2028, and not later than October 1 of each calendar year, the secretary shall ensure and maintain the self-sufficiency and solvency of the fund by:

                (1) performing an annual financial analysis;

                (2) setting the premium for the following calendar year, based on the percentage of employee wages and at the rate necessary to obtain a total amount of contributions equal to one hundred thirty-five percent of the benefits paid during the previous fiscal year and all administrative costs of the paid family and medical leave program during the previous fiscal year, minus the amount of net assets remaining in the fund as of June 30 of the current calendar year; provided that the premium increase necessary under this provision shall not exceed one-tenth percent of wages per employee per year. The department shall provide public notice in advance of January 1 of any changes to the premium. For purposes of this paragraph, the costs of administration include the costs of repayment of interest and principal on general fund appropriations pursuant to Section 15 of this 2024 act; and

                (3) reporting the results of the analysis to the appropriate legislative body.

     SECTION 4. [NEW MATERIAL] APPLICABILITY--CONTRIBUTIONS TO FUND--REMITTANCE OF CONTRIBUTIONS--EXEMPTION FOR PRIVATELY RUN PROGRAMS--REQUIREMENTS OF PRIVATELY RUN PROGRAMS.--

          A. The Paid Family and Medical Leave Act applies to:

                (1) all public and private employees who are subject to state jurisdiction, except those employees who are employed by the United States;

                (2) the employers of employees as described in Paragraph (1) of this subsection, whether or not the employer is physically located in the state;

                (3) self-employed individuals subject to state jurisdiction who opt into the program; and

                (4) Indian nations, tribes and pueblos that elect to be covered, or to terminate coverage, in the program for their employees.

          B. Beginning January 1, 2026 and for each calendar quarter thereafter until January 1, 2029, there is assessed against each employee one-half percent of the employee's wages up to the earnings cap established by the federal social security administration program, pursuant to the Federal Insurance Contributions Act. An employee shall not be required to make any contributions to the fund from leave compensation. Beginning January 1, 2029 and for each calendar quarter thereafter, there is assessed against each employee an assessment on the employee's wages at fifty-five percent of the premium set by the secretary pursuant to Subsection E of Section 3 of the Paid Family and Medical Leave Act.

          C. Beginning January 1, 2026 and for each calendar quarter thereafter until January 1, 2029, there is assessed against each employer with five or more employees an amount equal to four-tenths percent of each participating employee's wages up to the earnings cap established by the federal social security program, pursuant to the Federal Insurance Contributions Act. Beginning January 1, 2029 and for each calendar year thereafter, there is assessed against each employer with five or more employees an amount equal to each participating employee's wages at forty-five percent of the premium set by the secretary pursuant to Subsection E of Section 3 of the Paid Family and Medical Leave Act. An employer shall not recover, or seek to recover, any amounts assessed against employers pursuant to this subsection from the employer's employees.

          D. Beginning January 1, 2026 and for each calendar quarter thereafter until January 1, 2029, there is assessed against each self-employed individual as described in Paragraph (3) of Subsection A of this section one-half percent of the individual's net income as designated by the self-employed individual. Beginning January 1, 2029 and for each calendar quarter thereafter, there is assessed against each self-employed individual as described in Paragraph (3) of Subsection A of this section an assessment on the individual's net income as designated by the self-employed individual at fifty-five percent of the premium set by the secretary pursuant to Subsection E of Section 3 of the Paid Family and Medical Leave Act.