HB 148 — UNEMPLOYMENT CONTRIBUTION RATE CHANGE

(3) if, at the time of a transfer of an employing enterprise in whole or in part, both the predecessor and the successor are under common ownership, then the experience history attributable to the transferred business shall also be transferred to and combined with the experience history attributable to the successor employer.

(4) whenever a person, who is not currently an employer, acquires the trade or business of an employing h enterprise, the experience history of the acquired business u » r shall not be transferred to the successor if the secretary or t h g e l i the secretary's designee finds that the successor acquired the h r i s business solely or primarily for the purpose of obtaining a h , e h lower rate of contributions.

Instead, the successor shall be t u g e b l e e , gh assigned the applicable new employer rate pursuant to this n d d i = = o h section.

In determining whether the business was acquired el t] 17b ,d i a º r solely or primarily for the purpose of obtaining a lower rate we lr n= t e w d 18m a n o of contribution, the secretary or the secretary's designee =d =m 19: a l shall consider:

ib r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 7 - e a n e d r 20e (a)l theu cost[ ofA acquiringd theshall business;consider:

a(a) t m m 21 (b) whether the personcost continued the d r e 22 business enterprise of theacquiring acquiredthe business;

c(b) ewhether sthe kperson 23continued (c)the how long such business enterprise wasof ethe aacquired nbusiness; b 24 continued;

and(c) uhow [long (d)such whetherbusiness aenterprise substantial number of new .218470.4 - 7 - employees was hiredcontinued; for performance of duties unrelated to those that the business activity conducted prior to acquisition;

(5)and if,(d) followingwhether a transfer of experience history pursuant to this subsection, the department determines that a substantial purposenumber of thenew transferemployees of the employing enterprise was tohired obtain a reduced liability for contributions,performance thenof theduties experienceunrelated ratingto accountsthose ofthat the employersbusiness involvedactivity shallconducted beprior combined into a single account and a single rate assigned to theacquisition; combined account;

(6)(5) if, following a transfer of experience history pursuant to this subsection, the secretarydepartment shalldetermines adoptthat sucha rulessubstantial aspurpose areof necessarythe transfer of the employing enterprise was to interpretobtain anda carryreduced outliability for contributions, then the provisionsexperience rating accounts of thisthe subsection,employers includinginvolved rulesshall that:be combined into a single account and a single rate h assigned to the combined account;

(a)g describeo howt experiencehr history(6) isthe secretary shall adopt such rules as are g e i k necessary to beinterpret transferred;and carry out the provisions of this h r i s subsection, including rules that:

andh (b), establisht, procedures(a) todescribe identifyhow theexperience ehistory tis 17to typebe ofe transferu org acquisitione ofb anl employinge enterprise;e h transferred;

and w l n d 18d (7)i a person who knowingly violates or attempts = = 19o ah l(b) toestablish violateprocedures a rule adopted pursuant to Paragraphidentify (6) of this i a e r 20 subsection, who transfers or acquires, or attempts to transfer a t m m 21 or acquire, an employing enterprise for the solel or] primaryb d,d ri e 22 purpose of obtaining a reducedº liability for contributions or c e stype k 23 who knowingly advises another person to violate a rule adopted e a n b 24 pursuant to Paragraph (6) of this subsection or to transfer or uacquisition [of acquire an employing enterpriseenterprise; for the sole or primary purpose .218470.4 - 8 - of obtaining a reduced liability for contributions is guilty of a misdemeanor and shall be punished by a fine of not less than one thousand five hundred dollars ($1,500) or more than three thousand dollars ($3,000) or, if an individual, by imprisonment for a definite term not to exceed ninety days or both.

and r i = r t e w d m a n o (7) a person who knowingly violates or attempts d m :

b e d s º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 8 - e a n e d r e l u [ A d to violate a rule adopted pursuant to Paragraph (6) of this subsection, who transfers or acquires, or attempts to transfer or acquire, an employing enterprise for the sole or primary purpose of obtaining a reduced liability for contributions or who knowingly advises another person to violate a rule adopted pursuant to Paragraph (6) of this subsection or to transfer or acquire an employing enterprise for the sole or primary purpose of obtaining a reduced liability for contributions is guilty of a misdemeanor and shall be punished by a fine of not less than one thousand five hundred dollars ($1,500) or more than three thousand dollars ($3,000) or, if an individual, by imprisonment for a definite term not to exceed ninety days or both.

(a) if the person is an employer, the person shall be assigned the highest contribution rate established by h the provisions of this section for the calendar year in which u » r the violation occurs and the three subsequent calendar years;

t h g e l i provided that, if the difference between the increased penalty h r i s rate and the rate otherwise applicable would be less than two h , e h percent of the employer's payroll, the contribution rate shall t u g e b l e e , gh be increased by two percent of the employer's payroll for the n d d i = = o h calendar year in which the violation occurs and the three el t] 17b ,d i a º r subsequent calendar years;

or we lr n= t e w d 18m a n o (b) if the person is not an employer, the =d =m 19: a l secretary may impose a civil penalty not to exceed three i a e r 20 thousand dollars ($3,000).

ab r e t mº o t n = .218470.4AIC February 16, 2021 (10:43am) s k m 21e F.- 9 - e a n e d r e l u [ A d secretary may impose a civil penalty not to exceed three thousand dollars ($3,000).

ExceptF. as provided in Subsection Q of this d r e 22 section, for each calendar year, if, as of the computation date c e s k 23 for that year, an employer has been a contributing employer e a n b 24 throughout the preceding twenty-four months, the contribution u [ rate for that employer shall be determined by multiplying the .218470.4 - 9 - employer's benefit ratio by the reserve factor as determined pursuant to Subsection H of this section and, for each calendar year beginning in calendar year 2017, then multiplying that product by the employer's experience history factor as determined under Subsection I of this section;

Except as provided in Subsection Q of this section, for each calendar year, if, as of the computation date for that year, an employer'semployer has been a contributing employer throughout the preceding twenty-four months, the contribution rate shallfor notthat employer shall be lessdetermined thanby thirty-multiplying threethe hundredthsemployer's percentbenefit orratio moreby thanthe fivereserve andfactor four-tenthsas percent,determined exceptpursuant asto providedSubsection H of this section and, for each calendar year beginning in calendar year 2017, then multiplying that product by the employer's experience history factor as determined under Subsection RI of this section.section;

Anprovided employer'sthat benefitan ratio is determined by dividing the employer's benefitcontribution chargesrate duringshall thenot immediatelybe precedingless fiscalthan years,thirty- up to a maximum of three fiscalhundredths years,percent byor themore totalthan offive theand annualfour-tenths payrollspercent, ofexcept theas sameprovided timein period,Subsection calculatedR toof fourthis decimalsection places,. disregarding any remaining fraction.

G.An employer's benefit ratio is determined by dividing the h employer's benefit charges during the immediately preceding u » r fiscal years, up to a maximum of three fiscal years, by the t h g e l i total of the annual payrolls of the same time period, h r i s calculated to four decimal places, disregarding any remaining h , e h fraction.

Exceptt asu providedg in Subsection Q of this section, for each calendar year, if, as of the computation date e tb 17 of that year, an employer has been a contributing employer for w l n d 18 less than twenty-four months, the contribution rate for that = = 19 a l employer shall be the average of the contribution rates for all i a e r 20 contributing employers in the employer's industry, as a t m m 21 determined by administrative rule, but shall not be less than d r e 22, onegh percentG. or more than five and four-tenths percent, except c e s k 23 as provided in Subsection R of this section;

providedExcept thatas anprovided ein aSubsection nQ b 24 individual, type of organizationthis orn employingd unitd thati u= [= acquireso allh orsection, partfor ofeach thecalendar tradeyear, orif, businessas of anotherthe .218470.4computation -date 10l -] employingb unit,,d pursuanti toa Paragraphsº (2)r and (3) of Subsectionthat Eyear, ofan Sectionemployer 51-1-42 NMSA 1978, that has been a ratecontributing ofemployer contributionfor lesse thanr average= oft thee contributionw ratesd form alla contributingn employerso inless thethan employer'stwenty-four industry,months, shall be entitled to the transfer of the contribution rate offor thethat otherd employingm unit: to the extent permitted under Subsection E of this section.

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 10 - e a n e d r e l u [ A d employer shall be the average of the contribution rates for all contributing employers in the employer's industry, as determined by administrative rule, but shall not be less than one percent or more than five and four-tenths percent, except as provided in Subsection R of this section;

provided that an individual, type of organization or employing unit that acquires all or part of the trade or business of another employing unit, pursuant to Paragraphs (2) and (3) of Subsection E of Section 51-1-42 NMSA 1978, that has a rate of contribution less than average of the contribution rates for all contributing employers in the employer's industry, shall be entitled to the transfer of the contribution rate of the other employing unit to the extent permitted under Subsection E of this section.

An adequate reserve shall be determined h to mean that the funds in the fund available for benefits equal u » r the total amount of funds needed to pay between eighteen and t h g e l i twenty-four months of benefits at the average of the five h r i s highest years of benefits paid in the last twenty-five years.

h , e h Except as provided in Subsection Q of this section, for the t u g e b l e e , gh purpose of sustaining an adequate reserve, the division shall n d d i = = o h determine a reserve factor to be used when calculating an el t] 17b ,d i a º r employer's contribution rate pursuant to Subsection F of this we lr n= t e w d 18m a n o section by rule promulgated by the secretary.

Except as =d = 19 a l provided in Subsection Q of this section, the rules shall set i a e r 20 forth a formula that will set the reserve factor in proportion a t m m: 21 to the difference between the amount of funds available for d r e 22 benefits in the fund, as of the computation date, and the c e s k 23 adequate reserve, within the following guidelines:

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 11 - e a n be 24d (1)r 1.0000e if,l u [ A d provided in Subsection Q of this section, the rules shall set forth a formula that will set the reserve factor in proportion to the difference between the amount of funds available for benefits in the fund, as of the computation date, thereand uthe [adequate isreserve, anwithin adequatethe reserve;following guidelines:

.218470.4(1) -1.0000 11 - (2) between 0.5000 and 0.9999 if, as of the computation date, there is greater than an adequate reserve;

(2) between 0.5000 and 0.9999 if, as of the computation date, there is greater than an adequate reserve;

Except as provided in Subsection Q of this section, for each calendar year beginning in calendar year 2017, if, as of the computation date for that calendar year, an employer has been a contributing employer throughout the h preceding twenty-four months, the employer's experience history u » r factor shall be determined as of the computation date and shall t h g e l i be based on the employer's reserve.

The employer's reserve h r i s shall be calculated as the difference between all of the h , e h employer's previous years' contribution payments and all of the t u g e b l e e , gh employer's previous years' benefit charges, divided by the n d d i = = o h average of the employer's annual payrolls for the immediately el t] 17b ,d i a º r preceding fiscal years, up to a maximum of three fiscal years.

we lr n= t e w d 18m a n o If an employer's reserve is:

The employer's experience =d =m 19: a l history factor is:

ib ar e rt 20º 6.0%o and over 0.4000 a t mn m= 21.218470.4AIC 5.0%-5.9%February 0.500016, d2021 r(10:43am) es 22k 4.0%-4.9%m 0.6000 c e s- k12 23- 3.0%-3.9% 0.7000 e a n be 24d 2.0%-2.9%r 0.8000e l u [ 1.0%-1.9%A 0.9000d .218470.4history -factor 12is: - 0.0%-0.9% 0.9500 Under 0.0% 1.0000.

6.0% and over 0.4000 5.0%-5.9% 0.5000 4.0%-4.9% 0.6000 3.0%-3.9% 0.7000 2.0%-2.9% 0.8000 1.0%-1.9% 0.9000 0.0%-0.9% 0.9500 Under 0.0% 1.0000.

Except as provided in [Subsection][Subsection ] Subsections Q and R of this section, if an employer's contribution rate pursuant to Subsection F of this section is calculated to be greater than five and four-tenths percent, notwithstanding the limitation pursuant to Subsection F of this section, the employer shall be charged an excess claims premium in addition to the contribution rate applicable to the employer;

provided h that an employer's excess claims premium shall not exceed one g o t hr percent of the employer's annual payroll.

The excess claims g e i k premium shall be determined by multiplying the employer's h r i s excess claims rate by the employer's annual payroll.

An h , t, employer's excess claims rate shall be determined by e u g e b l e e h multiplying the difference of the employer's contribution rate, n d d i = = o h notwithstanding the limitation pursuant to Subsection F of this el t] 17b ,d i a º e section, less five and four-tenths percent by ten percent.

wr li n= r t e w d 18m a n o K.

Effective calendar year 2017, any other provision =d = 19 a l of law notwithstanding, an employer's contribution rate plus i a e r 20 the employer's excess claims rate, if any, shall increase by no a t m m: 21 more than two percentage points from one calendar year to the d r e 22 next.

cb e d s º o t n = .218470.4AIC February 16, 2021 (10:43am) s k 23m L.e - 13 - e a n e d r e l u [ A d of law notwithstanding, an employer's contribution rate plus the employer's excess claims rate, if any, shall increase by no more than two percentage points from one calendar year to the next.

ExceptL. as provided in Subsection Q of this e a n b 24 section, the division shall promptly notify each employer of u [ the employer's rate of contributions and excess claims premium .218470.4 - 13 - as determined for any calendar year pursuant to this section.

Except as provided in Subsection Q of this section, the division shall promptly notify each employer of the employer's rate of contributions and excess claims premium as determined for any calendar year pursuant to this section.

Such determination shall become conclusive and binding upon the employer unless, within thirty days after the mailing of notice thereof to the employer's last known address or in the absence of mailing, within thirty days after the delivery of such h notice, the employer files an application for review and u » r redetermination, setting forth the employer's reason therefor.

t h g e l i The employer shall be granted an opportunity for a fair hearing h r i s in accordance with rules prescribed by the secretary, but an h , e h employer shall not have standing, in any proceeding involving thet employer'su rateg ofe contributionsb orl contributione liability,e to, contestgh the chargeabilityemployer's torate the employer of anycontributions benefits e t 17 paid in accordance with a determination, redetermination or wcontribution lliability, n d 18d decisioni pursuant to Section 51-1-8 NMSA 1978, except upon the = = 19o ah lto groundcontest that the serviceschargeability onto the basisemployer of whichany such benefits il a] eb r,d 20i were found to be chargeable did not constitute services a tº mr mpaid 21 performed in employmentaccordance forwith the employer and only in the event d r e 22 that the employer was not a party to such determination, c e s k 23 redetermination or decision,e orr to= anyt othere proceedingsw underd em a n bo 24decision thepursuant Unemploymentto CompensationSection Law51-1-8 inNMSA which1978, theexcept characterupon ofthe ud [m such: services was determined.

Theb employerr shalle bet promptlyº .218470.4o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 14 - notifiede ofa then decisione ond ther employer'se applicationl foru redetermination,[ whichA shalld becomeground finalthat unless,the withinservices fifteenon days after the mailingbasis of noticewhich thereofsuch benefits were found to thebe employer'schargeable lastdid knownnot addressconstitute orservices performed in employment for the absenceemployer ofand mailing,only withinin fifteenthe daysevent afterthat the deliveryemployer ofwas suchnot notice,a furtherparty appealto issuch initiateddetermination, pursuantredetermination or decision, or to Subsectionany Dother proceedings under the Unemployment Compensation Law in which the character of Sectionsuch 51-1-8services NMSAwas 1978.determined.

M.

The division shall provide each contributing employer, within ninety days of the end of each calendar quarter, a written determination of benefits chargeable to the employer.

Such determination shall become conclusive and binding upon the employer for all purposes unless, within thirty days after the mailing of the determination to the employer's last known address or in the absence of mailing, within thirty days after the delivery of such determination, the employer files an application for review and e t 17 redetermination, setting forth the employer's reason therefor.

w l n d 18 The employer shall be granted an opportunity for a fair hearing = = 19 a l in accordance with rules prescribed by the secretary, but an i a e r 20 employer shall not have standing in any proceeding involving a t m m 21 the employer's contribution liability to contest the d r e 22 chargeability to the employer of any benefits paid in c e s k 23 accordance with a determination, redetermination or decision e a n b 24 pursuant to Section 51-1-8 NMSA 1978, except upon the ground u [ that the services on the basis of which such benefits were .218470.4 - 15 - found to be chargeable did not constitute services performed in employment for the employer and only in the event that the employer was not a party to such determination, redetermination or decision, or to any other proceedings under the Unemployment Compensation Law in which the character of such services was determined.

N.M.

The contributionsdivision and excess claims premiums, together with interest and penalties thereon imposed by the Unemployment Compensation Law, shall notprovide beeach assessedcontributing noremployer, shallwithin actionninety todays collectof the sameend beof commencedeach morecalendar thanh fourquarter, yearsa ewritten tdetermination 17of afterbenefits achargeable reportto showing the amountu of» ther contributionsemployer. was due.

wSuch ldetermination nshall dbecome 18conclusive Inand thet caseh ofg ae falsel ori fraudulentbinding contributionupon reportthe withemployer =for =all 19purposes aunless, lwithin intenth tor evadei contributionss orthirty adays willfulafter failurethe tomailing fileof athe idetermination ato the h , e rh 20employer's reportlast ofknown alladdress contributionsor due,in the contributionsabsence andof excessmailing, a t mu mg 21e claimsb premiums,l togethere withe interest, andgh penaltieswithin thereon,thirty days after the delivery of such determination, n d rd ei 22= may= beo assessedh orthe employer files an actionapplication tofor collectreview suchand contributionsl may] cb e,d si ka 23º ber begunredetermination, atsetting anyforth time.the employer's reason therefor.

Beforee ther expiration= oft suche periodw ofd em a n bo 24The limitation, the employer andshall thebe secretarygranted may agree in writing u [ to an extensionopportunity thereoffor anda thefair periodhearing sod agreedm on: may be .218470.4 - 16 - extended by subsequent agreements in writing.

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 15 - e a n e d r e l u [ A d in accordance with rules prescribed by the secretary, but an employer shall not have standing in any proceeding involving the employer's contribution liability to contest the chargeability to the employer of any benefits paid in accordance with a determination, redetermination or decision pursuant to Section 51-1-8 NMSA 1978, except upon the ground that the services on the basis of which such benefits were found to be chargeable did not constitute services performed in employment for the employer and only in the event that the employer was not a party to such determination, redetermination or decision, or to any other proceedings under the Unemployment Compensation Law in which the character of such services was determined.

The employer shall be promptly notified of the decision on the employer's application for redetermination, which shall become final unless, within fifteen days after the mailing of notice thereof to the employer's last known address h or in the absence of mailing, within fifteen days after the u » r delivery of such notice, further appeal is initiated pursuant t h g e l i to Subsection D of Section 51-1-8 NMSA 1978.

h r i s N.

The contributions and excess claims premiums, h , e h together with interest and penalties thereon imposed by the t u g e b l e e , gh Unemployment Compensation Law, shall not be assessed nor shall n d d i = = o h action to collect the same be commenced more than four years l ] b ,d i a º r after a report showing the amount of the contributions was due.

e r = t e w d m a n o In the case of a false or fraudulent contribution report with d m :

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 16 - e a n e d r e l u [ A d intent to evade contributions or a willful failure to file a report of all contributions due, the contributions and excess claims premiums, together with interest and penalties thereon, may be assessed or an action to collect such contributions may be begun at any time.

Before the expiration of such period of limitation, the employer and the secretary may agree in writing to an extension thereof and the period so agreed on may be extended by subsequent agreements in writing.

The secretary shall correct any error in the determination of an employer's rate of contribution during the h calendar year to which the erroneous rate applies, u » r notwithstanding that notification of the employer's rate of t h g e l i contribution may have been issued and contributions paid h r i s pursuant to the notification.

Upon issuance by the division of h , e h a corrected rate of contribution, the employer shall have the t u g e b l e e , gh same rights to review and redetermination as provided in n d d i = = o h Subsection L of this section.

el t] 17b ,d i a º r P.

Any interest required to be paid on advances to we lr n d 18 this state's unemployment compensation fund under Title 12 of = =t 19e aw ld them Social Security Act shall be paid in a timelyn mannero asthis istate's aunemployment ecompensation rfund 20 required under Section 1202 of Title 12 of thed Social Security a t m m: 21 Act and shall not be paid, directly or indirectly, by the state d r e 22 from amounts in the state's unemployment compensation fund.

cb r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k 23m Q.e - 17 - e a n e d r e l u [ A d the Social Security Act shall be paid in a timely manner as required under Section 1202 of Title 12 of the Social Security Act and shall not be paid, directly or indirectly, by the state from amounts in the state's unemployment compensation fund.

TheQ. secretary shall omit data for March 1, 2020 e a n b 24 through June 30, 2021 from calculations of an employing u [ enterprise's experience history, excess claims premiums and .218470.4 - 17 - excess claims rates.

The secretary shall omit data for March 1, 2020 through June 30, 2021 from calculations of an employing enterprise's experience history, excess claims premiums and excess claims rates.

Beginning January 1, 2022 and prior to JanuaryHLVMCºJanuary 1, 2024,2024»HLVMC HLVMCºthe earlier of December 31, or the date federal relief is received»HLVMC , for each contributing employer, two-tenths percent shall be added to the contribution rate determined pursuant to Subsections F and G of this section.

h [R.] S.

u » r (1) "annual payroll" means the total taxable t h g e l i amount of remuneration from an employer for employment during a h r i s twelve-month period ending on a computation date;

h , e h (2) "base-period employers" means the employers t u g e b l e e , gh of an individual during the individual's base period;

n d d i = = o h (3) "base-period wages" means the wages of an l ] b ,d i a º r individual for insured work during the individual's base period e r = t e w d m a n o on the basis of which the individual's benefit rights were ed tm 17: determined;

wb lr ne dt 18º (4)o "commont ownership"n means that two or more = =.218470.4AIC 19February a16, l2021 businesses(10:43am) ares substantiallyk owned,m managede or- controlled18 by- ie a n e d r 20e thel sameu person[ orA persons;d determined;

a(4) t"common mownership" mmeans 21that (5)two "computationor date"more forbusinesses eachare calendarsubstantially yearowned, dmanaged ror econtrolled 22by means the closesame ofperson businessor onpersons; June 30 of the preceding c e s k 23 calendar year;

e(5) a"computation ndate" bfor 24each (6)calendar "employingyear enterprise" means athe businessclose uof [business activityon engagedJune in30 byof a contributing employing unit in which .218470.4 - 18 - one or more persons have been employed within the current or the three preceding calendar quarters.year;

(6) "employing enterprise" means a business activity engaged in by a contributing employing unit in which one or more persons have been employed within the current or the three preceding calendar quarters.

HLVMCº (8) "federal relief" means federal funds deposited in the unemployment compensation fund or the h forgiveness of loans provided by the federal government to the g o t hr state for the purpose of providing unemployment compensation g e i k benefits;»HLVMC h r i s HLVMCº(8)»HLVMC HLVMCº(9)»HLVMC "knowingly" h , t, e u g means having actual knowledge of or acting with deliberate e b l e e h ignorance of or reckless disregard for the prohibition n d d i = = o h involved;

(9)l ] b ,d i a º e r i = r HLVMCº (9)»HLVMC HLVMCº(10)»HLVMC "predecessor" t e w d m a n o means the owner and operator of an employing enterprise immediatelyd priorm to: the transfer of such enterprise;

(10)b "successor"e meansd anys personº thato acquirest ann employing= enterprise.218470.4AIC andFebruary continues16, 2021 (10:43am) s k m e - 19 - e a n e d r e l u [ A d immediately prior to operatethe suchtransfer businessof entity;such enterprise;

andHLVMCº(10)»HLVMC (11)HLVMCº(11)»HLVMC "violates"successor" ormeans attemptsany toperson violate"that includesacquires an intentemploying toenterprise evade,and acontinues misrepresentationto oroperate asuch willfulbusiness eentity; t 17 nondisclosure." w l n d 18 SECTION 2.

Sectionand 51-1-42HLVMCº NMSA(11)»HLVMC 1978HLVMCº(11)»HLVMC (being"violates Lawsor 2003,attempts =to =violate" 19includes aan lintent Chapterto 47,evade, Sectiona 12,misrepresentation asor amended)a iswillful amendednondisclosure." toSECTION read:2.

iSection a51-1-42 eNMSA r1978 20(being "51-1-42.Laws 2003, Chapter 47, Section 12, as amended) is amended to read:

DEFINITIONS.--As"51-1-42. used in the Unemployment a t m m 21 Compensation Law:

dDEFINITIONS.--As rused ein 22the A.Unemployment Compensation Law:

"baseA. period" means the first four of the last c e s k 23 five completed calendar quarters immediately preceding the e a n b 24 first day of an individual's benefit year, except that "base u [ period" means for benefit years beginning on or after January .218470.4 - 19 - 1, 2005 for an individual who does not have sufficient wages in the base period as defined to qualify for benefits pursuant to Section 51-1-5 NMSA 1978, the individual's base period shall be the last four completed calendar quarters immediately preceding the first day of the individual's benefit year if that period qualifies the individual for benefits pursuant to Section 51-1-5 NMSA 1978;

"base period" means the first four of the last five completed calendar quarters immediately preceding the first day of an individual's benefit year, except that "base period" means for benefit years beginning on or after January 1, 2005 for an individual who does not have sufficient wages in h the base period as defined to qualify for benefits pursuant to u » r Section 51-1-5 NMSA 1978, the individual's base period shall be t h g e l i the last four completed calendar quarters immediately preceding h r i s the first day of the individual's benefit year if that period h , e h qualifies the individual for benefits pursuant to Section t u g e b l e e , gh 51-1-5 NMSA 1978;

n d d i = = o h (1) wages that fall within the base period of l ] b ,d i a º r claims established pursuant to this subsection are not e r = t e w d m a n o available for reuse in qualifying for a subsequent benefit year;d m :

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 20 - e a n e d r e l u [ A d year;

"benefits" means the cash unemployment e t 17 compensation payments payable to an eligible individual w l n d 18 pursuant to Section 51-1-4 NMSA 1978 with respect to the = = 19 a l individual's weeks of unemployment;

i a e r 20 C.

"contributions" means the money payments required a t m m 21 by Section 51-1-9 NMSA 1978 to be made into the fund by an d r e 22 employer on account of having individuals performing services c e s k 23 for the employer;

e a n b 24 D.

"employing unit" means any individual or type of u [ organization, including any partnership, association, .218470.4 - 20 - cooperative, trust, estate, joint-stock company, agricultural h enterprise, insurance company or corporation, whether domestic u » r or foreign, or the receiver, trustee in bankruptcy, trustee or t h g e l i successor thereof, household, fraternity or club, the legal h r i s representative of a deceased person or any state or local h , e h government entity to the extent required by law to be covered t u g e b l e e , gh as an employer, that has in its employ one or more individuals n d d i = = o h performing services for it within this state.

An individual l ] b ,d i a º r performing services for an employing unit that maintains two or moree separater establishments= withint thise statew shalld bem deemeda ton beo employedmore byseparate aestablishments singlewithin employingthis unitstate forshall allbe thedeemed purposesd ofm the: Unemployment Compensation Law.

Anb individualr performinge servicest forº ao contractor,t subcontractorn or= agent.218470.4AIC thatFebruary is16, performing2021 work(10:43am) ors servicesk form ane employing- unit,21 as- describede ina thisn subsection,e thatd arer within the scope of the employing unit's usual trade, occupation, profession or business, shall e tl 17u be[ deemedA d to be inemployed theby employa ofsingle the employing unit for all wthe l n d 18 purposes of the Unemployment Compensation LawLaw. unless the = = 19 a l contractor, subcontractor or agent is itself an employer within i a e r 20 the provisions of Subsection E of this section;

An individual performing services for a tcontractor, msubcontractor mor 21agent E.that is performing work or services for an employing unit, as described in this subsection, that are within the scope of the employing unit's usual trade, occupation, profession or business, shall be deemed to be in the employ of the employing unit for all purposes of the Unemployment Compensation Law unless the contractor, subcontractor or agent is itself an employer within the provisions of Subsection E of this section;

E.

d r e 22 (1) an employing unit that:

c e s k 23 (a) unless otherwise provided in this e a n b 24 section, paid for service in employment as defined in u [ Subsection F of this section wages of four hundred fifty .218470.4 - 21 - dollars ($450) or more in any calendar quarter in either the h current or preceding calendar year or had in employment, as u » r defined in Subsection F of this section, for some portion of a t h g e l i day in each of twenty different calendar weeks during either h r i s the current or the preceding calendar year, and irrespective of h , e h whether the same individual was in employment in each such day, t u g e b l e e , gh at least one individual;

n d d i = = o h (b) for the purposes of Subparagraph (a) of l ] b ,d i a º r this paragraph, if any week includes both December 31 and e r = t e w d m a n o January 1, the days of that week up to January 1 shall be deemedd onem calendar: week and the days beginning January 1, another such week;

andb (c)r fore purposest ofº definingo ant "employer"n under= Subparagraph.218470.4AIC (a)February of16, this2021 paragraph,(10:43am) thes wagesk orm remuneratione paid- to22 individuals- performinge servicesa inn employmente ind agriculturalr labore orl domesticu services[ asA ed tdeemed 17one providedcalendar inweek Paragraphs (6) and (7)the ofdays Subsectionbeginning FJanuary of1, thisanother wsuch lweek; n d 18 section shall not be taken into account;

exceptand that(c) anyfor =purposes =of 19defining a l employing unit determined to be an employer"employer" of agricultural i a e r 20 labor under ParagraphSubparagraph (6)(a) of Subsection F of this sectionparagraph, shallthe awages tor mremuneration mpaid 21to beindividuals anperforming employerservices underin Subparagraphemployment (a)in ofagricultural thislabor paragraphor sodomestic longservices d r e 22 as theprovided employingin unitParagraphs is(6) payingand wages(7) orof remunerationSubsection forF cof ethis ssection kshall 23not servicesbe othertaken thaninto agriculturalaccount; services;

eexcept athat nany bemploying 24unit (2)determined anyto individualbe oran typeemployer of organizationagricultural thatlabor uunder [Paragraph acquired(6) theof tradeSubsection orF businessof orthis substantiallysection allshall ofbe thean .218470.4employer -under 22Subparagraph -(a) assets thereof, of anthis employingparagraph unitso thatlong atas the timeemploying ofunit theis acquisitionpaying waswages anor employerremuneration subjectfor toservices theother Unemploymentthan Compensationagricultural Law;services;

provided(2) thatany whereindividual suchor antype acquisitionof takesorganization place,that acquired the secretarytrade mayor postponebusiness activating the individual or typesubstantially all of organizationthe pursuantassets tothereof, Sectionof 51-1-11an NMSAemploying 1978unit untilthat suchat the time asof the successorh employeracquisition haswas employmentan asemployer definedsubject into Subsectionthe FUnemployment ofu this» section;r Compensation Law;

(3)provided that where such an employingacquisition unittakes thatt acquiredh allg ore partl ofi place, the organization,secretary trade,may businesspostpone activating the individual or assetsh r i s type of anotherorganization employingpursuant unitto andSection that,51-1-11 ifNMSA treated1978 ash a, singlee unith withuntil such time as the othersuccessor employingemployer unithas oremployment partas thereof,t wouldu beg ane employerb underl Paragraphe (1)e , gh defined in Subsection F of this subsection;section;

n d d i = = o h (3) an employing unit that acquired all or part l ] b ,d i a º r of the organization, trade, business or assets of another e r = t e w d m a n o employing unit and that, if treated as a single unit with the d m :

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 23 - e a n e d r e l u [ A d other employing unit or part thereof, would be an employer under Paragraph (1) of this subsection;

(a) for which, within either the current or preceding calendar year, service is or was performed with e t 17 respect to which such employing unit is liable for any federal w l n d 18 tax against which credit may be taken for contributions = = 19 a l required to be paid into a state unemployment fund;

or i a e r 20 (b) that, as a condition for approval of the a t m m 21 Unemployment Compensation Law for full tax credit against the d r e 22 tax imposed by the Federal Unemployment Tax Act, is required, c e s k 23 pursuant to that act, to be an "employer" under the e a n b 24 Unemployment Compensation Law;

u [ (5) an employing unit that, having become an .218470.4 - 23 - employer under Paragraph (1), (2), (3) or (4) of this h subsection, has not, under Section 51-1-18 NMSA 1978, ceased to u » r be an employer subject to the Unemployment Compensation Law;

t h g e l i (6) for the effective period of its election h r i s pursuant to Section 51-1-18 NMSA 1978, any other employing unit h , e h that has elected to become fully subject to the Unemployment t u g e b l e e , gh Compensation Law;

n d d i = = o h (7) an employing unit for which any services l ] b ,d i a º r performed in its employ are deemed to be performed in this e r = t e w d m a n o state pursuant to an election under an arrangement entered into ind accordancem with: Subsection A of Section 51-1-50 NMSA 1978;

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 24 - e a n e d r e l u [ A d in accordance with Subsection A of Section 51-1-50 NMSA 1978;

(1) means any service, including service in e t 17 interstate commerce, performed for wages or under any contract w l n d 18 of hire, written or oral, express or implied;

= = 19 a l (2) means an individual's entire service, i a e r 20 performed within or both within and without this state if:

a t m m 21 (a) the service is primarily localized in d r e 22 this state with services performed outside the state being only c e s k 23 incidental thereto;

or e a n b 24 (b) the service is not localized in any u [ state but some of the service is performed in this state and:

.218470.4 - 24 - 1) the base of operations or, if there is no base of h operations, the place from which such service is directed or u » r controlled, is in this state;

or 2) the base of operations or t h g e l i place from which such service is directed or controlled is not h r i s in any state in which some part of the service is performed but h , e h the individual's residence is in this state;

t u g e b l e e , gh (3) means services performed within this state n d d i = = o h but not covered under Paragraph (2) of this subsection if l ] b ,d i a º r contributions or payments in lieu of contributions are not e r = t e w d m a n o required and paid with respect to such services under an unemploymentd compensationm law: of any other state, the federal government or Canada;

(4)b meansr servicese coveredt byº ano electiont pursuantn to= Section.218470.4AIC 51-1-18February NMSA16, 19782021 and(10:43am) servicess coveredk bym ane election- duly25 approved- bye thea secretaryn ine accordanced withr ane arrangementl pursuantu to[ ParagraphA (1)d ofunemployment Subsectioncompensation Alaw of eany tother 17state, Section 51-1-50 NMSA 1978 shall be deemed to be employment w l n d 18 during the effectivefederal periodgovernment ofor theCanada; election;

=(4) =means 19services acovered lby (5)an meanselection pursuant to Section 51-1-18 NMSA 1978 and services performedcovered by an individualelection iduly aapproved eby rthe 20secretary forin accordance with an employerarrangement forpursuant wagesto orParagraph other(1) remunerationof unlessSubsection andA aof tSection m51-1-50 mNMSA 211978 untilshall itbe isdeemed establishedto bybe aemployment preponderanceduring the effective period of evidencethe that:election;

d(5) rmeans eservices 22performed (a)by thean individual hasfor beenan andemployer willfor cwages eor sother kremuneration 23unless continueand tountil beit freeis fromestablished controlby or direction over the e a npreponderance b 24 performance of theevidence servicesthat: both under the individual's u [ contract of service and in fact;

.218470.4(a) - 25 - (b) the serviceindividual ishas eitherbeen outsideand thewill usualcontinue courseto ofbe businessfree forfrom whichcontrol the service is performed or thatdirection suchover servicethe isperformance performed outside of all the placesservices ofboth businessunder of the enterpriseindividual's forcontract whichof such service isand performed;in fact;

and(b) (c) the individualservice is customarilyeither engagedoutside inthe anusual independentlyh establishedcourse trade,of occupation,business professionfor which the service is performed or businessthat u » r such service is performed outside of all the sameplaces natureof asbusiness thatt involvedh ing thee contractl i of service;the enterprise for which such service is performed;

(6)and meansh servicer performedi afters December(c) 31,the 1977individual byis ancustomarily individualengaged in agriculturalh labor, e h an independently established trade, occupation, profession or t u g e b l e e , gh business of the same nature as definedthat involved in Subsectionthe Qcontract of thisn sectiond if:d i = = o h service;

l ] b ,d i a º r (6) means service performed after December 31, e r = t e w d m a n o 1977 by an individual in agricultural labor as defined in d m :

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 26 - e a n e d r e l u [ A d Subsection Q of this section if:

or 2) employed in agricultural e t 17 labor ten or more individuals for some portion of a day in each w l n d 18 of twenty different calendar weeks in either the current or = = 19 a l preceding calendar year, whether or not the weeks were i a e r 20 consecutive, and regardless of whether the individuals were a t m m 21 employed at the same time;

d r e 22 (b) the service is not performed before c e s k 23 January 1, 1980 by an individual who is an alien admitted to e a n b 24 the United States to perform service in agricultural labor u [ pursuant to Sections 214(c) and 101(15)(H) of the federal .218470.4 - 26 - Immigration and Nationality Act;

and h (c) for purposes of this paragraph, an u » r individual who is a member of a crew furnished by a crew leader t h g e l i to perform service in agricultural labor for a farm operator or h r i s other person shall be treated as an employee of the crew h , e h leader:

1) if the crew leader meets the requirements of a crew t u g e b l e e , gh leader as defined in Subsection L of this section;

or 2) n d d i = = o h substantially all the members of the crew operate or maintain l ] b ,d i a º r mechanized agricultural equipment that is provided by the crew e r = t e w d m a n o leader;

and 3) the individuals performing the services are not, byd writtenm agreement: or in fact, within the meaning of Paragraph (5) of this subsection, performing services in employment for the farm operator or other person;

(7)b meansr servicee performedt afterº Decembero 31,t 1977n by= an.218470.4AIC individualFebruary in16, domestic2021 service(10:43am) ins ak privatem home,e local- college27 club- ore locala chaptern ofe ad colleger fraternitye orl eu t[ 17A sororityd forby awritten personagreement or organizationin thatfact, paidwithin cashthe wmeaning lof nParagraph d(5) 18 remuneration of onethis thousandsubsection, dollarsperforming ($1,000)services in anyemployment calendarfor = = 19 a l quarter in the currentfarm operator or precedingother calendarperson; year to i a e r 20 individuals performing such services;

a(7) t m m 21 (8) means service performed after December 31, d r e 22 1971 by an individual in thedomestic employservice ofin a religious,private charitable,home, clocal ecollege sclub kor 23local educationalchapter of a college fraternity or othersorority for a person or organization butthat onlypaid ifcash remuneration of one thousand dollars ($1,000) in any calendar quarter in the followingcurrent eor apreceding ncalendar byear 24to conditionsindividuals areperforming met:such services;

u(8) [means (a) the service isperformed excludedafter fromDecember .218470.431, -by 27an -individual "employment"in asthe definedemploy inof thea Federalreligious, Unemploymentcharitable, Taxeducational Actor solelyother byorganization reasonbut ofonly Sectionif 3306(c)(8)the offollowing thatconditions act;are met:

and(a) (b) the organizationservice meetsis theexcluded requirementsfrom of"employment" "employer" as provideddefined in Subparagraphthe (a)Federal ofUnemployment ParagraphTax (1)Act h solely by reason of SubsectionSection E3306(c)(8) of thisthat section;act;

(9)and meansu service» ofr an(b) individualthe whoorganization ismeets a citizen of the Unitedrequirements States,t performedh outsideg thee Unitedl States,i exceptof in"employer" Canada,as afterprovided December 31, 1971 in theSubparagraph employ(a) of anParagraph American(1) employer,h otherr thani services that is deemed "employment" under the provisions of ParagraphSubsection (2)E of this subsectionsection; or the parallel provisions of another state's law, if:

h , e h (9) means service of an individual who is a t u g e b l e e , gh citizen of the United States, performed outside the United n d d i = = o h States, except in Canada, after December 31, 1971 in the employ l ] b ,d i a º r of an American employer, other than service that is deemed e r = t e w d m a n o "employment" under the provisions of Paragraph (2) of this d m :

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 28 - e a n e d r e l u [ A d subsection or the parallel provisions of another state's law, if:

1) the employer is an individual who e t 17 is a resident of this state;

2) the employer is a corporation w l n d 18 organized under the laws of this state;

or 3) the employer is a = = 19 a l partnership or a trust and the number of the partners or i a e r 20 trustees who are residents of this state is greater than the a t m m 21 number who are residents of any one other state;

or d r e 22 (c) none of the criteria of Subparagraphs c e s k 23 (a) and (b) of this paragraph are met, but the employer has e a n b 24 elected coverage in this state or, the employer having failed u [ to elect coverage in any state, the individual has filed a .218470.4 - 28 - claim for benefits, based on such service, under the law of h this state.

u » r "American employer" for the purposes of this paragraph t h g e l i means a person who is:

1) an individual who is a resident of h r i s the United States;

2) a partnership if two-thirds or more of h , e h the partners are residents of the United States;

3) a trust if t u g e b l e e , gh all of the trustees are residents of the United States;

or 4) a n d d i = = o h corporation organized under the laws of the United States or of l ] b ,d i a º r any state.

For the purposes of this paragraph, "United States" e r = t e w d m a n o includes the United States, the District of Columbia, the commonwealthd ofm Puerto: Rico and the Virgin Islands;

(10)b means,r notwithstandinge anyt otherº provisionso oft thisn subsection,= service.218470.4AIC withFebruary respect16, to2021 which(10:43am) as taxk ism requirede to- be29 paid- undere any federal law imposing a taxn againste whichd creditr may be taken for contributions required to be paid into a state unemployment fund or which as a condition e tl 17u for[ fullA tax credit against the tax imposed by the Federal w l n d 18commonwealth Unemploymentof TaxPuerto ActRico isand required to be covered under the =Virgin =Islands; 19 a l Unemployment Compensation Law;

i(10) ameans, enotwithstanding rany 20other (11)provisions meansof this subsection, service performedwith inrespect theto employwhich ofa antax is required to be paid under any federal law imposing a ttax magainst mwhich 21credit Indianmay tribebe if:taken for contributions required to be paid into a state unemployment fund or which as a condition for full tax credit against the tax imposed by the Federal Unemployment Tax Act is required to be covered under the Unemployment Compensation Law;

d(11) rmeans e 22 (a) the service isperformed excluded from c e s k 23 "employment" as defined in 26the USCAemploy Section 3306(c) solely by e a n b 24 reason of 26an USCAIndian Sectiontribe 3306(c)(7);if:

and(a) u [ (b) the service is notexcluded otherwisefrom excluded"employment" .218470.4as -defined 29in -26 fromUSCA employmentSection pursuant3306(c) tosolely theby Unemploymentreason Compensationof Law;26 USCA Section 3306(c)(7);

(12)and does(b) the service is not include:otherwise excluded from employment pursuant to the Unemployment Compensation Law;

(a)h service(12) performeddoes innot theinclude: employ of:

1)g ao churcht orhr convention(a) orservice associationperformed ofin churches;the employ of:

or1) 2)g ane organizationi thatk is operated primarily for religious purposes and that is operated, supervised, controlled or principally supported by a church or convention or association of churches;

(b)or service2) performedan byh ar dulyi ordained,s commissionedorganization orthat licensedis ministeroperated ofprimarily afor churchreligious inpurposes theh exercise, oft, suchand ministrythat oris byoperated, asupervised, membercontrolled ofor aprincipally religiouse orderu ing thee exerciseb ofl dutiese requirede h supported by sucha order;church or convention or association of churches;

n d d i = = o h (b) service performed by a duly ordained, l ] b ,d i a º e commissioned or licensed minister of a church in the exercise r i = r t e w d m a n o of such ministry or by a member of a religious order in the d m :

b e d s º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 30 - e a n e d r e l u [ A d exercise of duties required by such order;

(d) service performed in the employ of the e t 17 United States government or an instrumentality of the United w l n d 18 States immune under the constitution of the United States from = = 19 a l the contributions imposed by the Unemployment Compensation Law i a e r 20 except that to the extent that the congress of the United a t m m 21 States shall permit states to require any instrumentalities of d r e 22 the United States to make payments into an unemployment fund c e s k 23 under a state unemployment compensation act, all of the e a n b 24 provisions of the Unemployment Compensation Law shall be u [ applicable to such instrumentalities, and to service performed .218470.4 - 30 - for such instrumentalities in the same manner, to the same h extent and on the same terms as to all other employers, u » r employing units, individuals and services;

provided that if t h g e l i this state shall not be certified for any year by the secretary h r i s of labor of the United States under Section 3304 of the federal h , e h Internal Revenue Code of 1986, 26 U.S.C.

Section 3304, the t u g e b l e e , gh payments required of such instrumentalities with respect to n d d i = = o h such year shall be refunded by the department from the fund in l ] b ,d i a º r the same manner and within the same period as is provided in e r = t e w d m a n o Subsection D of Section 51-1-36 NMSA 1978 with respect to contributionsd erroneouslym collected;:

(e)b servicer performede int aº facilityo conductedt forn the= purpose.218470.4AIC ofFebruary carrying16, out2021 a(10:43am) programs ofk rehabilitationm fore individuals- whose31 earning- capacity is impaired by age or physical or mental deficiency or injury or providing remunerative work for individuals who because of e ta 17 their impaired physical or mental capacity cannot be readily w l n e d 18r absorbede in the competitive labor market, by an individual = = 19 a l receivingu that[ rehabilitationA ord remunerativecontributions work;erroneously collected;

i(e) aservice eperformed rin 20a (f)facility serviceconducted withfor respectthe topurpose whichof carrying out a tprogram mof mrehabilitation 21for unemploymentindividuals compensationwhose earning capacity is payableimpaired underby anage unemploymentor dphysical ror emental 22deficiency compensationor systeminjury establishedor providing remunerative work for individuals who because of their impaired physical or mental capacity cannot be readily absorbed in the competitive labor market, by an actindividual ofreceiving congress;that rehabilitation or remunerative work;

c(f) e s k 23 (g) service performedwith inrespect theto employwhich ofunemployment acompensation eis apayable nunder ban 24unemployment foreigncompensation government,system includingestablished serviceby asan aact consularof orcongress; other u [ officer or employee or a nondiplomatic representative;

.218470.4(g) - 31 - (h) service performed byin anthe individualemploy forof a personforeign asgovernment, anincluding insuranceservice agent or as ana insuranceconsular solicitor,or ifother allofficer suchor serviceemployee performedor bya thenondiplomatic individualrepresentative; for the person is performed for remuneration solely by way of commission;

(i)(h) service performed by an individual underfor thea ageh ofperson eighteenas inan theinsurance deliveryagent or distributionas ofan newspapersinsurance orsolicitor, shoppingif news,u not» includingr deliveryall orsuch distributionservice toperformed anyby pointthe individual for subsequentthe deliveryperson oris distribution;t h g e l i performed for remuneration solely by way of commission;

(j)h r i s (i) service coveredperformed by an electionindividual dulyunder approvedh by, e h the agencyage chargedof witheighteen in the administrationdelivery or distribution of anyt otheru stateg e b l e e , gh newspapers or federalshopping unemploymentnews, compensationnot law,including indelivery accordanceor withn and arrangementd pursuanti to= Paragraph= (1)o ofh Subsectiondistribution Ato ofany Sectionpoint 51-1-50for NMSAsubsequent 1978delivery duringor thel effective] periodb of,d thei election;a º r distribution;

(k)e servicer performed,= ast part of an e t 17 unemployment work-relief or work-training program assisted or w l n d 18m financed in whole or part by any federal agency or an agency of = = 19 a ln ao state(j) orservice politicalcovered subdivision thereof, by an individualelection iduly ad em r: 20 receiving the work relief or work training;

ab t m m 21 (l) service performed by an individual who d r e 22t isº enrolledo att an nonprofit= or.218470.4AIC publicFebruary educational16, institution2021 c(10:43am) e s k 23m thate normally- maintains32 a- regular faculty and curriculum and e a n be 24d normallyr hase al regularly organized body of students in u [ attendanceA atd theapproved placeby where its educational activities are .218470.4 - 32 - carried on as a student in a full-time program, taken for credit at the institutionagency thatcharged combines academic instruction with work experience, if the serviceadministration is an integral part of suchany programother andstate theor institutionfederal hasunemployment socompensation certifiedlaw, toin theaccordance employer,with exceptan thatarrangement thispursuant subparagraph shall not apply to serviceParagraph performed(1) inof aSubsection programA establishedof forSection or51-1-50 onNMSA behalf1978 ofduring anthe employereffective orperiod group of employers;the election;

(m)(k) service performedperformed, inas thepart employ of aan hospital,unemployment ifwork-relief theor servicework-training isprogram performedassisted byor afinanced patientin ofwhole theor hospital,part orby servicesany performedfederal byagency or an inmateagency of a custodialstate or penalpolitical institutionsubdivision forthereof, anyby employer;an individual receiving the work relief or work training;

(l) service performed by an individual who is enrolled at a nonprofit or public educational institution that normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on as a student in a full-time program, taken for h credit at the institution that combines academic instruction u » r with work experience, if the service is an integral part of t h g e l i such program and the institution has so certified to the h r i s employer, except that this subparagraph shall not apply to h , e h service performed in a program established for or on behalf of t u g e b l e e , gh an employer or group of employers;

n d d i = = o h (m) service performed in the employ of a l ] b ,d i a º r hospital, if the service is performed by a patient of the e r = t e w d m a n o hospital, or services performed by an inmate of a custodial or d m :

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 33 - e a n e d r e l u [ A d penal institution for any employer;

(o) service performed in the employ of a school, college or university if the service is performed by a e t 17 student who is enrolled and is regularly attending classes at w l n d 18 the school, college or university;

= = 19 a l (p) service performed by an individual for a i a e r 20 fixed or contract fee officiating at a sporting event that is a t m m 21 conducted by or under the auspices of a nonprofit or d r e 22 governmental entity if that person is not otherwise an employee c e s k 23 of the entity conducting the sporting event;

e a n b 24 (q) service performed for a private, for- u [ profit person or entity by an individual as a product .218470.4 - 33 - demonstrator or product merchandiser if the service is h performed pursuant to a written contract between that u » r individual and a person or entity whose principal business is t h g e l i obtaining the services of product demonstrators and product h r i s merchandisers for third parties, for demonstration and h , e h merchandising purposes and the individual:

1) is compensated t u g e b l e e , gh for each job or the compensation is based on factors related to n d d i = = o h the work performed;

2) provides the equipment used to perform l ] b ,d i a º r the service, unless special equipment is required and provided e r = t e w d m a n o by the manufacturer through an agency;

3) is responsible for completiond ofm a: specific job and for any failure to complete the job;

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 34 - e a n e d r e l u [ A d completion of a specific job and for any failure to complete the job;

For the purpose of this subparagraph, "product demonstrator" means an individual who, on a temporary, part-time basis, e t 17 demonstrates or gives away samples of a food or other product w l n d 18 as part of an advertising or sales promotion for the product = = 19 a l and who is not otherwise employed directly by the manufacturer, i a e r 20 distributor or retailer, and "product merchandiser" means an a t m m 21 individual who, on a temporary, part-time basis builds or d r e 22 resets a product display and who is not otherwise directly c e s k 23 employed by the manufacturer, distributor or retailer;

or e a n b 24 (r) service performed for a private, for- u [ profit person or entity by an individual as a landman if .218470.4 - 34 - substantially all remuneration paid in cash or otherwise for h the performance of the services is directly related to the u » r completion by the individual of the specific tasks contracted t h g e l i for rather than to the number of hours worked by the h r i s individual.

For the purposes of this subparagraph, "landman" h , e h means a land professional who has been engaged primarily in:

t u g e b l e e , gh 1) negotiating for the acquisition or divestiture of mineral n d d i = = o h rights;

2) negotiating business agreements that provide for the l ] b ,d i a º r exploration for or development of minerals;

3) determining e r = t e w d m a n o ownership of minerals through the research of public and privated records;m :

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 35 - e a n e d r e l u [ A d private records;

and (13) for the purposes of this subsection, if the e t 17 services performed during one-half or more of any pay period by w l n d 18 an individual for the person employing the individual = = 19 a l constitute employment, all the services of the individual for i a e r 20 the period shall be deemed to be employment, but, if the a t m m 21 services performed during more than one-half of any such pay d r e 22 period by an individual for the person employing the individual c e s k 23 do not constitute employment, then none of the services of the e a n b 24 individual for the period shall be deemed to be employment.

As u [ used in this paragraph, the term "pay period" means a period, .218470.4 - 35 - of not more than thirty-one consecutive days, for which a h payment of remuneration is ordinarily made to the individual by u » r the person employing the individual.

This paragraph shall not t h g e l i be applicable with respect to services performed in a pay h r i s period by an individual for the person employing the individual h , e h where any of such service is excepted by Subparagraph (f) of t u g e b l e e , gh Paragraph (12) of this subsection;

n d d i = = o h G.

"employment office" means a free public employment l ] b ,d i a º r office, or branch thereof, operated by this state or maintained e r = t e w d m a n o as a part of a state-controlled system of public employment offices;d m :

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 36 - e a n e d r e l u [ A d offices;

"fund" means the unemployment compensation fund established by the Unemployment Compensation Law to which all contributions and payments in lieu of contributions required under the Unemployment Compensation Law and from which all benefits provided under the Unemployment Compensation Law shall e t 17 be paid;

w l n d 18 I.

"unemployment" means, with respect to an = = 19 a l individual, any week during which the individual performs no i a e r 20 services and with respect to which no wages are payable to the a t m m 21 individual and during which the individual is not engaged in d r e 22 self-employment or receives an award of back pay for loss of c e s k 23 employment.

The secretary shall prescribe by rule what e a n b 24 constitutes part-time and intermittent employment, partial u [ employment and the conditions under which individuals engaged .218470.4 - 36 - in such employment are eligible for partial unemployment h benefits, but no individual who is otherwise eligible shall be u » r deemed ineligible for benefits solely for the reason that the t h g e l i individual seeks, applies for or accepts only part-time work, h r i s instead of full-time work, if the part-time work is for at h , e h least twenty hours per week;

t u g e b l e e , gh J.

"state", when used in reference to any state other n d d i = = o h than New Mexico, includes, in addition to the states of the l ] b ,d i a º r United States, the District of Columbia, the commonwealth of e r = t e w d m a n o Puerto Rico and the Virgin Islands;

K.d m :

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 37 - e a n e d r e l u [ A d K.

"Employment security department fund" means the fund established by Subsection B of Section 51-1-34 NMSA 1978 from which certain e t 17 administrative expenses under the Unemployment Compensation Law w l n d 18 shall be paid;

= = 19 a l L.

i a e r 20 (1) holds a valid certificate of registration as a t m m 21 a crew leader or farm labor contractor under the federal d r e 22 Migrant and Seasonal Agricultural Worker Protection Act;

c e s k 23 (2) furnishes individuals to perform services in e a n b 24 agricultural labor for any other person;

u [ (3) pays, either on the crew leader's own behalf .218470.4 - 37 - or on behalf of such other person, the individuals so furnished h by the crew leader for service in agricultural labor;

and g o t hr (4) has not entered into a written agreement g e i k with the other person for whom the crew leader furnishes h r i s individuals in agricultural labor that the individuals will be h , t, the employees of the other person;

e u g e b l e e h M.

"week" means such period of seven consecutive n d d i = = o h days, as the secretary may by rule prescribe.

The secretary l ] b ,d i a º e may by rule prescribe that a week shall be deemed to be "in", r i = r t e w d m a n o "within" or "during" the benefit year that includes the greater partd ofm such: week;

b e d s º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 38 - e a n e d r e l u [ A d part of such week;

"insured work" means services performed for employers who are covered under the Unemployment Compensation e t 17 Law;

w l n d 18 P.

"benefit year" with respect to an individual means = = 19 a l the one-year period beginning with the first day of the first i a e r 20 week of unemployment with respect to which the individual first a t m m 21 files a claim for benefits in accordance with Subsection A of d r e 22 Section 51-1-8 NMSA 1978 and thereafter the one-year period c e s k 23 beginning with the first day of the first week of unemployment e a n b 24 with respect to which the individual next files such a claim u [ for benefits after the termination of the individual's last .218470.4 - 38 - preceding benefit year;

provided that at the time of filing h such a claim the individual has been paid the wage required u » r under Paragraph (5) of Subsection A of Section 51-1-5 NMSA t h g e l i 1978;

h r i s Q.

"agricultural labor" includes all services h , e h performed:

t u g e b l e e , gh (1) on a farm, in the employ of a person, in n d d i = = o h connection with cultivating the soil or in connection with l ] b ,d i a º r raising or harvesting an agricultural or horticultural commodity,e includingr the= raising,t shearing,e feeding,w caringd for,m traininga andn managemento ofcommodity, livestock,including bees,the poultryraising, andshearing, fur-bearingfeeding, animalscaring andd wildlife;m :

(2)b inr thee employt ofº theo ownert orn tenant= or.218470.4AIC otherFebruary operator16, of2021 a(10:43am) farm,s ink connectionm withe the- operation,39 management,- conservatione ora maintenancen ofe thed farmr ande itsl toolsu and[ equipment,A ifd thefor, majortraining partand management of thelivestock, servicebees, ispoultry eand tfur-bearing 17animals performedand onwildlife; a farm;

w(2) l n d 18 (3) in connection with the operationemploy or = = 19 a l maintenance of ditches,the canals,owner reservoirs or waterwaystenant usedor iother aoperator eof r 20 exclusively for supplying and storing water for farming a tfarm, min mconnection 21with purposesthe whenoperation, suchmanagement, ditches,conservation canals, reservoirs or waterwaysmaintenance areof dthe rfarm eand 22its ownedtools and operatedequipment, byif the farmersmajor usingpart of the waterservice storedis orperformed con ea sfarm; k 23 carried therein;

and(3) e a n b 24 (4) in handling,connection planting,with drying,the packing,operation uor [maintenance packaging,of processing,ditches, freezing,canals, grading,reservoirs storing or deliverywaterways .218470.4used -exclusively 39for -supplying toand storagestoring orwater tofor marketfarming orpurposes towhen asuch carrierditches, forcanals, transportationreservoirs toor marketwaterways anyare agriculturalowned orand horticulturaloperated commodityby butthe onlyfarmers ifusing the servicewater isstored performedor ascarried antherein; incident to ordinary farming operations.

Theand provisions(4) ofin thishandling, paragraphplanting, shalldrying, notpacking, bepackaging, deemedprocessing, tofreezing, begrading, applicablestoring withor respectdelivery to servicestorage performedor into connectionmarket withor commercialto canninga orcarrier commercialfor freezingtransportation orto inh connectionmarket with any agricultural or horticultural commodity afterbut itsonly deliveryif u » r the service is performed as an incident to aordinary terminalfarming markett forh distributiong fore consumption.l i operations.

AsThe usedprovisions inof this subsection,paragraph theshall termnot "farm"be includesh stock,r dairy,i poultry,s fruit,deemed fur-bearingto animalbe andapplicable truckwith farms,respect plantations,to ranches,service nurseries,performed greenhouses,in rangesh and, orchards;e h connection with commercial canning or commercial freezing or in t u g e b l e e , gh connection with any agricultural or horticultural commodity n d d i = = o h after its delivery to a terminal market for distribution for l ] b ,d i a º r consumption.

e r = t e w d m a n o As used in this subsection, the term "farm" includes d m :

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 40 - e a n e d r e l u [ A d stock, dairy, poultry, fruit, fur-bearing animal and truck farms, plantations, ranches, nurseries, greenhouses, ranges and orchards;

"payments in lieu of contributions" means the money payments made into the fund by an employer pursuant to the provisions of Subsection B of Section 51-1-13 NMSA 1978 or e t 17 Subsection E of Section 51-1-59 NMSA 1978;

w l n d 18 S.

"department" means the workforce solutions = = 19 a l department;

andHLVMCº iand»HLVMC a e r 20 T.

"wages" means all remuneration for services, a t m m 21 including commissions and bonuses and the cash value of all d r e 22 remuneration in any medium other than cash.

The reasonable c e s k 23 cash value of remuneration in any medium other than cash shall e a n b 24 be established and determined in accordance with rules u [ prescribed by the secretary;

provided that the term "wages" .218470.4 - 40 - shall not include the following;

provided that wages paid by an h employer to an individual in the employer's employ during any u » r calendar year in excess of the base wage in effect for that t h g e l i calendar year shall be reported to the department but shall be h r i s exempt from the payment of contributions unless such wages paid h , e h in excess of the base wage become subject to tax under a t u g e b l e e , gh federal law imposing a tax against which credit may be taken n d d i = = o h for contributions required to be paid into a state unemployment l ] b ,d i a º r fund:

e r = t e w d m a n o (1) [subsequent to December 31, 1977]1977 ] for the periods:d m :

(a)b priorr toe Januaryt 1,º 2022o andt beginningn January= 1,.218470.4AIC 2024,February that16, part2021 of(10:43am) thes remunerationk inm excesse of- the41 base- wagee asa determinedn bye thed secretaryr fore eachl calendaru year.[ A d periods:

The(a) baseprior wageto uponJanuary which1, contribution2022 shalland bebeginning paidHLVMCºJanuary during1, any2024»HLVMC calendarHLVMCºthe yeardate shall be sixty percent of the state'sbase ewage tdetermined 17pursuant average annual earnings computed by the division by dividing w l n d 18 total wages reported to theSubparagraph division(b) byof contributingthis employersparagraph =is =no 19longer ain leffect»HLVMC for, thethat secondpart precedingof calendar year before the calendarremuneration yearin iexcess aof e r 20 the computed base wage becomesas effectivedetermined by the averagesecretary annual a t m m 21 employment reported by contributing employers for theeach samecalendar dyear. r e 22 period rounded to the next higher multiple of one hundred c e s k 23 dollars ($100);

providedThe thatbase wage upon which contribution shall be paid during any calendar year shall be sixty percent of the basestate's wageaverage soannual earnings computed by the division by dividing total wages reported to the division by contributing employers for anythe esecond apreceding ncalendar byear 24before the calendar year shallthe notcomputed bebase lesswage thanbecomes seveneffective thousandby dollarsthe uaverage [annual ($7,000);employment reported by contributing employers for the same period rounded to the next higher multiple of one hundred dollars ($100);

[Wagesprovided paidthat by an employer to an individual in the .218470.4 - 41 - employer's employ during any calendar year in excess of the base wage inso effectcomputed for thatany calendar year shall benot reported to the department but shall be exemptless fromthan theseven paymentthousand ofh contributionsdollars unless($7,000); such wages paid in excess of the base wage become subject to tax under a federal law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment fund] and (b) beginning January 1, 2022 and prior to January 1, 2024, that part of the remuneration in excess of the base wage as determined by the secretary for each calendar year.

The[Wages basepaid wageby uponan whichemployer contributionto shallan beindividual paidu » r in the employer's employ during any calendar year shallin beexcess eighty-eightof percentt ofh g e l i the state'sbase averagewage annualin earningseffect computedfor bythat thecalendar divisionyear byshall dividingbe totalh wagesr i s reported to the divisiondepartment bybut contributingshall employersbe forexempt from the secondpayment precedingh calendar, yeare beforeh theof calendarcontributions yearunless thesuch computedwages paid in excess of the base waget becomesu effectiveg bye theb l e te 17, averagegh annualwage employmentbecome reportedsubject byto contributingtax employersunder wa lfederal law imposing a tax n d 18d fori the= same= periodo roundedh against which credit may be taken for contributions required to thel next] higherb multiple,d ofi onea =º r be paid into a state unemployment fund] and e r = 19t e w d m a ln hundredo dollars(b) ($100);beginning January 1, 2022 and prior to d m :

providedb thatr thee baset wageº soo computedt in = .218470.4AIC February 16, 2021 (10:43am) s k m e - 42 - e a n e d r 20e forl anyu calendar[ yearA shalld notHLVMCºJanuary be1, less2024»HLVMC thanHLVMCºthe sevenearlier thousandof aDecember t31, mor mthe 21date dollarsfederal ($7,000);relief is received»HLVMC , that part of the remuneration in excess of the base wage as determined by the secretary for each calendar year.

dThe rbase ewage 22upon (2)which thecontribution amountshall ofbe anypaid paymentduring withany respectcalendar toyear cshall ebe seighty-eight kpercent 23 services performed after June 30, 1941 to or on behalf of anthe estate's aaverage nannual bearnings 24computed individualby in the employdivision ofby andividing employingtotal unitwages underreported ato planthe ordivision uby [contributing systememployers establishedfor by the employingsecond unitpreceding thatcalendar makesyear provisionbefore .218470.4the -calendar 42year -the forcomputed individualsbase inwage itsbecomes employeffective generallyby orthe foraverage aannual classemployment orreported classes of individuals, including any amount paid by ancontributing employingemployers unit for insurancethe orsame annuities,period orrounded intoto athe fund,next tohigher providemultiple forof anyone payment,hundred ondollars account($100); of:

(a)provided retirementthat if the paymentsbase arewage madeso bycomputed an employer to or on behalf of an employee under a simplified employee pension plan that provides for paymentsany bycalendar anyear employershall in addition to the salary or other remuneration normally payable to the employee or class of employees and does not includebe anyless paymentsthan thatseven representthousand deferreddollars compensation($7,000); or other reduction of an employee's normal taxable wages or remuneration or any payments made to a third party on behalf of an employee as part of an agreement of deferred remuneration;

(2) the amount of any payment with respect to services performed after June 30, 1941 to or on behalf of an h individual in the employ of an employing unit under a plan or u » r system established by the employing unit that makes provision t h g e l i for individuals in its employ generally or for a class or h r i s classes of individuals, including any amount paid by an h , e h employing unit for insurance or annuities, or into a fund, to t u g e b l e e , gh provide for any payment, on account of:

n d d i = = o h (a) retirement if the payments are made by l ] b ,d i a º r an employer to or on behalf of an employee under a simplified e r = t e w d m a n o employee pension plan that provides for payments by an employer d m :

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 43 - e a n e d r e l u [ A d in addition to the salary or other remuneration normally payable to the employee or class of employees and does not include any payments that represent deferred compensation or other reduction of an employee's normal taxable wages or remuneration or any payments made to a third party on behalf of an employee as part of an agreement of deferred remuneration;

e t 17 (c) medical and hospitalization expenses in w l n d 18 connection with sickness or accident disability;

or = = 19 a l (d) death;

provided the individual in its i a e r 20 employ has not the option to receive, instead of provision for a t m m 21 the death benefit, any part of such payment, or, if such death d r e 22 benefit is insured, any part of the premiums or contributions c e s k 23 to premiums paid by the individual's employing unit and has not eh a n b 24 the right under the provisions of the plan or system or policy u [» r of insurance providing for the death benefit to assign the .218470.4t -h 43g -e l i benefit, or to receive a cash consideration in lieu of the h r i s benefit either upon the individual's withdrawal from the plan h , e h or system providing for the benefit or upon termination of the t u g e b l e e , gh plan or system or policy of insurance or of the individual's n d d i = = o h service with the employing unit;

l ] b ,d i a º r (3) remuneration for agricultural labor paid in e r = t e w d m a n o any medium other than cash;

(4)d am payment: made to, or on behalf of, an employee or an employee's beneficiary under a cafeteria plan within the meaning of Section 125 of the federal Internal Revenue Code of 1986;

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e - 44 - e a n e d r e l u [ A d (4) a payment made to, or on behalf of, an employee or an employee's beneficiary under a cafeteria plan within the meaning of Section 125 of the federal Internal Revenue Code of 1986;

e t 17 (6) a payment made by an employer to a survivor w l n d 18 or the estate of a former employee after the calendar year in = = 19 a l which the employee died;

i a e r 20 (7) a payment made to, or on behalf of, an a t m m 21 employee or the employee's beneficiary under an arrangement to d r e 22 which Section 408(p) of the federal Internal Revenue Code of c e s k 23 1986 applies, other than any elective contributions under eh a n b 24 Paragraph (2)(A)(i) of that section;

u [» r (8) a payment made to or for the benefit of an .218470.4t -h 44g -e l i employee if at the time of the payment it is reasonable to h r i s believe that the employee will be able to exclude the payment h , e h from income under Section 106 of the federal Internal Revenue t u g e b l e e , gh Code of 1986;

or n d d i = = o h (9) the value of any meals or lodging furnished l ] b ,d i a º r by or on behalf of the employer if at the time the benefit is providede itr is= reasonablet toe believew thatd them employeea willn beo ableprovided toit excludeis suchreasonable itemsto frombelieve incomethat under Section 119 of the federalemployee Internalwill Revenuebe Coded ofm 1986.": SECTION 3.

APPROPRIATION.--Threeb hundredr millione dollarst ($300,000,000)º iso appropriatedt fromn the= general.218470.4AIC fundFebruary to16, the2021 workforce(10:43am) solutionss departmentk form expendituree in- fiscal45 year- 2021e toa payn claimse ford benefitsr pursuante l u [ A d able to exclude such items from income under Section 119 of the Unemploymentfederal CompensationInternal Law.Revenue Code of 1986.

If,HLVMCº"»HLVMC priorHLVMCº; to June 29, 2021, federal funds are deposited in the unemployment compensation fund, then any unexpended or unencumbered balance remaining on June 30, 2021 e t 17 shall be transferred to the general fund operating reserve;

wand»HLVMC lHLVMCºU. n d 18 provided that if federal funds are not so deposited, any = = 19 a l unexpended or unencumbered balance shall be transferred to the i a e r 20 unemployment compensation fund.

a"federal trelief" mmeans mfederal 21funds -deposited 45in -the dunemployment rcompensation efund 22or cthe eforgiveness sof kloans 23provided eby athe nfederal bgovernment 24to uthe [state .218470.4for the purpose of providing unemployment compensation benefits."»HLVMC SECTION 3.

APPROPRIATION.--Three hundred million dollars ($300,000,000) is appropriated from the general fund to the workforce solutions department for expenditure in fiscal year to pay claims for benefits pursuant to the Unemployment Compensation Law.

If, prior to June 29, 2021, federal funds are deposited in the unemployment compensation fund, then any unexpended or unencumbered balance remaining on June 30, 2021 shall be transferred to the general fund operating reserve;

h provided that if federal funds are not so deposited, any u » r unexpended or unencumbered balance shall be transferred to the t h g e l i unemployment compensation fund.

h r i s - 46 - h , e h t u g e b l e e , gh n d d i = = o h l ] b ,d i a º r e r = t e w d m a n o d m :

b r e t º o t n = .218470.4AIC February 16, 2021 (10:43am) s k m e e a n e d r e l u [ A d