HOUSE BILL 251
51st legislature - STATE OF NEW MEXICO - first session, 2013
William "Bill" R. Rehm and Daniel Ivey-Soto
RELATING TO PERSONNEL; RESTRICTING BUY-OUT OF STATE AGENCY EMPLOYMENT CONTRACTS; LIMITING THE LENGTH OF TERM OF CERTAIN STATE AGENCY EMPLOYMENT CONTRACTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. EMPLOYMENT CONTRACTS--RESTRICTING BUY-OUT--LIMITATION OF TERM.--
A. A state agency may agree to a buy-out of an employment contract only if a buy-out is required by the terms of the employment contract, which contract has been in force for at least one hundred eighty days prior to the effective date of:
(1) the termination of that contract for any reason; or
(2) the resignation of the public employee.
B. A buy-out of an employment contract or a settlement agreement pursuant to a lawsuit regarding the employment contract brought by the public employee shall not exceed the lesser of:
(1) the annual salary provided for in the employment contract; or
(2) the salary of the governor for the immediate prior calendar year.
C. The term of an employment contract containing a buy-out provision shall not exceed two years.
D. As used in this section:
(1) "buy-out" means a payment of unearned compensation, severance allowance or other remuneration to a public employee upon:
(a) the resignation of the public employee prior to the stated termination date of that contract; or
(b) the termination for any reason of an employment contract prior to the stated termination date of that contract;
(2) "employment contract" means an agreement between a public employee and a state agency for the rendition of services, including professional services;
(3) "public employee" means any officer or employee of a state agency to whom a salary is paid from public funds for services rendered; and
(4) "state agency" means the state or any of its branches, agencies, departments, boards, instrumentalities or institutions.
SECTION 2. APPLICABILITY.--The provisions of this act apply to employment contracts entered into, extended or renewed after June 30, 2013.
SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.
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