46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO WORKERS' COMPENSATION; ENACTING A NEW SECTION OF THE WORKERS' COMPENSATION ACT TO PROHIBIT A CONTRACTOR FROM REQUIRING A SUBCONTRACTOR TO OBTAIN WORKERS' COMPENSATION INSURANCE COVERAGE FROM A SPECIFIC INSURER; MAKING EXCEPTIONS.

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

Section 1. A new section of the Workers' Compensation Act is enacted to read:

"[NEW MATERIAL] MANDATING COVERAGE FROM A SPECIFIC INSURER.--

A. Except as provided in Subsection B of this section, a contractor shall not mandate, directly or indirectly, or as a condition or prerequisite in a contract or in a request for bids or proposals, that a subcontractor obtain workers' compensation coverage from a specific insurer or under a specific policy if the subcontractor:

(1) has a certificate filed with the director pursuant to Section 52-1-4 NMSA 1978; and

(2) is an independent contractor.

B. A contractor may require, as a condition or prerequisite in a contract or in a request for bids or proposals, that a subcontractor obtain workers' compensation coverage from a specific insurer or under a specific policy if:

(1) the contractor's project is worth at least one hundred million dollars ($100,000,000); or

(2) the subcontractor's employees would be working full time solely for the benefit of the contractor for ninety days or more; and

(3) the subcontractor's employees are covered by the policy during work hours regardless of where an injury might occur;

(4) the contractor notifies the subcontractor and the subcontractor's employees, in writing, where to get medical attention in the event of an injury; and

(5) the contractor has a formal written safety program that includes:

(a) a full-time safety supervisor; and

(b) scheduled weekly safety meetings."