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.162207.1

HOUSE LABOR AND HUMAN RESOURCES COMMITTEE SUBSTITUTE FOR

HOUSE MEMORIAL 25

47

TH LEGISLATURE

- STATE OF NEW MEXICO -

SECOND SESSION

, 2006

A MEMORIAL

REQUESTING THE INSURANCE DIVISION OF THE PUBLIC REGULATION

COMMISSION TO CONVENE A TASK FORCE TO STUDY WAYS TO REDUCE

WORKERS' COMPENSATION PREMIUMS FOR NONPROFIT AGENCIES PROVIDING

HEALTH AND HUMAN SERVICES.

WHEREAS, the state of New Mexico contracts with many

private, not-for-profit agencies to deliver an array of health

and human services; and

WHEREAS, agencies providing health and human services

often have limited funding available to meet programmatic needs

and personnel costs; and

WHEREAS, workers' compensation premiums for nonprofit

agencies providing health and human services have dramatically

increased in recent years, resulting in financial hardship for

these agencies; and

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.162207.1

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WHEREAS, agencies providing health and human services may

be assigned to the workers' compensation assigned-risk pool

with significantly higher costs, further jeopardizing fiscal

solvency for these agencies; and

WHEREAS, independent contractors may have been erroneously

classified as agency employees, resulting in increased

premiums;

NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF

REPRESENTATIVES OF THE STATE OF NEW MEXICO that the insurance

division of the public regulation commission be requested to

convene a task force to study ways to reduce workers'

compensation premiums for nonprofit agencies providing health

and human services; and

BE IT FURTHER RESOLVED that the task force include

representatives of the workers' compensation administration,

the department of health, the labor department, the children,

youth and families department, the human services department,

not-for-profit community-based providers of developmental

disability services, providers of disabled and elderly

services, providers of mental health services and other

appropriate entities; and

BE IT FURTHER RESOLVED that the task force report its

findings and recommendations to the interim legislative health

and human services committee by its October 2006 meeting; and

BE IT FURTHER RESOLVED that a copy of this memorial be

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.162207.1

sent to the insurance division of the public regulation

commission.

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