Committee advances HB 11 to establish paid family and medical leave program; 6-4 vote

The House Health & Human Services Committee on a 6-4 vote advanced House Bill 11, the Paid Family and Medical Leave Act, which would create a state fund to provide partial wage replacement and job protection for qualifying family and medical leaves.

The bill “creates the paid family and medical leave act, which will establish a paid family and medical leave program in New Mexico to be administered by the workforce solutions department,” Representative Chandler told the committee during sponsors’ remarks.

Supporters said the program would act as an insurance policy for workers facing childbirth, serious illness, caregiving, or domestic violence and would improve workforce retention. Lan Sena, identified in testimony as a policy director and a cancer transplant survivor, described being unable to access leave in prior treatment and urged passage: “I urge your support of HB 11.” Christina Kimball of the Leukemia & Lymphoma Society urged the committee to keep the full 9 weeks of medical leave and later 12 weeks when fund solvency permits so cancer patients “can access their life saving care, recover, and then return to the workforce.”

Opponents—primarily business and industry trade groups—argued the cost and administrative burden would be heavy for employers, especially small and rural businesses, and for Medicaid-dependent providers. Terry Cole, president and CEO of the Greater Albuquerque Chamber of Commerce, told the committee, “the core of the bill remains unfriendly to businesses in New Mexico,” citing the program’s breadth and what he said would be additional administrative costs. Vicente Vargas of the New Mexico Healthcare Association warned nursing and long-term care providers that additional employer costs could strain facilities that already rely heavily on Medicaid reimbursements.

Key provisions and clarifications discussed in the hearing

- Program design and eligibility: Sponsors said employees and self-employed individuals could take up to 12 weeks per year for family leave (new parents or parents who have lost a child under 18); up to nine weeks would be available for the employee’s own medical leave or to care for a family member, with an increase to 12 weeks if the fund is solvent. The Department of Workforce Solutions would administer the fund.

- Contribution rates discussed in testimony: witnesses and sponsors described an employee contribution around 0.5% of wages and an employer contribution around 0.4% (expressed during the hearing as “a half of a percent” and “4 tenths of a percent” respectively). The bill also includes a mechanism for future actuarial review and premium-setting, with a statutory guardrail on how quickly rates may change.

- Start-up and fiscal notes: Sponsors and witnesses referenced a proposed initial state appropriation for start-up costs and an LFC number of a $35 million appropriation for start-up. The fiscal-impact discussion during the hearing referred to a three-year total cost figure cited in the FIR and testimony; witnesses asked for and sponsors said they would provide the actuarial analysis that informed the projections.

- Administrative and fraud controls: The bill assigns administration to Workforce Solutions and includes verification, employer appeal rights and penalties for fraudulent claims. Sponsors described procedures for verification of medical or domestic-violence-related claims and noted employers may seek review of department determinations.

- Exemptions and private plans: The bill contains a waiver path for employers with private plans that are “substantially similar” or superior; committee members asked whether the entire program could be run by a private third-party administrator and sponsors confirmed the statute allows some contracting and use of third-party administrators.

Committee discussion and public testimony

The hearing drew a broad set of witnesses. Business groups including the New Mexico Chamber of Commerce, the New Mexico Restaurant Association and local chambers warned of payroll costs, staffing and hiring challenges in tight labor markets and requested more safeguards or alternatives such as tax credits for voluntary employer-provided leave. Construction, agriculture and residential care providers raised concerns about workforce shortages and the operational impact of extended leaves. Supporters included patient-advocacy groups, labor unions and small businesses that said a portable public program would make it easier to provide consistent benefits and help retain employees.

Vote and next steps

Representative Anaya moved to pass the bill; Representative E. Chavez seconded. The roll-call vote was: Yes — Representative Anaya, Representative Cates, Representative E. Chavez, Representative Ferrari, Vice Chair Herndon, Chair Elizabeth Thompson; No — Representative N. Chavez, Representative Jones, Representative Martinez, Representative Sena Cortez. The committee reported the bill out with a favorable recommendation by a 6-4 margin. Sponsors said they would provide the actuarial analysis and other materials requested by members.

What the vote does — and does not — do

A committee do-pass recommendation advances the bill to the next legislative step; it does not enact the law. Sponsors and opponents both told the committee that follow-up work is expected on implementation details, actuarial validation, and possible amendments on offsets for Medicaid-dependent providers and other narrow issues raised in testimony.

Ending

Members asked sponsors and agency staff to supply additional materials—actuarial work, details on Workforce Solutions’ projected staffing needs and estimated impacts on Medicaid providers—before further floor or committee action. The committee recessed after the vote and the bill heads to the next stage of the legislative process with a favorable committee recommendation.