Gov. signs unemployment insurance overhaul

New Mexico businesses will change the way they chip in to the state’s unemployment insurance fund under a new law signed by Gov. Susana Martinez on Wednesday.

The change starting in January 2015 will allow the Department of Workforce Solutions — instead of the Legislature — to set premiums businesses are required to pay into the fund that pays benefits to laid off workers.

Martinez said the law, sponsored by Sen. Stuart Ingle, R-Portales, takes politics out of decisions on how the unemployment insurance fund is managed.

“Politicians in Santa Fe shouldn’t be using an unfair and arbitrary rate structure to change costs on businesses year after year,” the governor said. “That’s not predictable, and it’s far too political.”

The change in how rates could raise premiums slightly but is expected to finally end the annual legislative debate on the issue.

The new system will calculate rates based on the type of business the company is in, its experience and a factor to raise or lower premiums to keep the unemployment insurance fund solvent, Greater Albuquerque Chamber of Commerce CEO Terri Cole told the Journal when the measure was approved.

She said it will deliver “consistency and certainty to the business community, both of which have been missing in the schedule-setting process in the past.”

A Legislative Finance Committee analysis estimates the new approach would raise an average employer’s premium 0.21 percent over the premium schedule that had been in place.

Another bill signed into law by the governor Wednesday will increase penalties for fraudulently claiming state unemployment benefits.