A new version of the Paid Family and Medical Leave bill would, if enacted, extend leave benefits to families of military service members, among other changes made after it failed to pass in previous legislative sessions.

The bill is sponsored by Senate Pro Tem Mimi Stewart, D-Albuquerque, state Rep. Linda Serrato, D-Santa Fe.

Under the bill, the program would go into effect in 2027.  Then an employee would become eligible to take up to 12 weeks of paid leave for a health condition, to welcome a new child, or to care for a family member who is in grave health.

The PFML bill has been introduced in the legislature in prior years and last year, the bill appeared to be headed for passage when it failed to pass the House Commerce and Economic Development Committee. Stewart told NM Political Report that because the bill died in a House committee last year, this year the bill will start on the House side of the legislature.

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“It passed the senate; all the [Senate] committees and the floor by a fairly wide margin. It was the House where it got stopped. We’re hoping that by having the House take a first crack at it this year, the majority of the work will be done in the House to make sure they pass it,” Stewart said.

Stewart told NM Political Report the bill is good for women, who are not in the workforce in as robust numbers as men. Stewart said 47 percent of New Mexico women could be in the workforce but are not.

“When you drill down and ask why, part of it is that they don’t get the support they need to have a baby. No time off. Or they’re caretakers for parents, children or they have medical issues themselves,” Stewart said.

The bill will look similar to the one last year that appeared to be on the cusp of passage—but there are a few changes, Stewart said. She said she visited with officials in Colorado who recently passed a similar bill and gained guidance from that state’s recommendations. Tracy McDaniel, policy advocate for Southwest Women’s Law Center, said Tennessee officials also gave recommendations on implementation based on that state’s recent experience.

One of the changes is that the bill will specifically provide for family members of military service individuals who are deployed to another location and the family members needs time off to address legal matters or travel, McDaniel said.

Another change is that the advisory board that would provide guidance during the agency’s rulemaking will include both a small business owner and an expert in benefits and leave programs, McDaniel said.

Unlike previous legislative sessions, this PFML bill does not appropriate funds. Stewart told NM Political Report that the $36 million appropriation for the program is already in the House budget bill. 

Stewart said through text message that the non-recurring funds are mainly to enable the New Mexico Department of Workforce Solutions to hire staff and technical infrastructure to implement the program. The department will pay back the $36 million starting in the year 2026 at a rate of $6 million a year until 2032, Stewart said.

The fund would require employees in New Mexico and employers with five or more staff to pay a percentage point of the employees’ weekly wages to the Department of Workforce Solutions. For employees, the contribution would be 0.5 percent per paycheck, which amounts to $5 per every $1,000. For employers with five or more employees, the contribution is 0.4 percent, or $4 for every $1,000. 

No employee would contribute more than $843 a year toward the fund, McDaniel told NM Political Report. Employees also do not collect the entirety of their wages when on leave but 100 percent up to minimum wage and 67 percent of their wages above minimum wage after that.

She said another small change is that for individuals who earn $168,000 or more, those employees will not be subject to the PFML bill. She said policy makers created the wage cap in response to some criticism about exempting high earners last year.

 If the bill is enacted, the Department of Workforce Solutions would begin rulemaking on July 1,  2024. From July 1, 2025 until December 31, 2025, the department would spend six months educating employers and providing technical assistance. Contributions into the fund would begin January 1, 2026, McDaniel said.

The department would begin accepting applications for the 12 weeks of paid leave beginning January 1, 2027. Applicants for the leave have to demonstrate proof that the leave is necessary.

Another new concession to the business community, this year, is that the bill includes an actuary study to ensure the premiums are correct and the DWS would have to contract with a firm to perform the study that is an expert in paid leave policies, McDaniel said.

Another change is that the DWS secretary would be responsible for reporting the actuarial study findings to the legislature, McDaniel said.

The New Mexico Coalition of Sexual Assault Programs supports the bill, Alexandria Taylor, who is the executive director, told NM Political Report. The bill also enables victims of sexual assault, stalking, domestic violence or abuse to take paid time off to attend to mental and physical health and legal matters related to the trauma.

Marshall Martinez, executive director of Equality New Mexico, said the bill is especially important for the LGBTQ community in New Mexico because LGBTQ individuals have higher numbers of serious, long-term illnesses as a result of stress and trauma due to discrimination.

Martinez said the bill is also important for the LGBTQ community because of the way it defines what “family” means and the bill’s inclusive language allows for LGBTQ families. 

“We like to remind folks that just because we can legally get married doesn’t mean all of our relationships are legally bound in marriages. We create families out of choice oftentimes because our family of origin disowns us or is not welcoming,” Martinez said.

Martinez said LGBTQ parents do not always possess presumptive parentage when a baby is born. Sometimes, working through the legal documentation for new parents can take weeks, he said. 

Gov. Michelle Lujan Grisham’s budget recommendation did not include funding for the PFML program, but the governor’s spokesperson, Maddy Hayden, said the governor’s office “is in close communication with the bill sponsors.”

“As with all legislative proposals, we look forward to closely evaluating the bill and continuing discussions about Paid Family Leave with the Legislature,” Hayden said through email.

Stewart said she was in touch with Lujan Grisham earlier in the week over the bill. Stewart said the governor is supportive of the bill.