requirement for insurance; enforcement.

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A. Every employer not domiciled in the state who employs workers engaged in activities required to be licensed under the Construction Industries Licensing Act [N.M. Stat. Ann. Chapter 60, Article 13] and every other employer not domiciled in the state who employs three or more workers within the state, whether that employment is permanent, temporary or transitory and whether the workers are residents or nonresidents of the state, shall comply with the provisions of Section 52-1-4 N.M. Stat. Ann. and, unless self-insured, shall obtain a workers’ compensation insurance policy, or an endorsement to an existing policy, issued in accordance with the provisions of Section 59A-17-10.1 N.M. Stat. Ann.. An employer who does not comply with the foregoing requirement shall be enjoined from doing business in the state pursuant to Section 52- 1-62 NMSA 1978 and shall be barred from recovery by legal action for labor or

materials furnished during any period of time in which he was not in compliance with the requirements of this section, and, if the noncomplying employment is in an activity for which the employer is licensed under the provisions of the Construction Industries Licensing Act, the employer’s license is subject to revocation or suspension for the violation.

B. The construction industries division of the regulation and licensing department shall promulgate rules and regulations to insure compliance with Subsection A of this section.