NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

SPONSOR:

Thompson

 

DATE TYPED:

02/10/03

 

HB

588

 

SHORT TITLE:

Prohibit Minimum Wage Exceeding Federal Wage

 

SB

 

 

 

ANALYST:

Gilbert

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

NFI

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

LFC Files

Responses Received From

New Mexico Department of Labor (DOL)

Economic Development Department (EDD)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 588 amends the existing New Mexico Minimum Wage Act, NMSA 1978 §50-4-22, to prohibit political subdivisions of the state from establishing a minimum wage that exceeds the federal minimum wage.

 

ADMINISTRATIVE IMPLICATIONS

 

The US Department of Labor enforces federal minimum wages and the NM Department of Labor enforces the state minimum wage. If the counties and cities were permitted to create their own minimum wage, they would have to create enforcement mechanisms.

 

OTHER SUBSTANTIVE ISSUES

 

It is questionable whether HB 588 covers municipalities. The wording included in the bill is “no political subdivision”. Counties are political subdivisions of the state. School districts and improvement districts may be political subdivisions. Municipalities are not necessarily included in the term “political subdivision”; municipalities are generally referred to separately as municipal corporations and are regulated in the same manner as counties.

 

RLG/prr