SENATE BILL 241

53rd legislature - STATE OF NEW MEXICO - second session, 2018

INTRODUCED BY

Pat Woods

AN ACT

RELATING TO PUBLIC ASSISTANCE; ESTABLISHING A "CLIFF EFFECT AMELIORATION PROGRAM" AT THE HUMAN SERVICES DEPARTMENT TO CREATE POLICIES TO ENCOURAGE PUBLIC ASSISTANCE RECIPIENTS TO DECREASE DEPENDENCE ON PUBLIC ASSISTANCE WHILE REDUCING OR REMOVING THE CLIFF EFFECT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. [NEW MATERIAL] CLIFF EFFECT AMELIORATION PROGRAM--GOALS.--

          A. The secretary of human services shall establish a "cliff effect amelioration program" to:

                (1) reduce or remove the cliff effect experienced by recipients enrolled in each of the public assistance programs that the human services department administers by ensuring that the value of greater financial independence to recipients is greater than the value of public assistance lost due to income and resource eligibility thresholds; and

                (2) decrease dependence on public assistance by encouraging financial independence among recipients.

          B. The human services department shall seek authority in accordance with state and federal law as well as state or federal funding as necessary to design public assistance program eligibility thresholds in a manner that conforms to the goals of the cliff effect amelioration program.

          C. As used in this section, "cliff effect" means a precipitous change in eligibility for a public assistance program that occurs when an individual's or a household's income or resources surpass the program eligibility threshold and the value of lost or reduced public assistance exceeds or nearly exceeds the benefit of the individual's or household's increase in income or resources.

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