0001|                           SENATE BILL 327
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                          JOHN ARTHUR SMITH
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO PUBLIC ASSISTANCE; CREATING A WAGE SUBSIDY PROGRAM
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0012|     FOR CERTAIN AREAS; MAKING AN APPROPRIATION.
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0013|     
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0014|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0015|          Section 1.  SUBSIDIZED EMPLOYMENT.--
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0016|               A.  The human services department may apply for a
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0017|     food stamp waiver from the United States department of
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0018|     agriculture to operate a wage subsidy pilot program.
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0019|               B.  Upon securing a food stamp waiver, the human
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0020|     services department shall develop a wage subsidy program.  The
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0021|     human services department shall select areas with an
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0022|     unemployment rate of ten percent or greater to participate in
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0023|     the wage subsidy program. 
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0024|               C.  The wage subsidy program shall include the
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0025|     following requirements:
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<center>- 1 -</center>

0001|                    (1)  participating employers shall hire
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0002|     temporary assistance for needy families eligible participants
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0003|     who receive cash assistance and food stamps for subsidized job
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0004|     slots that are full time and that offer a reasonable
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0005|     possibility of unsubsidized employment after the subsidy
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0006|     period;
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0007|                    (2)  participating employers shall receive a
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0008|     subsidy for up to six months.  The human services department
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0009|     may grant an extension of three months to employers operating
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0010|     in areas identified as having a higher unemployment rate than
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0011|     the state average, as defined by the human services
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0012|     department, if the extension increases the likelihood of
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0013|     ongoing unsubsidized employment for the subsidized employee;
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0014|                    (3)  subsidized employees shall not be
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0015|     required to work in excess of forty hours per week;
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0016|                    (4)  subsidized employees shall be paid a wage
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0017|     that is substantially like the wage paid for similar jobs with
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0018|     the employer with appropriate adjustments for experience and
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0019|     training but not less than the federal minimum hourly wage;
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0020|                    (5)  subsidized employment does not impair an
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0021|     existing contract or collective bargaining agreement; 
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0022|                    (6)  subsidized employment does not displace
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0023|     currently employed workers or fill positions that are vacant
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0024|     due to a layoff;
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0025|                    (7)  wage subsidy employers shall:
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<center>- 2 -</center>

0001|                         (a)  maintain health, safety and working
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0002|     conditions at or above levels generally acceptable in the
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0003|     industry and not less than those of comparable jobs offered by
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0004|     the employer;
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0005|                         (b)  provide on-the-job training
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0006|     necessary for subsidized employees to perform their duties;
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0007|                         (c)  sign an agreement for each
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0008|     placement outlining the specific job offered to a subsidized
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0009|     employee and agree to abide by all of the requirements of the
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0010|     program;
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0011|                         (d)  provide workers' compensation
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0012|     coverage for each subsidized employee; and
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0013|                         (e)  provide the subsidized employee
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0014|     with benefits equal to those for new employees or as required
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0015|     by state and federal law, whichever is greater; 
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0016|                    (8)  the human services department shall make
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0017|     a determination of whether a participant is eligible to be a
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0018|     subsidized employee that includes the following criteria:
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0019|                         (a)  sufficient work experience to
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0020|     obtain unsubsidized employment;
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0021|                         (b)  completion of an employment
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0022|     preparation program; or
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0023|                         (c)  benefit from this employment
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0024|     strategy by the department;
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0025|                    (9)  a disregard of income earned by the
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<center>- 3 -</center>

0001|     subsidized employee in the subsidized job shall be applied in
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0002|     the eligibility determination for services;
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0003|                    (10)  the human services department shall
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0004|     suspend regular payments of cash assistance and food stamps to
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0005|     the benefit group for the calendar month in which an employer
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0006|     makes the first subsidized wage payment to a subsidized
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0007|     employee who is otherwise eligible for cash assistance and
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0008|     food stamps;
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0009|                    (11)  the human services department shall pay
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0010|     employers each month, from cash assistance and food stamps,
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0011|     the lesser of a fixed subsidy amount determined by the human
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0012|     services department or the gross wages paid to the subsidized
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0013|     employee;
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0014|                    (12)  a subsidized employee shall be eligible
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0015|     for supplemental payments if the net monthly full-time wage
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0016|     paid to the subsidized employee is less than the combined
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0017|     monthly total of the cash assistance and food stamps the
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0018|     participant is eligible to receive.  The human services
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0019|     department shall authorize issuance of a supplemental cash
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0020|     payment to compensate for the deficit.  To determine if a
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0021|     deficit exists, the human services department shall adopt an
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0022|     equivalency scale that is adjustable to household size and
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0023|     other factors; and
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0024|                    (13)  the human services department shall
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0025|     determine monthly and pay in advance supplemental payments to
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<center>- 4 -</center>

0001|     eligible subsidized employees.  In calculating the payment,
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0002|     the human services department shall assume that the subsidized
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0003|     employee will work forty hours per week during the month
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0004|     unless an employer provides information that the number of
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0005|     hours to be worked by the subsidized employee will be reduced.
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0006|               D.  For the purposes of this section, "benefits"
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0007|     includes health care coverage, paid sick leave and holiday and
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0008|     vacation pay.
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0009|               E.  For the purposes of this section, "subsidized
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0010|     employee" means a participant engaged in a subsidized
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0011|     employment activity.
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0012|               F.  For the purposes of this section, "net monthly
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0013|     full-time wage" means a subsidized employees's wages after the
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0014|     required payroll deductions.
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0015|          Section 2.  APPROPRIATION.--Two million dollars
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0016|     ($2,000,000) is appropriated from the general fund to the
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0017|     human services department for expenditure in fiscal year 1999
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0018|     for the purpose of funding a wage subsidy program for
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0019|     temporary assistance for needy families eligible persons who
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0020|     reside in areas with an unemployment rate of ten percent or
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0021|     greater.
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0022|          Any unexpended or unencumbered balance remaining at the
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0023|     end of fiscal year 1999 shall revert to the general fund.
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0024|                              
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