0001| SENATE BILL 327 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| JOHN ARTHUR SMITH | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO PUBLIC ASSISTANCE; CREATING A WAGE SUBSIDY PROGRAM | 0012| FOR CERTAIN AREAS; MAKING AN APPROPRIATION. | 0013| | 0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0015| Section 1. SUBSIDIZED EMPLOYMENT.-- | 0016| A. The human services department may apply for a | 0017| food stamp waiver from the United States department of | 0018| agriculture to operate a wage subsidy pilot program. | 0019| B. Upon securing a food stamp waiver, the human | 0020| services department shall develop a wage subsidy program. The | 0021| human services department shall select areas with an | 0022| unemployment rate of ten percent or greater to participate in | 0023| the wage subsidy program. | 0024| C. The wage subsidy program shall include the | 0025| following requirements: | - 1 - 0001| (1) participating employers shall hire | 0002| temporary assistance for needy families eligible participants | 0003| who receive cash assistance and food stamps for subsidized job | 0004| slots that are full time and that offer a reasonable | 0005| possibility of unsubsidized employment after the subsidy | 0006| period; | 0007| (2) participating employers shall receive a | 0008| subsidy for up to six months. The human services department | 0009| may grant an extension of three months to employers operating | 0010| in areas identified as having a higher unemployment rate than | 0011| the state average, as defined by the human services | 0012| department, if the extension increases the likelihood of | 0013| ongoing unsubsidized employment for the subsidized employee; | 0014| (3) subsidized employees shall not be | 0015| required to work in excess of forty hours per week; | 0016| (4) subsidized employees shall be paid a wage | 0017| that is substantially like the wage paid for similar jobs with | 0018| the employer with appropriate adjustments for experience and | 0019| training but not less than the federal minimum hourly wage; | 0020| (5) subsidized employment does not impair an | 0021| existing contract or collective bargaining agreement; | 0022| (6) subsidized employment does not displace | 0023| currently employed workers or fill positions that are vacant | 0024| due to a layoff; | 0025| (7) wage subsidy employers shall: | - 2 - 0001| (a) maintain health, safety and working | 0002| conditions at or above levels generally acceptable in the | 0003| industry and not less than those of comparable jobs offered by | 0004| the employer; | 0005| (b) provide on-the-job training | 0006| necessary for subsidized employees to perform their duties; | 0007| (c) sign an agreement for each | 0008| placement outlining the specific job offered to a subsidized | 0009| employee and agree to abide by all of the requirements of the | 0010| program; | 0011| (d) provide workers' compensation | 0012| coverage for each subsidized employee; and | 0013| (e) provide the subsidized employee | 0014| with benefits equal to those for new employees or as required | 0015| by state and federal law, whichever is greater; | 0016| (8) the human services department shall make | 0017| a determination of whether a participant is eligible to be a | 0018| subsidized employee that includes the following criteria: | 0019| (a) sufficient work experience to | 0020| obtain unsubsidized employment; | 0021| (b) completion of an employment | 0022| preparation program; or | 0023| (c) benefit from this employment | 0024| strategy by the department; | 0025| (9) a disregard of income earned by the | - 3 - 0001| subsidized employee in the subsidized job shall be applied in | 0002| the eligibility determination for services; | 0003| (10) the human services department shall | 0004| suspend regular payments of cash assistance and food stamps to | 0005| the benefit group for the calendar month in which an employer | 0006| makes the first subsidized wage payment to a subsidized | 0007| employee who is otherwise eligible for cash assistance and | 0008| food stamps; | 0009| (11) the human services department shall pay | 0010| employers each month, from cash assistance and food stamps, | 0011| the lesser of a fixed subsidy amount determined by the human | 0012| services department or the gross wages paid to the subsidized | 0013| employee; | 0014| (12) a subsidized employee shall be eligible | 0015| for supplemental payments if the net monthly full-time wage | 0016| paid to the subsidized employee is less than the combined | 0017| monthly total of the cash assistance and food stamps the | 0018| participant is eligible to receive. The human services | 0019| department shall authorize issuance of a supplemental cash | 0020| payment to compensate for the deficit. To determine if a | 0021| deficit exists, the human services department shall adopt an | 0022| equivalency scale that is adjustable to household size and | 0023| other factors; and | 0024| (13) the human services department shall | 0025| determine monthly and pay in advance supplemental payments to | - 4 - 0001| eligible subsidized employees. In calculating the payment, | 0002| the human services department shall assume that the subsidized | 0003| employee will work forty hours per week during the month | 0004| unless an employer provides information that the number of | 0005| hours to be worked by the subsidized employee will be reduced. | 0006| D. For the purposes of this section, "benefits" | 0007| includes health care coverage, paid sick leave and holiday and | 0008| vacation pay. | 0009| E. For the purposes of this section, "subsidized | 0010| employee" means a participant engaged in a subsidized | 0011| employment activity. | 0012| F. For the purposes of this section, "net monthly | 0013| full-time wage" means a subsidized employees's wages after the | 0014| required payroll deductions. | 0015| Section 2. APPROPRIATION.--Two million dollars | 0016| ($2,000,000) is appropriated from the general fund to the | 0017| human services department for expenditure in fiscal year 1999 | 0018| for the purpose of funding a wage subsidy program for | 0019| temporary assistance for needy families eligible persons who | 0020| reside in areas with an unemployment rate of ten percent or | 0021| greater. | 0022| Any unexpended or unencumbered balance remaining at the | 0023| end of fiscal year 1999 shall revert to the general fund. | 0024|  |