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

 

 

 

SPONSOR:

Park

 

DATE TYPED:

3/15/03

 

HB

38/aSPAC

 

SHORT TITLE:

Increase State Minimum Wage

 

SB

 

 

 

ANALYST:

Collard

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

 

See Narrative

See Narrative

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases

 

SOURCES OF INFORMATION

House Bill 38

 

Responses Received From

 

Economic Development Department

New Mexico Labor Department

 

SUMMARY

 

     Synopsis of SPAC Amendments

 

The Senate Public Affairs Committee amendments restore the $2.125 minimum wage amount paid to hourly employees who receive more than $30.00 per month in tips and strike the $2.575 in the bill.

 

     Synopsis of Original Bill

 

House Bill 38 amends Section 51-4-22 NMSA 1978 to increase the New Mexico state minimum wage, which is currently $4.25 per hour to $5.15 per hour to equal the federal minimum wage.  For workers who customarily receive more than $30 per month in tips, the minimum wage is increased from $2.125 per hour to $2.575 per hour.

 

    

 

 

     Significant Issues

 

FISCAL IMPLICATIONS

 

The Economic Development Department indicates the fiscal implication falls on the businesses owners in the state.  They would be required to raise wages from $4.25 to $5.15 per hour.

 

OTHER SUBSTANTIVE ISSUES

 

The Economic Development Department states the business owner will carry the financial burden to implement the new wage levels.  This bill is important for the welfare of the citizens of the state to raise the earnings per capita level consistent with the national levels. 

 

KBC/yr