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F I S C A L I M P A C T R E P O R T
SPONSOR Foley
ORIGINAL DATE
LAST UPDATED
2/1/06
HB 552
SHORT TITLE Prohibit Minimum Wage Above Federal Minimum SB
ANALYST Francis
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
FY08
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
Conflicts with
SOURCES OF INFORMATION
LFC Files
Responses Received From
Economic Development Department (EDD)
Office of Workforce Training and Development (OWTD)
Human Services Department (HSD)
SUMMARY
Synopsis of Bill
House Bill 552 amends the minimum wage to prohibit any political subdivision from enacting a
minimum wage higher than the federal minimum wage. A political subdivision is defined as a
home rule municipality or H class county.
FISCAL IMPLICATIONS
The current statewide minimum wage is set to the federal minimum wage. With the exception of
the City of Santa Fe, no area of New Mexico would be affected by HB 552 because no other lo-
cal government has a higher wage than the statewide wage. It is unclear how the bill would af-
fect Santa Fe.
pg_0002
House Bill 552 Page
2
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
EDD reports:
There are currently three other legislative proposals on the table. HB 258 sponsored by Speaker
Lujan would raise the state minimum wage to $7.50 beginning January 1, 2007, and would NOT pro-
hibit local governments from raising the wage even higher. SB 449, sponsored by Senate Pro Tem
Altamirano, would raise the minimum wage to $7.50 per hour over three years, and would prohibit
local governments from exceeding the state minimum wage. Finally, SB 462 sponsored by Senator
Michael Sanchez would increase the state minimum wage to $7.50 per hour effective January 1,
2007, but would also provide a small business payroll tax deduction for the increase in the minimum
wage.
TECHNICAL ISSUES
There is no indication what would happen to a local government who currently has a higher
minimum wage like the City of Santa Fe, whose wage is set at $9.50 per hour.
The bill does not indicate what would happen if the statewide rate, which in statute is set to a
level equal to the federal minimum but is not set at the federal minimum, were to go up.
NF/mt