SENATE PUBLIC AFFAIRS COMMITTEE SUBSTITUTE FOR

SENATE BILL 214

53rd legislature - STATE OF NEW MEXICO - first session, 2017

AN ACT

RELATING TO PUBLIC ASSISTANCE; AMENDING SECTIONS OF THE NEW MEXICO WORKS ACT TO DEFINE AND ESTABLISH SOME PROGRAM FUNCTIONS OF THE STATE WORKFORCE AGENCY.

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

     SECTION 1. Section 27-2B-3 NMSA 1978 (being Laws 1998, Chapter 8, Section 3 and Laws 1998, Chapter 9, Section 3, as amended) is amended to read:

     "27-2B-3. DEFINITIONS.--As used in the New Mexico Works Act:

          A. "applicant" means a person applying for cash assistance on behalf of a benefit group;

          B. "benefit group" means a pregnant woman or a group of people that includes a dependent child, all of that dependent child's full, half or adopted siblings or stepsiblings living with the dependent child's parent or relative within the fifth degree of consanguinity and the parent with whom the children live;

          C. "career pathways" means a series of structured and connected education or training programs coupled with supportive services that enable individuals, often while working, to advance over time to better jobs through the acquisition of higher levels of education and training;

          [C.] D. "cash assistance" means cash payments funded by the temporary assistance for needy families block grant pursuant to the federal act and by state funds;

          [D.] E. "department" means the human services department;

          [E.] F. "dependent child" means a natural child, adopted child, stepchild or ward who is:

                (1) seventeen years of age or younger;

                (2) eighteen years of age and is enrolled in high school; or

                (3) between eighteen and twenty-two years of age and is receiving special education services regulated by the public education department;

          [F.] G. "director" means the director of the income support division of the department;

          [G.] H. "earned income" means cash or payment in kind that is received as wages from employment or payment in lieu of wages; and earnings from self-employment or earnings acquired from the direct provision of services, goods or property, production of goods, management of property or supervision of services;

          [H.] I. "federal act" means the federal Social Security Act and rules promulgated pursuant to the Social Security Act;

          [I.] J. "federal poverty guidelines" means the level of income defining poverty by family size published annually in the federal register by the United States department of health and human services;

          [J.] K. "immigrant" means alien as defined in the federal act;

          L. "non-exempt participant" means a participant who does not meet a criterion set forth in Subsection J of Section 27-2B-5 NMSA 1978 for exemption from work participation requirements;

          [K.] M. "parent" means natural parent, adoptive parent or stepparent;

          [L.] N. "participant" means a recipient of cash assistance or services or a member of a benefit group who has reached the age of majority;

          [M.] O. "person" means an individual;

          [N.] P. "secretary" means the secretary of the department;

          [O.] Q. "services" means child care assistance; payment for employment-related transportation costs; job search assistance; employment counseling; employment, education and job training placement; one-time payment for necessary employment-related costs; case management; or other activities whose purpose is to assist transition into employment;

          R. "state workforce agency" means the workforce solutions department, its designee or its successor;

          [P.] S. "unearned income" means old age, survivors and disability insurance; railroad retirement benefits; veterans administration compensation or pension; military retirement; pensions, annuities and retirement benefits; lodge or fraternal benefits; shared shelter payments; settlement payments; individual Indian money; child support; unemployment compensation benefits; union benefits paid in cash; gifts and contributions; and real property income;

          [Q.] T. "vehicle" means a conveyance for the transporting of individuals to or from employment, for the activities of daily living or for the transportation of goods; "vehicle" does not include any boat, trailer or mobile home used as a principal place of residence; and

          [R.] U. "vocational education" means an organized educational program that is directly related to the preparation of a person for employment in a current or emerging occupation requiring training other than a baccalaureate or advanced degree. Vocational education must be provided by an educational or a training organization, such as a vocational-technical school, community college, post-secondary educational institution or proprietary school."

     SECTION 2. Section 27-2B-4 NMSA 1978 (being Laws 1998, Chapter 8, Section 4 and Laws 1998, Chapter 9, Section 4, as amended) is amended to read:

     "27-2B-4. APPLICATION--RESOURCE PLANNING SESSION--INDIVIDUAL RESPONSIBILITY PLANS--PARTICIPATION AGREEMENT--REVIEW PERIODS.--

          A. Application for cash assistance or services shall be made to the department. The application shall be in writing or reduced to writing in the manner and on the form prescribed by the department. The application shall be made under oath by an applicant having custody of or residing with a dependent child who is a benefit group member and shall contain a statement of the age of the child, residence, a complete statement of the amount of property in which the applicant has an interest, a statement of all income that the applicant and other benefit group members have at the time of the filing of the application and other information required by the department.

          B. The department shall assist an applicant in completing the application for cash assistance or services and shall evaluate an applicant to determine eligibility for all department programs for which the applicant is eligible. [The department shall process all expedited food stamp applications within two business days of submission, and the department shall deliver expedited food stamps to an eligible applicant within seven days of the application.]

          C. At the time of application for cash assistance and services, an applicant and the department shall identify everyone who is to be counted in the benefit group. Once an application is approved, the participant shall advise the department if there are any changes in the membership of the benefit group.

          D. Prior to determining eligibility for cash assistance or services, the department shall screen each adult applicant to determine whether the adult could meet a criterion for exemption pursuant to Subsection J of Section 27-2B-5 NMSA 1978. If the participant does not meet a criterion and is therefore not exempt from work participation, the department shall inform the participant in writing of work- or education-related requirements and refer the participant in writing to the state workforce agency to meet work- or education-related requirements.

          [D.] E. No later than thirty days after an application is filed, the department shall provide to an applicant a [resource planning session to ascertain] list of resources and services available to meet the applicant's immediate needs, [assess financial and nonfinancial options] make referrals and act on the application

          [E. No later than five days after an application is approved, the department shall provide reimbursement for child care] as appropriate.

           F. Whenever the department receives an application for assistance, a verification and record of the applicant's circumstances shall promptly be made to ascertain the facts supporting the application and to obtain other information required by the department. The verification may include a visit to the home of the applicant, as long as the department gives adequate prior notice of the visit to the applicant.

          G. No later than fifteen days after an application is approved, the [department] state workforce agency shall assess the education, skills, prior work experience and employability of the participant. The assessment shall include the sharing of information on opportunities for obtaining credentials in high-growth industries, such as career pathways.

          H. After the initial assessment of skills, the [department] state workforce agency shall work with the non-exempt participant to develop an individual responsibility plan that:

                (1) sets forth an employment goal for the non-exempt participant and a plan for moving the non-exempt participant into employment through credential attainment, character traits and interpersonal skills that complement an individual's technical and occupational skills or career pathways programs;

                (2) sets forth obligations of the non-exempt participant that may include a requirement that the non-exempt participant attend school, maintain certain grades and attendance, keep the non-exempt participant's school-age children in school, immunize the non-exempt participant's children or engage in other activities that will help the non-exempt participant become and remain employed;

                (3) is designed to the greatest extent possible to move the non-exempt participant into whatever employment the non-exempt participant is capable of handling and to provide additional services as necessary to increase the responsibility and amount of work the non-exempt participant will handle over time;

                (4) describes the services the [department] state workforce agency may provide so that the non-exempt participant may obtain and keep employment; and

                (5) may require the non-exempt participant to participate in appropriate services, such as substance abuse, domestic violence or mental health services.

          I. The non-exempt participant and the [department] state workforce agency shall sign the non-exempt participant's individual responsibility plan. The department shall not allow a non-exempt participant to decline to participate in developing an individual responsibility plan. The [department] state workforce agency shall not waive the requirement that a non-exempt participant develop an individual responsibility plan. The [department] state workforce agency shall emphasize the importance of the individual responsibility plan to the non-exempt participant.

          J. If a non-exempt participant does not develop an individual responsibility plan, refuses to sign an individual responsibility plan or refuses to attend semiannual reviews of an individual responsibility plan, the non-exempt participant shall be required to enter into a conciliation process pursuant to Subsection C of Section 27-2B-14 NMSA 1978. If the non-exempt participant persists in noncompliance with the individual responsibility plan process after the conciliation process, the non-exempt participant shall be subject to sanctions pursuant to Section 27-2B-14 NMSA 1978.

          K. The non-exempt participant shall also sign a participation agreement that designates the number of hours that the non-exempt participant must participate in work activities to meet participation standards.

          L. The department shall review the current financial eligibility of a benefit group when the department reviews [food stamp] eligibility for supplemental nutrition assistance program participation.

          M. The [department] state workforce agency shall meet semiannually with a non-exempt participant to review and revise the non-exempt participant's individual responsibility plan.

          N. The [department] state workforce agency shall develop a complaint procedure to address issues pertinent to the delivery of services and other issues relating to a non-exempt participant's individual responsibility plan."

     SECTION 3. Section 27-2B-5 NMSA 1978 (being Laws 1998, Chapter 8, Section 5 and Laws 1998, Chapter 9, Section 5, as amended) is amended to read:

     "27-2B-5. WORK REQUIREMENTS--WORK PARTICIPATION RATES.--

          A. The following qualify as work activities:

                (1) unsubsidized employment, including self-employment;

                (2) subsidized private sector employment, including self-employment;

                (3) subsidized public sector employment;

                (4) work experience;

                (5) on-the-job training;

                (6) job search and job readiness;

                (7) community service programs;

                (8) vocational education;

                (9) job skills training activities directly related to employment;

                (10) education directly related to employment in programs that lead to credentials in high-growth industries, such as career pathways;

                (11) satisfactory attendance at a secondary school or course of study leading to a high school equivalency credential in the case of a participant who has not completed secondary school or received such a certificate; and

                (12) the provision of child care services to a participant who is participating in a community service program.

          B. The state workforce agency shall prioritize participants for federal funds when providing career and training services in accordance with priority of service guidelines established pursuant to its administration of all other employment and training programs in the state.

          [B.] C. The [department] state workforce agency shall recognize community service programs and job training programs that are operated by an Indian nation, tribe or pueblo.

          [C.] D. The department may not require a participant to work more than four hours per week over the work requirement rate set pursuant to the federal act.

          [D.] E. The department shall require a parent, caretaker or other adult who is a member of a benefit group and who does not meet criteria for an exemption to engage in a work activity.

          [E.] F. Where best suited for the non-exempt participant to address barriers, the department may require the following work activities:

                (1) participating in parenting classes, money management classes or life skills training;

                (2) participating in a certified alcohol or drug addiction program;

                (3) in the case of a homeless benefit group, finding a home;

                (4) in the case of a non-exempt participant who is a victim of domestic violence, residing in a domestic violence shelter or receiving counseling or treatment or participating in criminal justice activities directed at prosecuting the domestic violence perpetrator for no longer than twenty-four weeks; and

                (5) in the case of a non-exempt participant who does not speak English, participating in a course in English as a second language.

          [F.] G. Subject to the availability of funds, the [department] state workforce agency in cooperation with [the workforce solutions department, Indian affairs department and] other appropriate state agencies may develop projects to provide for the placement of non-exempt participants in work activities, including the following:

                (1) participating in unpaid internships with private and government entities;

                (2) refurbishing publicly assisted housing;

                (3) volunteering at a head start program or a school;

                (4) weatherizing low-income housing; and

                (5) restoring public sites and buildings, including monuments, parks, fire stations, police buildings, jails, libraries, museums, auditoriums, convention halls, hospitals, buildings for administrative offices and city halls.

          [G.] H. If a non-exempt participant is engaged in full-time vocational education studies or an activity set out in Paragraphs (9) through (11) of Subsection A of this section, the non-exempt participant shall engage in another work activity at the same time. Additionally, for two-parent families that receive federally funded [child-care] child care assistance, the non-exempt participant's spouse shall engage in a work activity set out in Paragraphs (1) through (5) or (7) of Subsection A of this section unless the participant [suffers from a temporary or complete disability that bars the participant from engaging in a work activity or the participant is barred from engaging in a work activity because the participant provides sole care for a person with a disability] meets criteria for an exemption pursuant to Subsection J of this section.

          [H.] I. A non-exempt participant engaged in vocational education studies shall make reasonable efforts to obtain a loan, scholarship, grant or other assistance to pay for costs and tuition, and the department shall disregard those amounts in the eligibility determination.

          [I.] J. For as long as the described conditions exist, the following are exempt from the work requirement:

                (1) a participant barred from engaging in a work activity because the participant has a temporary or permanent disability;

                (2) a participant over age sixty;

                (3) a participant barred from engaging in a work activity because the participant provides the sole care for a person with a disability;

                (4) a single custodial parent caring for a child less than twelve months old for a lifetime total of twelve months;

                (5) a single custodial parent caring for a child under six years of age if the parent is unable to obtain child care for one or more of the following reasons:

                     (a) unavailability of appropriate child care within a reasonable distance from the parent's home or work as defined by the children, youth and families department;

                     (b) unavailability or unsuitability of informal child care by a relative under other arrangements as defined by the children, youth and families department; or

                     (c) unavailability of appropriate and affordable formal [child-care] child care arrangements as defined by the children, youth and families department;

                (6) a pregnant woman during her last trimester of pregnancy;

                (7) a participant prevented from working by a temporary emergency or a situation that precludes work participation for thirty days or less;

                (8) a participant who demonstrates by reliable medical, psychological or mental reports, court orders or police reports that family violence or threat of family violence effectively bars the participant from employment; and

                (9) a participant who demonstrates good cause of the need for the exemption.

          [J.] K. As a condition of the exemptions identified in Subsection [I] J of this section, the department may establish participation requirements; provided that these requirements are specific to the participant's condition or circumstances; [such as] and provided further that these participation requirements are individualized and limited to those specific to housing needs, substance abuse services, mental health services, domestic violence services, pursuit of disability benefits, job readiness or education directly related to employment. The activities are established to improve the participant's capacity to improve income and strengthen family support."

     SECTION 4. Section 27-2B-5.2 NMSA 1978 (being Laws 1999, Chapter 27, Section 1) is amended to read:

     "27-2B-5.2. WORK PROGRAM--STATE WORKFORCE AGENCY--PUBLIC SCHOOLS.--The [department] state workforce agency and the [state department of] public education department may establish a work program for non-exempt participants to engage in a work activity pursuant to Subsection A of Section 27-2B-5 NMSA 1978 at public schools."

     SECTION 5. Section 27-2B-14 NMSA 1978 (being Laws 1998, Chapter 8, Section 14 and Laws 1998, Chapter 9, Section 14, as amended by Laws 2003, Chapter 311, Section 5 and Laws 2003, Chapter 432, Section 5) is amended to read:

     "27-2B-14. SANCTIONS.--

          A. The department shall sanction a member of a benefit group for noncompliance with work requirements or child support requirements.

          B. The sanction shall be applied at the following levels:

                (1) twenty-five percent reduction of cash assistance for the first occurrence of noncompliance;

                (2) fifty percent reduction of cash assistance for the second occurrence of noncompliance; and

                (3) termination of cash assistance and ineligibility to reapply for six months for the third occurrence of noncompliance.

          C. Prior to imposing the first sanction, if [the department determines that] a participant is not complying with the work participation requirement or child support enforcement requirements, the participant shall be required to enter into a conciliation process established by the department or the state workforce agency to address the noncompliance and to identify good cause for noncompliance or barriers to compliance. The conciliation process shall occur only once prior to the imposition of the sanction. The non-exempt participant shall have ten working days from the date a conciliation notice is mailed to contact the department for complying with child support enforcement requirements or the state workforce agency for complying with the work participation requirement to initiate the conciliation process. A participant who fails to initiate the conciliation process shall have a notice of adverse action mailed to [him] the participant after the tenth working day following the date on which the conciliation notice is mailed. Participants who begin but do not complete the conciliation process shall be mailed a notice of adverse action thirty days from the date the original conciliation notice was mailed.

          D. Reestablishing compliance shall allow full payment to resume.

          E. Noncompliance with reporting requirements may subject a non-exempt participant to other sanctions, except that an adult member of the benefit group shall not be sanctioned for the failure of a dependent child to attend school.

          F. Effective October 1, 2001, the department shall not terminate the medicaid benefits of any member of a benefit group due to imposition of a sanction pursuant to the provisions of this section."

     SECTION 6. Section 27-2B-19 NMSA 1978 (being Laws 1998, Chapter 8, Section 19 and Laws 1998, Chapter 9, Section 19, as amended) is amended to read:

     "27-2B-19. SUBSIDIZED EMPLOYMENT.--

          A. The [department] state workforce agency may administer a wage subsidy program based on availability of federal and state funds.

          B. The wage subsidy program shall include the following requirements:

                (1) participating employers shall hire participants who receive cash assistance for subsidized job slots that are full time and that offer a reasonable possibility of unsubsidized employment after the subsidy period;

                (2) participating employers shall receive a subsidy for up to twelve months;

                (3) subsidized employees shall not be required to work in excess of forty hours per week;

                (4) subsidized employees shall be paid a wage that is substantially like the wage paid for similar jobs with the employer with appropriate adjustments for experience and training but not less than the federal minimum hourly wage;

                (5) subsidized employment does not impair an existing contract or collective bargaining agreement;

                (6) subsidized employment does not displace currently employed workers or fill positions that are vacant due to a layoff;

                (7) wage subsidy employers shall:

                     (a) maintain health, safety and working conditions at or above levels generally acceptable in the industry and not less than those of comparable jobs offered by the employer;

                     (b) provide on-the-job training necessary for subsidized employees to perform their duties;

                     (c) sign an agreement for each placement outlining the specific job offered to a subsidized employee and agree to abide by all of the requirements of the program;

                     (d) provide workers' compensation coverage for each subsidized employee; and

                     (e) provide the subsidized employee with benefits equal to those for new employees or as required by state and federal law, whichever is greater;

                (8) the [department] state workforce agency shall determine whether a participant is eligible to be a subsidized employee by establishing:

                     (a) that the participant has sufficient work experience to obtain unsubsidized employment;

                     (b) that the participant has completed an employment preparation program; or

                     (c) that the department or participant may benefit from this employment strategy;

                (9) a disregard of income earned by the subsidized employee in the subsidized job shall be applied in the eligibility determination for services;

                (10) the department shall suspend regular payments of cash assistance to the benefit group for the calendar month in which an employer makes the first subsidized wage payment to a subsidized employee who is otherwise eligible for cash assistance and food stamps;

                [(11) the department shall pay employers each month from cash assistance;

                (12)] (11) a subsidized employee shall be eligible for supplemental payments if the net monthly full-time wage paid to the subsidized employee is less than the monthly total of the cash assistance the participant is eligible to receive. The department shall authorize issuance of a supplemental cash payment to compensate for the deficit. To determine if a deficit exists, the [department] state workforce agency shall adopt an equivalency scale that is adjustable to household size and other factors; and

                [(13)] (12) the department shall determine monthly and pay in advance supplemental payments to eligible subsidized employees. In calculating the payment, the department shall assume that the subsidized employee will work forty hours per week during the month unless an employer provides information that the number of hours to be worked by the subsidized employee will be reduced.

          C. For the purposes of this section, "benefits" includes health care coverage, paid sick leave and holiday and vacation pay.

          D. For the purposes of this section, "subsidized employee" means a participant engaged in a subsidized employment activity.

          E. For the purposes of this section, "net monthly full-time wage" means a subsidized employee's wages after the required payroll deductions."

     SECTION 7. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2018.

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