0001| HOUSE BILL 1223 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| EARLENE ROBERTS | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO WORK INCENTIVE DEDUCTIONS AND EARNED INCOME | 0012| DISREGARDS, INDIVIDUAL DEVELOPMENT ACCOUNTS, MICRO BUSINESS | 0013| LOANS AND OTHER ENTREPRENEURSHIP OPPORTUNITIES; DECLARING AN | 0014| EMERGENCY. | 0015| | 0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0017| A new section of the Public Assistance Act is enacted to | 0018| read: | 0019| "[NEW MATERIAL] WORK INCENTIVE DEDUCTIONS AND EARNED | 0020| INCOME DISREGARDS.--To encourage persons who are receiving cash | 0021| assistance under the temporary assistance for needy families | 0022| program to seek gainful employment or self-employment and to | 0023| promote the state's policy of requiring work for those in need | 0024| of public assistance, and for any person whose benefit group | 0025| includes at least one dependent child may claim. The human | 0001| services department shall deduct and disregard the following | 0002| earned income and expenses from the person's countable income | 0003| in determining need: | 0004| A. An amount, to be called the "work incentive | 0005| deduction", equal to the first thirty dollars ($30.00) of the | 0006| total such earned income not otherwise disregarded under any | 0007| other clause in the temporary assistance for needy families | 0008| program plus one-third of the remainder thereof. | 0009| B. The work incentive deduction shall be allowed in | 0010| each month that the temporary assistance for needy families | 0011| benefit group has earned income that does not exceed one | 0012| hundred percent of the federal poverty level. | 0013| C. The work incentive deduction shall be applied to | 0014| the gross monthly income before the work-related expense | 0015| deduction and the child-care deduction are subtracted. | 0016| D. The work-related expense deduction shall be | 0017| ninety dollars ($90.00) per month. | 0018| E. The child-care deduction shall not exceed normal | 0019| and customary community daycare costs and will be determined, | 0020| periodically, not to exceed three years, by public hearings | 0021| conducted by the human services department. | 0022| F. The work incentive deduction will be implemented | 0023| by retrospective budgeting. The income is counted against the | 0024| temporary assistance for needy families grant two months after | 0025| it is actually received or in the month after it is reported to | 0001| the human services department. | 0002| G. Persons in the benefit group claiming the work | 0003| incentive deduction shall be exempted form other temporary | 0004| assistance for needy families work activities and programs | 0005| instituted by the state for a period not exceeding twelve | 0006| months, but such exemption shall be renewed and continued | 0007| annually upon the filing of an employability plan with the | 0008| human services department." | 0009| Section 2. A new section of the Public Assistance Act is | 0010| enacted to read: | 0011| "[NEW MATERIAL] INDIVIDUAL DEVELOPMENT ACCOUNTS.--The | 0012| human services department shall include with its state plan, | 0013| and implement in a timely manner, all provisions for individual | 0014| development accounts, as permitted in the Personal | 0015| Responsibility and Work Opportunity Reconciliation Act of | 0016| 1996." | 0017| Section 3. A new section of the Public Assistance Act is | 0018| enacted to read: | 0019| "[NEW MATERIAL] MICRO BUSINESS LOANS AND OTHER | 0020| ENTREPRENEURSHIP OPPORTUNITIES.--The human services department | 0021| shall include within its state plan, and implement in a timely | 0022| manner, the creation of a micro business program and the | 0023| development of other entrepreneurship opportunities for persons | 0024| on temporary assistance for needy families. | 0025| A. The micro business loan program shall include an | 0001| outreach campaign to encourage interest for persons, or groups | 0002| of persons, who want to start their own small businesses, | 0003| either individually or collectively. Technical assistance to | 0004| the participating persons shall be provided by the program by | 0005| the involvement of private entities, such as revolving loan | 0006| funds and nonprofit corporations knowledgeable in the creation | 0007| and development of small business and business opportunities. | 0008| B. The micro business loan program shall provide | 0009| loans not to exceed five thousand dollars ($5,000) for each | 0010| person and twenty thousand dollars ($20,000) in the aggregate | 0011| for a group of persons served by the program, and the interest | 0012| rate for such loans shall not exceed the lowest rate of | 0013| interest charged by any other federal or state program. | 0014| C. Those persons in the benefit group participating | 0015| in such entrepreneurship opportunities shall be exempted from | 0016| other temporary assistance for needy families work activities | 0017| and programs instituted by the state for a period not exceeding | 0018| twelve months, but such exemption shall be renewed and | 0019| continued annually upon the filing of an employability plan | 0020| with the human services department. | 0021| D. Temporary assistance for needy families | 0022| recipients may accrue up to five thousand dollars ($5,000) in | 0023| order to initiate self-employment, such as hair styling, child | 0024| care or computer work small businesses, perhaps from their | 0025| homes. Such savings shall not be considered a resource or as | 0001| income for eligibility purposes, and such recipients performing | 0002| these work activities shall be exempted from other temporary | 0003| assistance for needy families work activities and programs | 0004| instituted by the state for a period not exceeding twelve | 0005| months, but such exemption shall be renewed and continued | 0006| annually upon the filing of an employability plan with the | 0007| human services department." | 0008| Section 4. EMERGENCY.--It is necessary for the public | 0009| peace, health and safety that this act take effect immediately. | 0010| State of New Mexico | 0011| House of Representatives | 0012| | 0013| FORTY-THIRD LEGISLATURE | 0014| FIRST SESSION, 1997 | 0015| | 0016| | 0017| March 6, 1997 | 0018| | 0019| | 0020| Mr. Speaker: | 0021| | 0022| Your BUSINESS AND INDUSTRY COMMITTEE, to whom | 0023| has been referred | 0024| | 0025| HOUSE BILL 1223 | 0001| | 0002| has had it under consideration and reports same with | 0003| recommendation that it DO NOT PASS, but that | 0004| | 0005| HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE | 0006| FOR HOUSE BILL 1223 | 0007| | 0008| DO PASS, and thence referred to the APPROPRIATIONS | 0009| AND FINANCE COMMITTEE. | 0010| | 0011| Respectfully submitted, | 0012| | 0013| | 0014| | 0015| | 0016| | 0017| Fred Luna, Chairman | 0018| | 0019| | 0020| Adopted Not Adopted | 0021| | 0022| (Chief Clerk) (Chief Clerk) | 0023| | 0024| Date | 0025| | 0001| The roll call vote was 9 For 0 Against | 0002| Yes: 9 | 0003| Excused: Getty, Gubbels, Kissner, Varela | 0004| Absent: None | 0005| | 0006| G:\BILLTEXT\BILLW_97\H1223 HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR | 0007| HOUSE BILL 1223 | 0008| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0009| | 0010| | 0011| | 0012| | 0013| | 0014| | 0015| | 0016| AN ACT | 0017| RELATING TO WORK INCENTIVE DEDUCTIONS AND EARNED INCOME | 0018| DISREGARDS, INDIVIDUAL DEVELOPMENT ACCOUNTS, MICRO BUSINESS | 0019| LOANS AND OTHER ENTREPRENEURSHIP OPPORTUNITIES; DECLARING AN | 0020| EMERGENCY. | 0021| | 0022| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0023| A new section of the Public Assistance Act is enacted to | 0024| read: | 0025| "[NEW MATERIAL] WORK INCENTIVE DEDUCTIONS AND EARNED | 0001| INCOME DISREGARDS.--The work incentive and earned income | 0002| disregards program shall include an outreach campaign to | 0003| encourage persons who are receiving cash assistance under the | 0004| temporary assistance for needy families program to seek gainful | 0005| employment or self-employment and to promote the state's policy | 0006| of requiring work for those in need of public assistance for | 0007| any person whose benefit group includes at least one dependent | 0008| child. The human services department shall deduct and | 0009| disregard the following earned income and expenses from the | 0010| person's countable income in determining need: | 0011| A. An amount, to be called the "work incentive | 0012| deduction", equal to the first thirty dollars ($30.00) of the | 0013| total of such earned income not otherwise disregarded under any | 0014| other clause in the temporary assistance for needy families | 0015| program plus one-third of the remainder thereof. | 0016| B. The work incentive deduction shall be allowed in | 0017| each month that the temporary assistance for needy families | 0018| benefit group has earned income that does not exceed one | 0019| hundred percent of the federal poverty level. | 0020| C. The work incentive deduction shall be applied to | 0021| the gross monthly income after the work-related expense | 0022| deduction and before the child-care deduction are subtracted. | 0023| D. The work-related expense deduction shall be | 0024| ninety dollars ($90.00) per month. | 0025| E. The child-care deduction shall not exceed normal | 0001| and customary community daycare costs and will be determined, | 0002| periodically, not to exceed three years, by public hearings | 0003| conducted by the human services department. | 0004| F. The work incentive deduction will be implemented | 0005| by retrospective budgeting. The income is counted against the | 0006| temporary assistance for needy families grant two months after | 0007| it is actually received or in the month after it is reported to | 0008| the human services department. | 0009| G. Persons in the benefit group claiming the work | 0010| incentive deduction shall be exempted from other temporary | 0011| assistance for needy families work activities and programs | 0012| instituted by the state for a period not exceeding twelve months, | 0013| but such exemption shall be renewed and continued annually upon | 0014| the filing of an employability plan with the human services | 0015| department." | 0016| Section 2. A new section of the Public Assistance Act is | 0017| enacted to read: | 0018| "[NEW MATERIAL] INDIVIDUAL DEVELOPMENT ACCOUNTS.--The | 0019| individual development accounts program shall include an outreach | 0020| campaign to encourage interest for persons or groups to | 0021| participate in the program. The human services department shall | 0022| include with its state plan, and implement in a timely manner, all | 0023| provisions for individual development accounts, as permitted in | 0024| the Personal Responsibility and Work Opportunity Reconciliation | 0025| Act of 1996." | 0001| Section 3. A new section of the Public Assistance Act is | 0002| enacted to read: | 0003| "[NEW MATERIAL] MICRO BUSINESS LOANS AND OTHER | 0004| ENTREPRENEURSHIP OPPORTUNITIES.--The human services department | 0005| shall include within its state plan, and implement in a timely | 0006| manner, the creation of a micro business program and the | 0007| development of other entrepreneurship opportunities for persons on | 0008| temporary assistance for needy families. | 0009| A. The micro business loan program shall include an | 0010| outreach campaign to encourage interest for persons, or groups of | 0011| persons, who want to start their own small businesses, either | 0012| individually or collectively. Technical assistance to the | 0013| participating persons shall be provided by the program by the | 0014| involvement of private entities, such as revolving loan funds and | 0015| nonprofit corporations knowledgeable in the creation and | 0016| development of small business and business opportunities. | 0017| B. The micro business loan program shall provide loans | 0018| not to exceed five thousand dollars ($5,000) for each person and | 0019| twenty thousand dollars ($20,000) in the aggregate for a group of | 0020| persons served by the program, and the interest rate for such | 0021| loans shall not exceed the lowest rate of interest charged by any | 0022| other federal or state program. | 0023| C. Those persons in the benefit group participating in | 0024| such entrepreneurship opportunities shall be exempted from other | 0025| temporary assistance for needy families work activities and | 0001| programs instituted by the state for a period not exceeding twelve | 0002| months, but such exemption shall be renewed and continued annually | 0003| upon the filing of an employability plan with the human services | 0004| department. | 0005| D. Temporary assistance for needy families recipients | 0006| may accrue up to five thousand dollars ($5,000) in order to | 0007| initiate self-employment, such as hair styling, child care or | 0008| computer work small businesses, perhaps from their homes. Such | 0009| savings shall not be considered a resource or as income for | 0010| eligibility purposes, and such recipients performing these work | 0011| activities shall be exempted from other temporary assistance for | 0012| needy families work activities and programs instituted by the | 0013| state for a period not exceeding twelve months, but such exemption | 0014| shall be renewed and continued annually upon the filing of an | 0015| employability plan with the human services department." | 0016| Section 4. EMERGENCY.--It is necessary for the public | 0017| peace, health and safety that this act take effect immediately. | 0018| State of New Mexico | 0019| House of Representatives | 0020| | 0021| FORTY-THIRD LEGISLATURE | 0022| FIRST SESSION, 1997 | 0023| | 0024| | 0025| March 18, 1997 | 0001| | 0002| | 0003| Mr. Speaker: | 0004| | 0005| Your APPROPRIATIONS AND FINANCE COMMITTEE, to whom | 0006| has been referred | 0007| | 0008| HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR | 0009| HOUSE BILL 1223 | 0010| | 0011| has had it under consideration and reports same with | 0012| recommendation that it DO PASS, amended as follows: | 0013| | 0014| | 0015| 1. On page 2, lines 21 and 22, strike "by public hearings | 0016| conducted by the human services department" and insert in lieu | 0017| thereof "by the children, youth and families department". | 0018| | 0019| 2. On page 2, strike lines 23 through 25, and on page 3, | 0020| strike line 1. | 0021| | 0022| 3. Renumber the succeeding subsections accordingly. | 0023| | 0024| | 0025| Respectfully submitted, | 0001| | 0002| | 0003| | 0004| | 0005| Max Coll, Chairman | 0006| | 0007| | 0008| Adopted Not Adopted | 0009| | 0010| (Chief Clerk) (Chief Clerk) | 0011| | 0012| Date | 0013| | 0014| The roll call vote was 15 For 0 Against | 0015| Yes: 15 | 0016| Excused: Heaton, Salazar | 0017| Absent: None | 0018| | 0019| | 0020| .119130.1 | 0021| G:\BILLTEXT\BILLW_97\H1223 | 0022| | 0023| FORTY-THIRD LEGISLATURE HB 1223/a | 0024| FIRST SESSION, 1997 | 0025| | 0001| | 0002| March 21, 1997 | 0003| | 0004| Mr. President: | 0005| | 0006| Your FINANCE COMMITTEE, to whom has been referred | 0007| | 0008| HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR | 0009| HOUSE BILL 1223, as amended | 0010| | 0011| has had it under consideration and reports same with recommendation | 0012| that it DO PASS, amended as follows: | 0013| | 0014| 1. On page 1, strike line 22 and insert in lieu thereof | 0015| "encourage recipients". | 0016| | 0017| 2. On page 1, line 23, strike "temporary assistance for needy | 0018| families program". | 0019| | 0020| 3. On page 2, line 7, strike "under any". | 0021| | 0022| 4. On page 2, strike line 8 in its entirety. | 0023| | 0024| 5. On page 2, line 9, strike "program". | 0025| | 0001| 6. On page 2, line 11, strike "temporary assistance for needy | 0002| families". | 0003| | 0004| 7. On page 3, lines 4 and 5, strike "temporary assistance for | 0005| needy families". | 0006| | 0007| 8. On page 3, line 25 strike "persons on" and insert in lieu | 0008| thereof "recipients". | 0009| | 0010| 9. On page 4, strike line 1 up to the period. | 0011| | 0012| 10. On page 4, line 18, strike "temporary assistance for needy | 0013| families". | 0014| | 0015| 11. On page 4, line 23, strike "Temporary assistance for needy | 0016| families recipients" and insert in lieu thereof "Recipients". | 0017| | 0018| 12. On page 5, lines 4 and 5, strike "temporary assistance for | 0019| needy families". | 0020| | 0021| | 0022| | 0023| | 0024| | 0025| | 0001| | 0002| Respectfully submitted, | 0003| | 0004| | 0005| | 0006| __________________________________ | 0007| Ben D.Altamirano, Chairman | 0008| | 0009| | 0010| | 0011| Adopted_______________________ Not Adopted_______________________ | 0012| (Chief Clerk) (Chief Clerk) | 0013| | 0014| | 0015| Date ________________________ | 0016| | 0017| | 0018| The roll call vote was 6 For 0 Against | 0019| Yes: 6 | 0020| No: None | 0021| Excused: Aragon, Eisenstadt, Ingle, Lyons, McKibben | 0022| Absent: None | 0023| | 0024| | 0025| H1223FC1 | 0001| |