A. On the death of:

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(1)     a recipient of financial assistance under Section 27-2-6 [repealed] or 27-2- 7 NMSA 1978 or under the federal supplemental security income program; or

(2)     a person living in a nursing home or an intermediate care facility, the payment for whose care is made in whole or in part pursuant to Title 19 of the federal Social Security Act; funeral expenses up to two hundred dollars ($200) shall be paid by the income support division of the authority if the deceased’s available resources, as defined by rule of the division, are insufficient to pay the funeral expenses, the persons legally responsible for the support of the deceased are unable to pay the funeral expenses and no other person will undertake to pay those expenses.

B. No payment shall be made by the income support division when resources available from all sources to pay the funeral expenses total six hundred dollars ($600) or more. When the resources are less than six hundred dollars ($600), the division shall pay the difference between six hundred dollars ($600) and the resources, or two hundred dollars ($200), whichever is less.