Bill Text: NH HB219 | 2015 | Regular Session | Amended
Bill Title: Relative to the use of electronic benefit transfer (EBT) cards.
Spectrum: Moderate Partisan Bill (Republican 10-2)
Status: (Passed) 2015-07-21 - Signed by the Governor on 7/20/2015; Chapter 269; Effective 9/18/2015 [HB219 Detail]
Download: New_Hampshire-2015-HB219-Amended.html
HB 219-FN – AS AMENDED BY THE SENATE
05/14/2015 1569s
2015 SESSION
05/01
HOUSE BILL 219-FN
AN ACT relative to the use of electronic benefits transfer (EBT) cards.
SPONSORS: Rep. McMahon, Rock 7; Rep. MacKay, Merr 14; Rep. Kotowski, Merr 24; Rep. LeBrun, Hills 32; Rep. J. Lachance, Hills 8; Rep. M. Griffin, Rock 7; Rep. Sherman, Rock 24; Rep. Emerson, Ches 11; Rep. Spillane, Rock 2; Rep. Bailey, Graf 14; Sen. Reagan, Dist 17; Sen. Bradley, Dist 3
COMMITTEE: Health, Human Services and Elderly Affairs
AMENDED ANALYSIS
This bill expands restrictions on the use of EBT cards. The bill also directs the department of health and human services to report on the adoption and implementation of restrictions on the use of EBT cards.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05/14/2015 1569s
15-0173
05/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT relative to the use of electronic benefits transfer (EBT) cards.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Public Assistance; Prohibited Use of Electronic Benefit Transfer Cards. Amend RSA 167:7-b, I to read as follows:
I. Any person receiving public assistance is prohibited from using electronic benefit transfer (EBT) cards or cash obtained with EBT cards for the purpose of purchasing any product or participating in any activities in any location listed in paragraph I-a or II. Any person receiving public assistance who uses an EBT card in violation of paragraph I-a or II shall be subject to the following penalties:
(a) Suspension of cash assistance benefits for that person for 2 pay periods for the first offense.
(b) Suspension of cash assistance benefits for that person for 4 pay periods for the second offense.
(c) Suspension of cash assistance benefits for that person for 6 pay periods for the third and subsequent offense.
I-a. Any person who receives public assistance is prohibited from using an EBT card or cash obtained with an EBT card to gamble or to purchase tobacco products, alcoholic beverages, lottery tickets, firearms, or adult entertainment.
2 New Subparagraph; Prohibited Use of Electronic Benefit Transfer Card; Tattoos and Body Piercing. Amend RSA 167:7-b, II by inserting after subparagraph (d) the following new subparagraph:
(e) Business establishments primarily engaged in the practice of body piercing, branding, or tattooing.
3 New Hampshire Department of Health and Human Services; Restrictions on the Use of Electronic Benefit Transfer (EBT) Cards; Report Required. On or before October 1, 2015, the department of health and human services shall report to the fiscal committee of the general court, on the adoption and implementation of restrictions on the use of cash assistance. The report shall outline the goals of cash assistance, review applicable state and federal regulations governing restrictions on the use of cash assistance, summarize the department’s findings regarding enforcement of RSA 167:7-b, and make recommendations relative to the regulation of cash assistance programs. The report shall include an education plan for recipients regarding the requirements of RSA 167:7-b and the permissible and prohibited use of cash assistance.
4 Effective Date. This act shall take effect 60 days after its passage.
LBAO
15-0173
Amended 06/02/15
HB 219-FN FISCAL NOTE
AN ACT relative to the use of electronic benefits transfer (EBT) cards.
FISCAL IMPACT:
The Department of Health and Human Services states this bill, as amended by the Senate (Amendment #2015-1569s), will increase state expenditures by an indeterminable amount, and may increase state revenue in FY 2016 and each year thereafter. This bill will have no fiscal impact on county and local revenue and expenditures.
METHODOLOGY:
The Department of Health and Human Services states this bill prohibits any person who receives public assistance from using an electronic benefits card (EBT) or cash obtained with an EBT card to gamble; to purchase tobacco products, alcoholic beverages, lottery tickets, firearms, or adult entertainment; or at businesses that primarily engages in the practice of body piercing, branding, or tattooing. The bill also requires the Department to provide a report to the fiscal committee, on or before October 1, 2015, on the adoption and implementation of restrictions on the use of cash assistance. The report shall contain the goals of cash assistance, a review of applicable state and federal regulations governing restrictions on the use of cash assistance, summarize the Department’s findings regarding enforcement of RSA 167:7-b, and make recommendations relative to the regulation of cash assistance programs. The report must include an education plan for recipients regarding the requirements of 167:7-b and the permissible and prohibited use of cash assistance. The Department has identified the following possible effects on revenue and expenditures:
• The Department states this bill does not provide an appropriation for enforcement and monitoring will be limited to reported complaints. Prior to the implementation of the new EBT contract – which includes the ability to block prohibited transactions and establishing the block on EBT transactions – the Department’s Special Investigations Unit spent $39,738 enforcing existing EBT cash restrictions and saved $11,752 in the same period. The Department concluded a manual process was not cost effective. The Special Investigation Unit has a 13 month backlog of higher dollar cases to review. It would require additional staff to address EBT product violations. The Department states it would cost $175,000 of general funds for two EBT fraud investigators.
• There is no cost for a vendor to automatically block locations. However, there is an indeterminable cost associated with initially identifying locations and establishing the block on EBT transactions.
• There may be additional administrative fines for violation of the prohibited use of cash from EBT cards at certain locations. The state’s EBT vendor offers the ability to block transactions by location or vendor type, which will prevent inappropriate purchases and minimize any additional penalties.
• Technology to automate restrictions based on UPC codes is not included in the current EBT contract and would not work with the current EBT cards and terminals. All retailers would need to choose to upgrade their terminals at their own cost. Therefore, cash access points accepting EBT may be reduced in the State and would not be accessible in out-of-state locations. New EBT cards would need to be issued to all cash assistance recipients. Finally, the current EBT vendor could not provide a quote for building a new EBT system that blocks product by UPC codes. The vendor indicated it would be a large project in the six figure range. This bill makes no appropriation to support such a project.
