Bill Text: NH HB219 | 2015 | Regular Session | Enrolled
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-Enrolled.html
HB 219-FN – VERSION ADOPTED BY BOTH BODIES
05/14/2015 1569s
24June2015… 2309CofC
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 prohibits the use of EBT cards in business that primarily engage in body piercing, branding, or tattooing; cigar stores and smoke shops; and marijuana dispensaries. The bill also requires the department of health and human services to establish an education program relative to the use of EBT cards and requires the department to report on the effectiveness of electronic blocking of EBT cards at prohibited locations.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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
24June2015… 2309CofC
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 New Subparagraphs; Prohibited Use of Electronic Benefit Transfer Card. Amend RSA 167:7-b, II by inserting after subparagraph (d) the following new subparagraphs:
(e) Business establishments primarily engaged in the practice of body piercing, branding, or tattooing.
(f) Cigar stores and stands, pipe stores, smoke shops, and tobacco shops using merchant category code 5993 identified in the Internal Revenue Bulletin 2004-31 Revenue Procedure 2004-43 and any subsequent Internal Revenue Service publication thereto.
(g) Marijuana dispensaries, excluding an alternative treatment center as defined in RSA 126-X:1, I.
2 New Hampshire Department of Health and Human Services; Restrictions on the Use of Electronic Benefit Transfer (EBT) Cards; Education Program. On or before November 1, 2015, the department of health and human services shall develop an education program for cash assistance recipients and retail establishments that accept EBT cards. The program shall provide information regarding the permitted and prohibited use of cash assistance under RSA 167:7-b, including penalties for misuse by businesses and program participants.
3 New Hampshire Department of Health and Human Services; Restrictions on the Use of Electronic Benefit Transfer (EBT) Cards; Electronic Blocking at Prohibited Locations; Reporting Requirement. On or before November 1, 2015, the department of health and human services shall provide an interim report with a final report on or before July 1, 2016 to the health and human services oversight committee established under RSA 126-A:13 on the use and effectiveness of electronically blocking the use of EBT cards at prohibited locations identified under RSA 167:7-b, II.
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.
