HB 219-FN – AS AMENDED BY THE SENATE

05/14/2015 1569s

2015 SESSION

15-0173

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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.

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

01/09/15

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 introduced, will increase state expenditures by an indeterminable amount, and may increase state revenue and local expenditures in FY 2015 and each year thereafter. This bill will have no fiscal impact on county expenditures, or county and local revenue.

METHODOLOGY:

The Department states this bill prohibits the use of cash issued on an electronic benefits transfer (EBT) card at businesses that primarily engage in the practice of body piercing, branding or tattooing; businesses that exclusively or primarily sell tobacco products; and marijuana dispensaries. The bill also requires the Department to develop an education program for recipients and businesses concerning allowable use of cash assistance and penalties for misuse, and provide interim and final reports to the health and human services oversight committee on the use and effectiveness of electronically blocking the use of EBT cards at prohibited locations. The Department has identified the following possible effects on revenue and expenditures:

• 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.

• The Department states the bill does not provide an appropriation for enforcement and there will be no investigative activities. Enforcement will be limited to blocking certain transactions. There will be an indeterminable cost associated with identifying the locations and establishing the block on EBT transactions.

• The Department assumes with no appropriation for education related activities, existing communications will be utilized to educate merchants and clients concerning appropriated use of cash assistance. There will be small indeterminable costs to update existing forms, letters, posters and other communications.

• The Department assumes that if an individual incurs a financial penalty for using their EBT card at a prohibited location, they may request additional local resources for support.