HOUSE DOCKET, NO. 4343        FILED ON: 4/4/2012

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No.         

The Commonwealth of Massachusetts

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PRESENTED BY:

Shaunna O'Connell and Russell E. Holmes

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to electronic benefit transfer card reform.

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PETITION OF:

HOUSE DOCKET, NO. 4343        FILED ON: 4/4/2012

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No.         

The Commonwealth of Massachusetts

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In the Year Two Thousand Twelve

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An Act relative to electronic benefit transfer card reform.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

   SECTION 1.  Section 5I of chapter 18 of the General Laws, as most recently amended by chapter 84 of the acts of 2011, is hereby amended by adding at the end thereof the following sentences:-

   Eligible recipients of direct cash assistance shall not use direct cash assistance funds or electronic benefit transfer cards for purchases at the following types of businesses or at automated teller machines housed within these businesses:  liquor stores; casinos, gaming establishments, and gambling establishments; retail establishments which provide adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment, as defined by Section 408(a) of the Federal Social Security Act, as amended; smoke shops; firearms dealers; tattoo parlors; nail salons; health spas; rent-to-own furniture, electronics, and appliance stores; jewelry stores; health clubs and gyms; movie theaters; bail bondsmen; and taverns and drinking establishments.

   A recipient of direct cash assistance who makes a purchase in violation of this section and who is found, by a hearing officer, to have committed an intentional program violation shall be disqualified from the direct cash assistance program for a period of 3 months for the first offense and permanently, following the finding, for the second offense. The recipient shall reimburse the department the full amount of the purchase.

   SECTION 2. Chapter 18 of the General Laws, as so appearing, is hereby amended by striking out section 5J, in its entirety, and inserting in place thereof the following:-

   Section 5J. (a) Notwithstanding any general or special law to the contrary, an individual store or owner shall not accept direct cash assistance funds held on electronic benefit transfer cards for the purchase of alcoholic beverages, lottery tickets or tobacco products. An individual or store owner who knowingly accepts electronic benefit transfer cards in violation of this subsection shall be punished by a fine of not more than $500 for the first offense, a fine of not less than $500 nor more than $1,000 for the second offense, and a fine of not less than $1,000 for the third or subsequent offense.

   (b) Any store that sells alcoholic beverages, lottery tickets, or tobacco products, excluding businesses defined by subsection (c), shall display in an area conspicuous to customers of the business a sign containing the following statement:  “Massachusetts law (M.G.L. c.18, §5I) prohibits the purchase of tobacco products, alcohol, or lottery tickets with EBT cards or direct cash assistance.  Violators will be punished to the full extent of the law.  If you witness EBT benefit fraud, please report it, toll-free, by calling: 1-800-FRAUD-99 (1-800-372-8399).”

   The department shall maintain a downloadable template of the sign on the department’s website.  Business associations may also maintain a downloadable template of the sign on their websites.

   (c) The following types of businesses shall not accept electronic benefit transfer cards for purchases and shall not house automated teller machines that accept electronic benefit transfer cards:  liquor stores; casinos, gaming establishments, and gambling establishments; retail establishments which provide adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment, as defined by Section 408(a) of the Social Security Act, as amended; smoke shops; firearms dealers; tattoo parlors; nail salons; health spas; rent-to-own furniture, electronics, and appliance stores; jewelry stores; health clubs and gyms; movie theaters; bail bondsmen; and taverns and drinking establishments.  Upon request, any state agency that, in the regular course of business, regulates retail stores must cooperate with law enforcement regarding potential violations of this section. Any store owner who knowingly accepts electronic benefit transfer cards in violation of this section shall be punished by a fine of not less than $1000 for the first offense; not less than $3000 for the second offense and not less than $1000 for the third or subsequent offense.

   (d) Notwithstanding any general or special law to the contrary, any business defined by subsection (c), shall display in an area conspicuous to customers of the business a sign containing the following statement: “Massachusetts law (M.G.L. c.18, §5J) prohibits this store from accepting EBT cards or direct cash assistance and Massachusetts law (M.G.L. c.18, §5I) prohibits customers from purchasing products in this store with EBT cards or direct cash assistance.  Violators will be punished to the full extent of the law. If you witness EBT benefit fraud, please report it, toll-free, by calling: 1-800-FRAUD-99 (1-800-372-8399).”

   The department shall maintain a downloadable template of the sign on the department’s website.  Business associations may also maintain a downloadable template of the sign on their websites.

   SECTION 3. Chapter 18 of the General Laws, as so appearing, is hereby amended by inserting after section 5K the following new sections:-

   Section 5L. Notwithstanding any general or special law to the contrary, the department shall charge all eligible recipients of direct cash assistance a fee of $10 for the first requested replacement of an electronic benefit transfer card and a fee of $20 for any additional replacement of an electronic benefit transfer card.  All fees for replacement cards shall be deducted directly from the recipient’s direct cash assistance.

   Section 5M. Notwithstanding any general or special law to the contrary, direct cash assistance issued by the Commonwealth shall not be used for purchases in states other than Massachusetts and states contiguous to Massachusetts.  For the purposes of this section, contiguous states shall mean: New Hampshire, Connecticut, Rhode Island, New York, and Vermont.  The department of transitional assistance shall identify all violators on a monthly basis.  Any eligible recipient who violates this section shall be disqualified from the program for not less than 3 months. The department shall notify the recipient that they must report in person to their local department of transitional assistance office to have their benefits reinstated.  Any eligible recipient who violates this section for a second time shall be permanently disqualified from the direct cash assistance program.

   Section 5N. Notwithstanding any general or special law to the contrary, the department shall implement a vendor payment system for the non-cash payment of rent and electric and gas utility bills for all eligible recipients of direct cash assistance. The department shall have 50% of all direct cash assistance recipients enrolled in the vendor payment system by July 31, 2012, and shall have the remaining 50% of recipients enrolled in the vendor payment system by November 30, 2012.  Beginning on July 31, 2012, all recipients of direct cash assistance shall be enrolled in the vendor payment system upon admittance into the direct cash assistance program.

   Section 5O. Notwithstanding any general or special law to the contrary, by November 30, 2012, all eligible recipients of direct cash assistance shall access monthly direct cash assistance through the department’s vendor payment system or point of sale payments, provided however, that eligible recipients shall not withdraw cash assistance from a point of sale transaction.  Beginning on November 30, 2012, eligible recipients of direct cash assistance shall not have access to monthly direct cash assistance through automatic teller machines. 

   Section 5P. Notwithstanding any general or special law to the contrary, the department of transitional assistance shall solicit, in writing, a cost estimate from their current vendor and at least one other vendor for the costs associated with requiring the department to include, on the front of each newly issued, re-issued, and existing electronic benefit transfer card, a photograph of the cardholder. The department shall submit a final cost estimate by filing the same with the clerks of the house and the senate not later than November 30, 2012.