Budget Amendment ID: FY2013-S4-597-R1

Redraft EHS 597

Inspector General EBT Study

Ms. Flanagan and Messrs. Tarr, Ross and Knapik moved that the proposed new text be amended by striking out the figure “3”, in line 697, and inserting in place thereof the following figure:- 4; and

by adding, in said section 50, the following section:-

“Section 5O.  The department shall maintain policies and practices as necessary to prevent cash assistance provided under this chapter from being used in any electronic benefits transfer transaction in any liquor store, casino, gambling casino, or gaming establishment, and any retail establishment which provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment, as defined in Section 408(a) of the Social Security Act, as amended. Such establishments shall not accept electronic benefits transfer cards. A store owner who knowingly allows an electronic benefits transaction in violation of this section 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 a subsequent offense. For purposes of this section, the term ‘electronic benefit transfer transaction’ means the use of a credit or debit card service, automated  teller machine, point-of-sale terminal or access to an online system for the withdrawal of funds or the processing of a payment or merchandise or a service.”; and

by inserting, after section 155, the following  5 sections:-

“SECTION155A.  Notwithstanding any general or special law to the contrary, the department of transitional assistance shall provide benefits in the form of vendor payments with respect to rent and utilities whenever a determination is made that the grant has not been used in the best interests of the child or the assistance unit or other chronic misuse of benefits is occurring, provided that vendor payments shall not be instituted when doing so may increase the risk of homelessness, decrease the ability to escape domestic abuse or impair the assistance unit’s ability to withhold payment as a reasonable exercise of consumer or tenant rights when there is a legitimate dispute as to whether the payment is owed. The department of transitional assistance may presume mismanagement of benefits whenever shelter costs, including, but not limited to, rent, heat, fuel, and utilities, have regularly not been met without reasonable cause. At eligibility determinations and redeterminations, the department shall screen households to determine if they have chronically failed to pay rent and utilities to determine if it is appropriate to institute or terminate vendor payments and shall refer households to the housing consumer education centers and community based resources for assistance in meeting their expenses.

SECTION 155B.  Notwithstanding any general or special law to the contrary, the inspector general shall conduct a data match survey involving the case records for households receiving cash assistance benefits under chapter 18 for the purposes of uncovering information that is inconsistent with or contradictory to information provided by the cash assistance benefit recipients.  The inspector general shall submit a report that shall include the results of a further investigation on a statistically valid sample of the cases for which inconsistent or contradictory information has been found to determine if the household is receiving benefits for which it is not eligible, and if so, whether the error is due to administrative error, unintentional program violation or intentional program violation with the house and senate committees on ways and means or before December 31, 2012; provided, however, that 60 days before filing the report the inspector general shall provide a draft of the report to the department of transitional assistance for review and comment, and shall include the department’s comments with the report when it is made public and filed.

SECTION 155C.  Notwithstanding any general or special law to the contrary, the department of transitional assistance shall coordinate with the Massachusetts Bay Transit Authority and each of the regional transit authorities to ensure that by June 30, 2013, cash assistance funds held on electronic benefit transfer cards are accepted for payment of public transportation fares at electronic fare vending machines.

SECTION 155D. Notwithstanding any general or special law to the contrary, the department of transitional assistance shall report on the projected costs of implementing section 155A to the executive office for administration and finance and the house and senate committees on ways and means not later than November 1, 2012.

SECTION 155E.  Section 155A shall take effect on July 1, 2013.”