Budget Amendment ID: FY2015-S4-836-R1
Redraft EHS 836
EBT Reform
Messrs. Tarr, Hedlund, Ross and Humason moved that the proposed new text be amended moved that the bill be amended by inserting, after section__, the following new sections:
“SECTION _. Section 2 of Chapter 18 as appearing in the 2012 Official Edition is hereby amended by inserting after the word “section”, in line 139, the following words:- ; and
(g) the recording and tracking of blank electronic benefit transfer cards that ensures the integrity of the cards and establishes a clear chain of custody and best practices in the shipment and custody of those cards; and
(h) the termination of benefits to any recipient who has failed to notify the department of a change of address and who the department has attempted to contact by certified mail, but whose mail communication has been returned to the department as undeliverable; provided, however, that the department, after receiving notice that the mail communication has been returned as undeliverable or returned with a Massachusetts forwarding address, shall use all available means to determine the address of the recipient and, in the event that it cannot be determined, subject the recipient’s case to further review as to continued eligibility.
SECTION _. Subsection (b) of section 5I of said chapter 18, as appearing in section 2 of chapter 161 of the acts of 2012, is hereby amended by inserting after the word “jewelry” the following words:- ; televisions, stereos, video games or consoles at rent-to-own stores.
SECTION _. Said chapter 18 is hereby further amended by striking out section 5J, as so appearing, and inserting in place thereof the following section:-
Section 5J. (a) The department shall maintain policies and practices as necessary to prevent cash assistance provided under this chapter from being used in electronic benefit transfer transactions at: liquor stores; casinos, gambling casinos or gaming establishments licensed under chapter 23K; retail establishments which provide 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; adult bookstores or adult paraphernalia stores as defined in section 9A of chapter 40A; firearms dealers licensed under section 122 of chapter 140 and ammunitions dealers licensed under section 122B of said chapter 140; tattoo parlors; manicure shops or aesthetic shops registered under chapter 112; jewelry stores; or on cruise ships. Such establishments shall not accept electronic benefit transfer cards. A store owner who knowingly allows a prohibited electronic benefit transfer transaction in violation of this section or subsection (b) of section 5I shall be punished by a fine of not more than $500 for a first offense, by a fine of not less than $500 nor more than $2,500 for a second offense and by a fine of not less than $2,500 for a third or subsequent offense.
(b) A store owner who knowingly violates this section and who also possesses a license to sell alcoholic beverages under section 12 of chapter 138 shall be referred to the appropriate licensing authority for possible disciplinary action under section 64 of said chapter 138. A store owner possessing a license under said section 12 of said chapter 138 who knowingly violates this section a second or subsequent time shall have its license suspended for not less than 30 days and shall be referred to the appropriate licensing authority for possible further disciplinary action under said section 64 of said chapter 138.
(c) A store owner who knowingly violates this section and who also possesses a license to sell lottery tickets under sections 26 and 27 of chapter 10 shall be referred to the director of the state lottery commission for possible disciplinary action. A store owner possessing a license under said section 26 or 27 of said chapter 10 who knowingly violates this section a second or subsequent time shall have its license suspended for not less than 30 days and shall be referred to the director of the state lottery commission for possible further disciplinary action.
SECTION _. Section 5L of said chapter 18, inserted by section 3 of said chapter 161, is hereby amended by adding the following subsection:-
(f) An individual who traffics food stamp benefits, as described in subsection (b) and on 2 prior occasions has been convicted of trafficking food stamp benefits under said subsection (b) or conspiracy to traffic food stamp benefits shall be punished by imprisonment in a state prison for not more than 10 years or by a fine of not more than $25,000 or both suchfine and imprisonment.
SECTION _. Said chapter 18 is hereby further amended by inserting after section 5N the following 2 sections:-
Section 5O. (a) The department shall include on the front of newly-issued and reissued electronic benefit transfer cards a photograph of the cardholder if the cardholder is 18 years of age or older. The department shall promulgate regulations to ensure that all members of the household are able to use the electronic benefit transfer card as required by 7 U.S.C.A. § 2016(h)(9) and to ensure that authorized users are able to use the electronic benefit transfer card.
The department shall promulgate regulations to allow for exemptions from the photo identification requirement for vulnerable populations which may include, but shall not be limited to, the elderly, blind, disabled and victims of domestic violence, as determined by the department.
In developing regulations for authorized users, the department shall consult with businesses or vendor associations whose members accept electronic benefit transfer cards as a form of payment including, but not limited to, the Massachusetts Food Association, the New England Convenience Store Association and the Retailers Association of Massachusetts.A store owner or employee shall check that the photograph on an electronic benefit transfer card matches the identity of the person making a purchase or follow the procedures for authenticating authorized users, as determined by the department. A store owner shall be fined for each instance in which the store owner or an employee knowingly fails to check that the photograph on an electronic benefit transfer card matches the person making the purchase or that the purchaser is an authorized user of the electronic benefit transfer card and thereby permits an individual who is not authorized to use the card to purchase goods. The store owner shall be punished by a fine of not less than $100 nor more than $500 for a first offense, not less than $1000 nor more than $2,500 for a second offense and not less than $5,000 for a third and subsequent offense.
Upon a fourth offense within the same calendar year, the department may initiate a review of the establishment’s authorization to accept electronic bank transfer cards, and may, consistent with the severity of the offenses recorded and to the extent permitted by state and federal law, temporarily or permanently revoke the establishment’s authorization.
(b) The department shall include the fraud hotline number and department website on all newly issued electronic benefit transfer cards.
Section 5P. The department shall place any grantee that uses direct cash assistance issued by the commonwealth for purchases in states other than the commonwealth, New Hampshire, Connecticut, Rhode Island, New York, and Vermont in the high-risk client group under section 37. The purchase shall cause the department to issue a special case review of the grantee to ensure that the grantee is fully compliant with the income, asset, identity and residency requirements for the benefits and all other rules and regulations of the department.
SECTION _. Section 10 of said chapter 18, as appearing in the 2012 Official Edition, is hereby amended by adding at the end thereof the following paragraph:-
Notwithstanding any general or special law to the contrary, 60 days before promulgating or amending any regulation that would alter eligibility for, or the level of benefits provided through the department, other than that which would benefit recipients, the department shall file with the house and senate committees on ways and means, the house and senate chairs of the joint committee on children, families and persons with disabilities and the clerks of the house of representatives and senate a report describing the changes and setting forth justification for any changes.
Section _. The department of transitional assistance shall develop a fraud detection program. The fraud detection program shall analyze the risk of fraud and refer any cases of suspected fraud to the program integrity division and the bureau of special investigations in the office of the state auditor. In analyzing risk of fraud and identifying cases for investigation, the program shall consider: (i) even dollar transactions; (ii) full benefit withdrawal; (iii) usage patterns; and (iv) other relevant data sources. In order to assist the program in identifying and investigating likely cases of fraud, the department shall develop and make available reports identifying even dollar transactions by cardholder, instances of full benefit withdrawal and other data reports, as necessary.
SECTION _. Chapter 118 of the General Laws is hereby amended by adding the following section:-
Section _. A temporary absence from the commonwealth which exceeds 30 calendar days shall create a rebuttable presumption that Massachusetts residency has been abandoned by a recipient of cash assistance under transitional aid to families with dependent children and the recipient is no longer eligible for assistance. The department of transitional assistance shall promulgate regulations in accordance with this section.
SECTION _. Notwithstanding any general or special law to the contrary, the department of transitional assistance shall develop, implement and maintain a system utilizing electronic and other technology to reduce the use of paper records and documentation and to eliminate the sole reliance on such paper records for its operations.
The system shall facilitate efficiency and accuracy in the submission and receipt of applications and related documents and the timely verification of the information so contained and to the maximum feasible extent to prevent the loss of the information and ensure its availability on a continuous basis for the functions performed by the department.
The system shall, to the maximum extent feasible, minimize the time and resources necessary to manage information, reduce the need for the resubmission of documents and verify the receipt of documents or information submitted. The system shall also facilitate the timely and efficient exchange of information.
The system shall be fully operational not later than 24 months following the passage of this act; provided, however, that it may be developed and implemented in stages but the department shall electronically submit quarterly reports to the clerks of the house and the senate on its progress; and provided further, that the reports shall identify any obstacles preventing progress including, but not limited to, resource constraints. The first report shall be filed by September 1, 2013.
SECTION _. Electronic benefit cards shall include a photograph of the cardholder under section 5O of chapter 18 of the General Laws by August 1, 2014. The department of transitional assistance shall consider utilizing the photograph databases of the registry of motor vehicles and the Massachusetts Bay Transportation Authority as a cost-saving measure. The department of transitional assistance shall work with the registry of motor vehicles to access and cross-share facial recognition data and resources for the purpose of identifying potential fraud by December 31, 2014. The department shall report any case where there is reason to believe that fraud has been committed to the bureau of special investigations, the district attorney or an appropriate law enforcement entity for such action as they may deem proper.”