HOUSE JUDICIARY COMMITTEE SUBSTITUTE FOR

HOUSE BILL 12

51st legislature - STATE OF NEW MEXICO - first session, 2013

AN ACT

RELATING TO PUBLIC ASSISTANCE; ENACTING A NEW SECTION OF THE NEW MEXICO WORKS ACT TO AUTHORIZE THE HUMAN SERVICES DEPARTMENT TO ISSUE CASH ASSISTANCE THROUGH ELECTRONIC BENEFITS TRANSFER, TO RESTRICT RETAILERS FROM RECEIVING ELECTRONIC BENEFITS TRANSFER PAYMENTS AND TO CHARGE FEES TO REPLACE ELECTRONIC BENEFITS TRANSFER CARDS; PROHIBITING THE USE OF CASH ASSISTANCE AT CERTAIN ESTABLISHMENTS; PROVIDING FOR RULEMAKING; REQUIRING REGULATORY CONSULTATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of the New Mexico Works Act is enacted to read: 

     "[NEW MATERIAL] CASH ASSISTANCE--SPENDING RESTRICTIONS.--

          A. The department may:

                (1) issue cash assistance to a participant through electronic benefits transfer;

                (2) authorize a fee to a participant to cover the cost associated with issuing a replacement electronic benefits transfer card;

                (3) approve or deny participation by a retailer in the electronic benefits transfer system; and

                (4) use any available technology, including electronic blocking or filtering, through its electronic benefits transfer services provider to block the use of electronic benefits transfer cards at automatic teller machines and point-of-sale terminals located at a retailer whose participation in the electronic benefits transfer program has been denied.

          B. The department shall prohibit participants from using cash assistance benefits in, and retailers and financial institutions from participating in, electronic benefits transfer transactions at:

                (1) the licensed premises of a pari-mutuel horse racing establishment where simulcast or pari-mutuel wagering is conducted;

                (2) a gaming establishment;

                (3) a liquor store; or

                (4) an adult entertainment establishment.

          C. The gaming control board, the tribal liaison to the gaming control board appointed pursuant to the State-Tribal Collaboration Act, the alcohol and gaming division of the regulation and licensing department and the state racing commission shall work cooperatively with the human services department to share information regarding:

                (1) the use of electronic benefits transfer transactions at automatic teller machines and point-of-sale terminals at establishments described in Subsection B of this section under their respective jurisdictions; and

                (2) methods for prohibiting participants from electronic benefits transfer access at establishments described in Subsection B of this section under their respective jurisdictions.

          D. The secretary shall adopt and promulgate rules as necessary for carrying out the provisions of this section.

          E. The department shall administer the electronic benefits transfer program to ensure compliance with applicable federal law and the New Mexico Indian Gaming Compact made pursuant to Chapter 11, Article 13 NMSA 1978.

          F. As used in this section:

                (1) "adult entertainment establishment" means any retail establishment that provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment;    

                 (2) "electronic benefits transfer" means an online system in which cash assistance benefits are stored in a central computer database and electronically accessed by participants at the point of sale;

                (3) "financial institution" means an organization authorized to do business under state or federal laws relating to financial institutions and includes a bank, trust company, savings bank, building and loan association, savings and loan company or association and credit union;

                (4) "gaming establishment" means an establishment whose principal purpose of business is regulated by the gaming control board;

                (5) "licensed premises" means an establishment at which business activity is regulated by the alcohol and gaming division of the regulation and licensing department;

                (6) "liquor store" means a retail establishment that sells exclusively or primarily intoxicating liquor. "Liquor store" does not mean a store that sells both intoxicating liquor and groceries; and

                (7) "retailer" means a person that sells or offers for sale products or services to participants."

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