An Act To Improve the Integrity of Maine's Welfare Programs
Maine Legislature, Session 127, LD 1097
Committee Amendment CA_A_S481 (Senate)
Amends: 22 MRSA §3763

COMMITTEE AMENDMENT "A" to S.P. 384, L.D. 1097, Bill, "An Act To 
Improve the Integrity of Maine's Welfare Programs" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 22 MRSA §3763, sub-§§11 to 13 are enacted to read: 
11. Restrictions on use of electronic benefits transfer system. A recipient of 
benefits under this chapter may not expend those benefits using the electronic benefits 
transfer system established in section 22 for the purchase of the following: 
A. Tobacco products, as defined in section 1551, subsection 3; 
B. Imitation liquor or liquor, as defined in Title 28-A. section 2, subsections 13 and 
16, respectively; 
C. Gambling activity, as defmed in Title 8, section 1001, subsection 15; 
D. Lotteries conducted by the State pursuant to Title 8, chapter 14-A or the Tri-State 
Lotto Commission pursuant to Title 8, chapter 16; 
E. Bail, as defmed by Title 15, section 1003, subsection 1; 
F. Firearms or ammunition; 
G. Vacation or travel services; 
H. Publications, services or entertainment that contain or promote obscene matter. 
For purposes of this paragraph, "obscene matter" has the same meaning as in Title 17, 
section 2911, subsection 1, paragraph D; or 
I. Tattoos. as defmed by Title 32, section 4201, or body art. 
A person who violates this subsection is subject to those penalties specified in subsection 
~ 
12. Point of sale restrictions. The department by rule shall establish a system to 
electronically block the purchase of the products and services listed in subsection 11. 
COMMITTEE AMENDMENT 
ROFS 
COMMITTEE AMENDMENT" A" to S.P. 384, L.D. 1097 
paragraphs A to I at the point of sale. Rules adopted pursuant to this subsection are major 
substantive rules as defined in Title 5, chapter 375, subchapter 2-A. 
13. Penalties. A recipient of benefits under this chapter who knowingly purchases a 
product or service in violation of subsection 11 is deemed to have received an 
overpayment in the amount of the prohibited purchase, which may be recovered by the 
department pursuant to chapter 1055-A by requiring direct repayment by the recipient or 
through a reduction in the amount of benefits provided under T ANF or the Parents as 
Scholars Program under chapter 1054-B in accordance with rules that apply to the 
maximum recovery amount for all other T ANF overpayments. The recipient is also 
subject to the following additional penalties: 
A. For the 2nd offense, the recipient may be disqualified from receiving benefits 
under this chapter for a period that does not exceed 3 months: and 
B. 
For the 3rd and subsequent offenses, the recipient may be disqualified from 
receiving benefits under this chapter for a period that does not exceed 6 months. 
The department shall provide prior notice of a disqualification under this subsection to 
the recipient and provide an opportunity for an administrative hearing. The department 
shall adopt rules governing the notice and hearing. 
Rules adopted pursuant to this 
subsection are routine technical rules as defmed in Title 5, chapter 375, subchapter 2-A. 
Sec. 2. Blocking prohibited purchases through technological means. No 
later than October 1, 2016, notwithstanding Joint Rule 353, the Commissioner of Health 
and Human Services shall convene a committee, referred to in this section as "the 
implementation committee," to determine feasible options for preventing Temporary 
Assistance for Needy Families program benefits, through electronic benefits transfer 
cards, from being used to purchase the prohibited products or services listed in the Maine 
Revised Statutes, Title 22, section 3763, subsection 11, referred to in this section as 
"prohibited products or services." 
1. Members. The implementation committee consists of the following members: 
A. 
The Commissioner of Health and Human Services or the commissioner's 
designee; 
B. Two members of the House of Representatives, including a member from each of 
the 2 parties holding the largest number of seats in the Legislature, appointed by the 
Speaker of the House; 
C. Two members of the Senate, including a member from each of the 2 parties 
holding the largest number of seats in the Legislature, appointed by the President of 
the Senate; and 
D. Three members appointed by the Commissioner of Health and Human Services as 
follows: 
(1) A representative of retailers in the State; 
(2) A representative of the fmancial industry familiar with electronic commerce; 
and 
(3) A representative of individuals receiving cash assistance through the T ANF 
program. 
COMMITTEE AMENDMENT 
ROFS 
COMMITTEE AMENDMENT" A" to S.P. 384, L.D. 1097 
2. Duties. The implementation committee shall research, evaluate, determine and 
recommend the most effective means of ensuring that electronic benefits transfer cards 
block at the point of sale the use of T ANF benefits to purchase prohibited products or 
services. The implementation committee shall determine the cost of any system that it 
recommends and shall analyse the impact of its recommendation on business 
establishments of varying sizes doing business in the State. 
3. Report. 
The implementation committee shall submit a report of its findings and 
recommendation, 
together with 
any 
legislation 
necessary to 
implement the 
recommendation, to the joint standing committee of the Legislature having jurisdiction 
over health and human services matters no later than December 15, 2016. 
The 
implementation committee may also provide advice to the Commissioner of Health and 
Human Services with respect to the development of major substantive rules under Title 
22, section 3763, subsection 11. The joint standing committee may report out a bill 
relating to the subject matter of the report to the First Regular Session of the 128th 
Legislature. 
Sec. 3. Appropriations and allocations. 
The following appropriations and 
allocations are made. 
HEALTH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY DHS) 
Office for Family Independence Z020 
Initiative: Provides funding to restrict purchases at the point of sale. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
2015-16 
$0 
$0 
2015-16 
$0 
$0 
2016-17 
$500,000 
$500,000 
2016-17 
$516,135 
$516,135 
Temporary Assistance for Needy Families 0138 
Initiative: Provides a Federal Block Grant Fund allocation to update the Automated Client 
Eligibility System to identify violations and provide notice of penalties under the program 
and to pay for the technology consultant to attend the implementation committee 
meetings. 
FEDERAL BLOCK GRANT FUND 
All Other 
2015-16 
$0 
COMMITTEE AMENDMENT 
2016-17 
$115,739 
ROF:s 
COMMITTEE AMENDMENT" A "to S.P. 384, L.D. 1097 
FEDERAL BLOCK GRANT FUND TOTAL 
HEALIB AND HUMAN SERVICES, 
DEPARTMENT OF (FORMERLY DBS) 
DEPARTMENT TOTALS 
GENERAL FUND 
OTHER SPECIAL REVENUE FUNDS 
FEDERAL BLOCK GRANT FUND 
DEPARTMENT TOTAL-ALL FUNDS 
SUMMARY 
$0 
2015-16 
$0 
$0 
$0 
$0 
$115,739 
2016-17 
$500,000 
$516,135 
$115,739 
$1,131,874 
This amendment is the majority report of the committee. 
Like the bill, the 
amendment prohibits the expenditure of benefits received by recipients under the 
Temporary Assistance for Needy Families program, using the electronic benefits transfer 
system, for products or services such as tobacco products, liquor and lottery tickets. The 
amendment requires the Department of Health and Human Services to develop a system 
to prevent the use of the electronic benefits transfer system for such purchases by 
blocking the purchases at the point of sale. It establishes penalties for violations. It 
requires the Commissioner of Health and Human Services to create an implementation 
committee to determine the most effective system to prevent prohibited expenditures at 
the point of sale. It directs the implementation committee to report to the joint standing 
committee of the Legislature having jurisdiction over health and human services matters 
no later than December 15, 2016. The implementation committee report may include any 
legislation necessary to implement the system. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
,t.,. 
Approved: 04/01/16 ;t,,/ac 
LD 1097 
LR 418(02) 
An Act To Improve the Integrity of Maine's Welfare Programs 
Fiscal Note for Bill as Amended by Committee Amendment ''A-"(s-uc [\ 
Committee: Health and Human Services 
-l O · ) 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2015-16 
FY 2016-17 
Projections 
FY 2017-18 
Projections 
FY 2018-19 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Other Special Revenue Funds 
Federal Block Grant Fund 
Revenue 
Other Special Revenue Funds 
Federal Block Grant Fund 
Fiscal Detail and Notes 
$0 
$0 
$0 
$0 
$0 
$0 
$500,000 
$500,000 
$516,135 
$115,739 
$516,135 
$115,739 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
This bill includes a General Fund appropriation to the Department of Health and Human Services of $500,000 in 
fiscal year 2016-17 to restrict use of benefits on the electronic benefits card (EBT) by recipients of temporary 
assistance for needy families on specific items and activities by blocking prohibited purchases through electronic 
means and to create a committee to determine feasible options for restricitng use of the EBT card on prohibited items. 
The committee will determine the cost of this system on the State and on businesses. The bill also includes an Other 
Special Revenue Funds allocation of 516,135 and a Federal Block Grant Fund allocation of 115,739 in fiscal year 
2016-17. 
Any savings achieved by prohibiting certain purchases and activities would likely not accrue to the General Fund due 
to the Maintenance of Effort spending required of the State to receive the Temporary Assistance for Needy Families 
Federal Block Grant funds. 
Any additional costs to the Department of the Attorney General are expected to be minor. 
LR0418(02) - Fiscal Note - Page 1 of 1