To repeal section 208.182, RSMo 1994, relating to the administration of public assistance programs, and to enact in lieu thereof four new sections relating to comprehensive fraud protection, with penalty provisions.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

     Section A. Section 208.182, RSMo 1994, is repealed and four new sections enacted in lieu thereof, to be known as sections 208.014, 208.183, 208.184 and 208.185, to read as follows:

     208.014. 1. The director shall identify each applicant and each person who has applied for and is receiving public assistance on and after October 1, 1997, by unique personal characteristics. The director may choose to require the use of fingerprints, digitized fingerprints, retinal scan or any other method which will enable the department to identify each person. The department shall compare such personal data to a personal identification database maintained by the state of Missouri and may compare fingerprints to similar databases maintained by any other state or federal government to ensure that public assistance benefits are not obtained fraudulently.

     2. Failure of applicants and recipients to comply with the requirements regarding finger printing will result in sanctions being taken against their benefits as appropriate. The department director can waive any requirements for exceptional circumstances.

     208.183. 1. For the purposes of sections 208.183 to 208.185, the following terms shall mean:

     (1) "Division", division of family services;

     (2) "Electronic benefit transfer", a transfer of funds to recipients of public assistance benefits through automated teller machines or point of sale terminals;

     (3) "Electronic funds transfer", any transfer of funds, other than an electronic benefit transfer pursuant to section 208.185 and a transaction originated by cash, check or other similar paper instrument, that is initiated through electronic terminal, telephone, computer or magnetic tape, for the purpose of ordering, instructing or authorizing a financial institution to debit or credit an account;

     (4) "Financial institution", includes any state or federally chartered bank, credit union or savings and loan association located in Missouri which maintains general depository accounts.

     2. All cash payments of public assistance shall be through the EBT system unless the recipient possesses a general depository account in a financial institution located in Missouri. Applicants who have qualified to receive public assistance benefits administered by the department and who have a depository account in a financial institution shall receive such assistance through electronic funds transfer (EFT) by direct deposit into the recipient's general depository account. Prior to receipt of benefits, a recipient shall designate the financial institution to which such direct deposit payments shall be made.

     3. If at any time during the period of eligibility a recipient obtains a depository account or the division becomes aware of the existence of a depository account suitable for direct deposit, the recipient shall be required to provide to the division the information necessary to provide benefits by direct deposit. The division shall be authorized to take appropriate sanctions against any recipient who fails to comply with this provision.

     208.184. 1. The division of family services shall establish a statewide electronic benefits transfer (EBT) system for administering the delivery of public assistance benefits specified in subsection 5 of this section and all such assistance shall be provided through the EBT system or the direct deposit system authorized in section 208.183. Such system shall allow recipients to obtain cash from automated teller machines or point of sale terminals. If less than the total amount of benefits is withdrawn, the recipient shall be given a receipt showing the current status of his account.

     2. The disclosure of any information provided to a financial institution, business or vendor by the division of family services pursuant to this section is prohibited. Such financial institution, business or vendor may not use or sell such information and may not divulge the information without a court order. Violation of this subsection is a class A misdemeanor.

     3. Subject to appropriations and subject to receipt of waivers from the federal government to prevent the loss of any federal funds, the department of social services shall require the use of photographic identification on electronic benefit transfer cards issued to recipients in this system. Such photographic identification electronic benefit transfer cards shall be in a form approved by the department of social services.

     4. The division of family services shall promulgate rules and regulations necessary to implement the provisions of this section pursuant to section 660.017, RSMo, and chapter 536, RSMo.

     5. The delivery of electronic benefits and the electronic eligibility verification, including, but not limited to, temporary assistance to needy families (TANF), women, infants and children (WIC), early periodic screening diagnosis and treatment (EPSDT), food stamps, supplemental security income (SSI), including medicaid, child support, and other programs, shall reside in one card that may be enabled by function from time to time in a convenient manner.

     6. In order to ensure the integrity of the EBT system, the department may disapprove vendor participation. Recipients shall not be allowed to access cash benefits through EBT from automated teller machines or point-of-sale machines located in this state in licensed excursion gambling facilities; tracks for racing; in-state simulcast facilities; stores or establishments in which the principal business is the sale of firearms; or retail establishments in which the principal business is the sale of alcoholic, spirituous, vinous, fermented or malt liquor.

     7. Notwithstanding any other provision of law, payment of benefits pursuant to the electronic benefits transfer (EBT) system provided for in section 208.182 shall be made at regular intervals as determined by the department.

     208.185. 1. A person commits the crime of EBT fraud who does any of the following:

     (1) Without the consent of the cardholder, and knowing that the cardholder has not given consent, uses or attempts to use an EBT card to obtain a public assistance benefit issued for the cardholder or other qualified recipient;

     (2) Uses or attempts to use an EBT card knowing it to be stolen, altered or counterfeit;

     (3) Sells or transfers a card knowing that the cardholder and issuer have not authorized the person to whom the card is sold or transferred to use the card;

     (4) Furnishes money, goods, services or anything else of value upon presentation of an EBT card, knowing it to be counterfeit, revoked, stolen or that it is presented by a person without authority to use the card;

     (5) Furnishes money, goods, services, or anything else of value, and does so knowingly and with the intent to defraud the issuer or the cardholder;

     (6) Represents in writing to the issuer that the person has furnished money, goods, services or anything else of value which has not in fact been furnished;

     (7) With intent to defraud, falsely notifies the issuer or any other person of a theft, loss, disappearance or non-receipt of an EBT card;

     (8) Without the consent of the cardholder and knowing that the cardholder has not given consent, makes or signs any written document pertaining to an EBT card transaction to obtain or attempt to obtain the property of another;

     (9) Knowingly receives an EBT card to which he/she is not lawfully entitled or for which he/she has not applied and been approved by the department to receive; or

     (10) Creates a counterfeit EBT card.

     2. EBT fraud constitutes a class D felony unless the value of the benefits unlawfully obtained or unlawfully attempted to be obtained is less than one hundred fifty dollars in which case it is a class A misdemeanor.

          [208.182. 1. The division of family services shall establish pilot projects in St. Louis city and in any county with a population of six hundred thousand or more, which shall provide for a system of electronic transfer of benefits to public assistance recipients. Such system shall allow recipients to obtain cash from automated teller machines or point of sale terminals. If less than the total amount of benefits is withdrawn, the recipient shall be given a receipt showing the current status of his account.

          2. The disclosure of any information provided to a financial institution, business or vendor by the division of family services pursuant to this section is prohibited. Such financial institution, business or vendor may not use or sell such information and may not divulge the information without a court order. Violation of this subsection is a class A misdemeanor.

          3. Subject to appropriations and subject to receipt of waivers from the federal government to prevent the loss of any federal funds, the department of social services shall require the use of photographic identification on electronic benefit transfer cards issued to recipients in this system. Such photographic identification electronic benefit transfer card shall be in a form approved by the department of social services.

          4. The division of family services shall promulgate rules and regulations necessary to implement the provisions of this section pursuant to section 660.017, RSMo, and chapter 536, RSMo.

          5. The delivery of electronic benefits and the electronic eligibility verification, including, but not limited to, aid to families with dependent children (AFDC), women, infants and children (WIC), early periodic screening diagnosis and treatment (EPSDT), food stamps, supplemental security income (SSI), including medicaid, child support, and other programs, shall reside in one card that may be enabled by function from time to time in a convenient manner.]