Second Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 14-0103.01 Jerry Barry x4341 SENATE BILL 14-037 SENATE SPONSORSHIP Marble, HOUSE SPONSORSHIP Wright and Nordberg, Buck, Humphrey, Saine Senate Committees House Committees State, Veterans, & Military Affairs A BILL FOR AN ACT Concerning prohibitions on the use by recipients of public benefits of automated teller machines at certain establishments. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Federal law requires states to take measures to prevent recipients of public benefits from using electronic benefit transfers at liquor stores, gambling establishments, and adult-oriented entertainment establishments. Current Colorado law prohibits the use of automated teller machines by recipients of public benefits at gambling establishments, firearms dealers, and liquor stores. The bill extends the Colorado prohibitions to establishments licensed to sell marijuana or marijuana-infused products and adult-oriented entertainment establishments. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 26-2-104, amend (2) (a) as follows: 26-2-104. Public assistance programs - electronic benefits transfer service - rules. (2) (a) (I) The state department is authorized to implement an electronic benefits transfer service for administering the delivery of public assistance payments and food stamps to recipients. The electronic benefits transfer service shall be designed to allow clients access to cash benefits through automated teller machines or similar electronic technology. The electronic benefits transfer service shall allow allows clients eligible for food stamps access to food items through the use of point of sale terminals at retail outlets. (II) Only those businesses that offer products or services related to the purpose of the public assistance benefits shall be are allowed to participate in the electronic benefits transfer service through the use of point of sale terminals. Clients shall not be are not allowed to access cash benefits through the electronic benefits transfer service from automated teller machines in this state located in: (A) Licensed gaming establishments, as defined in section 12-47.1-103 (15), C.R.S., in-state simulcast facilities, as defined in section 12-60-102 (14), C.R.S., tracks for racing, as defined in section 12-60-102 (26), C.R.S., or commercial bingo facilities, as defined in section 12-9-102 (2.3), C.R.S.; (B) Stores or establishments in which the principal business is the sale of firearms; or (C) Retail establishments licensed to sell malt, vinous, or spirituous liquors pursuant to part 3 of article 47 of title 12, C.R.S.; (D) Establishments licensed to sell marijuana or marijuana-infused products pursuant to article 43.3 or 43.4 of title 12, C.R.S.; or (E) Establishments that provide adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment. (III) In the development and implementation of the service, the state department shall consult with representatives of those persons, agencies, and organizations that will use or be affected by the electronic benefits transfer service, including program clients, to assure that the service is as workable, effective, and efficient as possible. The electronic benefits transfer service shall be is applicable to the public assistance programs described in subsection (1) of this section and to food stamps as described in part 3 of this article. The state department shall contract in accordance with state purchasing requirements with any entity for the development and administration of the electronic benefits transfer service. In order to ensure the integrity of the electronic benefits transfer service, the system developed pursuant to this section shall must use, but is not limited to, security measures such as individual personal identification numbers, photo identification, or fingerprint identification. The security method or methods selected shall must be those that are most efficient and effective. The state board shall establish by rule a policy and procedure to limit losses to a client after the client reports that the electronic benefits transfer card or benefits have been lost or stolen. The state department may authorize county departments of social services to charge a fee to a client to cover the costs related to issuing a replacement electronic benefits transfer card. SECTION 2. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.