HOUSE MEMORIAL 93

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Karen E. Giannini

A MEMORIAL

REQUESTING THE WORKFORCE SOLUTIONS DEPARTMENT AND THE INCOME SUPPORT DIVISION AND CHILD SUPPORT ENFORCEMENT DIVISION OF THE HUMAN SERVICES DEPARTMENT TO COLLABORATE IN ORDER TO LEVERAGE STATE ASSETS AND NEGOTIATE AGREEMENTS THAT AVOID OR REDUCE FEES FOR USING ELECTRONIC BENEFIT TRANSFER OR PREPAID DEBIT CARDS FOR RECIPIENTS OF UNEMPLOYMENT COMPENSATION, CHILD SUPPORT ENFORCEMENT PAYMENTS AND CASH ASSISTANCE.

     WHEREAS, the child support enforcement division of the human services department administers the state's child support enforcement program and offers recipients of child support payments the option of receiving child support payments in the form of direct deposit, by warrant or by prepaid debit card; and

     WHEREAS, the human services department has negotiated a fee schedule with the state's fiscal agent, bank of America, on behalf of the child support payment recipients it serves, whereby recipients may make four automatic teller machine, or ATM, withdrawals and four automatic customer service inquiries per month free of charge; and

     WHEREAS, recipients of child support payments pay nothing to use their debit cards in making point-of-service purchases or cash withdrawals; and

     WHEREAS, recipients of child support payments pay nothing for up to five automatic customer service inquiries per month; and

     WHEREAS, the income support division of the human services department administers the state's temporary assistance for needy families, or TANF, and general assistance programs; and

     WHEREAS, the income support division requires recipients of TANF and general assistance to receive benefits via electronic benefits transfer, or EBT, cards; and

     WHEREAS, the income support division also uses EBT cards for the supplemental nutrition assistance program, or food stamps program; and

     WHEREAS, the income support division negotiated the fee schedule with the state's fiscal agent, bank of America; and

     WHEREAS, TANF, general assistance and food stamps recipients are not charged any fees when making point-of-sale purchases with their EBT cards; and

     WHEREAS, TANF and general assistance recipients must pay forty-two cents ($.42) per transaction when they use ATMs to get cash with their EBT cards; and

     WHEREAS, TANF and general assistance recipients do not pay any fee for balance inquiries at ATMs; and

     WHEREAS, the workforce solutions department and human services department deposit many millions of dollars with their respective financial institutions, JP Morgan and bank of America, thus increasing the financial power of these financial institutions; and

     WHEREAS, considering the many millions of dollars deposited monthly into JP Morgan and bank of America by these programs to the benefit of these financial institutions, the human services department and workforce solutions department should be able to jointly leverage their funds to gain more favorable fee schedules with these financial institutions, such as no fees or reduced fees for recipients using EBT or prepaid debit cards;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the workforce solutions department and the income support division and child support enforcement division of the human services department be requested to collaborate to leverage state assets and negotiate the best terms possible for electronic debit and benefit card contracts in order that recipients of unemployment compensation, child support payments and cash assistance through TANF or general assistance pay no fees or reduced fees; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the governor; the secretary of workforce solutions; the secretary of human services; and the secretary of finance and administration.

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