law16377

Chapter 377

2016 -- S 2040 SUBSTITUTE A
Enacted 07/09/2016

A N A C T

RELATING TO HUMAN SERVICES - PUBLIC ASSISTANCE ACT

Introduced By: Senators Walaska, Algiere, Ciccone, Cote, and McCaffrey

Date Introduced: January 13, 2016

It is enacted by the General Assembly as follows:

SECTION 1. Chapter 40-6 of the General Laws entitled "Public Assistance Act" is

hereby amended by adding thereto the following section:

40-6-8.1. Prohibited uses of electronic-benefit-transfer cards. – (a) The department

shall adopt rules prohibiting purchases with cash-assistance funds held on electronic-benefit-

transfer cards in venues as described in this section.

(b) The department is hereby empowered, and shall maintain policies and practices as

necessary, to prohibit cash assistance provided under this chapter from being used in any

electronic-benefit-transfer transaction at:

(1) Liquor stores (holding solely a retailers class A license);

(2) Casinos or at facilities that conduct casino gaming as defined in chapter 61.2 of title

42;

(3) Gambling facilities as defined by chapter 9 of title 41;

(4) Retail establishments that provide adult-oriented entertainment in which performers

disrobe or perform in an unclothed state for entertainment as defined in the Social Security Act,

42 U.S.C. 608(a).

electronic-benefit-transfer cards in such establishments, shall, for a first offense, have their cash

assistance reduced for one month by the portion of the family's benefit attributable to one parent,

in accordance with rules and regulations promulgated by the department; for a second offense,

have their cash assistance reduced for three (3) months by the portion of the family's benefit

attributable to one parent, in accordance with rules and regulations promulgated by the

department; and for a third offense, shall be disqualified from the direct-cash-assistance program

for a period of one year.

(d) A store owner who commits fraud against the department of human services by

violating §11-41-34, and who also possesses a license to sell alcoholic beverages under chapter 7

of title 3, shall be referred to the appropriate licensing authority for possible disciplinary action

pursuant to title 3.

(e) A store owner who commits fraud against the department of human services by

violating §11-41-34, and who also possesses a license to sell lottery tickets under chapter 61 of

title 42, shall be referred to the director of the state lottery for possible disciplinary action.

SECTION 2. Chapter 11-41 of the General Laws entitled "Theft, Embezzlement, False

Pretenses, and Misappropriation" is hereby amended by adding thereto the following section:

11-41-34. Fraud against the department of human services. – (a) The following

establishments and/or retail outlets are prohibited from accepting electronic-benefit-transfer cards

issued by the department of human services:

(1) Liquor stores;

(2) Casinos or at facilities that conduct casino gaming as defined in chapter 61.2 of title

42;

(3) Gambling facilities as defined by chapter 9 of title 41;

(4) Retail establishments that provide adult-oriented entertainment in which performers

disrobe or perform in an unclothed state for entertainment as defined in the Social Security Act,

42 U.S.C. 608(a).

(b) A store owner who knowingly allows a prohibited, electronic-benefit transaction in

violation of this section shall be guilty of a misdemeanor and shall be punished by a fine of not

more than five hundred dollars ($500) for a first offense; by a fine of not less than five hundred

dollars ($500) nor more than two thousand five hundred dollars ($2,500) for a second offense;

and for a third, or subsequent, offense shall be guilty of a felony and shall be punished by a fine

of not less than two thousand five hundred dollars ($2,500).

services is further authorized to suspend and/or revoke any license necessary to conduct business.

SECTION 3. This act shall take effect upon passage.

========

LC003153/SUB A

========