2013 -- H 6132

=======

LC02587

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

____________

A N A C T

RELATING TO HUMAN SERVICES - PUBLIC ASSISTANCE ACT

     Introduced By: Representatives Corvese, Azzinaro, Malik, McNamara, and Messier

     Date Introduced: May 16, 2013

     Referred To: House Finance

It is enacted by the General Assembly as follows:

1-1

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

1-2

hereby amended by adding thereto the following section:

1-3

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

1-4

any provision of the general or public laws to the contrary, eligible recipients of direct cash

1-5

assistance shall not use direct cash assistance funds held on electronic benefit transfer cards for

1-6

the purchase of alcoholic beverages, lottery tickets or tobacco products. An eligible recipient of

1-7

direct cash assistance who makes a purchase in violation of this section shall reimburse the

1-8

department for such purchase.

1-9

     (b) Notwithstanding any provision of the general or public laws to the contrary, an

1-10

individual or store owner shall not accept direct cash assistance funds held on electronic benefit

1-11

transfer cards for the purchase of alcoholic beverages, lottery tickets, or tobacco products. An

1-12

individual or store owner who knowingly accepts electronic benefit transfer cards in violation of

1-13

this section shall be punished by a fine of not more than five hundred dollars ($500) for the first

1-14

offense, a fine of not less than five hundred dollars ($500), nor more than one thousand dollars

1-15

($1,000) for the second offense, and a fine of not less than one thousand dollars ($1,000) for the

1-16

third or subsequent offense.

1-17

     (c) The department shall adopt rules prohibiting purchases with cash assistance funds

1-18

held on electronic benefit transfer cards of products and services and in venues as described in

1-19

this section.

2-20

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

2-21

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

2-22

electronic benefit transfer transaction at:

2-23

     (1) Liquor stores;

2-24

     (2) Casinos as defined by chapter 41-9.1;

2-25

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

2-26

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

2-27

disrobe or perform in an unclothed state for entertainment as defined in the social security act,

2-28

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

2-29

     (5) Adult bookstores or adult paraphernalia stores;

2-30

     (6) Firearms dealers licensed under section 11-47-39;

2-31

     (7) Tattoo parlors; manicuring shops, or esthetic shops as defined in section 5-10-1; or

2-32

     (8) Rent-to-own stores, jewelry stores, or on cruise ships.

2-33

     (f) Eligible recipients of direct cash assistance who use cash assistance funds held on

2-34

electronic benefit transfer cards in such establishments shall have their cash assistance reduced

2-35

for three (3) months by the portion of the family’s benefit attributable to one parent, in

2-36

accordance with rules and regulations promulgated by the department, for a first offense; for six

2-37

(6) months by the portion of the family’s benefit attributable to one parent for a second offense;

2-38

and, for a third offense, the department shall terminate assistance to that household.

2-39

     (g) The establishments described in subsection (d) shall not accept electronic benefits

2-40

transfer cards. A store owner who knowingly allows a prohibited electronic benefit transaction in

2-41

violation of this section shall be punished by a fine of not more than five hundred dollars ($500)

2-42

for a first offense, by a fine of not less than five hundred dollars ($500) nor more than two

2-43

thousand five hundred dollars ($2,500) for a second offense, and by a fine of not less than two

2-44

thousand five hundred dollars ($2,500) for a third or subsequent offense.

2-45

     (h) A store owner who knowingly violates this section and who also possesses a license

2-46

to sell alcoholic beverages under chapter 3-7 shall be referred to the appropriate licensing

2-47

authority for possible disciplinary action pursuant to title 3.

2-48

     (i) A store owner who knowingly violates this section, and who also possesses a license

2-49

to sell lottery tickets under chapter 42-61 shall be referred to the director of the state lottery for

2-50

possible disciplinary action.

2-51

     SECTION 2. This act shall take effect upon passage.

=======

LC02587

=======

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO HUMAN SERVICES - PUBLIC ASSISTANCE ACT

***

3-1

     This act would provide that a recipient of direct cash assistance on electronic benefit

3-2

cards shall not utilize that benefit to purchase alcoholic beverages, lottery tickets or tobacco

3-3

products. It would also provide for penalties for violations by recipients, and would also prohibit

3-4

store owners from accepting the benefit card for the purchase of the above items and provides for

3-5

penalties for said violations.

3-6

     This act would take effect upon passage.

=======

LC02587

=======