2013 -- S 0821 SUBSTITUTE A

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LC02151/SUB A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO HUMAN SERVICES - PUBLIC ASSISTANCE ACT

     Introduced By: Senators Bates, Hodgson, Algiere, Ruggerio, and McCaffrey

     Date Introduced: April 04, 2013

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 40-6-8 of the General Laws in Chapter 40-6 entitled "Public

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Assistance Act" is hereby amended to read as follows:

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     40-6-8. Supplemental nutrition assistance program (SNAP). -- (a) The department

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shall have the responsibility to administer the food stamp program for the state in compliance

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with the provisions of the federal Food Stamp Act of 1964, as amended, 7 U.S.C. section 2011 et

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seq. The supplemental nutrition assistance program (SNAP) is and shall be the new title of the

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program formerly known as the food stamp program. All references in the Rhode Island general

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laws to food stamps shall be deemed to mean, apply to, refer to, and be interpreted in accordance

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with the supplemental nutrition assistance program (SNAP).

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      (b) The department is empowered and authorized to submit its plan for food stamps to

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the federal government or any agency or department of it. The department shall act for the state in

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any negotiations relative to the submission and approval of a plan, and may make any

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arrangement or changes in its plan not inconsistent with this chapter which may be required by

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the Food Stamp Act or the rules and regulations promulgated pursuant to it to obtain and retain

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such approval and to secure for this state the benefits of the provisions of the federal act relating

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to food stamps. The department shall make reports to the federal government or any agency or

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department of it in the form and nature required by it, and in all respects comply with any request

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or direction of the federal government or any agency or department of it, which may be necessary

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to assure the correctness and verification of the reports.

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      (c) The department is authorized and directed to pay one hundred percent (100%) of the

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state's share of the administrative cost involved in the operation of the food stamp program.

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      (d) No person shall be ineligible for food stamp benefits due solely to the restricted

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eligibility rules otherwise imposed by section 115(a)(2) of the Personal Responsibility and Work

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Opportunity Reconciliation Act of 1996 (Public Laws No. 104-193), 21 U.S.C. section

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862a(a)(2), and as this section may hereafter be amended.

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     (e) The department shall apply to the federal government to be granted delegated

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authority for all SNAP investigations and enforcement actions that involve the organized

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fraudulent use and/or trafficking of SNAP benefits by retail establishments and/or business

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owners.

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     SECTION 2. Chapter 40-6 of the General Laws entitled "Public Assistance Act" is

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hereby amended by adding thereto the following section:

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

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

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assistance shall not use direct cash assistance funds for the purchase of alcoholic beverages,

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lottery tickets or tobacco products. An eligible recipient of direct cash assistance who makes a

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purchase in violation of this section shall reimburse the department for such purchase.

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

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

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the purchase of alcoholic beverages, lottery tickets, or tobacco products. An individual who

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knowingly accepts electronic benefit transfer cards in violation of this section shall be punished

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

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five hundred dollars ($500), nor more than one thousand dollars ($1,000) for the second offense,

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and a fine of not less than one thousand dollars ($1,000) for the third or subsequent offense.

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

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

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this section.

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

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

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electronic benefit transfer transaction at:

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     (1) Liquor stores;

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

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

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

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

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

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     (5) Adult bookstores or adult paraphernalia stores;

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

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

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     (8) Jewelry stores, or on cruise ships.

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

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

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

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with rules and regulations promulgated by the department, for a first offense; for six (6) months

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by the portion of the family's benefit attributable to one parent for a second offense and, for a

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

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

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

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

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

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

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

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

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

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authority for possible disciplinary action pursuant to title 3.

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

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

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possible disciplinary action.

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     SECTION 3. Chapter 40-6 of the General Laws entitled "Public Assistance Act" is

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hereby amended by adding thereto the following section:

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     40-6-6.1. Duties of department. -- The department shall develop and make available on

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its website for download a sign specifying the department's fraud hotline. Business associations

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may also maintain a downloadable form of the sign on the business associations' websites. Such

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sign may be posted in a conspicuous area in any business accepting electronic benefits transfer

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cards as a form of payment. Any business accepting electronic benefit transfer cards as a form of

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payment may maintain a list of categories of prohibited products under this chapter at each cash

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register.

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SECTION 4. This act shall take effect upon passage.

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LC02151/SUB A

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO HUMAN SERVICES - PUBLIC ASSISTANCE ACT

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     This act would prohibit the use of direct cash assistance funds held on electronic benefit

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transfer cards for the purchase of alcoholic beverages, lottery tickets, tobacco products and

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certain other products and services. The act would further provide for penalties for violations of

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the act.

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     This act would take effect upon passage.

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LC02151/SUB A

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